In the District of Columbia, you can legally consume marijuana but not buy it. You can buy medicinal marijuana, but you won't be able to buy recreational marijuana. This peculiar predicament stems from D.C.'s unusual legal status as a creation of the United States Constitution.
It's been almost four years since voters in Washington, D.C. approved Initiative 71, which allows anyone over the age of 21 to possess up to two ounces of marijuana. Residents of the district are allowed to consume and cultivate marijuana on their own land, as well as exchange cannabis as long as no money, commodities, or services are transferred.
The nation's capital now boasts a thriving market of cannabis entrepreneurs who negotiate a distinct ecology, unlike any other legal marijuana industry. Tourists, merchants, companies, and government personnel, on the other hand, may find that same market challenging. In this post, you'll discover how cannabis companies function in Washington, D.C. today.
Cannabis Businesses in D.C.
You can open a medicinal marijuana dispensary even if you can't build a retail store. You can, however, give or donate cannabis to someone if you don't get anything in return, such as money, products, or services. Shirts and other things have been sold in the District, with a "gift" of marijuana included in the transaction.
There are no shops in the area. Sales are held at certain locations. While giving marijuana to someone is lawful, selling other goods to fulfill that present might rapidly run afoul of the law.
Medical Cannabis Dispensaries in D.C.
The mayor requires most medicinal marijuana retailers to be registered. Furthermore, the DC health office oversees the authorization and licensing of medicinal marijuana, and only five shops are authorized inside the District.
If you're a cannabis business owner in the state, you must fulfill the state's basic qualifying criteria, which include having good character, being over 21, not having any felony convictions, and not being a physician, as outlined in 22 DCMR C section 5400.1.
Furthermore, there is a fee to apply for a legitimate medicinal cannabis company in DC. Application and permission costs are necessary, but there are extra payments for workers, managers, and business contacts. The yearly price for medicinal cannabis shops is $10,000, which includes a $5,000 application fee, a $200 annual fee for corporate partners, a $75 annual fee for workers, and a $150 annual fee for a manager's license.
As a cannabis company owner, you must additionally pay a stated transportation charge of roughly $25 for moving medicinal marijuana from the production facility to the distribution facilities. If you believe the difficulties facing cannabis companies in D.C. end there, you're mistaken.
The entire application procedure for a medical marijuana store may be difficult. The District of Columbia employs a point system to choose which licenses to grant. In their applications, applicants must address specific criteria, and points are awarded for each area covered.
How to Get Cannabis in D.C.
#1. Delivery
Your "gift" will be delivered to a place of your preference by delivery companies. The usual delivery time, in my experience, is between 1 and 2 hours, so be sure you'll be in one location for at least two hours if you choose delivery, or arrange an appointment the day before. They also can't deliver on government property.
#2. Pick Up
You can pick up your "gift" and meet the brand in a private interior place, such as a hotel room or flat, and it usually necessitates an appointment. Otherwise, it'll be similar to shopping in a store because you'll have the opportunity to ask questions and go over their variety of cannabis presents before deciding what you want.
It should be possible to obtain an appointment 1-2 hours ahead of time, but scheduling a schedule the day before is a smart idea, especially if you're short on time. During the continuing epidemic, most of them have been switched to Curbside Pick-Up.
#3. Meet Up
Meet-ups are similar to deliveries, except that the brand specifies the place, which is generally in front of a coffee shop. This is ideal for tourists who are inexperienced with the city, but you could also just ask a frequent Delivery brand to recommend a meeting location.
Most people will comply with such a request. Many entrepreneurs have lumped them in with Delivery since they provide the same functions. Facebook and other social media platforms are popular with companies.
Other Interesting Facts About Cannabis Dispensaries in D.C.
#1. Pop-Up Shops
According to data from the DC Police Department, the number of possession arrests has decreased significantly, from almost 1,500 in 2014 to only 16 in 2016. However, from a low of 99 in 2014, the number of public consumption arrests has risen to an average of 274 each year over the previous two years.
Marijuana users may be put in considerably more danger if they use it on federal territory, which accounts for 29 percent of DC's total landmass. Because the community has regularly voiced dissatisfaction with the quantity of public consumption, police feel they are compelled to intervene.
Meanwhile, authorities have raided pop-up gatherings, including one in June that resulted in the arrest of 30 persons and the seizure of almost $10,000 in marijuana. The raids are directed at users and sellers who are attempting to avoid the gray area of giving.
Since it is still prohibited, pubs and restaurants might face hefty fines or even closure if I-71 infractions occur on their premises, many companies are hesitant to organize parties or allow marijuana usage in their establishments.
Most companies, credit unions, and financial organizations will not accept "marijuana money" for fear of federal penalties or money laundering claims. As a result, merchants are forced to deal exclusively in cash, placing them at a higher risk of theft.
#2. Thriving Green Market
With over 300 marijuana-related companies, DC is the most robust pot market on the East Coast. Many larger firms, though, are keeping away due to marijuana's quasi-legal position in the area.
According to a 2014 assessment by District authorities, the city's cannabis market may be valued at up to $130 million per year, generating up to $20 million in income for the city. This is a small portion of the anticipated expansion of the total national sector, which, according to some projections, may reach $20 billion by 2022.
#3. The Problem of Synthetic Cannabis
While this synthetic marijuana drug known as "K2" is not a new issue in the region, its use and overdose instances have skyrocketed. The effects of K2 are similar to those of marijuana, although they are significantly greater. K2 is widely purchased at dealerships and corner stores, adding to the problem, and it has become a public health risk in places such as New York.
Thousands of medical calls for alleged K2 poisoning have been received in DC as a result of this situation. Officials, merchants, and citizens are uncertain how the K2 pandemic will influence the city's legal marijuana future, but the outbreak is hampering attempts to completely legalize marijuana usage.
#4. Women in the Cannabis Industry
Many of the merchants at these events in D.C. are owned by people of color, women, and veterans. This provides opportunities for some of Washington's most overlooked groups to work in high-paying occupations ranging from farmers to merchants, consultants, and delivery network operators.
The DC Council approved a bill in 2017 that gave minorities preferential treatment when it came to working at dispensaries and growers in the city. Despite efforts to provide minority cannabis businesses preferential treatment, many still suffer stigma: 86% jailed for cannabis are black.
Well-Known Cannabis Businesses in D.C.
Since we've already discussed the state of the cannabis business in D.C. and how entrepreneurs can apply for the legal marijuana business, let's talk about some of the most successful and influential cannabis entrepreneurs in D.C. and how they overcome all the challenges of the industry.
#.1 The Couple Behind “The Retailers”
The owners of this well-known company are Jeffrey Kahn and Stephanie Reifkind Kahn. The pair launched their dispensary in 2013, putting it one of the longest-running in DC, after years of service in healthcare and utilizing the rabbinate to assist families to deal with illness.
With $7.6 million in sales, it was also the city's highest-grossing in 2019. Josh works alongside his parents in the marijuana industry, and his brother, James, has served for other neighborhood pot businesses.
#2. The Tastemaker
Jamila Hogan is the owner of The Tastemaker. " Mills is to pot what a master some is to wine," a cannabis judge who anoints prize-winning "strain hunters" in international contests.
She may be DC's most eloquent kush critic, reviewing dispensary goods and locally produced buds on her site, Pass the Jay, based on her experience as a previous farmer. Mills also advises and instructs, teaching producers and consumers about the olfactory characteristics that distinguish marijuana strains and their benefits. She's known for her pitch: Better bud = more education + more discriminating customers.
Final Thoughts
Operating a cannabis business in D.C. is indeed challenging and may really take your time, effort, and resources. However, you’ll reap the benefits of the green rush in the state once you legally completed all the requirements for a cannabis dispensary.
Additionally, understanding how the cannabis industry works and what the law says about it will help you lessen the chances of getting involved in legal issues in D.C.