SUBTITLE B. MEDICAL MARIJUANA PROGRAM ADMINISTRATION

(a) Section 2 (D.C. Official Code § 7-1671.01), is amended as follows:

(1) Paragraphs (1), (1A), (1B), and (1C) are redesignated as paragraphs (1B), (1C), (1D), and (1E), respectively.

(2) New paragraphs (1) and (1A) are added to read as follows:

" (1) "ABC Board" means the Alcoholic Beverage Control Board. ".

" (1A) "ABRA" means the Alcoholic Beverage Regulation Administration.".

(3) Paragraph (3)(B) is amended by striking the phrase "with the Department" and inserting the phrase "with ABRA" in its place.

(4) Paragraph (5) is amended by striking the phrase "with the Mayor" and inserting the phrase "with ABRA" in its place.

(5) Paragraph (6) is repealed.

(6) Paragraph (7) is amended by striking the phrase "with the Mayor" and inserting the phrase "with ABRA" in its place.

(7) Paragraph (19) is amended by striking the phrase "if the Department" and inserting the phrase "if ABRA" in its place.

(8) Paragraph (21) is amended by striking the phrase "by the Department" and inserting the phrase "by ABRA" in its place.

(b) Section 3 (D.C. Official Code § 7-1671.02) is amended as follows:

(1) Subsection (c)(1)(B) is amended by striking the phrase "with the Mayor" and inserting the phrase "with ABRA" in its place.

(2) Subsection (d) is amended by striking the phrase "with the Mayor" and inserting the phrase "with ABRA" in its place.

(c) Section 5(b)(2) (D.C. Official Code § 7-1671.04(b)(2)) is amended by striking the phrase "by the Mayor" and inserting the phrase "by ABRA" in its place.

(d) Section 6 (D.C. Official Code § 7-1671.05) is amended as follows:

(1) The lead-in language is amended by striking the phrase "The Program shall be administered by the Mayor and shall" and inserting the phrase "The Program shall" in its place.

(2) Paragraph (1)(A) is amended by striking the phrase "with the Department" and inserting the phrase "with ABRA" in its place.

(3) Paragraph (4)(A) is amended as follows:

(A) Subparagraph (iv) is amended by striking the phrase "by the Department" and inserting the phrase "by the ABC Board" in its place.

(B) Subparagraph (v) is amended by striking the phrase "by the Mayor" and inserting the phrase "by ABRA" in its place.

(4) Paragraph (5A) is amended as follows:

(A) The lead-in language is amended by striking the phrase "by the Department" and inserting the phrase "by the ABC Board" in its place.

(B) Subparagraph (C) is amended by striking the phrase "by the Department" and inserting the phrase "by the ABC Board" in its place.

(5) Paragraph (5B)(D) is amended by striking the phrase "that the Department" and inserting the phrase "that ABRA" in its place.

(6) Paragraph (7) is amended by striking the phrase "if the Mayor determines" and inserting the phrase "if the ABC Board determines" in its place.

(7) Paragraph (10)(A) is amended by striking the phrase "apply to the Mayor" and inserting the phrase "apply to the ABC Board" in its place.

(8) Paragraph (14) is amended by striking the phrase "notify the Department" and inserting the phrase "notify ABRA" in its place.

(e) Section 7 (D.C. Official Code § 7-1671.06) is amended as follows:

(1) Subsection (d) is amended as follows:

(A) Paragraph (1) is amended by striking the phrase "with the Mayor" and inserting the phrase "with ABRA" in its place.

(B) Paragraph (3)(A) is amended by striking the phrase "determined by rulemaking" and inserting the phrase "determined by the Mayor by rules issued in accordance with section 14" in its place.

(C) Paragraph (4) is amended by striking the phrase "The Mayor" and inserting the phrase "The ABC Board" in its place.

(D) Paragraph (5) is amended to read as follows:

" (5) (A) An application for registration of a dispensary, cultivation center, or testing laboratory submitted by a medical cannabis certified business enterprise, or applicant eligible to be a medical cannabis certified business enterprise, shall be awarded a preference point equal to 50 points or 20% of the available points, whichever is more.

" (B) A medical cannabis certified business enterprise shall:

" (i) Have one or more owners who are economically disadvantaged individuals or individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities and who are District residents and individually or collectively own at least 60% of the licensed business enterprise;

" (ii) Have one or more owners whose income does not exceed $349,999, who are residents of the District, and whose net worth, excluding the value of their residence, does not exceed $1 million, and individually or collectively own at least 60% of the licensed business enterprise;

" (iii) Have a chief executive officer and its highest-level managerial employees perform their managerial functions in a principal office located in the District;

" (iv) Have at least 50% of its employees be residents of the District;

" (v) Have at least 50% of its contractors be residents of the District; and

" (vi) Have at least 80% of the assets of the certified business enterprise, including bank accounts, be in the District.

" (C) An applicant seeking to qualify as a medical cannabis certified business enterprise shall submit with the application for registration of a dispensary, cultivation center, or testing laboratory, an affidavit attesting to:

" (i) The number of owners of the applicant who are economically disadvantaged individuals or individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities;

" (ii) The ownership interest of any owners of the applicant who are economically disadvantaged individuals or individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities;

" (iii) The number of employees of the applicant who are economically disadvantaged individuals or individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities; and

" (iv) The number of contractors of the applicant who are economically disadvantaged individuals or individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.

" (D) For the purpose of this paragraph, the term:

" (i) "Economically disadvantaged individual" shall have the same meaning as set forth in section 2302(7) of the Small and Certified Business Enterprise Development and Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.02(7)) .

" (ii) "Medical cannabis certified business enterprise" means a certified business enterprise, as that term is defined in section 2302(1D) of the Small and Certified Business Enterprise Development and Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.02(1D)) , that operates a medical cannabis business as a dispensary, cultivation center, or testing laboratory.".

(2) Subsection (e)(3) is amended by striking the phrase "that the Mayor may allow" and inserting the phrase "that the ABC Board may allow" in its place.

(3) Subsection (g-2) is amended by striking the phrase "the Mayor" and inserting the phrase "the ABC Board" in its place.

(4) Subsection (g-3) is amended by striking the phrase "the Mayor" and inserting the phrase "the ABC Board" in its place.

(5) Subsection (j) is amended by striking the phrase "the Mayor" and inserting the phrase "the ABC Board" in its place.

(f) Section 8(a) (D.C. Official Code § 7-1671.07) is amended by striking the phrase "to the Department" and inserting the phrase "to ABRA" in its place.

(g) A new section 9a is added to read as follows:

" Sec. 9a. Medical Cannabis Administration Fund.

" (a) There is established as a special fund the Medical Cannabis Administration Fund ("Fund"), which shall be administered by ABRA in accordance with subsection (c) of this section.

" (b) All funds received from medical cannabis licensing, permitting, and registration fees shall be deposited into the Fund.

" (c) Money deposited in the Fund shall be used by ABRA for the purpose of administering the medical marijuana program.

" (d) (1) The money deposited into the Fund shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.

" (2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.

" (e) Funds received from penalties and fines imposed under section 9 shall be credited to the unassigned fund balance of the General Fund of the District of Columbia.".

(h) Section 14 (D.C. Official Code § 7-1671.13) is amended by adding a new subsection (a-1) to read as follows:

" (a-1) Pursuant to the transfer of functions of the Department of Health to ABRA by D.C. Official Code § 25-204.02 , the Mayor shall issue rules in accordance with subsection (b) of this section, which rules shall allow registered dispensaries to provide medical marijuana to qualifying patients through delivery, curbside pickup, and at-the-door options.".

Sec. 5013. Chapter 2 of Title 25 of the District of Columbia Official Code is amended as follows:

(a) The table of contents is amended by adding a new section designation to read as follows:

25-204.02. Medical marijuana program; transfer of functions of the Department of Health.

(b) A new section 25-204.02 is added to read as follows:

" Sec. 25-204.02. Medical marijuana program; transfer of functions of the Department of Health.

" (a) The Board and ABRA shall be responsible for carrying out the responsibilities assigned to them by the Legalization of Marijuana for Medical Treatment Initiative of 1999, effective February 25, 2010 (D.C. Law 13-315; D.C. Official Code § 7-1671.01 et seq .) ("Medical Marijuana Act"), and for any responsibilities of the Mayor under the Medical Marijuana Act that the Mayor delegates to the Board or ABRA.

" (b) (1) Except as provided in paragraph (2) of this subsection, all personal property, assets, records, including both electronic and physical files, licensing agreements, and contracts, equipment, computer software, obligations, and unexpended balances of appropriations, allocations, assets, and liabilities, and other funds available or to be made available relating to the powers, duties, functions, operations, and administration by the Department of Health of the medical marijuana program pursuant to the Legalization of Marijuana for Medical Treatment Initiative of 1999, effective February 25, 2010 (D.C. Law 13-315; D.C. Official Code § 7-1671.01 et seq .) , as of September 30, 2020, are transferred to ABRA.

" (2) This subsection shall not apply to the personal property, assets, records, including both electronic and physical files, licensing agreements, and contracts, equipment, computer software, obligations, and unexpended balances of appropriations, allocations, assets, and liabilities, and other funds available or to be made available relating to the powers, duties, functions, operations, and administration by the Department of Health of the medical marijuana program that are within the purview of the Board of Medicine, Board of Nursing, or Board of Dentistry.

" (c) All rules, orders, obligations, determinations, contracts, agreements, and understandings of the Department of Health pertaining to the medical marijuana program shall remain in effect until such time as they may be lawfully amended, modified, or repealed.

" (d) ABRA shall coordinate with the Department of Health regarding the transition of the administration of the medical marijuana program to ABRA.

" (e) (1) The directors of ABRA and the Department of Health shall jointly determine which personnel, if any, of the Department of Health associated with the administration of the medical marijuana program shall be transferred from the Department of Health to ABRA.

" (2) Personnel who are transferred to ABRA pursuant to this subsection shall be subject to the ABRA Director's personnel authority, pursuant to section 406(b)(21) of the District of Columbia Government Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2-139; D.C. Official Code § 1-604.06(b)(21)) , including as it relates to employment classifications and pay scales.".