The second retail application period for medical cannabis licenses opened today in Washington, D.C. This social equity retail licensing period is part of D.C.’s cannabis medical expansion.
The period for cultivators and manufacturers to apply has passed, and unlicensed I-71 operators could apply to transition to the legal market until Jan. 29, 2024. The period opening today is the second to last licensing period laid out by The Alcohol Beverage and Cannabis Board as they facilitate market expansion.
D.C. cannot launch its own adult-use cannabis market due to its lack of statehood. Its medical market launched in 2013, shortly followed by the I-71 amendment which allowed the gifting of cannabis. The amendment resulted in a thriving gray market of cannabis shops that now face closure.
Over 25 unlicensed retailers were approved by ABCA to transition to medical dispensaries and five other medical dispensaries are currently open in D.C. Applicants who qualify for social equity as retailers but did not have a gifting business may apply starting today for a conditional retail license which allows them one year to meet ABCA’s requirements.
D.C. chose to pursue market equity by following the 50/50 rule which requires 50% of the market be social equity businesses and 50% are standard licensees. Applicants for social equity will be approved during this period determining the cap for standard applicants this summer.
D.C. medical cannabis sales continue to drop. Last month saw patients served decline by over 1,500 while sales saw over $1 million less in revenue compared to 2023. The drop has continued since a market high in April 2023 potentially caused by Maryland’s legalization of adult-use cannabis in July 2023.
Interest was low in the unlicensed operator application period, but businesses had to qualify as tax paying entities before 2023. It is unclear how high interest will be in this current round as sales continue to drop and federal tax cuts remain unreachable. Applications can be found here.