The D.C. Court of Appeals dismissed petitions from Advisory Neighborhood Commission (ANC) 2C and Commissioner Thomas Lee challenging the Alcoholic Beverage and Cannabis Board’s (ABCA) approval of a medical cannabis license for UND Necessities LLC, operating as DC Smoke in D.C.’s Chinatown area. The ruling leaves intact the Board’s May 1, 2024, approval of DC Smoke to operate at 717 D Street NW in the Penn Quarter.
The license approval followed the Medical Cannabis Amendment Act of 2022, which allowed unlicensed operators transitioning to the legal market to apply for locations in mixed commercial zones, including within 300 feet of schools—a waiver not available to any other license applicants. Standard applicants and social equity applicants must be 400 feet away from schools.
The dispute arose after ANC 2C protested the license due to DC Smoke’s proximity to BASIS DC, Templeton Academy DC and a nearby childcare facility. After multiple settlement attempts failed, the Board conducted the District’s longest medical cannabis protest hearing, lasting six hours.
Protestants raised concerns over potential student exposure to medical cannabis clients, cash-handling risks, and indirect advertising. ABCA enforcement officer Jason Peru clarified that licensed dispensaries are tightly regulated under I-71, and most are not visible or openly advertised to the public. DC Smoke owner Tommy Moungkhounsavath cited the location’s high foot traffic and proximity to public transportation as key factors of the business’s location and emphasized the dispensary’s commitment to neighborhood safety.
The cannabis lawfirm Kinner & McGowan which represented DC Smoke countered that the safety concerns were speculative and conflated licensed dispensaries with illegal operations at the protest meeting. However, the ANC and Comissoner Lee chose to appeal the ABC ruling in court – the first ANC to pursue legal action in the D.C. Court of Appeals.
Lee, the commissoner for 2C03, told The Outlaw Report, that the ANC had approved multiple other medical dispensaries but worried DC Smoke’s proximity to schools would bring more crime near childcare facilities.
“The parents were concerned that this business would attract criminal activity, break ins, robberies, muggers that would be attracted to potentially easy accessibility to cash,” Lee said. He pointed out the trend of many businesses on the street moving away from cash. Medically licensed businesses in D.C. are required to have security protocols including vaults. DC Smoke is already open and operating in the neighborhood, and the ANC is out of options for pursuing further legal action to stop the business.
“I don’t think we’re going to be pursuing it any further [as an ANC],” Lee said. The Court of Appeals dismissed the petitions on procedural grounds: ANCs cannot initiate lawsuits in D.C. courts, and Commissioner Lee’s petition was filed after the 30-day deadline.
The attorneys, John McGowan and Kinner Meredith, representing DC Smoke responded to the Outlaw with a statement, “We’re happy with the court’s decision in dismissing Mr. Lee’s petition and the ANC 2C petition.”
“We hope this establishes precedent regarding ANCs’ authority to influence D.C. medical cannabis licensing,” they added. Another dispensary, Green Theory has faced issued from local parents without success from the group protesting their location. The 1,000 feet group sent a letter to the Trump administration asking for federal action concerning D.C.’s medical cannabis dispensaries proximity to schools. There has been no action as of yet.
Note: Kinner & McGowan are the Publishers of the Outlaw Report. Outlaw Report is editorial independent of our publishers.
