5406

5406.1

An individual applicant, all of the general partners of an applicant partnership, all of the members of a limited liability company, or the president or vice-president of an applicant corporation shall sign a statement with an original signature, which may be a signature by wet ink, an electronic signature, or a copy thereof, certifying that the application is complete and accurate, and agreeing to all certifications required by the Board.

5406.2

The medical cannabis facility application of a person or entity applying for a medical cannabis business license shall state each of the following notices:

(a) Limitation of Liability -- To the extent provided by Section 12 of the Act (D.C. Official Code § 7-1671.11), the District of Columbia shall not be liable to the registrant, its employees, agents, business invitees, licensees, customers, clients, family members or guests for any damage, injury, accident, loss, compensation, or claim, based on, arising out of, or resulting from a person's participation in the District of Columbia's medical cannabis program, including but not limited to the following: any fire, robbery, theft, mysterious disappearance, or any other casualty; or injury arising from the use of medical cannabis obtained through the program. This Limitation of Liability provision shall survive expiration or the earlier termination of this registration if such registration is granted; and

(b) Federal Prosecution - The United States Congress has determined that cannabis is a controlled substance and has placed cannabis in Schedule I of the Controlled Substance Act. Growing, distributing, and possessing cannabis in any capacity, other than as a part of a federally authorized research program, is a violation of federal laws. The District of Columbia's law authorizing the District's medical cannabis program will not excuse any licensee from any violation of the federal laws governing cannabis or authorize any licensee to violate federal laws.

(c) Knowledge of Law – The applicant swears or affirms that the ownership is sufficiently familiar with the District of Columbia's medical cannabis laws to superintend a medical cannabis business and has the ability to ensure the business complies with the law.

(d) True and Actual Owner- The applicant is the true and actual owner of the business for which the license is sought and that he or she intends to carry on the business for himself or herself and not as the agent of any other individual, partnership, association, or corporation not identified in the application; and that the licensed establishment will be managed by the applicant in person or by a manager approved by the Board.

5406.3 As part of the application process, every applicant for a licensed medical cannabis business shall sign a written statement attesting to the following:

(a) The applicant acknowledges receipt and advisement of the notices set forth in § 5406.2 of this subtitle;

(b) The applicant agrees to and accepts the limitation of liability against the District, and the requirement to indemnify, hold harmless, and defend the District, as set forth in § 5406.2 of this subtitle;

(c) The applicant assumes any and all risk or liability that may result under District of Columbia or federal laws arising from the possession, use, cultivation, administration, dispensing, or testing of medical cannabis;

(d) The applicant understands that the medical cannabis laws and enforcement thereof by the District of Columbia and the Federal government are subject to change at any time; and

(e) The applicant chooses to sign this attestation willingly and without reservation and is fully aware of its meaning and effect.

5406.4 The making of a false statement, whether made with or without the knowledge or consent of the applicant, shall, in the reasonable discretion of the Board based on the materiality and willfulness of the false statement, constitute sufficient cause for denial of the application or revocation of the license.

5406.5 A person shall not knowingly submit an altered document or application to the Board for the purpose of deceiving the Board. The submission of an altered document intended to deceive the Board, may, at the reasonable discretion of the Board, constitute sufficient cause for denial of the application or revocation of the license.

SOURCE: Notice of Emergency and Third Proposed Rulemaking published at 58 DCR 3299 (April 15, 2011)[EXPIRED]; as amended by Notice of Emergency and Fourth Proposed Rulemaking published at 58 DCR 7207 (August 12, 2011)[EXPIRED]; as amended by Notice of Final Rulemaking published at 58 DCR 10128, 10191 (December 2, 2011); as amended by Final Rulemaking published at 71 DCR 002388 (March 8, 2024); as amended by Final Rulemaking published at 73 DCR 002136 (February 20, 2026).