The Committee on Business and Economic Development convened on June 11, 2025, to discuss the budget oversight for the Alcoholic Beverage and Cannabis Administration (APCA). Chairperson Kenyan McDuffie led the session, focusing on the proposed fiscal year 2026 budget and its implications for the agency's operations.

Director Fred Mesali presented the APCA's proposed operating budget of approximately $11.7 million, marking a 21.4% decrease from the previous fiscal year. This budget is primarily funded through special purpose revenue and includes 77 full-time equivalent positions, a reduction of 3.3 positions from the prior year. Mesali emphasized the importance of this budget in maintaining the agency's regulatory functions, particularly in enforcing laws against illegal cannabis businesses while supporting licensed medical cannabis operations.

The budget also allocates $500,000 for the NPD reimbursable veil subsidy program, which reimburses the Metropolitan Police Department for off-duty officers working at licensed establishments during late-night hours. This funding is deemed sufficient based on current spending levels.

Mesali highlighted three key provisions in the Budget Support Act relevant to the agency: the Commercial Bingo Amendment Act, which would allow alcohol licensees to offer commercial bingo; the Poker and Blackjack Gaming Authorization Act, permitting licensed hotels and arenas to host poker and blackjack games; and the Medical Cannabis Amendment Act, aimed at leveling the playing field for medical cannabis retailers across all wards by eliminating a sliding scale requirement that has adversely affected businesses in Wards 7 and 8.

In closing, Mesali reiterated the critical role of the APCA's budget in fostering a safe and regulated environment for businesses and residents, contributing to the district's economic growth. The committee's support is essential for the agency to operate effectively and achieve its goals.

The meeting concluded with Chairperson McDuffie acknowledging the testimony and indicating a need for further discussion regarding the agency's fiscal year 2025 supplemental budget, particularly in light of a proposed reduction of over $350,000 in special purpose revenue funds. This reduction is part of a broader spending freeze affecting the agency's operations.