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ALCOHOLIC BEVERAGE REGULATION ADMINISTRATION
ALCOHOLIC BEVERAGE CONTROL BOARD
NOTICE OF PROPOSED RULEMAKING
The Alcoholic Beverage Control Board (Board), pursuant to the authority set forth in D.C. Official Code §§ 25-211(b) and 25-830(f) (2012 Supp.), hereby gives notice of its intent to adopt the following proposed rules that would amend the existing ABRA civil penalty schedule set forth in Section 800 of Chapter 8 (Enforcement, Infractions and Penalties) of Title 23 (Alcoholic Beverages) of the District of Columbia Municipal Regulations (DCMR). These proposed rules require a regulatory inspection by an ABRA investigator in not less than ten days following the issuance of a mandatory warning for a first offense. Additionally, the proposed rules set a limitation on the number of mandatory warnings a licensee can receive for the same offense.
These proposed rules were initially adopted by the Board on August 15, 2012, by a five (5) to zero (0) vote. On October 31, 2012, the Board conducted a public hearing, pursuant to D.C. Official Code § 25-354 (2012 Supp.), to further objectives on two fronts. First, because the civil penalty schedule has not been updated since 2004, the Board invited comment from parties on revisions to the schedule. These revisions were necessary to ensure that the civil penalty schedule accurately reflected a penalty commensurate with the offense, and that it captured all laws and regulations that have been adopted by the Council since 2004, to include the Omnibus Alcoholic Beverage Regulation Emergency Amendment Act of 2012, effective January 14, 2013 (D.C. Act 19-597, 60 DCR 1001).
Second, the Board also invited comments on its efforts to implement a more comprehensive and robust warning system. The Board is required by law, pursuant to the Alcoholic Beverage Enforcement Act of 2008 to issue regulations for a warning system that includes recommendations as to what violations should require a mandatory warning for a first offense. Notwithstanding the Board’s existing discretion to issue warnings under 23 DCMR 805, the Board sought to expand the number and type of offenses that qualified for a warning, and those that qualified for a mandatory warning. To further economic efficiency, the Board sought to update its existing warning system at the same time it undertook to revise the existing penalty schedule.
Andrew Kline, Legislative Representative, testified on behalf of the Restaurant Association (RAMW). RAMW has approximately 700 members and is the principal representative of restaurants in the District of Columbia. At the hearing, RAMW briefed the Board on the history of the mandatory warning requirement contained in DC Official Code § 25-830(e)(3) (2008 Supp.). RAMW suggested that 1) the genesis for a warning system stemmed from the notion that the regulated industry favors compliance with regulatory standards, but that there are times when education and minimal penalties are all that are needed for a first offense, particularly when that offense involves no direct potential impact on public safety; and 2) the law’s legislative history indicates a desire that the civil penalty schedule include a warning requirement for secondary tier violations and for a ‘sales to minor’ first offense. RAMW further testified that of the 154 separately scheduled violations contained in the civil penalty schedule, 91 are classified as secondary tier violations. Of the 91 listed secondary tier violations, only 14 require warnings for a first offense. Lastly, RAMW testified that the Board should adopt a mandatory warning system for all secondary tier violations.
The Board received no other testimony or written comments. The Board took the views of RAMW and the statute’s legislative intent into consideration and reviewed the existing civil penalty schedule to determine what offenses should be added to the schedule, what offenses should be reassigned a different tier, and what offenses should be eligible for a mandatory warning.
The Board notes for the record that it has long recognized the efficacy of warnings as an effective educational tool. It has been the practice of this Board to give licensees an opportunity to take voluntary and prompt corrective action before the Board initiates an enforcement action when it is consistent with the public protection responsibilities of the Board, and depending on the nature of the violation. The Board’s use of warnings is twofold: to achieve voluntary compliance, and to establish prior notice. The use of warnings and the prior notice policy are based on the Board’s expectation that most licensees comply with the law and the regulations when they are properly educated.
With the adoption of a mandatory warning system, the Board’s implementation would result in a written administrative warning to the offending licensee. This written administrative warning would document the violation and would serve as a tool available to ABRA’s Enforcement Division for ensuring corrective action is taken.
However, the Board does not agree with RAMW’s position that every secondary tier violation should qualify for a mandatory warning. The Board desires to make clear that violations of legal or regulatory significance do not warrant mandatory warnings and may not even warrant discretionary warnings. Significant violations are those violations that may lead to enforcement action as a matter of public safety. It is the Board’s position that responsible licensees have a duty to implement whatever measures are necessary to ensure that their operations comply with the law and regulations. Under the law, licensees are presumed to be fully aware of their responsibilities.
The Board considered the testimony of RAMW and the legislative intent of the Council in reaching its decision to amend the existing penalty schedule by adding new offenses, re-evaluating the designation of primary or secondary tier violations, and establishing a more comprehensive warning system to include mandatory warnings for some first time offenses. The Board’s decision was balanced upon its desire to protect the public safety for the most serious of offenses and yet, for those less serious offenses, the Board desires to give licensees an opportunity to seek voluntary compliance by taking timely corrective action.
The amended proposed rules were adopted by the Board on January 9, 2013, by a vote of five (5) to zero (0). The Board received additional comments from RAMW, requesting the Board give further consideration to reducing the penalty on secondary tier violations. The Board took the comments into consideration, and made additional modifications to the civil penalty schedule to ensure consistency in penalties for similar violations. The Board then adopted the further amended proposed rules on April 3, 2013, by a vote of five (5) to zero (0).
The Board also gives notice of its intent to take final rulemaking action to adopt these amended proposed rules on a permanent basis in not less than thirty (30) days after the date of publication of this notice in the D.C. Register. Pursuant to D.C. Official Code § 25-211(b)(2) (2012 Supp.), these proposed rules are also being transmitted to the Council of the District of Columbia for a ninety (90) day period of review. The final rules may not become effective until their approval by Council resolution.
Section 800, ABRA CIVIL PENALTY SCHEDULE, of Chapter 8, ENFORCEMENT, INFRACTIONS, AND PENALTIES, of Title 23, ALCOHOLIC BEVERAGES, of the DCMR is amended by replacing Section 800 in its entirety to read as follows:
800. ABRA CIVIL PENALTY SCHEDULE.
Section
Description
Violation
Warning
25-102(a)
Selling Alcoholic Beverages Without a License
Primary
N
25-102(b)
Wholesaler/Manufacturer Sale to Non-licensed Person for Resale
Primary
N
25-102(c)
Failure to Obtain Importation Permit
Primary
Y
25-102(d)
Permitting Consumption of Alcoholic Beverage Without a License
Primary
N
25-110
Violating Terms of Manufacturer's License
Primary
N
25-111
Violating Terms of Wholesaler's License
Primary
N
25-112(a)-(c)
Violating Terms of Off-Premise Retailer's License
Primary
N
25-112(e)(1)
Failure to File a Statement of Expenditures
Secondary
Y
25-113(a)(2)(A)(ii)
Knowingly Allowing Patron to Exit the Premises with an Open Container
Secondary
N
25-113(a)(3)
Selling or Serving Alcohol in a Closed Container
Secondary
Y - Mandatory
25-113(b)(1)
Failure to Keep Kitchen Open Two Hours Before Closing
Secondary
Y - Mandatory
25-113(b)(2)(A)
Failure of Restaurant to File a Quarterly Statement
Secondary
Y - Mandatory
25-113(d)(1)
Failure to Submit a Security Plan
Primary
Y
25-113(e)(4)(A)
Failure of Hotel to File a Quarterly Statement
Secondary
Y - Mandatory
Section
Description
Violation
Warning
25-113(i)(l)(4)
Failure by Caterer to File and Maintain Records for Inspection
Secondary
Y
25-113(j)(3)
Failure to Obtain Board Approval for Off-Site Storage
Secondary
Y - Mandatory
25-113(j)(3)
Failure to Maintain Records on Premises
Primary
Y - Mandatory
25-113(a)(b)
Failure to Obtain Entertainment Endorsement
Primary
Y
25-113(a)(c)
Failure to Obtain a Summer Garden or a Sidewalk Café Endorsement
Primary
Y
25-114(a)
Violating Terms of Arena C/X License
Primary
N
25-115(a)
Violating Terms of Temporary License
Primary
N
25-116
Violating Terms of Solicitor's License
Primary
N
25-117
Violating Terms of Brew Pub Permit
Primary
N
25-118
Failure to Obtain Tasting Permit, or Exceeding Scope of Tasting Permit
Primary
N
25-119
Importing Alcohol Without Permit
Primary
Y
25-121
Providing Alcohol Awareness Training Without Board Approval
Secondary
Y
25-123
Violating Terms of Farm Winery License
Primary
N
25-341
Violating Ward 4 Moratorium
Primary
Y
25-342
Violating Ward 7 Special Restrictions
Primary
Y
25-343
Violating Ward 8 Special Restrictions
Primary
Y
25-344
Violating Mt. Pleasant Special Restrictions
Primary
Y
25-345
Violating Ward 2 Restrictions
Primary
Y
25-346
Violating Ward 6 Restrictions
Primary
Y
25-371
Allowing Nude Dancing Without a License
Primary
N
25-372
Violating Restrictions on Nude Dancing Performances
Primary
N
25-405
Transfer of Ownership Without Board Approval
Primary
N
25-423(d)
Failure to Maintain Posted Notices (Placards)
Secondary
Y
25-501
Failure to Pay Annual Fee
Primary
Y
25-701
Board-Approved Manager Required
Secondary
Y
25-701(b)
Failure to Notify Board of ABC Manager’s Conviction
Secondary
Y - Mandatory
25-702
Failure to Notify Board of Employee’s Conviction
Secondary
Y - Mandatory
25-711(a)
Failure to Post and Carry Licenses
Secondary
Y - Mandatory
25-711(b)
Failure to Post Lettering on Front Windows or Door
Secondary
Y - Mandatory
25-711(c)
Failure of Temporary License Holder to Have License Available
Secondary
Y
25-711(d)
Failure of Solicitor to Carry License
Secondary
Y - Mandatory
25-711(e)
Failure of Manager to Carry License
Secondary
Y - Mandatory
Section
Description
Violation
Warning
25-712
Failure to Post Signs: Warning Re: Pregnancy
Secondary
Y - Mandatory
25-713
Failure to Post Signs: Legal Drinking Age/Valid ID
Secondary
Y - Mandatory
25-721
Sale and Delivery Outside of Allowed Hours for Manufacturer & Wholesaler
Primary
N
25-722
Sale and Delivery Outside of Allowed Hours - Off Premises Licensees
Primary
N
25-723(b)
Sale and Delivery Outside of Allowed Hours - On-Premises Licensees
Primary
N
25-723(d)
Daylight Savings Time Operation Without Notice
Secondary
Y
25-724
Operating After Board Restricted Hours
Primary
N
25-725
Noise from Licensed Establishment
Secondary
N
25-726
Control of Litter, Trash, Garbage, and Proper Disposal of Refuse, Including Cooking Oils
Secondary
Y
25-731
Credit and Delinquency
Secondary
Y
25-733
Delivery and Payment Records and Reports
Secondary
Y
25-734
Sale by Retailer on Credit
Secondary
Y - Mandatory
25-735
Gifts and Loans from Manufacturer
Primary
Y
25-736
Gifts and Loans from Wholesaler
Primary
Y
25-741(a)
Providing Go-Cups at A & B Licensed Establishments
Secondary
Y
25-741(b)
Serving Back-up Drinks to Customers
Secondary
Y
25-742
Solicitation of Drinks by Employee
Secondary
Y
25-743
Tie-in Purchases Prohibited
Primary
Y
25-751
Limitations on Container Size
Secondary
Y
25-752
Containers to be Labeled
Secondary
Y
25-753
Keg Registration Required
Primary
N
25-754
Violating Beverage Storage Restrictions
Primary
Y
25-761
Structural Requirements
Secondary
Y
25-762(b)(1)
Failure to Obtain Approval to Increase Occupancy or the Use of Interior Space
Primary
Y
25-762(b)(2)
Failure to Obtain Approval to Expand Exterior Public or Private Space Including Summer Gardens or Sidewalk Cafes
Primary
Y
25-762(b)(3)
Failure to Obtain Approval to Expand to Another Floor, Roof, or Deck
Primary
Y
25-762(b)(4)
Failure to Obtain Approval to Provide For or Expand Entertainment Area
Secondary
Y
25-762(b)(5)
Failure to Obtain Approval to Diminish or Expand Dining or Food Prep Area
Secondary
Y
Section
Description
Violation
Warning
25-762(b)(6)
Failure to Obtain Approval to Provide Permanent Space for Dancing
Primary
Y
25-762(b)(7)
Failure to Obtain Approval to Change Exterior Design
Secondary
Y
25-762(b)(8)
Failure to Obtain Approval to Provide Music or Entertainment if None Previously.
Primary
N
25-762(b)(9)
Failure to Obtain Approval to Change from Recorded to Live Music or Live Entertainment or Change the Kind of Music or Entertainment Provided
Secondary
Y - Mandatory
25-762 (b)(10)
Failure to Obtain Approval to Change Entertainment to Include Nude Performances
Primary
N
25-762(b)(11)
Failure to Obtain Approval to Change From Full Menu to Snack Menu
Secondary
Y - Mandatory
25-762(b)(12)
Failure to Obtain Approval to Change On-Premises to Carry-out
Primary
Y
25-762(b)(12)
Failure to Obtain Approval to Change On-Premises to Add Carry Out
Secondary
Y
25-762(b)(13)
Failure to Obtain Approval to Extend Hours of Operation
Primary
N
25-762(b)(14)
Failure to Obtain Approval to Provide New Mechanical or Electronic Entertainment
Secondary
Y
25-762(b)(15)
Failure to Obtain Approval to Change Trade Name or Corp Name With Ownership Change
Secondary
Y - Mandatory
25-762(b)(16)
Failure to Obtain Approval to Change Booth Size
Secondary
Y - Mandatory
25-762(b)(17)
Failure to Obtain Approval to Reduce Number of Toilet Facilities
Secondary
Y - Mandatory
25-762(b)(18)
Failure to Obtain Approval to Increase Number of Vessels Under On-Premises
Primary
N
25-763
Restrictions on Use of Signs
Secondary
Y - Mandatory
25-764
Advertisements Related to Alcohol
Secondary
Y - Mandatory
25-765
Advertisements on Windows and Doors
Secondary
Y - Mandatory
25-766
Prohibited Statements
Secondary
Y
25-771
Reporting by Manufacturers
Secondary
Y
25-772
Unlawful Importation of Beverages
Primary
Y
25-781
Sale to Minors or Intoxicated Persons - Egregious
Primary
Y
25-781
Sale to Minors or Intoxicated Persons - Non-egregious
Primary
Y - Mandatory
25-782(a)
Restrictions on Minors Entrance into Class A
Primary
Y
Section
Description
Violation
Warning
25-782(d)
Denying Admittance to Someone of Legal Drinking Age
Secondary
Y
25-783(a)
Sale to Someone Who Fails to Produce a Valid ID
Primary
Y
25-783(b)
Failure to Take Reasonable Steps to Ascertain Legal Age
Primary
Y
25-784(a)
Prohibit Persons Under 21 From Sell, Give, Furnish or Distribute, Except as Provided in 25-784(b)
Secondary
Y
25-784(b)
18-20 Person May Sell, Serve or Deliver, But May Not Bartend
Secondary
Y
25-791(a)
Failure to Surrender License Into Safekeeping
Secondary
Y – Mandatory
25-797(a)
Failure to Control Licensed Establishment
Primary
N
25-797(b)
Allowing Third Party or Promoter to Provide Security
Primary
N
25-802
Failure to Allow Examination of Premises, Books and Records
Primary
N
25-823(1)
Violation of Any Law Outside of Title 25 of the District of Columbia Code or Title 23 of the District of Columbia Municipal Regulations
Primary
Y
25-823(2)
Allowing Establishment to be Used for an Unlawful or Disorderly Purpose
Primary
N
25-823(3)
Failure by Owner or ABC Manager to Superintend Licensed Business
Secondary
N
25-823(4)
Allowing Employees or Agents to Engage in Prostitution, Sexual Acts, or Sexual Contact
Primary
N
25-823(5)
Failure to Allow/Delays ABRA or MPD to Inspect Premises or Books and Records, or Otherwise Interferes With an Investigation
Primary
N
25-823(6)
Failure to Follow Voluntary Agreement
Secondary
Y
25-823(6)
Failure to Follow Security Plan
Primary
Y
25-823(6)
Failure to Follow a Board Order
Primary
N
25-828(c)
Licensee Defaces Notice of Suspension Placard
Secondary
N
25-830(i)
Selling or Serving Alcohol on a Suspended or Expired License or License Held in Safekeeping
Primary
N
25-830(j)
Failure to Comply with Either of the Food Requirements
Primary
Y
23 DCMR 205.2
Failure to Obtain Storage Permit
Secondary
Y
23 DCMR 206.2
Retailer's Class DR or DT With Common Dining Area Fails to Sell Alcoholic Beverages in Containers Identifiable With Business
Secondary
Y
Section
Description
Violation
Warning
23 DCMR 206.4
Off-premise Retailer Class A or Class B failed to Inform Board in Application of Table Use
Secondary
Y - Mandatory
23 DCMR 208.19
Submission of Knowingly False or Misleading Affidavit
Primary
N
23 DCMR 600.1
Change Trade Name without Board Approval
Secondary
Y - Mandatory
23 DCMR 600.1
Change Corporate Name Without Board Approval
Secondary
Y - Mandatory
23 DCMR 600.3
Area Identified by Trade Name Inaccessible to Patrons
Secondary
Y
23 DCMR 601
Failure to Notify Board of Change in Ownership, Corporate Officers, or Partners
Secondary
Y
23 DCMR 702.3
Private Club Open to Public
Primary
Y
23 DCMR 705.9
Retailer's Class C, D, F, G, or Caterer Permits the Consumption of Alcoholic Beverages After Hours
Primary
N
23 DCMR 706
Remaining Open Without Securing Beverages or Having an ABC Manager or Owner Present
Secondary
N
23-707.1
Licensee or Board Approved Manager on Licensed Premises During Hours of Sale, Service or Consumption
Secondary
N
23 DCMR 710.2
Minimum Charge Greater Than Value of Food or Beverage
Secondary
Y - Mandatory
23 DCMR 710.4
Failure to Post Sign Indicating Minimum Charge
Secondary
Y - Mandatory
23 DCMR 712
Hosting a Pub Crawl Without Board Approval or in a Manner Other Than as Approved by the Board
Primary
Y
23 DCMR 717.1
Permitting Alcoholic Beverages Brought by Consumer to be Removed From Premises
Secondary
Y
23 DCMR 717.2
Corking Fee
Secondary
Y
23 DCMR 719.1
Sign re: Drinking and Driving
Secondary
Y - Mandatory
23 DCMR 900
Primary American Source of Supply
Primary
Y
23 DCMR 901
Beer Labeling
Secondary
Y
23 DCMR 902
Open Container or Package in Vehicle
Primary
N
23 DCMR 905
Discriminatory Admittance Requirements
Secondary
Y
23 DCMR 1002
Cover Charge Without Entertainment Endorsement
Secondary
Y
23 DCMR 1204
Failure to Keep and Maintain Delivery Slips
Primary
Y
23 DCMR 1206
Failure of Manufacturer Class A to Submit Monthly Report
Secondary
Y - Mandatory
Section
Description
Violation
Warning
23 DCMR 1207.1
Failure to File Quarterly Statements
Secondary
Y - Mandatory
23 DCMR 1207.5
Failure to File Annual Reports
Secondary
Y
23 DCMR 1208
Failure of the Licensee to Keep or Maintain its Books, Records, or Invoices.
Primary
Y
23 DCMR 1303
Failure to Properly Transport Alcoholic Beverages in a Vehicle
Secondary
Y
23 DCMR 2000.1
The Selling, Delivering, or Serving of Alcoholic Beverages at a Catered Event Where Snack Items Are the Only Food Products Served by the Caterer
Primary
N
23 DCMR 2000.2
Caterer or Designated Manager on Premises of Event
Secondary
Y
23 DCMR 2000.3
Submission of False or Misleading Affidavit
Primary
N
23 DCMR 2002.1
Purchase of Alcoholic Beverages by Caterers
Secondary
Y
23 DCMR 2002.2
Failure to Maintain Caterer Records
Primary
N
23 DCMR 2003.1
Improper Storage of Alcoholic Beverages by Caterer
Primary
Y
23 DCMR 2004.1
Importation and Transportation of Alcoholic Beverages by Caterer
Primary
Y
23 DCMR 2004.2
Removal of Unsealed Container by Caterer
Secondary
Y
23 DCMR 2004.3
Storage of Unopened Alcoholic Beverage by Caterer
Primary
Y
23 DCMR 2005.1
Caterer: No ABC Manager Present
Secondary
N
23 DCMR 2005.2
Caterer: No License Available for Public Inspection
Secondary
Y
23 DCMR 2006.1
Failure to File Caterer Report
Secondary
Y - Mandatory
23 DCMR 2006.2
Caterer: False or Misleading Information in Report
Primary
N
23 DCMR 2006.5
Caterer: Failure to Timely File Report
Secondary
Y - Mandatory
800.1 The penalties contained under this section shall become effective 5 days after publication in the District of Columbia Register.
800.2 None of the descriptions contained in Subsection 800.2 shall be construed to expand, limit, or define any specific violation.
800.3 Whether violations are classified as primary tier or secondary tier shall be determined with reference to the ABRA civil penalty schedule in effect when the violation was committed.
Section 801, PRIMARY TIER VIOLATIONS, of Chapter 8, ENFORCEMENT, INFRACTIONS, AND PENALTIES, of Title 23, ALCOHOLIC BEVERAGES, of the DCMR is amended to read as follows:
801. PRIMARY TIER VIOLATIONS.
801.1 The Board may fine a licensee for a primary tier violation at a show cause hearing scheduled pursuant to the notice requirements set forth in § 1604 as follows:
(A) For the first primary tier violation, the fine shall be $1000 - $2000.
(B) For the second primary tier violation within two years, the fine shall be$2,000 - $4,000.
(C) For the third primary tier violation in three years, the fine shall be $4,000 –$6,000.
(D) For the fourth primary tier violation in four years, the ABC license shall be revoked or fined no less than $30,000 and suspended for 30 consecutive days.
(E) For the fifth primary tier violation in four years, the ABC license shall be revoked.
Section 803, CITATIONS FOR PRIMARY TIER VIOLATIONS, of Chapter 8, ENFORCEMENT, INFRACTIONS, AND PENALTIES, of Title 23, ALCOHOLIC BEVERAGES, of the DCMR is amended to read as follows:
803. CITATIONS FOR PRIMARY TIER VIOLATIONS.
803.1 ABRA investigators or Metropolitan Police Department Officers (“MPD Officer”) shall issue citations, pursuant to D. C. Official Code § 25-801(b), for primary tier violations as follows:
(A) For the first primary tier violation, the fine shall be $1000.
(B) For the second primary tier violation within two years, the fine shall be$2,000.
(C) For the third primary tier violation in three years, the fine shall be $ 4,000.
(D) For the fourth or fifth primary tier violation in four years, the violationshall be referred to the Board for a show cause hearing pursuant to § 1604.
Section 805, WARNINGS, of Chapter 8, ENFORCEMENT, INFRACTIONS, AND PENALTIES, of Title 23, ALCOHOLIC BEVERAGES, of the DCMR is amended to read as follows:
805. WARNINGS.
805.1 An ABRA investigator or MPD Officer is not precluded from issuing an administrative written warning before the issuance of a citation for a violation as permitted by § 800 of this title.
805.2 In not less than ten (10) business days following the issuance of an administrative written warning, an ABRA investigator shall conduct a subsequent inspection of the licensed premises to ensure that the licensee has taken corrective action for the violation found for which the administrative written warning was issued. If corrections to violations that resulted in the issuance of the administrative written warning are not completed at the time of the subsequent inspection, the ABRA investigator shall issue the licensee a citation or refer the matter to the ABC Board if (1) the licensee observes other violations that are not entitled to a warning or (2) the licensee already has three or more secondary tier violations.
805.3 A licensee entitled to a mandatory administrative written warning for a first violation shall not be entitled to a mandatory administrative written warning for a second or subsequent violation of the same offense. There shall be no expiration period on this subsection’s prohibition against issuing a mandatory administrative written warning for a subsequent violation of the same offense.
Copies of the proposed rulemaking can be obtained by contacting Martha Jenkins, General Counsel, Alcoholic Beverage Regulation Administration, 2000 14th Street, N.W., Suite 400, Washington, D.C. 20009. Persons with questions concerning the rulemaking should contact Martha Jenkins at 202-442-4456 or email martha.jenkins@dc.gov. All persons desiring to comment on the proposed rulemaking must submit their written comments, no later than thirty (30) days after the date of publication of this notice in the D.C. Register, to the above address.