D.C. to crack down on marijuana gifting shops

A D.C. job power will start cracking down on I-71 retailers that present marijuana in alternate for purchases.

Catch up fast: Such gifting retailers cropped up after a 2014 regulation legalized possessing small quantities of marijuana in D.C., however not shopping for or promoting it.

• The companies promote services and products and provide marijuana to patrons beneath a loophole within the regulation.

Why it issues: The duty power places additional scrutiny on the gifting companies which medical marijuana dispensaries have argued are taking enterprise away from them.

A “Joint Hashish Process Pressure” will begin unannounced inspections subsequent month to make sure companies abide by D.C. legal guidelines resembling meals security, fireplace codes, and correct registration with the Workplace of Tax and Income.

• Companies with violations could also be fined or face different enforcement.

State of play: Whereas all companies are topic to inspection and correct registration in D.C., this job power is further oversight for these particular companies.

Zoom in: There are an estimated 100 I-71 shops in D.C. Whereas some sellers showcase their wares by way of personal social media accounts that promote motivational speeches or provide supply companies, others are extra seen.

• For instance, Gifted Curators in Adams Morgan has a storefront with a safety guard who checks IDs on the door. Patrons should purchase digital paintings after which choose from edibles, flowers, or pre-rolled joints as a “present.”

What they’re saying: The I-71 Committee, which represents D.C.’s gifting retailers, stated in an announcement that the inspection announcement was arbitrary and obscure.

John McGowan and Meredith Skinner of the agency McGowan & Skinner symbolize members of the hashish trade and referred to as the duty power “unprecedented” for focusing on a particular trade.

• “It’s sort of a wait-and-see strategy to see how often and the way a lot what they’re going to implement,” McGowan tells Axios. He says there’s concern that brick & mortar gifting shops can be focused and can be unable to function relying on what infractions are discovered.

Sure, however: Lonny Bramzon, an lawyer who additionally owns a gifting store on H Road referred to as Road Lawyer Companies, informed DCist that he doesn’t assume the Alcoholic Beverage Regulation Administration is focusing on the weed enterprise however is extra so involved that these kind of shops will open with out correct licenses.

• “I wish to be certain that everybody has their licenses and is paying their taxes like everybody else,” he informed DCist.

Between the traces: Each Skinner and McGowan have questions in regards to the timing of the duty power, introduced whereas the D.C. Council is out of session and following a rulemaking session that additionally sought to crack down on gifting retailers.

• D.C. Council Chair Phil Mendelson revived a struggle earlier this 12 months to close down just about any enterprise that items marijuana after he stated they have been taking enterprise from medical dispensaries. The emergency laws failed.