5443.1 If the Board determines that the settlement agreement complies with all applicable laws and regulations and the applicant otherwise qualifies for licensure, it may, in its discretion, approve the license application, conditioned upon the licensee's compliance with the terms of the settlement agreement. The Board shall incorporate the text of the settlement agreement in its order and the settlement agreement shall be enforceable by the Board.

5443.2 The Board may reject any settlement agreement that is not in accordance with the law, not in the public interest, or otherwise not in the interest of ABCA to enforce.

5443.3 The Board may reject a settlement agreement that does not represent the entire agreement of the parties or when any or all of the terms of the settlement agreement:

(a) Violate the Act or this title, the Constitution, the D.C. Human Rights Act, or any other law or regulation;

(b) Are not in the public interest;

(c) Are not in the agency's interest to enforce because it is overly burdensome, unenforceable, or overrides the prosecutorial or other discretion provided to the Board or the District;

(d) Are incomplete, not final, or vague; or

(e) Require the licensee or the District to exercise control over third parties outside the premises.

5443.4 The parties may submit a settlement agreement at any time, except that, on the date of the protest hearing or after the close of the record, the parties may only file a settlement agreement with the permission of the Board.

5443.5 If the Board determines that a settlement agreement submitted by the parties does not comply with all applicable laws and regulations, the Board may condition approval of the settlement agreement on the parties' acceptance of modifications of the agreement proposed by the Board. If the parties reject the modifications proposed by the Board, they may submit a new settlement agreement for Board review that complies with applicable laws and regulations, or the Board may order the parties to proceed to a Protest Hearing.

5443.6 The Board shall issue an Order rejecting the settlement agreement if the parties to a settlement agreement reject the modifications proposed by the Board and fail to

submit a new settlement agreement, or fail to respond to the Board’s modifications, within thirty (30) days of receiving notice of the modifications.

5443.7 If the Board issues an Order denying the settlement agreement and a protest has been filed against the application, the matter will be scheduled for a Protest Hearing.

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