AUTHORS
The DC Council handed emergency laws on January 9, 2024, in its effort to close down the “grey market” of the DC hashish business. The “grey market” is the hashish business that was created when DC legalized the cultivation and possession of hashish, however Congress prohibited DC from legalizing the sale of hashish. This incongruity has created the world of “reward outlets” within the District. For instance, in a present store, a buyer buys a $45 sticker and can obtain gifted hashish.
Sadly, DC's authorized medical hashish market has subsequently struggled to compete with the grey market. The DC Council estimated that reward outlets do $600 million in gross sales yearly. As compared, authorized medical hashish dispensaries (of which there are at present six operational) carried out approx $37.5 million in gross sales by 2023.
To fight the grey market, the DC Council handed the Medical Hashish Amendments Act of 2022 which permits unlicensed reward outlets to use for a license to promote medical hashish throughout a 90-day utility interval that closes the January 29, 2024. From the DC Council. listening to on January 9, 2024, 37 reward outlets had utilized to grow to be licensed retailers. This leaves a big hole between the present reward business and the authorized medical market.
To handle this hole, Councilor Allen launched Medical Hashish Program Implementation Emergency Modification Act of 2024. The invoice does a number of issues aimed toward eradicating the grey market in DC:
- Present outlets that select to not get hold of a medical retail license shall be topic to fines, penalties and stop and desist letters;
- The Alcoholic Drinks and Hashish Board is permitted to research and penalize unlicensed operators; and
- House owners of unlicensed reward outlets could also be penalized for permitting a present store to function on the property after an unlicensed operation discover.
Of the three measures above, the owner penalty presents one of many strongest enforcement mechanisms to eradicate the grey market. Actual property is already extraordinarily troublesome to acquire for hashish operators as a result of perceived threat and properties which were financed by the federal authorities. If employers are actually topic to penalties and fines, the urge for food to work with unlicensed operators could also be even much less.
The emergency invoice awaits the approval of the mayor and is efficient just for 90 days. Nevertheless, Councilman Allen has already launched an “interim” invoice that might prolong the efficient date for an additional 225 days whereas the legislative course of continues.
