DC Council Cracks Down on Unlicensed Cannabis Shops with Cease and Desist Orders

WASHINGTON — The D.C. City Council is intensifying its efforts to shut down unlicensed cannabis stores operating in the nation's capital, seizing their illegal products in the process. Ahead of the July Fourth holiday weekend, the city's Alcohol Beverage and Cannabis Administration sent cease and desist orders to four unlicensed cannabis dispensaries.

Mary McNamara, a spokeswoman for the agency, confirmed that 55 warnings have also been issued to unlicensed cannabis businesses. These actions represent a growing trend among municipalities across the United States as they navigate the shifting landscape of cannabis legalization and regulation.

The District of Columbia has decriminalized possession of up to two ounces of cannabis for individuals over the age of 21 and permits residents to grow up to six cannabis plants, provided no more than three are mature at the same time. However, despite these local allowances, cannabis possession remains illegal under federal law, and district law prohibits its sale for money or exchange as "gifts."

The latter practice, where stores sell non-cannabis items and then "gift" cannabis products to customers, has been a significant challenge for local authorities. In January, the city council passed legislation specifically targeting these unlicensed cannabis "gifting" stores. Following this, the district's zoning administrator issued guidance on where legal medical cannabis cultivation businesses can be located within the city.

These moves were seen within the cannabis retail community as indicators of an impending crackdown on illicit businesses. This crackdown materialized in June when the city council passed a resolution leading directly to the issuance of cease and desist orders.

Introduced by City Councilmember Kenyan McDuffie and passed on June 25, the resolution coincided with the expiration of conditional one-year licenses granted to cannabis business manufacturers and cultivation center applicants. This resolution served as an emergency declaration, highlighting the need for updates to the city's 25-year-old medical marijuana law.

The resolution clarified the Alcohol Beverage and Cannabis Administration's authority to conduct unannounced inspections of unlicensed establishments and to padlock businesses if necessary. Additionally, it extended the conditional licenses for the manufacture or cultivation of medical marijuana for two years, allowing existing establishments to relocate to neighborhoods covered by the May zoning guidance.

McDuffie's resolution also extended public comment period provisions to all unlicensed establishment registration applications and clarified the criteria for summarily closing an unlicensed establishment. Criteria include the distribution of Schedule 1 substances, occurrence of violent crime on the premises, and unlawful possession of firearms by anyone affiliated with the business.

These measures demonstrate the D.C. Council's commitment to regulating cannabis sales within the district and ensuring that all cannabis-related businesses operate within the bounds of the law. As the legal status of cannabis continues to evolve, local authorities are taking decisive steps to manage and control its distribution and sale.

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