5421.1 To qualify for issuance, renewal of a license, transfer of a license to a new location, or an application for the approval of a substantial change in operation as determined by the Board, an applicant shall demonstrate to the satisfaction of the Board that the medical cannabis establishment is appropriate for the locality, section, or portion of the District where it is to be located.

5421.2 In determining the appropriateness of a medical cannabis establishment, the Board shall consider all relevant evidence of record, including:

1. (a) The effect of the establishment on real property values;
2. (b) The effect of the establishment on peace, order, and quiet; and
3. (c) The effect of the establishment upon residential parking needs and vehicular and pedestrian safety;

5421.3 In determining the appropriateness of a medical cannabis establishment for initial issuance of a license or a transfer of a license to a new location, the Board shall also consider the following as they relate to the appropriateness factors described in § 5421.2:

1. (a) The proximity of the establishment to schools, recreation centers, day care centers, public libraries, or other similar facilities;
2. (b) The effect of the establishment on the operation and clientele of schools, recreation centers, day care centers, public libraries, or other similar facilities; and
3. (c) Whether issuance of the license would create or contribute to an overconcentration of licensed medical cannabis establishments of the same type.

5421.4 The requirements of this section shall only apply to applicants for a cultivation center, manufacturer, internet retailer, or retailer license.

5421.5 For purposes of establishing the appropriateness of the medical cannabis establishment, the applicant shall present to the Board such evidence and argument as would lead a reasonable person to conclude the following:

1. (a) The establishment will not interfere with the peace, order, and quiet of the relevant area, considering such elements as noise, rowdiness, loitering, litter, and criminal activity;

(b) The establishment will not have an adverse impact on residential parking needs, considering available public and private parking and any arrangements made to secure such parking for the clientele of the establishment;

(c) The flow of traffic to be generated by the establishment will be of such pattern and volume as to neither increase the likelihood of vehicular accidents nor put pedestrians at an unreasonable risk of harm from vehicles; and

(d) The establishment will not have an adverse impact on real property values in the locality, section, or portion of the District of Columbia where it is to be located, considering such elements as blight, the presence of graffiti, the history of building violations and vacancy status under the applicant, and the physical impact of the property on neighboring properties, including odors and noise.

5421.6 Whenever an applicant has initially presented evidence to show that the establishment is appropriate, any protestant opposing the license shall present to the Board such evidence and argument as would establish the inappropriateness of the establishment, and as would overcome, to the satisfaction of a reasonable person, the evidence and argument presented by the applicant.

SOURCE: Final Rulemaking published at 73 DCR 002136 (February 20, 2026).