Bill Summary – FastDemocracy

ENGROSSED ORIGINAL

                                              A BILL

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                                              24-113

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                    IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

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 To amend the Attorney General for the District of Columbia Clarification and Elected Term

       Amendment Act of 2010 to deposit $100,000 in revenue from fines issued to unlicensed

       establishments and commercial property owners allowing unlicensed establishments to

       operate; to amend Legalization of Marijuana for Medical Treatment Initiative of 1999 to

       allow qualifying patients to self-certify, to establish a process for unlicensed

       establishments to obtain a medical cannabis business license, to create new license

       categories and endorsements, and to promote social equity in the medical cannabis

       market in the District; to amend D.C. Official Code  472844 to create a civil

       enforcement mechanism for businesses and commercial property owners distributing or

       selling cannabis without a license; to amend Title 25 of the District of Columbia Official

       Code to make conforming definitional changes; to amend The Law to Legalize Lotteries,

       Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of

       Columbia to make conforming definitional changes; and to amend Chapter 18 and

       Chapter 20 of Title 47 to make conforming definitional changes, amendments to the law

       regulating the medical cannabis sales tax, and adding a local tax deduction for licensed

       medical cannabis businesses.

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         BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this

 act may be cited as the Medical Cannabis Amendment Act of 2022.

         Sec. 2. Section 106b(b) of the Attorney General for the District of Columbia Clarification

 and Elected Term Amendment Act of 2010, effective October 22, 2015 (D.C. Law 21-36; D.C.

 Official Code  1-301.86b(b)), is amended as follows:

         (a) Paragraph (2) is amended by striking the phrase ; and and inserting a semicolon in

 its place.

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          (b) Paragraph (3) is amended by striking the period and inserting the phrase ; and in its

 place.

          (c) New paragraphs (4) and (5) are added to read as follows:

                 (4) The first $100,000 in fines imposed and collected pursuant to section 5 of the

 Medical Cannabis Amendment Act of 2022, as approved by the Committee of the Whole on

 December 6, 2022 (Committee print of Bill 24-113); and

                 (5) The first $100,000 in fines imposed and collected pursuant to D.C. Official

 Code  47-2844(a-2)(1B)..

          Sec. 3. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective

 February 25, 2010 (D.C. Law 13-315; D.C. Official Code  7-1671.01 et seq.), is amended as

 follows:

          (a) Section 2 (D.C. Official Code  7-1671.01) is amended as follows:

                 (1) Paragraph (1) is amended to read as follows:

                 (1) ABC Board means the Alcoholic Beverage and Cannabis Board

 established by D.C. Official Code  25-201.

                 (2) Paragraph (1A) is amended to read as follows:

                 (1A) ABCA means the Alcoholic Beverage and Cannabis Administration

 established by D.C. Official Code  25-202.

                 (3) Paragraph (1C) is amended by striking the phrase of medical marijuana and

 inserting the phrase of medical cannabis in its place.

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                 (4) A new paragraph (2A) is added to read as follows:

                 (2A) Cannabis shall have the same meaning as provided in section 102(3) of

 the District of Columbia Uniform Controlled Substances Act of 1981, effective August 5, 1981

 (D.C. Law 4-29; D.C. Official Code  48-901.02(3))..

                 (5) Paragraph (3) is amended to read as follows:

                 (3) Caregiver means a person at least 18 years of age who is designated by a

 qualifying patient as the person authorized, on the qualifying patients behalf, to possess, obtain

 from a licensed retailer, internet retailer or courier, dispense, administer, and assist in the

 administration of medical cannabis..

                 (6) A new paragraph (4A) is added to read as follows:

                 (4A) Courier means a platform or business that:

                         (A) Is licensed to conduct business in the District;

                         (B) Has a contractual relationship with a holder of a medical cannabis

 retailer license or internet retailer license to provide delivery services or facilitate the sale of

 medical cannabis or medical cannabis products for deliveries in the District to qualifying patients

 or caregivers through the use of the internet, a mobile application, or a similar technology

 platform; and

                         (C) Uses its own employees or independent contractors..

                 (7) Paragraph (5) is amended as follows:

                         (A) Strike the phrase ABRA and insert the phrase ABCA in its place.

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                        (B) Strike the phrase medical marijuana both times it appears and insert

 the phrase medical cannabis in its place.

                (8) Paragraph (7) is repealed.

                (9) Paragraph (8) is amended by striking the phrase medical marijuana and

 inserting the phrase medical cannabis in its place.

                (10) Paragraphs (9A), (9B), and (9C) are added to read as follows:

                (9A) DSLBD means the Department of Small and Local Business

 Development.

                (9B) Economically disadvantaged individual shall have the same meaning as

 provided in section 2302(7) of the Small and Certified Business Enterprise Development and

 Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code  2-

 218.02(7)).

                (9C) Internet retailer means a platform or business that is licensed to conduct

 business in the District, provides delivery services, and facilitates the sale of medical cannabis or

 medical cannabis products for deliveries to qualifying patients or caregivers through the use of

 the internet, a mobile application, or similar technology platform; and that does not have a

 physical location that is open to the public..

                (11) Paragraph (10) is amended by striking the phrase of marijuana and

 inserting the phrase of cannabis in its place.

                (12) Paragraph (11) is repealed.

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                  (13) A new paragraph (11A) is added to read as follows:

                  (11A) Manufacturer means a facility operated by an organization or business

  licensed with ABCA pursuant to section 6 to:

                          (A) Process medical cannabis from cultivation centers into medical

 cannabis concentrates and medical cannabis-infused products;

                         (B) Package and label medical cannabis concentrates and medical

 cannabis-infused products for dispensing at licensed retailers and internet retailers; and

                         (C) Sell medical cannabis concentrates and medical cannabis-infused

 products at wholesale to licensed retailers and internet retailers..

                 (14) Paragraph (12) is amended by striking the phrase Medical marijuana

 means marijuana and inserting the phrase Medical cannabis means cannabis in its place.

                 (15) Paragraph (12A) is redesignated as paragraph (12B).

                 (16) A new paragraph (12A) is added to read as follows:

                 (12A) Medical cannabis certified business enterprise means a business

 enterprise that operates a cultivation center, retailer, internet retailer, courier, manufacturer, or

 testing laboratory that:

                         (A) Is certified by DSLBD as an equity impact enterprise, as that term is

 defined in section 2302(8A) of the Small and Certified Business Enterprise Development and

 Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code  2-

 218.02(8A)), (CBE Act) and rules issued pursuant to the CBE Act;

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                         (B) Demonstrates to the satisfaction of DSLBD that more than 50% of

 the employees of the business enterprise are residents of the District; and

                         (C) Submits a form to ABCA attesting under the penalty of perjury that

 the annual personal net income of each owner of the enterprise applying for a cultivation center,

 retailer, internet retailer, cultivator, courier, manufacturer, or testing laboratory license does not

 exceed $349,999..

                 (17) The newly redesignated paragraph (12B) is amended to read as follows:

                 (12B) Medical cannabis product means a product derived from or composed of

 medical cannabis, in part or in whole..

                 (18) A new paragraph (13B) is added to read as follows:

                 (13B) Non-resident cardholder means a non-District resident who:

                         (A) Is not enrolled in another jurisdictions medical cannabis program;

 and

                         (B) Has submitted documentation required by ABCA for a temporary 30-

 day registration identification card and received confirmation from ABCA of their registration..

                 (19) Paragraph (14) is amended as follows:

                         (A) Subparagraph (A) is amended by striking the phrase medical

 marijuana into and inserting the phrase medical cannabis into in its place.

                         (B) Subparagraph (B) is amended by striking the phrase medical

 marijuana. and inserting the phrase medical cannabis. in its place.

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                   (20) A new paragraph (14A) is added to read as follows:

                   (14A) Pesticide includes:

                          (A) Any substance or mixture of substances intended to prevent, destroy,

 control, repel, or mitigate any insect, rodent, snail, slug, fungus, weed, and any other form of

 plant or animal life or virus, except a virus on or in a living person or other animal which is

 normally considered to be a pest;

                          (B) Any substance or mixture of substances intended to be used as a plant

 regulator, defoliant, or desiccant; and

                          (C) Any spray adjuvant..

                   (21) Paragraph (16) is amended by striking the phrase medical marijuana

 program and inserting the phrase medical cannabis program in its place.

                   (22) Paragraph (17) is amended to read as follows:

                   (17) Qualifying medical or dental condition means any condition for which

 treatment with medical cannabis would be beneficial, as determined by an authorized

 practitioner..

                   (23) Paragraph (18)(D) is amended by striking the phrase of medical marijuana

 and inserting the phrase of medical cannabis in its place.

                   (24) Paragraph (19) is amended as follows:

                          (A) Strike the phrase ABRA and insert the phrase ABCA in its place.

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                        (B) Strike the phrase medical marijuana both times it appears and insert

 the phrase medical cannabis in its place.

                (25) Paragraph (19A) is amended by striking the phrase of medical marijuana

 and inserting the phrase of medical cannabis in its place.

                (26) New paragraphs (20A), (20B), (20C), and (20D) are added to read as

 follows:

                (20A) Retailer means a facility operated by an organization or business

 licensed with ABCA pursuant to section 6 from or at which medical cannabis is possessed and

 dispensed, and paraphernalia is possessed and distributed to a qualifying patient or a caregiver.

                (20B) Returning citizen means a District resident who was arrested, convicted,

 or incarcerated for a cannabis or drug-related offense.

                (20C) Social equity applicant means an applicant for licensure with ABCA

 pursuant to section 7 who satisfies two or more of the following criteria:

                        (A) The applicant has at least one owner who is a District resident,

 individually or collectively owns at least 50% of the business, and is a returning citizen;

                        (B) The applicant has at least one owner who is a District resident,

 individually or collectively owns at least 50% of the business, and is married to or in a civil

 union, has a child, or is the child of a person or has a non-parent legal guardian who is or has

 been incarcerated in the District or in any other jurisdiction for a cannabis or drug-related

 offense; or

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                           (C) The applicant has at least one owner who is a District resident,

 individually or collectively owns at least 50% of the business and has an income that does not

 exceed 150% of the median family income as set forth by the United States Department of

 Housing and Urban Development, adjusted for household size, at the time the applicant submits

 the application.

                 (20D) Straw ownership means nominal ownership without the attendant

 benefits and risks of genuine ownership, where a person, often for a fee, allows themselves to be

 named on documents or purports in writing to be an owner, in whole or in part, for the purpose

 of satisfying a government regulatory requirement..

                 (27) Paragraph (21) is amended to read as follows:

                 (21) Testing laboratory means an entity that is not owned or operated by a

 director, officer, member, incorporator, agent, or employee of a cultivation center, manufacturer,

 retailer, internet retailer, courier, or other license category established by rulemaking and is

 licensed by ABCA to test medical cannabis and medical cannabis products that are to be sold

 pursuant to this act..

                 (28) A new paragraph (22) is added to read as follows:

                 (22) Unlicensed establishment means a sole proprietorship, partnership, or

 other business entity that:

                           (A) Sells, exchanges as part of a commercial transaction, or delivers

 cannabis and cannabis products;

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                        (B) Operates at or delivers from a specific location in the District; and

                        (C) Is not licensed by ABCA as a cultivation center, retailer, internet

 retailer, manufacturer, courier or testing laboratory..

        (b) Section 3 (D.C. Official Code  7-1671.02) is amended as follows:

                (1) The section heading is amended by striking the phrase of medical marijuana

 and inserting the phrase of medical cannabis in its place.

                (2) Subsection (a) is amended to read as follows:

        (a) Notwithstanding any other District law, a qualifying patient may purchase, possess,

 use, and administer medical cannabis, and purchase, possess, and use paraphernalia, in

 accordance with this act and the rules issued pursuant to section 14..

                (3) Subsection (b) is amended to read as follows:

        (b) Notwithstanding any other District law, a caregiver may obtain, possess, dispense,

 administer, and assist in the administration of medical cannabis to a qualifying patient, and

 obtain, possess, and use paraphernalia, for the sole purpose of assisting in the administration of

 medical cannabis to a qualifying patient in accordance with this act and the rules issued pursuant

 to section 14..

                (4) A new subsection (b-1) is added to read as follows:

        (b-1) When registering pursuant to section 6, a caregiver shall not be required to submit

 a criminal background check to ABCA..

                (5) Subsection (c) is amended to read as follows:

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        (c) A qualifying patient may purchase, possess, and administer medical cannabis, and

 purchase, possess, and use paraphernalia, only for the treatment of a qualifying medical or dental

 condition or the side effects of a qualifying medical treatment, and only after having:

                (1)(A) Obtained a signed, written recommendation from an authorized

 practitioner within the last 2 years in accordance with section 5, except for individuals 21 years

 of age and older who shall be permitted to self-certify on a form provided by ABCA that they are

 utilizing cannabis for medical purposes as part of the registration process; and

                        (B) Registered with ABCA pursuant to section 6; or

                (2) Enrolled in another jurisdictions medical cannabis program..

                (6) New subsections (c-1) and (c-2) are added to read as follows:

        (c-1) When a qualifying patient's or caregiver's registration identification card has

 expired or will expire at any time between March 1, 2020, and March 31, 2023, and the

 qualifying patient or caregiver has not submitted an application for a new registration

 identification card, the qualifying patient or caregiver may continue to obtain, purchase, possess,

 dispense, use, administer, and assist in the administration of, respectively, medical cannabis in

 accordance with this act and the rules issued pursuant to section 14 until March 31, 2023. On or

 after April 1, 2023, the qualifying patient or caregiver shall possess a valid registration

 identification card to continue to obtain, purchase, possess, dispense, use, administer, and assist

 in the administration of, respectively, medical cannabis.