CM Charles Allen hosted a virtual panal discussion on enforcement against illegal cannabis shops on Thursday night.
Here’s Why those Gifting Shops Haven’t Been Closed Yet
by Larry Janezich
Posted October 19, 2024
Last Thursday night CM Charles Allen hosted a virtual panel discussion of enforcement measures against illegal cannabis shops featuring representatives from the seven city agencies involved.
There are over 100 unlicensed cannabis shops in DC and 12 legal ones. One of the legal ones is in Ward 6; several unlicensed shops in the Ward have applied for medical licenses and continue to operate as gifting shops during the application process. Ten unlicensed shops have been closed by the Alcohol Beverage and Cannabis Administration (ABCA); all involved undercover purchases from shops that were selling cannabis for cash – some were marketing other illegal substances and one was found with an unregistered firearm on the premises.
It’s noteworthy that all of the closures so far have been shops selling cannabis for cash. ABCA Director Fred Moosally said that in order to close an establishment it has to pose an imminent danger to the health and safety of the public. Otherwise you have to have cease and desist order* in effect or an unregistered firearm or act of violence or selling a schedule one substance. In DC cannabis is not a schedule 1 substance. Moosally said that under the law you can’t just close them down for selling cannabis, adding that legislation now before the mayor will make it easier to close places.
The 90 minute panel discussion included participants from the seven agencies which comprise the team collaborating to address the illegal cannabis market: ABCA, MPD, OAG, DC Health, USAO, DOB, and DLCP.
As the lead agency, Director Moosally got most of the questions during the discussion. Representatives of other agencies chimed in to explain the role their agencies play in the effort.
Allen expressed the frustration he and Ward 6 residents feel that ABCA has not moved faster to close down illegal operations and he repeatedly asked agency representatives why this is.
Moosley, said that so far this year ABCA has issued over 84 warnings, over 26 cease and desist orders. Three of the ten closures have been in Ward 6, and that one of the most recent was on Thursday – Capitol Budz at 607 Pennsylvania Avenue, SE.
He says he understands the frustration about why ABCA is not moving faster on enforcement but that the agency only has one inspector. ABCA is in the process of hiring two more. He said that recently, ABCA’s authority had been increased, allowing them to increase enforcement and closures. And that while closure sounds simple, some of the issues which slow the process include testing, drafting notices, holding hearings, and lack of storage for seized product. Further, with over 100 unlicensed shops, ABCA is under pressure from ANCS and community groups and is going through the list of all the places people are complaining about. “We’re catching up … enforcement action will continue to pick up.” he said.
On a related matter, near the end of the discussion, Moosally mentioned an opinion issued by OAG indicating that the definition of cannabis includes CBD, and that means CBD is illegal in DC. He did not say there are any plans to address enforcement regarding the sale of CBD which can be sold through legal licensed cannabis shops but not in the illegal unlicensed market place.
ABCA has instituted a new dashboard on their website to track the activities of the multiagency inspections of unlicensed cannabis establishments. The website has a link to anonomously report suspected illegal cannabis businesses. See here: https://abca.dc.gov/page/joint-agency-inspections-illegal-cannabis-businesses#gsc.tab=0
*Here’s a compilation of information from forum participants explaining the process for shutting down an illegal cannabis store.
- ABCA sends a warning. (New legislation will allow ABCA to skip the warning and proceed directly to:)
- Issuing of a cease and desist order to business owner. In addition, the landlord is notified. (Moosally says landlords are anxious to cooperate because they are subject to a $10,000 fine for allowing the illegal operation. Landlords have worked with ABCA to start an eviction process and terminate leases.)
- After receiving a cease and desist order, businesses may work collaboratively with ABCA to shut down or move or close. Or the business owner can request a hearing before ABCA. The business can continue to operate during the hearing process. The hearing takes place within 15 days.
- If ABCA sustains the cease and desist order at the hearing, ABCA will move within approximately 15 days to close the shop.
- But. If the closure order is sustained the business owner can appeal the decision to the DC court system. Again, the business can continue to operate during the appeal process. (This appears to be the reason Safe House at 335 H Street, NE, is still operating months after receiving a cease and desist order.)
- If the business owner does not request a hearing, ABCA tries to close the shop within 30 days.
- For businesses that won’t work with ABCA, the agency conducts undercover buys – but “not necessarily gifting operations” – according to Moosally.
- The purchased product is field tested make sure it’s THC. Sometimes the product is adulterated with Schedule 1 substances.
- DC Health considers issuing its own separate cease and desist order regarding selling edible products or issuing an order for summary closure for other health violations.
- With evidence of illegal sales, ABCA requests a summary closure notice from the Office of the Attorney General (OAG).
- OAG drafts a summary closure notice and ABCA enlists the help of MPD to schedule a closure and padlocking. OAG turns around a closure request in three days after reviewing the evidence for legal sufficiency to ensure the charges can stick.
- If the closure is effected, product is seized from the location.
CAPITOL HILL CORNER 