The Alcoholic Beverage and Cannabis Administration (ABCA), in coordination with the Metropolitan Police Department (MPD) and other District agencies, is intensifying its efforts to regulate the cannabis market, focusing on unlicensed retailers and setting a firm deadline for those seeking to become licensed.
Guidance for Unlicensed Establishments
ABCA has issued clear guidance for unlicensed cannabis establishments that applied for licenses during the designated open application period. A critical deadline has been set for March 31, 2025, by which all such establishments must have their retailer or internet retailer licenses issued and be fully operational. There will be no extensions granted beyond this date. To be considered “in operation,” businesses must be capable of selling cannabis and cannabis products sourced from licensed cultivation centers or manufacturers to registered medical cannabis patients. This includes having registered employees, being set up in the METRC system, and ready to process sales. Additionally, these businesses must pass a certified alarm test and a final inspection by ABCA, and submit any outstanding documentation.
Starting April 1, 2025, ABCA will take enforcement actions against any remaining unlicensed establishments selling cannabis, and any illegal cannabis products will be seized. Businesses that are closed and padlocked have five days to request a hearing, with the Board required to issue a decision within five business days. It is critical to note that all cannabis products must be purchased from licensed District cultivation centers or manufacturers; selling products from other sources may result in license revocation.
Retailers Seek Licenses
During the open application period from November 1, 2023, to January 29, 2024, ABCA received 76 applications for Cultivation Center, Internet Retailer, or Retailer licenses. The applications included details such as the date and time of application receipt, the type of license sought, applicant type (Standard or Social Equity), entity and trade names, proposed and prior locations, Advisory Neighborhood Commission (ANC), any requested endorsements and public notice date.
Recent Enforcement Actions
On January 22, 2025, ABCA and MPD took action against three businesses operating as unlicensed cannabis retailers: Friends Smoke Shop, The Garden DC, and Hidden Gym. These businesses were padlocked due to their continued operation without licenses and the perceived threat to public health and safety.
- Closure Orders: The ABC Board issued the closure orders in response to the businesses’ illegal operations.
- Joint Agency Action: MPD officers and ABCA investigators participated in the closures, observing illegal products, and executing search warrants.
- Seized Illegal Products:
- Friends Smoke Shop: 1.4 lbs of marijuana, 42 grams of THC vape cartridges, and 92 grams of mushroom-infused products.
- The Garden DC: over 13 lbs of marijuana, over 256 grams of THC-laced edibles, nearly 17 grams of THC capsules, 194 grams of THC vape cartridges, and 79 grams of entheogenic mushrooms.
- Hidden Gym: 20 lbs of marijuana, 1.5 lbs of THC-laced edibles, and nearly 240 grams of THC vape cartridges.
- Consequences: Business owners can request a hearing, but the ABC Board may require a remediation plan to prevent future illegal sales, and can issue a $10,000 fine to each property owner.
These recent closures are part of a broader enforcement effort that has resulted in 22 padlocked illegal cannabis businesses since July 15, 2024, when new civil enforcement powers took effect. ABCA has issued 43 Cease and Desist Orders and 98 written warning letters to businesses that did not apply for a license during the open application period. Unlicensed businesses that applied during the open application period are exempt from enforcement until September 30, 2024, or 180 days after Board approval, whichever is later. Property owners are also advised that they may face civil and criminal penalties for allowing illegal cannabis activity on their premises.
Since March 2024, the District has been conducting joint agency inspections at businesses suspected of illegal cannabis sales. Participating agencies include ABCA, DC Health, the Department of Buildings, the Department of Licensing and Consumer Protection, and the MPD.
