D.C. Mun. Regs. tit. 20, r. 20-2105

Current through Register Vol. 71, No. 44, November 1, 2024

Rule 20-2105 - EXEMPTIONS

2105.1

The following places shall be exempt from § 2101.5:

(a) A retail store that has as its primary source of revenue the sale of tobacco products and smoking accessories, provided that:

(1) No more than twenty-five percent (25%) of the revenue the store generates is from non-tobacco products; and

(2) The store does not share space with any other establishment;

(b) A tobacco bar;

(c) An outdoor area of the following:

(1) A restaurant;

(2) A tavern;

(3) A club;

(4) A brew pub; or

(5) A nightclub;

(d) A hotel room or motel room rented to one or more guests;

(e) A medical treatment, research, or nonprofit institution where the activity of smoking is conducted for the purpose of medical research or is an integral part of a smoking cessation program; and

(f) Upon the stage of a theatrical performance, provided that smoking is part of the theatrical production.

2105.2

A place shall not be exempt under § 2505.1(a), (b), or (e) until it establishes, to the satisfaction of the Director, that it satisfies the revenue requirements to qualify for the exemption or is engaged in an activity that qualifies the place for an exemption. Revenue claimed for this exemption shall be exclusive and distinct and not bundled with some other service, such as a membership fee, or an entry fee, or a non-tobacco product, such as a food item or an alcoholic drink.

2105.3

A place first applying for an exemption under § 2105.2 may receive a conditional certificate of exemption, valid for not longer than ninety (90) days, while its application is pending. To qualify for a conditional certificate of exemption the applicant shall:

(a) Submit a statement that asserts, under penalty of perjury, that it satisfies the revenue requirements or is engaged in an activity that qualifies it for an exemption; and

(b) Promptly supply documentation to support its application and respond to requests for additional information during the period of the conditional certificate.

2105.4

The Director shall deny an application for exemption if the applicant fails to comply with the requirements of § 2105.3. After reviewing the applicant's documentation in support of an application for exemption, the Director shall make a determination, in writing, whether the applicant qualifies for an exemption. If the Director fails to make a determination within ninety (90) days and the applicant has complied with requests for information, the Director shall extend the validity of the conditional certificate for additional thirty (30)-day increments until the Director makes a final determination.

2105.5

If the Director determines that a place qualifies for an exemption after a review of the place's financial records, the Director shall issue a certificate of exemption to that place. The certificate issued under this subsection shall be valid for not longer than three (3) years and shall not be transferable to another location or another owner.

2105.6

The Director may perform an annual audit of the financial records of a place that holds a certificate of exemption. If, after an audit, the Director determines that a place does not satisfy the requirements for an exemption, the Director shall revoke the certificate of exemption. The Director may revoke the certificate of exemption if the tobacco bar or retail store fails to provide documentation to show that it continues to satisfy the revenue requirements for the exemption.

D.C. Mun. Regs. tit. 20, r. 20-2105

As amended by Final Rulemaking published at 54 DCR 10623 (November 2, 2007)