It will surprise most people to know that there are only seven (7) legally licensed and operational cannabis dispensaries in DC. The hundreds of other companies that pop-up (pun intended) in an internet search are illegal operations.
I-71 operators claim they are legal and comply with I-71 (legislation passed in DC in 2014 that went into effect in February 2015). The I-71 legislation allows for the transfer of up to one (1) ounce of marijuana as long as (1) no money, goods or services are exchanged; and (2) the recipient is 21 years of age and older. I-71 operators claim that by “gifting” the marijuana they are compliant with DC regulations and thereby legal operators. This premise falls apart when even a cursory analysis of their operations is done:
- A gift does not require the purchase of anything. I-71 operators require the purchase of an item, service, or membership to receive the “gifted” marijuana, a clear violation of the definition of a gift and I-71.
- All products I-71 operators sell are from unlicensed and unregulated sources. Unregulated products may contain highly undesirable substances—many of which have harmful side effects on the unsuspecting people purchasing those products.
- An example of the downside of illegally produced products was made clearly evident when illegal vapes containing Vitamin E oil caused irreparable physical damage to thousands of users.
- More recently, testing of illegal products revealed the presence of harmful bacteria (such as e coli), heavy metals, toxic pesticides, and fentanyl.
- As a majority of the products sold come from sources outside the District, a strong possibility exists that the funds used to purchase those products are passed over to entities who may finance further illegal, and potentially harmful, activities unrelated to the cannabis underground market.
- They are unlicensed by ABCA, the agency in DC that regulates the cannabis market and do not pay any licensing fees creating an additional burden on the licensed facilities that went through the time and expense to honor the process.
- Sales taxes paid on the merchandise they sell are not put into the cannabis fund and distributed to programs supported by cannabis taxes, thereby shorting the communities these programs were established to support.
- I-71 operators are not required to protect your privacy and may not follow HIPA
Pop-Ups and delivery services tend not to have even a basic business license, do not claim to be legal operators and do not normally have a “permanent” brick and mortar location. Delivery services may deliver to your location or may require that you pick up from them at a location determined just prior to the time of delivery. In all cases, these operations are unlicensed, unregulated and illegal.
