D.C. cannabis stores sue officials over enforcement efforts

A group of seven recreational cannabis stores in Washington, D.C., is suing several city officials to stop enforcement actions against their businesses.

The seven operators filed the lawsuit on Nov. 7 under the moniker Alliance for Recreational Cannabis Entities, according to Green Market Report.

The suit names as defendants five District of Columbia officials:

• Mayor Muriel Bowser.
• Attorney General Brian Schwalb.
• Alcoholic Beverage and Cannabis Administration (ABCA) Director Fred Moosally.
• Licensing and Consumer Protection Director Tiffany Crowe.
• Police Chief Pamela Smith.

The district has allowed medical marijuana sales since 2013.

The next year, D.C. voters legalized adult use and possession of marijuana as well as “gifting” of cannabis between individuals but did not create a  recreational cannabis industry per se.

While Congress – which has jurisdiction over the District of Columbia – allowed the medical marijuana law, it has scuttled adult use through a rider in the congressional budget that prohibits the city from using funds to set up a recreational cannabis market.

Some adult-use retailers have tried to get around that law by “gifting” cannabis with sales of other items, such as T-shirts.

Such activity didn’t sit well with the district’s ABCA, which has closed at least one store for illegal sales and sent warnings to roughly 60 other businesses.

More recently, D.C. officials have sought to transition such businesses to a legal status but required them to sign an affidavit admitting they had engaged in illegal marijuana sales, Green Market Report noted.

Marijuana businesses that didn’t sign the affidavit were denied approval to transition.

In response, the Alliance for Recreational Cannabis Entities filed the lawsuit demanding that D.C. officials cease enforcement efforts, according to Green Market Report.