D.C.'s grace period for illegal cannabis shops is over

State of play: The current enforcement process is lengthy and rigorous — there are inspections, drug testing, warning letters, cease-and-desists and, finally, a padlocking operation.

• But after March, "all of that won't be necessary," Mary McNamara, the Alcoholic Beverage and Cannabis Administration's public information officer, tells Axios.
• "We can have an investigator walk into a store, spot an unlicensed product, and shut it down."

Between the lines: The end-of-month deadline requires all businesses that received cannabis dispensary licenses during the on-ramp period to be up and running — and in compliance. ABCA tells Axios that includes 33 applicants.

• Previously, the law exempted shops navigating the licensing process from enforcement.
• But starting April 1, those without a license and those who fail to meet the deadline will be subject to search and seizure, padlocking and/or fines.

Plus: The city is planning to open two or three more drug testing labs to meet the needs of the growing industry.

• D.C. now operates one lab to check whether all marijuana sold at legal dispensaries is safe.

Behind the scenes: Over the past year, D.C. has ratcheted up cannabis enforcement through a multi-agency task force that includes the police department, ABCA and the D.C. Attorney General's Office.

• The task force has padlocked 33 shops — and seized huge quantities of drugs, cash and guns in the process. An additional 24 shut down after receiving warnings to stop operations.

By the numbers: In the past six months, the task force has recovered around:

• 380 pounds of marijuana
• 150 pounds of THC edibles
• 68 pounds of hallucinogenic mushrooms
• $50,000 in cash
• 6 weapons
• 10 dogs

Additionally, MPD seized more than two pounds each of methamphetamines and cocaine from a single shop.

Catch up quick: The city began cracking down on marijuana "gifting shops" a few years ago after a 2014 law legalized possessing small amounts of marijuana, but not buying or selling it. It was easy to walk in, purchase a sticker or motivational speech, and get a weed "gift" alongside.

• In 2023, the DC Council passed legislation expanding the District's medical cannabis system and providing a legal pathway to bring gifting shops into the licensed marketplace.

Yes, but: After the on-ramp deadline passed last year, the city's enforcement was criticized for being weak and slow — allowing an estimated 100+ shops to illegally sell marijuana (and sometimes other drugs) at the expense of law-abiding dispensaries, whose products, while safer, typically cost more to buy and sell.

• At one point last year, the District had only one marijuana inspector and the pressure was on from the legal lobby to smoke out the bad actors.

Then in July, Mayor Bowser signed emergency legislation allowing ABCA to padlock unlicensed businesses "that pose an imminent danger to public health and safety" and/or ignore cease-and-desist orders.

• There are currently 22 legal dispensaries operating in the city. Their sales fell last year, according to ABCA data, totaling $32 million, compared with nearly $38 million in 2023 and over $36 million the year before.

Though some argue the city should have cracked down on illegal drug sales sooner, McNamara says "a lot of ABCA's work involved reaching out to the gifting community, and trying to convert as many gifting shops as possible into licensed retailers."

• Even if a store is cited for illegally selling marijuana, it won't necessarily preclude them from gaining a legal license if they apply.