OFFICE OF THE SECRETARY
220 HAR <5 PHD 84
Muriet Bowser
Mayor WAR ~ 5 2020
The Honorable Phil Mendelson, Chairman
Councilof the District of Columbia
1350 Pennsylvania Ave., NW, Suite 504
Washington, D.C. 20004
Dear Chairman Mendelson:
Enclosed for consideration and approval by the Council of the District of Columbia is a
proposed resolution entitled the Alcoholic Beverage Regulation Technical Amendments
Approval Resolution of 2020,
The proposed resolution would approve amendments to existing sections and create new
sections in Title 23 of the District of Columbia Municipal Regulations. Specifically, the
proposed rulemaking makes regulatory changes to conform to changes contained in the
Omnibus Alcoholic Beverage Regulation Amendment Actof2018, effective October 30,
2018 (D.C. Law 22-165; 65 DCR 13691) (Act). The proposed rules also make other
administrative and technical changes unrelated to the Act.
If you have any questions on this matter, please contact Donovan Anderson, Chairperson,
Alcoholic Beverage Control Board, at (202) 442-4423.
Encfhosures
 Chairman Phil Mendelson
at the request ofthe Mayor
PROPOSED RESOLUTION
Cora
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To approve proposed rules ofthe Alcoholic Beverage Control Board that make technical
ul amendments to Title 23 of the District of Columbia Municipal Regulations to
12 conform to changes contained in the Omnibus Alcoholic Beverage Regulation
13, Amendment Act of 2018 and to make other administrative and technical
4 amendments to Title 23 of the District of Columbia Municipal Regulations.
15
16 RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That
17 this resolution may be cited as the Alcoholic Beverage Regulations Technical
18 Amendments Approval Resolution of 2020.
19 Sec. 2. Pursuant to D.C. Official Code 25-211(b)(2), the Councilofthe District
20 of Columbia approves the proposed rulemaking by the Alcoholic Beverage Control
21 Board, published in the District of Columbia Register on 66 DCR 15729 (November 29,
22 2019) , which would make amendments to Title 23 of the District of Columbia Municipal
23 Regulations to conform to changes contained in the Omnibus Alcoholic Beverage
24 Regulation Amendment Act of 2018 effective October 30, 2018 (D.C. Law 22-165; 65
25 DCR 13691), and would make other administrative and technical amendments to Title 23
26 of the District of Columbia Municipal Regulations.
 Sec. 3. The Secretary to the Councilofthe District of Columbia shall transmit a
copy of this resolution, upon its adoption, to both the Mayor and the Chairpersonofthe
N
Alcoholic Beverage Control Board.
Sec. 4. This resolution shall take effect immediately.
 ALCOHOLIC BEVERAGE REGULATION ADMINISTRATION
ALCOHOLIC BEVERAGE CONTROL BOARD
NOTICE OF PROPOSED RULEMAKING
The Alcoholic Beverage Control Board (Board), pursuant to the authority set forth in the
Omnibus Alcoholic Beverage Amendment Act of 2004, effective September 30, 2004 (D.C. Law
15-187; D.C. Official Code 25-211(b) (2012 Repl. & 2019 Supp.)), and Mayors Order 2001-
96, dated June 28, 2001, as revised by Mayors Order 2001-102, dated July 23, 2001, hereby
gives notice of proposed rulemaking action to amend Chapters 1 (Provisions of General
Applicability), 2 (License and Permit Categories), 4 (General Licensing Requirements), 5
(License Applications), 6 (License Changes), 7 (General Operating Requirements), 9 (Prohibited
and Restricted Activities), 10 (Endorsements), 11 (Advertising), 12 (Records and Reports), 13
(Transport of Beverages), 15 (Applications: Notice of Hearings Involving Licenses), 16
(Contested Hearings, Non-contested Hearings, Protest Hearings, and Procedures), 17 (Procedural
Requirements for Board Hearings), 18 (Petition Procedures), 19 (Complaints: Inquiries to the
Board), and 20 (Caterers License) of Title 23 (Alcoholic Beverages)ofthe District of Columbia
Municipal Regulations (DCMR).
BACKGROUND
On September 11, 2019, the Board approved the Technical Amendment Notice of Proposed
Rulemaking, four (4) to zero (0). The proposed rulemaking included regulatory changes that
originated from the Council of the District of Columbias (Council) approval of the Omnibus
Alcoholic Beverage Regulation Amendment Act of 2018 (D.C. Law 22-165, effective October
30, 2018). The proposed rulemaking also made changes to Title 23 of the District of Columbia
Municipal Regulations that are unrelated to the Omnibus bill. Specifically, the Technical
Amendment Notice of Proposed Rulemaking did the following:
1. Chapter 1 - revising the definitionofthe term safekeeping hearings in 199.
2. Chapter 2 - repealing 214 (Notice to Advisory Neighborhood Commissions) and
moving the language in this section to a new section in Chapter 15 (Applications: Notice
of Hearings Involving Licensees).
3. Chapter 4 (General Licensing Requirements) - replacing voluntary agreement with the
phrase settlement agreement as it is used in Title 25 of the D.C. Official Code. Similar
amendments were made throughout Title 23 to ensure obsolete terminology is no longer
used.
4. Chapter (License Applications) revised to conform to D.C. Official Code 25-402 as it
relates to those members/owners of a licensed establishment that must comply with 23
DCMR and Title 25of the D.C. Official Code.
5. Chapter 6 (License Changes)- revised to conform to D.C. Official Code 25-402 as it
relates to those members/owners ofa licensed establishment that must comply with 23
DCMR and Title 25 of D.C. Official Code. Chapter 6 is further amended for purposes of
recognizing limited liability companies.
6. Chapter 7 (General Operating Requirements):
 a) Section 703 (Temporary Operating Retail Permit) is amended to establish a ninety
(90) day time limit for temporary operating retail permits, unless extended by the
Board for good cause.
b) Section 704.4 is repealed because the Board does not require licensees to provide a
detailed plan when removing alicense from safekeeping
c) Conforming amendments were made to 705 (Hours of Sale and Delivery for Off-
Premises Retail Licenses) to ensure that they are consistent with Title 25 of D.C.
Official Code.
d) Sections 706 (Locking of Beverages During Non-sale Hours), 710 (Minimum
Charge), and 712 (Pub Crawls) were amended to correct errors in the text. These
revisions were more technical than substantive.
) Chapter 7 is further amended by ensuring that statutory changes contained in the 2018
Omnibus bill are also captured in the regulations. To that end, 707.1 sets forth
instances in which alicensed establishment is not required to have an owner or ABC
Manager present on the licensed premises.
f) Section 711 (Retail Permits for Sampling Alcoholic Beverages) is amended to allow
holders of wholesaler licenses, manufacturers licenses, and off-premises retailer
licenses to offer tastings during specific hours.
2) Section 716 (One Day Substantial Changes) is amended to allow manufacturers and
off-premises retail licenses to apply for one-day substantial change permits.
h) Section 717 (Corking Fee) is amended to allow holders of temporary and festival
licenses to allow their customers to bring their own alcoholic beverages to their
events.
i) Section 721 (Self-Service Machines) is added to regulate and standardize the
operations of self-serving machines that serve beer and wine.
Chapter 9 (Prohibited and Restricted Activities) - standardizing the language in 903
and 904, These changes are technical in nature and serve to eliminate any confusion that
might exist.
Chapter 10 (Endorsements):
a) Section 1000 (Entertainment Endorsement) is amended to allow manufacturers
holding an onsite sales and consumption permit and bed and breakfast licenses to
charge a cover.
b) Section 1001 (Entertainment Endorsement Application) is amended to replace
voluntary agreement with settlement agreement
) Section 1002 (Cover Charge) is amended to allow manufacturers holding an onsite
sales and consumption permit as well as bed and breakfasts to charge a cover.
d) Section 1003 (One-Day Substantial Change Exception) is revised to allow licensed
manufacturers and bed and breakfasts to apply for a one-day substantial change
permit.
) Section 1004 (Sidewalk Caf and Summer Garden Endorsement) is amended to allow
manufacturers and bed and breakfasts to apply for sidewalk caf and summer garden
endorsements.
Chapter 11 (Advertising) - 1100 (Prohibited Statements) is amended by removing all
references to religious holidays.
10. Chapter 12 (Records and Reports) - 1202 is amended by removing the requirement that
wholesalers submit annual reports, which the Board no longer requires.
1. Chapter 13 (Transport of Beverages):
a) The requirements in 1300-1302 are standardized.
b) 1303 is amended by subjecting wholesalers and manufacturers that ship alcoholic
beverages in the District to the same standard as other licensees.
12. Chapter 15 (Applications: Notice of Hearings Involving Licensees) is amended to add a
new 1506. This new section include the notice to the Advisory Neighborhood
Commissions which was in 214.
13. Chapter 16 (Contested Hearings, Non-contested Hearings, Protest Hearings, and
Procedures):
a) Is amended by clarifying which hearings are contested and non-contested and further
clarifying which hearings are closed by operation oflaw.
b) Sections 1602, 1605, and 1612 are amended to require protest groups to select one
member to represent the group, and in the instances ofmultiple protest groups, grants
the Board discretion to require one representative to represent allofthe groups.
) Section 1616 (Fact-Finding Hearings) is amended to clarify that the Board can send
an investigative report to OAG for show cause after a fact finding hearing.
14. Chapter 17 (Procedural Requirements for Board Hearings):
a) Section 1703 (Service of Papers) is amended to clarify that an investigator can serve
process on the owner, the ABC manager or any employeeof a licensed establishment.
b) Section 1706 (Appearance and Representation) is amended in its entirety to require
attorneys and non-lawyer representatives of persons appearing before the Board to
file a notice of appearance.
c) Section 1707 (Notice of Appearance) is amended to clarify what is required of lawyer
and non-lawyer representatives appearing before the Board.
d) Section 1708 (Inspection of Board Files) is amended to conform to the Councils
statutory changes contained in the 2018 Omnibus bill to require that requests for
documents be produced within three (3) business days.
) Section 1709 (Investigator Reports) is amended to make clear that all protest matters
will be assigned to an investigator to a produce a report prior to the protest hearing
f) Section 1714 (Examination of Witnesses) is amended to allow the Board to require
multiple protestant groups to identify one representative to represent all of the groups
at a protest hearing.
g) Section 1717 (Post-Hearing Submissions) is amended to clarify that Proposed
Findings of Fact and Conclusions of Law are limited to the evidence submitted at the
hearing, and that the parties cannot introduce any new evidence or arguments after the
record closes.
h) Section 1719 (Reconsideration, Rehearing, and Reargument) is amended in its
entirety, including the title which shall be Reconsideration, Rehearing, Reargument,
and Stay). The amendments further clarify what the Board requires for motions for
reconsideration, rehearing, reargument, and stay.
i) Section 1722 (Protest Information Form) is revised to conform to the Boards practice
and to clarify the failure to file the PIF or an Exhibit Form may result in the dismissal
of a partys case or the exclusionofevidence not disclosed prior to the hearing.
15. Chapter 18 (Petition Procedures) is amended by repealing 1801 because it duplicates
1602 (Filing a Protest).
 16. Chapter 19 (Complaints: Inquiries to the Board) is amended by replacing voluntary
agreement with the phrase settlement agreement in 1903. 1.
17. Chapter 20 (Caterers License) is amended by revising 2005 (Manager Attendance at
Catered Events) in its entirety and by amending 2006 (Caterers Report) by revising
2006.1 in its entirety by eliminating the requirement that caterers reports must be
furnished to the Board under oath.
The proposed rulemaking was published in the D.C. Register for thirty (30)-day notice and
comment on November 29, 2019, See 66 DCR 15729. The comment period ended on December
29, 2019, without the Board receiving any comments from the public. No substantive changes
have been made to the rulemaking since it was published as proposed in the D.C. Register for
comment.
On January 8, 2020, the Board held a public hearing. Noticeofthe hearing was published in the
D.C. Register on December 27, 2019. See 66 DCR 16536. The Board did not receive any
comments concerning the rulemaking at the public hearing. The Board extended the comment
period to January 17, 2020. Asofthat date, the Board has not received any comments
concerning the Technical Amendment of Notice ofProposed Rulemaking.
BOARD'S DECISION
In light of the Board not receiving any comments concerning the Technical Amendment Notice
of Proposed Rulemaking, the Board approves, five (5) to zero (0), for the rulemaking to the be
sent to the Council for ninety (90)-day period of review in accordance with D.C. Official Code
25-211(b)(2)(2012 Repl.). The Board will not take final action concerning the proposed
rulemaking absent approval from the Council, in whole or in part, in accordance with D.C.
Official Code 25-211(b)(2).
Chapter 1, PROVISIONS OF GENERAL APPLICABILITY, of Title 23 DCMR,
ALCOHOLIC BEVERAGES, is amended as follows:
Section 199, DEFINITIONS, Subsection 199.1, is amended by revising the definition of
Safekeeping hearing to read as follows:
Safekeeping hearing the proceeding held by the Board to determine whether
reasonable cause exists to extend the period that a license is held in safekeeping or
whether the license should be cancelled.
Chapter 2, LICENSE AND PERMIT CATEGORIES, is amended as follows:
Section 214, NOTICE TO ADVISORY NEIGHBORHOOD COMMISSIONS, is repealed
so that the section reads as follows:
214 [REPEALED]
Chapter 4, GENERAL LICENSING REQUIREMENTS, is amended as follows:
 Section 402, BOARD CHECK SHEET, is amended by striking voluntary agreement and
replacing it with settlement agreement in 402.1() so that it reads as follows:
402.1
() A copy of the establishments cooperative agreement or settlement
agreement, if any.
Chapter 5, LICENSE APPLICATIONS, is amended as follows:
Section 502, POLICE CLEARANCE, is amended by striking the term principal vice
president and inserting the term vice president in 502.3, and striking the phrase over
twenty-five percent (25%) and inserting the phrase ten percent (10%) or more in
502.4, so that both subsections read as follows:
502.3 Each individual partner of a partnership, the president, vice president, and
treasurerof a corporation and the managersof a limited liability company shall be
required to comply with the provisionsof this section.
502.4 Each stockholder, limited partner, or member of a limited liability company
holding directly or indirectly ten percent (10%) or more of the stock of a
corporation, partnership, or limited liability company shall be required to comply
with the provisionsofthis section.
Chapter 6, LICENSE CHANGES, is amended as follows:
Section 601, CORPORATE AND PARTNERSHIP CHANGES, is amended by striking the
phrase twenty-five percent (25%) and inserting the phrase ten percent (10%) in
Subsection 601.1, and amending 601.4 in its entirety, so that both subsections read as
follows:
601.1 Ifthere is a change in corporate officers, directors, limited or general partners in a
partnership, or persons owning or controlling ten percent (10%) or more of the
common stockofthe corporate license, the corporation or partnership shall submit
to the Board within fifteen (15) calendar days the minutes or other instrument
giving the names and addresses of any new officer, director, partner, or person
holding ten percent (10%) or more of the stock.
601.4 Ifthere is a change in the general partners of
a limited partnership or the members
of a limited liability company, the partnership or limited liability company
owning or controlling ten percent (10%) of the partnership interest shall submit to
the Board in a timely manner, but no later than fifteen (15) calendar days after the
changes has occurred, the instruments reflecting the change in partnership or
membership interests.
 Chapter 7, GENERAL OPERATING REQUIREMENTS, is amended as follows:
Section 703, TEMPORARY OPERATING RETAIL PERMIT, is amended by
renumbering the current 703.5 as 703.6; striking the phrase pursuant to 703.5 and
inserting the phrase pursuant to 703.6 in 703.4; and creating a new 703.5 which
will allow the temporary operating retail permit to remain in effect for not more than
ninety (90) days, unless the Board grants an extension for good cause.
703.4 The permit shall be valid until the applicant's transfer application is either granted
or denied by the Board or until the permit is cancelled or suspended by the Board
pursuant to 703.6.
703.5 Notwithstanding 703.4, no permit shall be valid for longer than ninety (90)
calendar days unless extended by the Board for good cause.
Section 705, HOURS OF SALE AND DELIVERY FOR OFF-PREMISES RETAIL
LICENSEES, is amended by repealing 705.1; striking the phrase cooperative/voluntary
agreement and inserting the phrase cooperative/settlement agreement in 705.2;
repealing 705.3; striking the phrase stated in and inserting the phrase provided by in
705.4, as well as adding the phrase or as otherwise set forth in its license after the
phrase of this title; and inserting the phrase provided by after the phrase during the
hours of sale in 705.5. Each of the amended subsections shall read as follows:
705.1 [REPEALED].
705.2 The Board may, by written order, further limit the hours of sale and delivery set
forth in D.C. Official Code 25-722 on a