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B 26-0648

DC Hospitality Amendment Act of 2026

26th Council Period (2025-2026) Introduced by Phil Mendelson

DC Hospitality Amendment Act of 2026 expands and modernizes DC alcohol licensing to boost hospitality, especially in Wards 5, 7, 8, and Downtown, with new licenses and flexible rul

Public Hearing on B26-0648
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Bill Summary · B 26-0648

Overview

  • Bill: B26-0648 (DC Hospitality Amendment Act of 2026)
  • Jurisdiction: District of Columbia
  • Purpose: Modernize DC’s alcoholic beverage laws, provide targeted support to the hospitality industry (with a focus on Wards 5, 7, 8, and Downtown DC), and formalize several business practices that evolved during the pandemic. The bill adds new license categories, expands sale and production opportunities, enhances opportunities for returning citizens, and updates procedural and governance elements of the Alcoholic Beverage and Cannabis Administration (ABCA).

Main Purpose and Intent

  • Modernize and expand the District’s alcohol licensing framework to stimulate restaurant, brewery, distillery, and art-gallery-led development.
  • Stimulate economic activity and inclusivity in Wards 5, 7, 8, and Downtown DC, while broadening opportunities across all eight wards.
  • Preserve pandemic-era practices that proved beneficial for hospitality businesses by making them permanent where appropriate.

Key Provisions and Changes

  • New and Expanded Licensing Categories

    • Pop-Up Restaurant Registration (Wards 5, 7, 8, and Downtown): A new temporary license allowing quick opening of pop-up restaurants for up to 90 days, with on-site operation from 6:00 a.m. to 1:00 a.m. daily; potential extension in certain cases up to 120 days if a full license application is pursued.
    • Outdoor Activation License: Creates a license for outdoor spaces (e.g., temporary street activations) with Class O (beer and wine) and Class N (spirits, beer, and wine) options, including renewal provisions.
    • Wards 5, 7, 8, and Downtown C/RB and D/RB Restaurant Retailer Licenses: New restaurant retailer licenses enabling on-site dining and off-site alcohol sales, with options to carry out and deliver.
    • Brew Pub Endorsement for Class C/D Retailer Licenses: Allows a brewery-based business to obtain a brew pub endorsement and operate a combined brewery and pub in specified areas.

  • Contract Brewing and Collaboration

    • Contract Brewing License (25-132): Establishes a three-year contract brewing license enabling contract brewers to brew malt beverages for manufacturers or brew pubs and sell to wholesalers or other licensees, with detailed recordkeeping and sale restrictions (off-premises only, or on-premises at the brew location as allowed).

  • Production and Transfer Flexibilities

    • Secondary Production Location for Manufacturers: Authors rules for manufacturing at a second location within 1,800 feet under Board approval, with no public access and no sales at the second location.
    • Transport Between Facilities: Brew pub endorsements and brewery licenses may transport brewed beer between brewery and brew pub facilities.

  • Market Access and Distribution

    • Primary American Source Requirement (for certain sales): Clarifies when beverages may be sold or distributed and shipments may occur, with emphasis on source origin.
    • Import/Export: Licenses may ship or export outside DC as long as receiving state and federal laws are satisfied; wholesalers may also export in compliance with law.

  • Expanded On-Premises and Off-Premises Rights

    • Extended Weekend Hours: Downtown DC on weekends may have on-premises alcohol sales, service, and consumption until 4 a.m.
    • Doggie Bags: Expanded “doggie bag” provisions to allow securely resealed malt beverages (and extended to taverns) for off-premises consumption, with specific packaging and receipt requirements.

  • Youth and Returning Citizens Provisions

    • Returning Citizens: Modifies eligibility and employment restrictions to improve access to working, managing, or owning licensed establishments (easing past restrictions tied to certain felonies within defined periods).
    • 17-Year-Old Sales/Service: Allows a 17-year-old who completes an approved alcohol training program to sell or serve alcohol alongside a certified manager or owner on-duty (provided not at bar service).

  • Protests, Settlements, and ANC Role

    • Settlement Agreements: Expanded framework for settlement agreements between licensees and community groups (ANCs), including enforceability, amendment/termination procedures, and good-faith criteria. Introduction of unenforceable provisions and new ANC redistricting rules.
    • ANC Standing: New provision to grant successor ANCs standing when ward boundaries are redrawn.

  • Parking, Security, and Public Health Provisions

    • Settlement Agreement Standards: Includes provisions related to noise, security, litter control, crowd management, and other operational safeguards.
    • Cease and Desist for Catering Sites: Introduces a streamlined process for stopping noncompliant catered events, with expedited hearings and interim orders.

  • Fees and Economic Incentives

    • Minimum Fees: Establishes minimum application and annual fees for new licenses (e.g., contract brewing, pop-up registrations, C/RB and D/RB licenses).
    • Fee Waivers: Art galleries located in Wards 5, 7, 8, and downtown may receive fee waivers for the first three years for certain multipurpose facility licenses.
    • Expanded License Fees: Updates terminology to include licenses, permits, and endorsements, and adjusts fee structures accordingly.

  • Other Governance and Administrative Changes

    • Board and ABCA Rulemaking: Aligns rulemaking processes with broader oversight, including FOIA transparency for licensee statements.
    • Land Covenants/Deeds: Prohibits consideration of restrictive land covenants or deeds when issuing or transferring licenses (except for zoning).
    • Transparency: Requires public availability of licensee investigative history.
    • Emergency Rulemaking: Board can extend moratorium expiration dates via emergency rulemaking to accommodate ANC voting timelines.
    • Sunset and Compliance: Clarifies penalties for violations, settlement enforcement, and allows quicker responses to changes in neighborhood conditions.

Who/What Would Be Affected

  • Hospitality Businesses: New opportunities for restaurants, pop-ups, brew pubs, breweries, distilleries, wineries, and art galleries in Ward 5, Ward 7, Ward 8, and Downtown DC, with spillover benefits to other wards.
  • Returning Citizens: Expanded employment and ownership pathways in licensed alcohol establishments.
  • ANCs and Communities: Enhanced standing in license protests and greater ability to influence settlement agreements; clearer processes for neighborhood involvement.
  • Consumers: More flexible hours, increased access to take-out and delivery of alcohol, and expanded opportunities to enjoy outdoor activations.
  • Government and Regulator: ABCA/ABCA-adjacent processes updated for licensing, fee setting, and enforcement with enhanced transparency.

Procedural and Timeline Considerations

  • Public Hearings: Noted hearing scheduled (B26-648) with a July 8, 2026 public hearing; testimony details and deadlines are provided.
  • Effective Date: Upon approval by Mayor, followed by a 60-day congressional review and publication in the District Register.
  • Fiscal Impact: CFO memorandum indicates sufficient funds to implement from FY2026 through FY2029; costs are absorbable within current budgets, with ABCA to publish related rulemaking on new fees.
  • Legal Review: Office of the Attorney General found the bill legally sufficient.

Potential Impacts and Considerations

  • Economic Development: Expected stimulation of restaurant openings, pop-up activity, and waivers for art galleries, particularly in targeted wards and downtown, contributing to neighborhood vitality and tourism.
  • Public Safety and Community Impact: Expanded licensing and outreach provisions include security, noise, and event regulation; enhanced ability to respond to problem venues via cease-and-desist authority and expedited hearings.
  • Equity and Inclusion: Focus on social equity provisions and returning citizens aligns with broader DC policy goals to broaden participation in the local hospitality economy.

Note: This summary reflects the bill text as introduced and cited materials; actual implementations depend on final legislative action, regulatory rulemaking, and any amendments adopted by the Council.

Compiled from official sources — confirm details with the bill’s official record.

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