Key Takeaways:
- The District of Columbia Alcoholic Beverage and Cannabis Board ruled that daycare centers are not considered “preschools” under current D.C. medical cannabis law.
- The decision allows DMV Retail, LLC to move forward with plans to open Exotix DMV at 4631 41st Street NW.
- Two nearby childcare operators — Two Birds and Communikids — argued the dispensary violated D.C.’s 400-foot cannabis buffer rule.
- Regulators found both facilities are licensed as “Child Development Facilities,” not preschools, meaning the buffer restriction does not apply.
- The ruling exposes a gap in Washington, D.C.’s cannabis zoning laws that lawmakers are currently trying to close through pending legislation.
- A proposed D.C. bill would expand the definition of “preschool” to include child development facilities and daycare centers for cannabis licensing purposes.
- The Board also rejected arguments that Exotix DMV failed to properly notify the community about its medical cannabis application.
- The decision could become an important precedent for future D.C. cannabis dispensary licensing disputes involving daycare facilities and cannabis zoning rules.
The District of Columbia Alcoholic Beverage and Cannabis Board cleared the way for a new Northwest Washington medical cannabis dispensary after ruling that two nearby daycare centers do not qualify as “preschools” under current D.C. cannabis zoning law.
In a May 20 order, the Board denied a petition filed by Two Birds daycare seeking to block a medical cannabis retailer license for DMV Retail, LLC, which plans to operate as Exotix DMV at 4631 41st Street NW in Washington, D.C.
The decision is significant for the broader D.C. cannabis industry because it clarifies how regulators currently interpret the city’s 400-foot cannabis buffer rule — and exposes a loophole District lawmakers are actively trying to close.
Why the Exotix DMV Cannabis License Was Challenged
Two Birds daycare argued that both its facility and nearby Communikids should be treated as preschools under D.C. law. If regulators agreed, Exotix DMV would have been prohibited from opening because D.C.’s medical cannabis law bars dispensaries from operating within 400 feet of a preschool, primary school, secondary school, or recreation center.
But the Board found that both facilities are officially licensed by the D.C. Office of the State Superintendent of Education as “Child Development Facilities,” not preschools.
“Because Two Birds and Communikids are licensed as Child Development Facilities, they do not qualify as preschools under § 71671.06(q)(1)(A), and the 400-foot-distance prohibition does not apply,” the Board wrote in its order.
The ruling means Exotix DMV’s proposed dispensary location complies with current D.C. cannabis licensing requirements.
D.C. Cannabis Zoning Rules at Center of Growing Debate
The case highlights a growing debate over how Washington, D.C. regulates cannabis businesses near childcare facilities.
Under existing District law, the 400-foot buffer specifically references preschools, schools, and recreation centers. The Board emphasized that child development facilities and daycare centers are legally distinct categories under D.C. code.
However, the order also pointed to pending legislation before the Council of the District of Columbia that would change that interpretation.
Bill 26-522, known as the Medical Cannabis Process Improvement Amendment Act of 2025, would add “Child Development Facilities” to the list of protected uses that can block cannabis dispensaries from opening nearby.
The Board noted that the proposal has not yet become law.
If adopted, the legislation could reshape where future medical marijuana dispensaries can operate across Washington, D.C., particularly in dense residential neighborhoods where daycare centers are common.
Board Rejects Community Notice Arguments
The petition also claimed Exotix DMV failed to properly notify the community about its medical cannabis application.
Regulators rejected that argument, explaining that the law cited by Two Birds governs alcoholic beverage licenses — not medical cannabis retailers.
According to the order, the Alcoholic Beverage and Cannabis Administration issued public notice for the dispensary application on February 13, 2026, with a protest deadline of March 30, 2026.
The application was initially protested by Advisory Neighborhood Commission 3E, but that dispute was later resolved through a settlement agreement approved by the Board.
No Hearing Required, Board Says
Two Birds also requested a contested hearing over the daycare classifications and distance calculations.
The Board denied the request, stating there were no factual disputes requiring adjudication because both facilities are clearly licensed as daycare centers under existing law.
Regulators additionally noted that the protest window had already closed and that any remaining protest rights had expired.
What the Exotix DMV Ruling Means for D.C. Cannabis Businesses
The decision could become an important precedent for future D.C. cannabis licensing disputes involving daycare centers and child development facilities.
For now, the ruling signals that medical cannabis retailers in Washington, D.C. are not barred from opening near licensed daycare facilities unless District law is amended.
The case also underscores how rapidly evolving cannabis regulations continue to create friction between neighborhood groups, childcare operators, and the expanding legal marijuana industry in the nation’s capital.
