Local lawmakers in Washington, D.C. last week passed legislation to expand medical marijuana sales, giving the city’s popular but unlicensed weed gifting shops a path to the regulated market. The bill, which was approved by the D.C. district council on December 20, comes after Congress included an existing prohibition on regulated adult-use cannabis sales in the nation’s capital as part of a spending bill approved last week.

The bill significantly expands Washington, D.C.’s medical marijuana program, lifting a cap on dispensaries and increasing the number of authorized cultivation facilities. The legislation also creates licenses for new types of cannabis businesses, including marijuana delivery services, online sales, educational programs such as cooking classes, and cannabis consumption areas at dispensaries. Half of the new licenses will be reserved for social equity applicants, which are defined as D.C. residents who have a low income, have spent time in prison, or are related to someone who was incarcerated for a cannabis or drug-related offense.

Bill Addresses D.C.’s Weed Gifting Shops

The legislation is designed to address the vast unregulated market for cannabis in Washington, D.C., where medical marijuana was legalized by local lawmakers in 2010. In 2014, voters approved Initiative 71, a ballot measure to legalize recreational marijuana. Under the measure, adults can possess up to two ounces of marijuana, are permitted to grow cannabis at home, and may gift up to one ounce of weed to another adult. However, Congress, which has control over the Washington, D.C. budget, has refused to allow the city to spend money on regulating recreational marijuana sales.

The situation has led to dozens of businesses that take advantage of the gifting provision of I-71 to distribute cannabis openly from storefront businesses. Under the common scheme, businesses sell benign merchandise such as apparel or art, offering what is ostensibly a free gift of marijuana with the purchase. Phil Mendelson, the Chairman of the Council of the District of Columbia, estimates the unregulated marijuana market in the nation’s capital is worth as much as $600 million per year. 

“There’s always going to be an advantage to unlicensed and unregulated: they don’t have to pay taxes, they don’t have to ensure quality,” Mendelson said in an interview with DCist/WAMU. “Congress is aiding and abetting that by prohibiting us from regulating that. It’s a real public safety problem,” he said.

Patients Can Self-Certify To Use Medical Marijuana

The legislation passed last week also makes permanent an emergency measure passed earlier this year that allows adults to certify their own eligibility to use medical marijuana, eliminating a previous provision that required certification by a licensed physician. At the time, Mendelson and some members also attempted to enact prohibitions on the gifting industry but faced opposition from a group of business owners. Legalizing the shops so they could be regulated was not possible under the congressional ban, making allowing gifting businesses a path to the medical marijuana market an option popular with a majority of the district council.

“It’s going to allow the District to be a lot healthier on the cannabis side,” Terrence White, chairman of a group known as the i-71 Committee and a gifting shop owner, told the Washington Post. “It’s going to allow us to be doing it ‘right,’ as I call it.”

The bill passed by the council last week gives existing operators 90 days to apply for a medical marijuana retailer license and prevents enforcement against gifting shops for at least 315 days after the legislation goes into effect. David Grosso, a former council member and current lobbyist for the D.C. Cannabis Trade Association, a group representing licensed medical marijuana operators, said that the bill is a positive development for the industry.

“We certainly would like to see a level playing field across the board, and that hasn’t been the case for as long as the [Initiative 71] folks have been operating illegally. And so we’re hopeful that this effort will bring them into the legal market and then treat them equally with us,” said Grosso. “And that means all the regulations that come with it, the fees that you have to pay, the inspections you have to endure, all of the restrictions around where you can locate, and everything like that which the current legal market has had to deal with now for more than ten years, which is a huge burden on us.”

Norbert Pickett, the owner of Cannabliss, one of the seven licensed medical dispensaries located in the nation’s capital, agreed, saying that the legislation is an opportunity to expand Washington, D.C.’s medical marijuana market and provide new options for patients.

“It gives patients more access to safe and tested cannabis,” he said. “It unifies unregulated market and the legal market. For me, that’s a win.”

Mackenzie Mann, project manager for the gifting industry trade group Generational Equity Movement, said that the legislation from the district council is a drastic change for Washington, D.C.’s cannabis landscape.

“It’s surreal,” Mann said. “A year ago, they were trying to shut us down.”

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Planned inspections of Washington, D.C.’s unlicensed cannabis retailers have reportedly been delayed.

The inspections, which were announced last month by the city’s Alcoholic Beverage Regulation Administration, were designed to ensure the businesses “abide by the regulatory requirements of DC Health, the Department of Consumer and Regulatory Affairs (DCRA), the District of Columbia Fire and Emergency Medical Services Department (FEMS), and the Office of Tax and Revenue (OTR).”The inspections, which were announced last month by the city’s Alcoholic Beverage Regulation Administration, were designed to ensure the businesses “abide by the regulatory requirements of DC Health, the Department of Consumer and Regulatory Affairs (DCRA), the District of Columbia Fire and Emergency Medical Services Department (FEMS), and the Office of Tax and Revenue (OTR).”

But the DCist reports that officials are “delaying plans to inspect the city’s many marijuana gifting stores this week, deepening the confusion around the maybe-legal, maybe-not industry that continues to grow across the city.”

The outlet, citing a source familiar with the situation, said that law enforcement officials “had raised concerns about the protocol for inspecting the stores, and what would happen if inspectors found weapons or other illicit items.”

The inspections were scheduled to begin after Labor Day.

Voters in the nation’s capital approved a ballot initiative in 2014 that legalized recreational cannabis, but due to an arcane provision that gives Congress oversight over its laws, the sale of pot remains prohibited in D.C.

Since that vote eight years ago, every appropriations bill passed by Congress has contained what is known as the “Harris Rider,” named Maryland Republican Congressman Andy Harris, which prohibits Washington, D.C. from commercializing recreational cannabis.

Democrats on Capitol Hill flirted with the idea of removing the Harris Rider from the latest spending bill when it released a draft of the legislation last fall.

But by March of this year, the final version of the bill included the Harris Rider, much to the chagrin of cannabis reform advocates in D.C.

“Congress needs to step out of this,” Phil Mendelson, the chair of the D.C. City Council, said in March. “It perpetuates the current lawless situation in the city.”

That has not stopped a number of intrepid business owners in Washington, D.C. from finding a workaround to the ban.

The city has a number of illicit retailers that sell cannabis through the practice of “gifting,” through which a customer pays for an item such as a t-shirt, and is in turn provided with a “gift” of cannabis.

Gifting has become so ubiquitous––and popular––in Washington, D.C. that some policymakers and industry officials have expressed concerns that it is chewing into the margins of legal, medical cannabis operations, with patients opting to go the illicit route instead of filling out tedious paperwork.

“The medical side are struggling on the brink of existence, while the illegal side has only grown more rapidly,” Mendelson said in April.

That month, the D.C. Council rejected a proposal that would have imposed harsh fines on “gifting” retailers.

A couple months later, the council passed a different measure that was also proposed with an eye toward buttressing the city’s beleaguered medical cannabis retailers. Under the new ordinance, which was signed into law by Washington, D.C. Mayor Muriel Bowser in July, medical cannabis patients in the city are now allowed to “self-certify” their qualifications for the treatment, which will enable them to bypass a doctor.

“We have made it a priority over the years to build a more patient-centric medical marijuana program and this legislation builds on those efforts,” Bowser said in a statement. “We know that by bringing more medical marijuana patients into the legal marketplace in a timely manner and doing more to level the playing field for licensed medical marijuana providers, we can protect residents, support local businesses, and provide clarity to the community.”

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Regulators in the nation’s capital announced last week that they will start inspections of unlicensed cannabis businesses to verify compliance with various laws.

The Alcoholic Beverage Regulation Administration said that a “Joint Cannabis Task Force,” which consists of “various [Washington, D.C.] government agencies,” will start visiting the businesses next month following a 30-day grace period.

Although voters in D.C. passed an initiative that legalized recreational cannabis all the way back in 2014, the sale of weed is still technically illegal due to a congressional ban.

Businesses there have found a loophole through the practice of “gifting”: a customer pays for an item like a t-shirt and is in turn “gifted” some cannabis.

The practice has upset many of the medical cannabis operators in Washington, D.C., who have said that the illicit shops are cutting into their business.

In April, the D.C. City Council rejected a proposal, which was backed by the medical marijuana industry, that would have levied harsher fines on businesses that engage in gifting.

The inspections that were announced by the Alcoholic Beverage Regulation Administration will be done to ensure that the unlicensed cannabis businesses “abide by the regulatory requirements of DC Health, the Department of Consumer and Regulatory Affairs (DCRA), the District of Columbia Fire and Emergency Medical Services Department (FEMS), and the Office of Tax and Revenue (OTR).”

The administration detailed those laws:

• “DC Health—Edibles and other manufactured products being offered by businesses to customers must be approved by DC Health; businesses also must be in compliance with DC food safety and hygiene laws.”
• “DCRA—Businesses operating in the District must be registered with DCRA; businesses also must be in compliance with the District’s general business requirements such as having the proper business license and Certificate of Occupancy.”
• “FEMS—Businesses must be in compliance with DC fire code regulations such as having a clear path of egress for customers and having properly working smoke and carbon monoxide detectors.”
• “OTR—Businesses must register with OTR and pay taxes in DC.”

“Joint agency inspections will take place unannounced after the 30-day grace period to verify the compliance of operating businesses with legal requirements. Businesses in violation may be subject to a fine or other enforcement action permitted by the statutory authority of each respective enforcement agency,” the administration said in the announcement last week.

According to The DCist, “many of the gifting businesses say that they are already in compliance with D.C. business regulations and pay taxes on the products they sell.”

Lonny Bramzon, an attorney and owner for one of the gifting shops in D.C., told the website that he doesn’t see the administration’s announcement “as necessarily targeting marijuana, though he thinks it may be an easy way for D.C. to close down operators who haven’t followed city regulations.”

“It seems that ABRA isn’t concerned with the instrumentality of the gifting. It seems like they’re concerned with business licenses and certificates of occupancy,” Bramzon said. “If somebody is going to open a coffee shop, they’re going to get their licenses and do the inspections. But because of the nature of the [marijuana] business, there’s a higher chance people will open without the proper licenses. This might be a backhanded way to shut down some of those shops. I would like to make sure everyone has their licenses and is paying their taxes like everyone else.”

Earlier this year, the D.C. City Council passed a measure that allows medical cannabis patients in the district to “self-certify,” meaning they no longer need a doctor’s recommendation for a card.

The bill, signed into law last month by D.C. Mayor Muriel Bowser, was hailed as an improvement for both patients, and medical cannabis providers who have been outpaced in sales by the gifting shops. 

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Washington, D.C. Mayor Muriel Bowser on Wednesday signed a bill into law that will ease access for medical cannabis patients in the nation’s capital.

Known as the Medical Marijuana Self-Certification Emergency Amendment Act of 2022, the measure will allow patients who are in the medical cannabis program to “self-certify” their qualifying condition for the treatment.

That means, effective immediately, those patients will no longer need to receive a recommendation from a doctor in order to receive a medical cannabis card.

Bowser hailed the new ordinance as a victory both for patients and medical cannabis providers.

“We have made it a priority over the years to build a more patient-centric medical marijuana program and this legislation builds on those efforts,” Bowser said in a statement on Wednesday. “We know that by bringing more medical marijuana patients into the legal marketplace in a timely manner and doing more to level the playing field for licensed medical marijuana providers, we can protect residents, support local businesses, and provide clarity to the community.”

“I applaud the Council for moving forward this innovative solution to a complex issue, and I look forward to working with the Council and ABRA on permanent, more comprehensive medical marijuana legislation in the future,” she continued.

The ordinance was passed late last month by the Washington, D.C. City Council.

Supporters of the measure said it was essential for medical cannabis dispensaries in Washington, D.C. that have taken a hit to their bottom line due to the prevalence of illicit pot retailers in the city.

“Due to the lower barriers to access in the gray market, a significant number of medical marijuana patients have shifted from purchasing their medical marijuana from legal medical dispensaries to the illicit gray market, creating a significant risk to the long-term viability of the District’s legal medical marijuana industry,” Councilmembers Kenyan McDuffie and Mary Cheh, the two sponsors of the ordinance, said in a statement last month. “If this trend continues, it is possible that gray market sales could wipe out the District’s legal marijuana dispensaries.”

Many of those unregulated cannabis retailers in Washington, D.C. employ the practice of “gifting,” by which a customer pays for a product such as a t-shirt and in turn receives a “gift” of cannabis.

In April, the D.C. City Council voted down a proposal that would have imposed hefty fines on those illicit pot stores.

Under the proposal, those unregulated shops would have been hit with fines up to $30,000. It also would have permitted adults aged 21 and older in D.C. to obtain medical cannabis without a doctor’s visit.

Looming over this dilemma is a Congress-imposed ban on recreational sales in Washington, D.C.

Voters in the district approved an initiative in 2014 that legalized recreational cannabis, but Congress, which oversees D.C. laws, has included a provision in every appropriations bill since then that prohibits the commercialization of recreational pot in the city.

It was a blow to cannabis advocates in the nation’s capital, and to Bowser, who expressed hope last fall when Senate Democrats unveiled a spending bill that did not include the provision.

“The Senate appropriations bill is a critical step in recognizing that in a democracy, D.C. residents should be governed by D.C. values,” Bower’s office said in a statement at the time. “As we continue on the path to D.C. statehood, I want to thank Senate Appropriations Committee Chair, Senator Patrick Leahy, our good friend and Subcommittee Chair, Senator Chris Van Hollen, and, of course, our champion on the Hill, Congresswoman Eleanor Holmes Norton, for recognizing and advancing the will of D.C. voters. We urge Congress to pass a final spending bill that similarly removes all anti-Home Rule riders, allowing D.C. to spend our local funds as we see fit.”

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City lawmakers in Washington, D.C. adopted an emergency ordinance on Tuesday designed to ease access to the medical cannabis program in the nation’s capital by allowing all adults to “self-certify” their eligibility to use medicinal pot. Under the proposal, adults 21 and older would no longer be required to submit a recommendation to use medicinal pot from a health care provider when they apply for a medical cannabis identification card.

Supporters of the measure maintain that the bill will make it simpler for patients to gain access to medical cannabis, particularly for those who have difficulty seeing a doctor. Out of thousands of physicians practicing medicine in Washington, D.C., only 620 are registered to issue medical pot recommendations. In January, the city council passed a similar measure that allowed adults 65 and older to self-certify for medical cannabis card eligibility, but that ordinance expired on May 1.

“This self-certification is urgently needed for consumers and dispensaries alike,” said Councilmember Janeese Lewis George, as quoted by the DCist. “Expanding our patient base is a necessary first step to putting them on an equal playing field.”

Washington, D.C. Dispensaries Face Competition From Illicit Businesses

The emergency ordinance passed on Tuesday was introduced by Councilmembers Kenyan McDuffie and Mary Cheh. Proponents of the bill also hope that it will help regulated medical dispensaries compete with the illicit cannabis economy.

“Due to the lower barriers to access in the gray market, a significant number of medical marijuana patients have shifted from purchasing their medical marijuana from legal medical dispensaries to the illicit gray market, creating a significant risk to the long-term viability of the District’s legal medical marijuana industry,” McDuffie and Cheh said in a statement accompanying the emergency bill. “If this trend continues, it is possible that gray market sales could wipe out the District’s legal marijuana dispensaries.

Cheh and McDuffie went on to state that given the “benefits that regulated and safe legal dispensaries provide to medical marijuana users in the District, it is vital that the industry survive until the District can stand up a regulated recreational market and transition toward full regulation of recreational marijuana products.”

The council members noted that Washington, D.C.’s permitted medical marijuana dispensaries face stiff competition from the city’s gray market for cannabis, which takes advantage of recreational cannabis decriminalization loopholes to operate with virtual impunity. One popular scheme features businesses who sell cheap merchandise at hyper-inflated prices and include what is ostensibly a gift of cannabis with the purchase.

“Savvy business owners have pushed the legal limits on the gifting industry,” McDuffie said ahead of the vote. “I’ve had medical dispensaries that have reached out to me and my staff and say that if we don’t pass this measure, it could put their businesses into jeopardy.”

Although possession of cannabis has been legalized since the passage of a 2014 ballot measure, the federal government has blocked implementation of the law that would allow for the opening of recreational pot retailers. At Tuesday’s meeting, Council Chairman Phil Mendelson said that he would still like to see additional legislation that targets Washington D.C.’s cannabis gifting shops, noting that the business will be vital infrastructure for a potential legalized adult-use cannabis market.

“It’s not an equal playing field and will never be as long as there are illegal cannabis gifting shops,” he said. “As long as there are these businesses, the legal industry won’t be there to step in [when legalization happens].”

The city council passed the ordinance by a unanimous vote at its meeting on Tuesday. The bill is now headed to the office of Mayor Muriel Bowser for her consideration. In a letter sent to the council on Tuesday, Bowser said that she is in favor of the legislation, according to media reports.

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Workers in the nation’s capital won’t have to worry about getting canned over cannabis, under a bill passed by the Washington, D.C. city council on Tuesday.

The measure, known as the “Cannabis Employment Protections Amendment Act of 2022,” was approved unanimously by the governing body.

It now awaits the signature of Washington, D.C. Mayor Muriel Bowser. According to National Public Radio, if Bowser were to sign it, “the bill will become law after a 60-day congressional review and the bill’s publication in the District of Columbia Register.”

The bill does not apply to every employee working in D.C. As the Washington Post noted, the law would “[make] exceptions, however, for workers in ‘safety-sensitive jobs,’ including operators of heavy machinery, construction workers, police and security guards who carry weapons and medical professionals.” And, of course, the law would not protect the scores of federal employees from facing discipline if they tested positive for cannabis.

The federal government, however, continues to exert its authority over Washington, D.C.’s cannabis laws.

Voters in D.C. approved a measure legalizing pot use for adults back in 2014, but recreational cannabis sales are still illegal.

That’s because Congress, which has authority over D.C.’s laws, has barred the commercialization of weed in the city in every appropriations bill since the legalization measure passed eight years ago.

There was hope last year that Congress may finally end the restriction, after a draft bill introduced in the Senate last October did not include the provision.

Bowser’s camp applauded that at the time.

“The Senate appropriations bill is a critical step in recognizing that in a democracy, D.C. residents should be governed by D.C. values,” Bowser’s office said in a statement. “As we continue on the path to D.C. statehood, I want to thank Senate Appropriations Committee Chair, Senator Patrick Leahy, our good friend and Subcommittee Chair, Senator Chris Van Hollen, and, of course, our champion on the Hill, Congresswoman Eleanor Holmes Norton, for recognizing and advancing the will of D.C. voters. We urge Congress to pass a final spending bill that similarly removes all anti-Home Rule riders, allowing D.C. to spend our local funds as we see fit.”

Republicans, however, were not pleased.

“This one-sided process has resulted in bills that spend in excess of the Democrats’ own budget resolution and fail to give equal consideration to our nation’s defense. Their bills are filled with poison pills and problematic authorizing provisions, and they remove important legacy riders on topics like terrorism, abortion, and immigration that for years have enjoyed broad support on both sides of the aisle,” Senate Appropriations Committee Vice Chairman Richard Shelby said at the time.

By March, Shelby and the Republicans won out, as the final version of the appropriations bill maintained the ban.

Groups such as the Drug Policy Alliance and the American Civil Liberties Union lamented the development, saying that Washington, D.C. “remains the only jurisdiction in the country that cannot regulate marijuana sales or fruitfully tap into the public health and safety benefits of legalization.”

“In one hand, Congress continues to make strides in advancing federal marijuana reform grounded in racial justice, while simultaneously being responsible for prohibiting the very jurisdiction that led the country in legalizing marijuana through this lens from being able to regulate it. This conflict and contradiction must end now,” Queen Adesuyi, Senior National Policy Manager for the Drug Policy Alliance, said in March.

Despite the ban, some retailers in Washington, D.C. have still managed to sell pot, often through the practice of “gifting,” through which a business sells a product (often a t-shirt or hat) and then provides the customer with a “gift” of weed.

In April, the D.C. City Council rejected a proposal to crack down on those retailers.

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Congressional Democrats decided this week to maintain a prohibition on cannabis sales in Washington, D.C. despite previous suggestions that they were prepared to lift the ban and begin allowing legal sales. 

A drafted spending bill that was unveiled on Wednesday by House Appropriations Committee Chair Rosa DeLauro, a Democrat from Connecticut, still included the so-called “Harris Rider,” which has precluded the District of Columbia from commercializing weed, despite the fact that D.C. voters legalized recreational pot use back in 2014. Tied up in this issue is the D.C. bid for statehood. 

Named for Republican Congressman Andy Harris of Maryland, the rider has been a fixture of every appropriations bill since the passage of that legalization initiative. (The U.S. Congress oversees all laws in the District of Columbia.)

So while D.C. adults aged 21 and older have been able to legally possess cannabis for the last eight years, the dream of a regulated market in the nation’s capital has not been fully realized for cannabis users.

Politico explained that “D.C. residents are allowed to consume, grow and ‘gift’ cannabis products.” (“Gifting,” wherein a business sells other items and then “gifts,” the customer cannabis has been a popular work-around for pot sellers in jurisdictions where sales are still illegal.)

The development will be seen as a major disappointment for cannabis advocates, who have long targeted the elimination of the Harris Rider as a policy objective. 

As Politico noted, the inclusion of the rider “came as a surprise to some advocates because it was not included in funding packages put forth by the House and Senate,”  although “President Joe Biden’s proposed budget did include the controversial provision.”

A year ago, with Democrats officially taking back control of Congress and Biden sworn in as president, the outlook for cannabis reform looked bright. However, that hasn’t necessarily proven to be the case today. 

Senate Democrats released a version of their appropriations bill in October, which notably did not include the Harris Rider.

D.C. Mayor Muriel Bowser applauded the omission.

“The Senate appropriations bill is a critical step in recognizing that in a democracy, D.C. residents should be governed by D.C. values,” Bowser’s office said in a statement at the time. 

“As we continue on the path to D.C. statehood, I want to thank Senate Appropriations Committee Chair, Senator Patrick Leahy, our good friend and Subcommittee Chair, Senator Chris Van Hollen, and, of course, our champion on the Hill, Congresswoman Eleanor Holmes Norton, for recognizing and advancing the will of D.C. voters. We urge Congress to pass a final spending bill that similarly removes all anti-Home Rule riders, allowing D.C. to spend our local funds as we see fit.”

Last week, more than 50 civil rights and cannabis advocacy groups urged Congress to remove the Harris Rider.

In a letter sent to House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer, among others, groups like the Drug Policy Alliance and the American Civil Liberties Union noted that, because of its lack of statehood, D.C. “remains the only jurisdiction in the country that cannot regulate marijuana sales or fruitfully tap into the public health and safety benefits of legalization.”

“In one hand, Congress continues to make strides in advancing federal marijuana reform grounded in racial justice, while simultaneously being responsible for prohibiting the very jurisdiction that led the country in legalizing marijuana through this lens from being able to regulate it. This conflict and contradiction must end now,” Queen Adesuyi, Senior National Policy Manager for the Drug Policy Alliance, said in a statement.

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