The District of Columbia Alcoholic Beverage and Cannabis Board has suspended the medical cannabis license of KLM, LLC, operating as Doobie District on U Street, for 30 days. The penalty follows findings that the retailer sold medical cannabis to unqualified buyers and falsified entries in the mandatory METRC tracking system. This action underscores regulators' commitment to protecting a program designed exclusively for verified patients amid D.C.'s tightly controlled medical market.
Undercover Buys Expose Verification Failures
An ABCA investigation began on May 9, 2025, after tips that Doobie District at 1526 U Street, NW, sold medical cannabis without checking credentials. Undercover agents made two controlled purchases of confirmed medical product from a licensed cultivator. Staff completed both sales without requesting medical cards or caregiver proof, a direct breach of rules reserving medical cannabis for registered patients.
Falsified Tracking Undermines Seed-to-Sale Safeguards
Package labels bore a Doobie District employee's name and patient ID, not the buyers'. Analysis revealed that employee's METRC account exceeded the 8-ounce, 30-day patient limit, with two other accounts similarly oversold using the same credentials. The Board upheld violations of 22-C DCMR § 5709.5 for dispensing to non-qualified individuals and § 5615.3 for false METRC entries, which demand accurate, real-time data to prevent diversion and ensure compliance.
METRC, D.C.'s seed-to-sale system, tracks cannabis from cultivation to sale, a standard in regulated markets to verify origins, quantities, and recipients. Such manipulations erode trust in medical programs, where strict limits distinguish therapeutic access from recreational markets—D.C. maintains separate tracks despite adult-use legalization elsewhere.
Owner's Response Falls Short of Revocation Threshold
In Order No. 2026-211, issued February 11, 2026, the Board sustained charges after the retailer stipulated to facts but contested the penalty. Principal owner Peter Murillo testified at a show cause hearing that the firm fired implicated staff, retrained others, and added oversight like weekly sales monitoring. The Board weighed revocation but opted for suspension, citing possible unaware ownership alongside negligent supervision.
Doobie District must complete ABCA-approved training within 60 days, or the suspension reimposes. Licensees bear full responsibility for operations, a principle that maintains program integrity as D.C. balances medical access with enforcement against illicit sales that risk public health and market stability.
