Insights from 265 Days of DC Cannabis License Hearings

What We Know from the First 265 Days of DC Medical Cannabis Retail License Hearings

Almost eight months ago, Washington, D.C. opened its doors to new medical cannabis retail applicants. The Outlaw analyzed Alcoholic Beverage Control Administration (ABCA) Board decisions from November 1, 2023, to July 22, 2024, to gain a sense of the makeup of the District’s growing cannabis industry. This analysis provides a snapshot of the new retail licenses, social equity considerations, and the transition from the gray market to the legal sector.

Current Status of Retail Licenses

As of the latest review, there are 214 new retail licenses in various stages of the opening process. Of these, 162 licenses are classified as social equity licenses, while 52 are standard applicants who did not qualify as social equity. It is important to note that this analysis excludes cultivation, manufacturing, and existing medical retail licenses. There are currently just over half a dozen operating medical retailers in the city.

Progress of Licenses

Out of the 214 licenses, 84 are at the placard stage or further along in the opening process. This is in contrast to the 130 conditional licenses that may or may not move forward within the year they have to complete the licensing process. Additionally, 52 of the licenses were unlicensed applicants transitioning from the gray market, with 23 of those being unlicensed social equity candidates.

Montgomery County Allocates Cannabis Tax Revenue

In neighboring Montgomery County, a new law has been passed to create a commission responsible for directing cannabis tax revenue to communities most affected by past cannabis prohibition. This initiative follows Maryland’s legalization of recreational cannabis and aims to address the disproportionate impact of previous cannabis laws on minority communities.

Virginia Hemp Farmers and Cannabis Legalization

In Virginia, hemp farmers face uncertainty due to the state’s crackdown on unregulated hemp products. Some farmers hope to transition to growing cannabis if it becomes legal for recreational use, leveraging their experience for potential licenses. The future of hemp farming in the state appears closely tied to the legalization of cannabis.

East Coast Developments

New York City officials recently announced the seizure of over $1 million worth of illegal cannabis products from a network operating multiple locations. Meanwhile, Delaware is gearing up for recreational marijuana sales, allowing existing medical marijuana businesses to apply for conversion licenses to expand their operations. In Pennsylvania, Governor Josh Shapiro continues to push for marijuana legalization despite its exclusion from the recent budget bill.

Snoop Dogg and Wiz Khalifa in the Spotlight

In the cultural sphere, Snoop Dogg is making headlines with the opening of his first dispensary, S.W.E.D. (“Smoke Weed Every Day”), in Los Angeles. Conversely, Wiz Khalifa was arrested in Romania for smoking marijuana onstage during a music festival, a reminder of the varied legal landscapes regarding cannabis around the world.

Federal Trade Commission Actions

The Federal Trade Commission (FTC) has cracked down on companies selling edibles containing THC that were packaged to resemble popular children’s snacks, such as Froot Loops and Chips Ahoy!. This action highlights the ongoing challenges of ensuring consumer safety and preventing marketing that appeals to minors.

NTSB and Cannabis Impaired Driving

The National Transportation Safety Board (NTSB) has urged parents to warn their teens about the dangers of driving under the influence of cannabis. This follows a tragic accident in Oklahoma, where a 16-year-old driver, believed to be high on marijuana, caused a crash that killed six high school girls.

Illinois Social Equity Weed Program

Illinois’ social equity weed program, designed to help those affected by past cannabis laws, is facing challenges. Despite the program, half of the license holders have yet to open their shops and risk losing their licenses.

Legislative Actions and Federal Policies

Bipartisan congressional members are challenging a section of the spending bill that would block the Department of Justice (DOJ) from rescheduling cannabis. The House and Senate committees controlling spending will ultimately decide the inclusion of cannabis-related measures in the final budget bills.

Republican vice presidential nominee JD Vance has a history of supporting states’ rights to determine their own cannabis laws. Meanwhile, the DOJ argues that medical cannabis patients should not own guns due to safety concerns, despite a recent Supreme Court case allowing some gun restrictions.

Future Legislation and Research

Public comments on the DOJ reclassifying cannabis ended recently. Even if reclassified, some restrictions would remain, and it wouldn’t affect existing state laws or past convictions. A new bill, the DOOBIE Act, is being considered by the Senate. This act would prevent federal agencies from denying jobs or security clearances solely due to past cannabis use.

Mushroom Candies and Public Safety

A recent study found that some mushroom candies marketed as legal psychedelics actually contained illegal hallucinogens like psilocin. These products, sold at gas stations and smoke shops, were inaccurately labeled and posed significant risks to consumers.

The first 265 days of D.C. medical cannabis retail license hearings reveal a dynamic and evolving industry. From the distribution of new licenses to regional policy changes and national legislative actions, the landscape of cannabis regulation continues to shift. As the industry grows, stakeholders must navigate complex legal, cultural, and political challenges to ensure a balanced and equitable market.