Consumption Lounges: Making Detroit Marijuana Matter

By: Scott F. Roberts and Andrew Haftkowycz

The American cannabis market has a glaring hole in its culture: Smoking Establishments. 

Unlike the infamous Amsterdam coffeeshops, where a tourist can pair her white widow with her white macchiato, the cannabis culture in America has taken an puritanical approach to marijuana consumption. In America, you basically can’t both go into a weed shop and immediately spark up the joint you just purchased. While some users may break this legal nuance, in 99% of the country, it is illegal to smoke marijuana in a public establishment. 

With almost a decade of legal recreational cannabis under our belt in America, only one-fifth of U.S. states allow you to smoke cannabis in public at all. At the time of this writing, 10 states have passed laws allowing for consumption of marijuana in public establishments. While New Jersey, Massachusetts, New York, & Nevada are still in the license-issuing phase of the elusive cannabis consumption lounge, Alaska, California, Colorado, Illinois, New Mexico, & Michigan currently have (a few) operational consumption lounges.

Even though these states have given the green light for these establishments, the actual roll-out has left most of the consuming public feeling like they are waiting at an endless red light. 

A Slow Start

Due to municipal ordinances and licensing delays, many of the planned consumption lounges that have been granted licenses by the state have not actually opened to the public. The several lounges throughout these 10 states that are currently operating are doing so either by a medical/private-membership only basis, or are severely restricted as to how they are allowed to operate. Many lounges are not allowed to sell directly to customers, meaning there is either a BYOC (Bring-Your-Own-Chronic) rule in place, or you are required to order from an auxiliary dispensary down the street. 

How Detroit wants to get on the Map

 Recently, the City Planning Commission of Detroit held a productive public comment meeting about revisions to the city’s New Ordinance. One thing was clear from this meeting: Detroit wants its residents to compete in the national cannabis-tourism market. To compete, however, the City Planning Commission must address the obvious holes in the consumption lounge dilemma that has stymied roll-out of cool places where likeminded cannabis users can smoke together. 

So… is a Consumption Lounge like a Bar?

Kinda. Unlike retail dispensaries which must close operations by 10 PM, the consumption lounges will share similarities to “bar” establishments in Detroit because they will be allowed to operate between the hours of 9 AM and 2AM. Unlike a bar, however, a designated consumption establishment cannot permit the sale or dispensing of alcoholic liquor or tobacco for consumption on or off the premises. It will be a cannabis-only venture, unless Detroit City Planning Commission (or the legislature) create allowances for certain uses. 

The City Planning Commission has stated that they want to explore how consumption lounge restrictions can be revised to allow for multiple uses for consumption lounges. These multi-use consumption lounges would have different use-restrictions attached.

Food-Use

This category is most reminiscent of the Amsterdam coffeeshops mentioned above. While there are some restrictions on allowing marijuana to be served with other intoxicants like liquors or tobacco, there are no explicit restrictions against or approvals for marijuana and food services. Some municipalities have approved food services, so long as there are clear separations between a food preparation area (kitchen) and a marijuana consumption area (smoking room). 

With any luck, the Detroit City Planning Commission will address this glaring opportunity and allow a work-around for consumption lounge owners to permit some limited food services at consumption lounges. That said, there may still be some growing pains to get the elusive Amsterdam-style coffeeshop to a Metro street corner near you. 

Non-Food-Use

Yoga & Weed. Videogames & Weed. Movies & Weed. That is the general goal with the Non-Food-Use consumption lounge. The City Planning Commission hinted positively toward approval of this use-type to explore an array of possibilities for Detroit entrepreneurs to innovate the cannabis scene (though Karaoke & Weed might be a tough sell, considering that cottonmouth might make karaoke-newbies sound even worse than usual).

Outdoor Patios

Outdoor patios are not expressly prohibited through the new ordinance. While MRTMA does state that any authorized consumption in designated areas cannot be accessible (even visibly) to persons under 21, the City Planning Commission hinted at an approval of outdoor patio consumption areas, so long as proper barriers are in place to keep the patio shielded from the public. Any entrepreneur venturing into an outdoor patio should consider precautions on keeping the cannabis odors at bay as well and have a written plan to present to the CRA for licensing.

Smoking or Non-smoking?

In a throwback to the 90’s, these consumption lounges must also have designated non-smoking areas, which provides employers and the CRA with a way to protect employees from second-hand smoke. Consumption lounges are also required to have: 

• A properly rated ventilation system 

• Barriers separating the smoking and non-smoking areas

• Smoke-free monitoring areas within the lounge 

Current Detroit zoning and use-restrictions do not permit the above-mentioned uses, which is why the City Planning Commission is reviewing and possibly revising ordinance language to allow consumption lounges to have certain accessory uses. With the next City Planning Commission meeting on September 8th, 2022, the attorneys of Scott Roberts Law are monitoring the city’s amends for specific accessory use standards.  

Co-location: How to get a Consumption Lounge

Along with retail business licenses (where you can purchase marijuana), Detroit will be granting 30 consumption lounge licenses. Based on the New Ordinance, a licensed consumption lounge does not have the authority to sell marijuana products to its customers. That said, Co-location is how an applicant can establish a cannabis dispensary that is co-located with a cannabis consumption lounge.

Co-location is how the ordinance addresses the possibility for consumption lounges to sell to customers. Co-location will allow a cannabis business location to sell their cannabis to consumers using its retail-license, and then using that same location for consumption using the consumption-lounge-license. Both licenses reside at the same location, meaning a consumer can buy and get high without going outside (unless the patio is open, of course).

Planning for the DUI

The consumption lounge is a landmark innovation that will change the American consumer’s relationship to the newly legalizing plant… and as with all good things that give you a buzz, they are not without their faults. In Nevada, the approval of consumption lounges are dependent on license applicants providing an integrated plan on curbing the possibility of DUIs their establishment may generate. To get a higher score on an application for a designated consumption establishment license, Michigan consumption lounge applicants should address this potential community-impact liability by creating a clear plan to curb the potential for their customers to get DUIs (and also to keep the community they service safe and happy).

Where should I start?

Consumption lounges can be difficult for new businesses to navigate, and the Detroit application period is just around the corner. If you want guidance creating, implementing, or improving a marijuana consumption lounge license at your location, the dedicated cannabis law attorneys of Scott Roberts Law have proven experience helping Michigan cannabis businesses file state and local municipal applications. 

Schedule your consultation here today.