5446.1 The Board shall not enforce the following if included in a settlement agreement covered by this chapter:
- (a) Provisions that require approval from a signatory or third party to file an application or request with the Board;
- (b) Provisions that require additional or specific notice to a signatory or third party outside of the notice required by law;
- (c) Provisions that restrict the sale or transfer of the business to new or different owners or require or restrict a change in the type of license;
- (d) Provisions that prohibit the act of filing of an application or request with the District. This section does not prevent the settlement agreement from allowing, restricting, or prohibiting various activities of the business;
- (e) Provisions that mandate the purchase, service, or sale of specific types of food, non-alcoholic beverages, and medical cannabis; mandate the type of cuisine; mandate the use of brands or types of medical cannabis and other products; or mandate any or all prices set by the business;
- (f) Provisions restricting customers based on age, gender, national origin, status as a student, or other criteria prohibited by the D.C. Human Rights Act (D.C. Official Code § 2-1401.01 et seq.);
- (g) Provisions requiring the use of specific businesses; require the joining of any group; or requiring the hiring of any specific person or local individuals;
- (h) Provisions that create additional administrative procedures in addition to those required by ABCA or the District, alter the penalties of existing laws, or otherwise restrict prosecutorial or Board discretion;
- (i) Provisions that require the licensee or their agents to attend ANC or community meetings, events, or otherwise require them to appear or communicate with the signatories or third parties;
- (j) Provisions that require the establishment to provide money, buy specific goods or services, or provide financial or other benefits to the community or its agents; provide discounts, free goods and service; or offer specific promotions;
(k) Provisions requiring the provision of contracts, incident logs, and other documents to the signatories or third parties except to ABCA or the Board;
(l) Provisions that require a minimum or maximum level of food, non-alcoholic beverage, or cannabis sales to the public, individuals, qualified patients, or other persons authorized to purchase goods and services from the establishment or require the purchase of specific products by qualified patients, caregivers, or other customers.
(m) Provisions that require future negotiation or create probationary periods that may alter the terms of the license, the settlement agreement, or the operation of the business after approval of the agreement; and
(n) Provisions that create a plant limit or restrict the products that may manufactured, dispensed, or sold by the licensee.
5446.2 A settlement agreement provision that requires a violation of District law shall not be enforced, even if the law did not exist at the time the agreement was approved.
5446.3 If a settlement agreement provision is deemed unenforceable after approval of the agreement, it shall be presumed that the parties intended for the remainder of the agreement to remain enforceable.
SOURCE: Final Rulemaking published at 73 DCR 002136 (February 20, 2026).