The District of Columbia Alcoholic Beverage and Cannabis Board has suspended the medical cannabis license of Doobie District, a U Street retailer, for 30 days. The penalty follows findings that the shop sold medical cannabis to unqualified buyers and falsified records in the mandatory METRC tracking system. This action underscores the strict oversight required to protect the integrity of DC's medical cannabis program.
Undercover Probe Uncovers Verification Failures
An investigation began on May 9, 2025, after the Alcoholic Beverage and Cannabis Administration received tips about unauthorized sales at 1526 U Street, NW. ABCA investigators conducted two controlled purchases of medical cannabis, confirmed as product from a licensed cultivator. Staff completed both transactions without checking for patient registration cards or caregiver status, direct violations of regulations designed to restrict access to qualified individuals only.
Falsified Records Expose Systemic Issues
Printed labels on the purchased packages bore the name and patient ID of a Doobie District employee, not the undercover buyers. Analysis revealed this employee's METRC account recorded purchases exceeding the District's 8-ounce limit per patient over 30 days. Investigators identified two other patient accounts similarly oversold using the same credentials, breaching 22-C DCMR § 5615.3, which mandates truthful, real-time entries in the seed-to-sale system.
The Board upheld charges under 22-C DCMR § 5709.5 for dispensing to non-qualified patients and the METRC falsification rule. A prior notice had cited § 5709.4, but the Board corrected this to § 5709.5 due to rulemaking renumbering.
Licensee Response and Board Rationale
Doobie District owner Peter Murillo stipulated to the facts at a show cause hearing but contested the penalty's severity. He described an internal probe that led to firing implicated employees, retraining staff, and new oversight like weekly sales monitoring to curb overselling. The Board acknowledged these steps and Murillo's acceptance of responsibility yet held the licensee accountable for supervision lapses.
Order No. 2026-211, issued February 11, 2026, notes the Board weighed revocation but opted for suspension given possible staff-level misconduct without owner knowledge. Additional requirements include ABCA-approved training for ownership within 60 days, with noncompliance risking reimposed penalties. These measures reflect broader policy efforts to ensure compliance in DC's regulated medical cannabis market, where seed-to-sale tracking prevents diversion to illicit channels and safeguards patient access limits.
Implications for DC's Cannabis Oversight
DC's medical cannabis framework, established under strict rules, relies on verification and tracking to distinguish it from recreational sales, where different standards apply. Violations like these erode public trust and heighten risks of product diversion. The Board's firm stance signals to retailers that negligent oversight invites serious repercussions, potentially shaping stricter industry practices amid ongoing program maturation.
