The bill includes several measures meant to put the “gifting” storefronts out of business, including civil penalties to shut down the stores and penalize the landlords that host them.The city’s regulated and taxed medical marijuana dispensaries have seen “substantial erosion of their business to the illegal market” as “gifting” storefronts have flourished, Council Chairman Phil Mendelson said. He said his staff counted nearly 40 such businesses in the District.
While the bill does not create any new criminal penalties for operators of marijuana businesses, it does create new civil violations for any business other than a registered medical marijuana dispensary that keeps more than two ounces of the drug on its premises or offers customers marijuana as part of a retail sale.The bill would allow the mayor to shut down such businesses for 96 hours, which could be extended longer after an investigation.
The gifting market that has sprung up in that void — sometimes referred to as “I-71 compliant,” after the 2014 ballot initiative 71 that made use and possession of the drug legal but did not deal with sales — could be reshaped by the bill.
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