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> ./2025-09-24.council.business.md

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---
name: DC Council Small Business Hearings
composer: c4lliope
summary: |
  The 9/24 [hearing] for the confirmation
  of Cheryle Doggett for the Washington Convention and Sports Authority Board;
  and Fred Moosally for the director of Alcoholic Beverage & Cannabis Administration.

  [hearing]: https://lims.dccouncil.gov/Hearings/hearings/955
labels:
  - dc
  - council
  - confirm
  - hearing
---

Someone here is testifying for an appointment to the sports board,
or something similar.

She is now speaking about her experience in finance,
and she says she has helped in the city's first parking business.
She helped turn unused land into a resource-producing asset for the city,
which sounds to some degree like "paving paradice, turn it into a parking lot."

Now councilman Frumin has come in;

Cheryle Doggett under testimony has been on the board since 2014;
she is asked to speak about her experience with Events DC

- Construction @ St Elizabeth's campus of the sports venue
  - coordinated and "forging ahead" with the mayor's office and
  - Care First arena, ESA
- Carnegie library had been an "underused asset",
  - became an apple store and the home of the historical society.

Mr. McDuffie has called both of these a "catalyst for the area"
they were added to.

McDuffie is asking her to discuss equitable investments across all eight wards

expanding community grants program,
Events DC had been a really small program, (maybe) $100k per year in 2014
after school programs served 20-30 children

both expanded programs
and trained people how to apply
how to get clean hands certificate

Mr. Frumin is thanking her for support for "first responders".
He is speaking of the "fields at RFK".

Doggett says, "there was nothing there, and now those fields are full,
every day and every night."

Frumin: "it's an extraordinary model",
but there is a shortage of similar events around the city.
Should Events DC engage in activation of similar spaces around the city?

Doggett: of course, they do receive requests for pickle ball and rugby fields.

Frumin: Events DC can be nimble, they do receive and need to respond to incoming requests.

McDuffie:
How do you plan to strengthen the role that sports play in DC in the upcoming years?

Doggett:
refer back to Frumin, "we are nimble, because of the way we are funded and the way that we operate,
we are in a position to do things that others" in the district "are unable to do"

this goes back to the hospitality tax, she remembers when her late husband was a member in the
Visitors and convention association - they were able to accomplish things that Events DC
hopes to do for the city.

She'd like Events DC to support conferences, bring in people from outside the city.

"do as much as possible for people whose home is the district of columbia."

Frumin:
One of the things I've spoken to E-DC about with the RFK stadium,
is having a river regatta, similar to Philly.
Can be called "Douglas Commonwealth Regatta"
DC has expressed support, maybe she can consider.

McDuffie:
Only one DC public school has a crew team,
there are a number of independent private schools that have crew teams.

- - -

Director of Alcoholic Bev

Frederick P Moosally

Nominated June 13th
Confirmed by someone

Served as director of ABCA since 2009,
previously as agency's general counsel
ABCA has received national recognition, national "agency of the year"
"innovatiotive law enforcement agency of the year" 2009, 2017, 2020

Director Moosally;
Good morning, ...
honored to be here,
seeking position as director for another four year term
been here since July 2009

thank you Mayor Bowser for sending nomination along,
thank residents of DC for chance to serve

speaking in support of medical cannabis program,
enacting a "level playing field".

medical sales 5.4million / month
prior to march 2025,
sales had not been above 3mil/month

legislative extension of medical streatery endorsement

- improvements to medical
  - transition unlicensed businesses to registered retailers
  - March 31, 2025 deadline
  - delivery endorsement
  - safe use end.
  > March 22, 2023: legislation took effect
  - enabled a testing lab for medical cannabis products
  - ABCA was able to promote patient access to register patients
- alcohol enforcement division
  - exceeded all goals for enforcement
  - 414 sale to minor compliance checks
  - 600+ regulatory inspections
  - after hours inspections
  - addressing quality-of-life issues through nightlife task force
- extended hours during events
  - agency DC 26-006, on site and extended hours amendment act, 6/10/2025
  - extend hours of operation for sporting, tourism-related, and special events.
  - art all night, world pride, fifa world cup
  - participating locations sent to MPD

priorities if confirmed:

- modernize alcohol and medical cannabis laws
- promote public health and safety
- number of legislative proposals for FY26
- agency coordinating introduction of omnibus legislation
- streatery program
- make alcohol streatery endorsement permanent
- make medical cann drink manufacturing easier
- non-medical products for sale at medical retailers

- may 22, 2025 mendelson,
  - new medical cann. retailer endorsement

- game of skill subtitle, commercial bingo
  - sep 24 2025 signed by bowser.

license applications, now only one endorsement needed
abca is working with the div of lottery and gaming

working on the agency's new computer system to be unveiled in FY2026
streamline licensing and interactions with the agencies
get managers and businesses registered
register as a med. cann. patient

Finally, build cann. enforcement division,
with coordination of MPD
closed and padlocked 75 illegal cannabis businesses

"concludes my prepared remarks"

- - -

McDuffie:

Normal inquiries:
- District resident, do you intend to reside during the entirety of the appt?
- Ward? 3, Frumin is councilmember
- current member of board or commission?
- any other offers for employment from DC gov? only this current position.
- any immediate interest (or family) that could be conflict of interest? no
- outstanding liabilities to the district, taxes or fines, contested or no? no

alc and cannabis board voted 5-0 to appoint him,
he is required to appoint a community liaison for people to lodge complaints
Sarah Winneger, Ward 3, current appointment
collaborates with Office of ANCs

last round table for appt was in 2021,
discussed changes to the duration of a medical cannabis card
expanding diversity of ownership.

current term accomplishments.

- with help of council, medical cannabis card extended from 1 year to 2 year
- "need to have robust testing"
  - district's first testing lab has been open for more than a year now.
  - all cannabis for sale goes through that lab
  - conditional licenses are in process.

- only six licensed dispensaries in 2021, now 64.
- allow unlicensed businesses to transition by March 31, 2025 statutory deadline
- DC has a unique medical cannabis market, minority and women owned
  - other jurisdictions have big industrial sellers,
  here is many more small businesses.
- went from number of sales under 3mil to over 5mil (for 5 months in a row)
  - $30mil -> $60/$70 mil / year

Frumin:
what is the distribution of the 64 dispensaries

>
denser in commercial wards, 2 / 6 / 1
retailers need to be 400' from each other
increased distances from schools and rec centers, 300' to 400'

no more open application periods
no plans to make retailer licenses available

people can request moratoriums

Frumin:
do you think with 64, we can fully meet demand?

>
Even though no more open application periods,
they had licensing periods where people had 2 years to find a location.

Frumin:
People are still applying for licenses and getting placarded
there are a pool of people who have conditional licenses.

>
(100 - 200)

Frumin:
unlicensed operations, have they been all closed or how many more?

>
as of today, closed 75.
Most of the illegal operations is home delivery or curbside pickup.
They've been getting into curbside pickup.

Frumin:
They had 75 unlicensed dispensaries closed,
are the licensed locations absorbing the demand?
"How much of the market have we been able to cover?"

>
In addition to 75, many businesses transitioned to the gorup of 64 licensed.
Others voluntarily closed.
Had well over 100 stores operating illegally.

Big issue now is Maryland, they have rec sales;
if someone does not want to register as a patient
they'll go to Maryland or buy illegally.

McDuffie:
Question on licenses; how many retailer licenses have you issued as of today

>
As of July, 64 licensed and operating and selling
most are in 1 / 2 / 6.
very few in 7 / 8

A couple factors:
unlicensed vendors transitioned from those wards,
businesses are looking to be in commercial corridors

McDuffie:
Cultivation licenses, how many?

>
Probably around 8, and 8 more in varying stages.
Discussing extension of conditional licensing period for one more year,
to enable the completion of some vendors' construction to be done in around six months.

McDuffie:
What's the distribution of the cultivation centers?

>
4 / 5 / 7 / 8
none in 3

McDuffie:
How many manufacturers licenses?

>
most of the cultivation centers have manufacturing licenses
DC Extracts / 5 (Chillum)
Fox ... (Ivy City / Fenwick)

>
Testing lab is at 20-30% capacity.

McDuffie:
Do you think the cultivation centers are likely to open additional testing labs?

>
Hope so, people can apply to run a testing lab.

McDuffie:
- glad you are hiring for 2 additional vacancies
What are you hearing on the ground for the district's competitive market?
- advantages / disadvantages compared to neighboring states
  - prices, availability, strains

>
When MD had adult sales, sales in the district decreased
$400k -$500k sales drop per month.

Need to increase product variety
need to open additional cultivation and manufacturing centers.
craft manufacturing bill in front of the council
medical cannabis "beverage bill"
allowing sale of non-cannabis related products?
allowing minors into the shop?
sell bottle of water or pre-packaged foods?

some jurisdictions have good rules already
how do you help existing retailers sell more?

make more changes to the online patient system?
"the easier it is to register, the better it's going to be."

McDuffie:
Changes to the online registration;
how is it going to make it more efficient for patients,
how does it compare to the process for people in MD?
Anecdotally, very easy to do so in MD.

>
All you have to do is show an ID, over 21.
Make it easier for dispensaries to register patients.

Process where you're being asked for ID.
Sign a waiver that you're using it for medical purposes.

(Pinto has come in, so some rehashing)
Pinto:
Update us on the cannabis enforcement mission
Last year, council changed rules on level of involvement,
when it comes to councilmember's involvement of protests.
How do security and safety concerns play into analysis of enforcement?
Council's ability to protest or write a letter has been curtailed.

>
Closed 75 unlicensed brick-and-mortars
more places scheduled to be closed,
more speakeasy-like places with less-permeable hubs.

The unlicensed market has changed.

They have gotten letters, and informed the council.
They expanded who can submit a protest, including neighboring residents.
Increased the distance from schools or rec centers, from 300 -> 400'

No more open application periods, for any license other than a testing lab.
Conditional licenses...

Pinto:
400' from another licensed
600' from other licensed buildings
1815 M St NW, nude dance establishment.

>
board decided to placard the business.
the board is deciding and shall issue an order (today?)
any interested party has 10 days to complain.

>
board decided to placard the issue
to open the issue to members of the public

Frumin:
One of the things I'm hearing about the marketplace
is concerns about supply,
that there may be inadequate production.
Where is production capacity, in comparison to sales?

>
6 Cultivation centers
64 dispensaries
product variety, and bring prices down
much demand for popular items, usually sold out.

Popular items continue to sell out
pre-rolls and vape cartriges.

Frumin and > have back and forth about supply and demand.
basic macroeconomics,

Frumin:
Metrics

>
Monthly public report without financials
Monthly report (internal) with all financial information
  - lead to enforcement tips if measures are off.

Frumin:
If you see production facilities are making 50% profit,
retailers making 0%, then there's a problem
Are these numbers public?

>
No, we can have an offline discussion.

Frumin:
Where is unlicensed product from?

>
California, Michigan, west coast

Frumin:
How big is that market in the district?

>
At one time, it was clearly bigger.
At moment, the bigger issue is Maryland.
From brick-and-mortar in DC, you need to go to a licensed business.
Unsure how many home sales are occurring
In a couple months, should know more
When we go close business, we seize product.
When they see the product, they have a clearer idea.
(implies home delivery crackdown)

Frumin:
Heard about 3rd graders who took fentanyl-laced gummies,
ended up in hospital

>
This is why we're not slowing down on enforcement any time soon.

McDuffie:
Status of any oversight grievances?

>
Former employee submitted a pro-se lawsuit against six government agencies,
alleging wrongful termination

US district court ruled in favor of the district in April,
gave former employee ability to amend their complaint.
They filed a motion in May to re-open their complaint.

//
Situation in 2022, former employee hoped to come back to the agency in a management capacity,
interviewed and passed by, filed complaint with OHR about the decision,
still pending with OHR but the agency is confident about decision.

//
Keeping the community aware
Closed unlicensed establishments,
filed a suit saying that gifting is legal in the district.

McDuffie:
How were those resolved?

>
Won TROs
Preliminary injunctions

McDuffie:
Any decision on merits?

>
No decision on merits

//
Now on decisions to sell hemp,
two businesses would like to sell hemp,
ongoing lawsuits
one TRO denied, one coming up.

McDuffie:
Anything else for the record?

>
Thank you Donnie and Marissa.
"I only look as good as I do because of my staff."
Depend on good communication with the council.

McDuffie:
Sorry for making this hearing so long,
when you've been in your position for so long,
of course you're going to prepare and know what you're talking about,
it's hard not to get everything out of you as we can;

Public comment and remark on this hearing can be submitted until
5pm on October 3 hearing management system dccouncil.gov

So then, hearing hence adjourned.