§ 42-3115 — Suspension or revocation of licenses.

(1) In accordance with § 2-509 , the Mayor shall revoke the license of any licensee who knowingly has permitted on the licensed premises:

(A) The illegal sale, negotiation for sale, or use of any controlled substance as that term is defined in Chapter 9 of Title 48 , or the Controlled Substances Act of 1970, approved October 27, 1970 (84 Stat. 1243; 21 U.S.C. § 801 et seq .);

(B) The possession, other than for personal use, sale, or negotiation for sale of drug paraphernalia in violation of subchapter I of Chapter 11 of Title 48 ;

(C) An act of prostitution, as defined in § 22-2701.01(3) , or any act that violates any provision of §§ 22-2701 through 22-2712 ; or

(D) Conduct that violates § 48-911.01(a) .

(2) The Mayor shall revoke any certificate of occupancy or permit associated with the specific address or unit, whichever is more specific, of the holder of a certificate of occupancy or permit who knowingly permits a violation of § 48-911.01(a) , to occur at the specific address or unit identified in the certificate of occupancy or permit.

(3) The Mayor, by rule, shall establish costs and fines to cover revocation of any license revoked pursuant to paragraph (1) of this subsection.

(1) In addition to the provisions of subsection (a) of this section and paragraph (2) of this subsection, the Mayor, notwithstanding § 2-1801.04(a)(1) , may take the following actions against any licensee, or agent or employee of a licensee, that, with or without the appropriate license, engages in the purchase, sale, exchange, or any other form of commercial transaction involving used goods or merchandise that are knowingly stolen:

(A) For the first violation of this paragraph, the Mayor:

(i) Shall issue a fine in the amount of $2,500; and

(ii) May seal the licensee's premises for up to 96 hours without a prior hearing.

(B) For a second violation of this paragraph, the Mayor:

(i) Shall issue a fine in the amount of $5,000;

(ii) May seal the licensee's premises for up to 96 hours without a prior hearing; and

(I) Shall, within 30 days of the issuance of a fine, require the licensee to submit a remediation plan approved by the Mayor, in consultation with the Chief of Police, that contains the licensee's plan to prevent any future recurrence of purchasing, selling, exchanging, or otherwise transacting stolen goods and the acknowledgment that a subsequent occurrence of engaging in prohibited activities may result in the revocation of all licenses issued to the licensee pursuant to Chapter 28 of Title 47 .

(II) If the licensee fails to submit a remediation plan in accordance with this sub-subparagraph, or if the Mayor rejects the licensee's remediation plan, the Mayor shall provide written notice to the licensee of the Mayor's intent to suspend all licenses issued to the licensee pursuant to Chapter 28 of Title 47 for an additional 30 days.

(C) For a third violation of this paragraph, the Mayor:

(i) Shall issue a fine in the amount of $10,000;

(ii) May seal the licensee's premises for up to 96 hours without a prior hearing; and

(iii) Shall provide written notice to the licensee of the Mayor's intent to permanently revoke all licenses issued to the licensee pursuant to Chapter 28 of Title 47 .

(2) In addition to the provisions of subsection (a) of this section and paragraph (1) of this subsection, the Mayor or the Chief of Police, notwithstanding § 2-1801.04(a)(1) , may take the following actions against, or impose the following requirements upon, any licensee, or agent or employee of a licensee, that knowingly engages or attempts to engage in the purchase, sale, exchange, or any other form of commercial transaction involving a synthetic drug, including the possession of multiple units of a synthetic drug:

(A) For a first violation of this paragraph:

(i) The Mayor shall issue a fine in the amount of $10,000;

(ii) The Mayor may issue a notice to revoke all licenses issued to the licensee pursuant to Chapter 28 of Title 47 ; and

(I) The Chief of Police, after a determination by the Mayor in accordance with § 2-1801.06(a) , shall seal the licensee's premises, or a portion of the premises, for up to 96 hours without a prior hearing;

(II) Within 14 days after a licensee's premises is sealed under sub-sub-subparagraph (I) of this sub-subparagraph, the Mayor shall require the licensee to submit a remediation plan to the Director of the Department of Licensing and Consumer Protection that contains the licensee's plan to prevent any future recurrence of purchasing, selling, exchanging, or otherwise transacting any synthetic drug and the acknowledgment that a subsequent occurrence of engaging in prohibited activities may result in the revocation of all licenses issued to the licensee pursuant to Chapter 28 of Title 47 .

(III) If the licensee fails to submit a remediation plan in accordance with this sub-subparagraph, or if the Mayor, in consultation with the Chief of Police, rejects the licensee's remediation plan, the Mayor shall provide written notice to the licensee of the defects in any rejected remediation plan and of the Mayor's intent to revoke all licenses issued to the licensee pursuant to Chapter 28 of Title 47 .

(IV) If the licensee cures the defects in a rejected remediation plan, the Mayor may suspend any action to revoke any license of the licensee issued pursuant to Chapter 28 of Title 47 .

(V) The Mayor shall notify the Office of the Attorney General upon sealing a licensee's premises or a portion of the premises.

(B) For any subsequent violation of this paragraph:

(i) The Mayor shall issue a fine in the amount of $20,000; and

(ii) The Chief of Police, after a determination by the Mayor in accordance with § 2-1801.06(a) , shall seal the licensee's premises, or a portion of the premises, for up to 30 days without a prior hearing.

(C) If a licensee's premises, or a portion of the premises, is sealed under subparagraph (A) or (B) of this paragraph, a licensee shall have the right to request a hearing with the Office of Administrative Hearings within 3 business days after service of notice of the sealing of the premises under subparagraph (E) of this paragraph.

(D) If a licensee timely requests a hearing under subparagraph (C) of this paragraph, the Office of Administrative Hearings shall hold a hearing before an administrative law judge within 3 business days after receiving the request.

(E) At the time of the sealing of the premises, or a portion of the premises, under subparagraph (A) or (B) of this paragraph, the Director of the Department of Licensing and Consumer Protection shall post at the premises and serve on the licensee a written notice and order stating:

(i) The specific action or actions being taken;

(ii) The factual and legal bases for the action or actions;

(iii) The right, within 3 business days after service of notice of the sealing of the premises, to request a hearing with the Office of Administrative Hearings;

(iv) The right to a hearing before an administrative law judge within 3 business days after a timely request being received by the Office of Administrative Hearings; and

(v) That it shall be unlawful for any person, with the exception of emergency services personnel, to enter the sealed premises for any purpose without written permission by the Director of the Department of Licensing and Consumer Protection.

(F) A licensee shall pay a fine issued pursuant to subparagraph (A) or (B) of this paragraph within 20 days after adjudication by the Office of Administrative Hearings. If the licensee fails to pay the fine within the specified time period, the Mayor may seal the premises until the fine is paid.

(G) For the purposes of this paragraph, the term:

(i) "Business days" means days in which the Office of Administrative Hearings is open for business.

(ii) "Synthetic drug" means any product possessed, provided, distributed, sold, or marketed with the intent that it be used as a recreational drug, such that its consumption or ingestion produces effects on the central nervous system or brain function to change perception, mood, consciousness, cognition, or behavior in ways that are similar to the effects of marijuana, cocaine, amphetamines, or Schedule I narcotics under § 48-902.04 . The term "synthetic drug" includes any chemically synthesized product (including products that contain both a chemically synthesized ingredient and herbal or plant material) possessed, provided, distributed, sold, or marketed with the intent that the product produces effects substantially similar to the effects created by compounds banned by District or federal synthetic drug laws or by the United States Drug Enforcement Administration pursuant to its authority under the Controlled Substances Act, approved October 27, 1970 (84 Stat. 1247; 21 U.S.C. § 801 et seq .). Any of the following factors shall be treated as indicia that a product is being marketed with the intent that it be used as a recreational drug:

(I) The product is not suitable for its marketed use (such as a crystalline or powder product being marketed as "glass cleaner").

(II) The individual or business providing, distributing, displaying, or selling the product does not typically provide, distribute, display, or sell products that are used for that product's marketed use (such as liquor stores, smoke shops, or gas or convenience stores selling "plant food").

(III) The product contains a warning label that is not typically present on products that are used for that product's marketed use, including "Not for human consumption," "Not for purchase by minors," "Must be 18 years or older to purchase," "100% legal blend," or similar statements.

(IV) The product is significantly more expensive than other products that are used for that product's marketed use.

(V) The product resembles an illicit street drug (such as cocaine, methamphetamine, or Schedule I narcotic) or marijuana.

(VI) The licensee or any employee of the licensee has been warned by a District government agency or has received a criminal incident report, arrest report, or equivalent from any law enforcement agency that the product or a similarly labeled product contains a synthetic drug.

(A) A violation of this subsection shall be a civil infraction for purposes of Chapter 18 of Title 2 . Civil fines, penalties, and fees may be imposed as sanctions for any infraction of the provisions of this subsection or the rules issued under the authority of this subsection, pursuant to Chapter 18 of Title 2 .

(B) Adjudication of any infraction of this subsection shall be pursuant to the Chapter 18 of Title 2 .

(C) Summary action taken pursuant to this subsection shall be pursuant to subchapter I of Chapter 18 of Title 2 .

(4) In addition to other remedies provided by law, the Office of the Attorney General may commence an action in the Civil Branch of the Superior Court of the District of Columbia to compel compliance, abate, enjoin, or prevent violations of this subsection. The plaintiff need not prove irreparable injury or harm to obtain a preliminary or temporary injunction.

(1) The term "knowingly" includes:

(A) For the purposes of subsections (a) and (b) of this section, actual notice of a specific violation set forth in subsection (a) or (b) of this section to the licensee or authorized agent of the licensee, issued by a District agency notifying the licensee, or authorized agent, of the same or similar violation occurring on the licensee's premises; or

(B) For the purposes of subsection (b) of this section, constructive notice to the licensee, or authorized agent of the licensee, resulting from the failure of the licensee, or authorized agent, to ascertain the ownership of the used goods or merchandise.

(2) For the purposes of this subsection, actual or constructive notice to the authorized agent of the licensee constitutes notice to the licensee.

(d) Notwithstanding any of the provisions of Chapter 28 of Title 47 requiring an inspection as a prerequisite to the issuance of a license, the Mayor is authorized to provide by regulation that any such inspection shall be made either prior or subsequent to the issuance of a license, but any such license, whether issued prior or subsequent to a required inspection, may be suspended or revoked for failure of the licensee to comply with the laws or regulations applicable to the licensed business, trade, profession, or calling.

Legislative History

Feb. 25, 2010, D.C. Law 12-194, § 15a