Cannabis Consumption Events THE NEXT BIG THING IN MICHIGAN? KORAL FRITZ FOR MICHIGAN GREEN STATE WHAT’S THE NEXT BIG THING FOR MICHIGAN’S CANNABIS INDUSTRY? Although the pandemic has provided the cannabis industry with room to grow, the events of the last year have also reduced the ability of certain cannabis businesses to operate at their full potential in the Michigan market. Under the regulations in Michigan, both cannabis consumption establishments and cannabis events can operate subject to specific rules. While the laws have allowed for consumption lounges and events since 2019, the pandemic has made it extremely difficult to capitalize on these business opportunities. Restrictions limiting how business could be conducted and how many people could safely gather has meant that people are not coming together FRITZ in groups to consume cannabis. As businesses find ways to implement safety measures and public health improves, Michigan cannabis consumers and cannabis businesses alike will be excited to host the public in new lounges and at cannabis events. Especially as summer arrives, Michigan will see an influx of tourists, who can now purchase legal cannabis
Issue 2 | spring 2021
while visiting and legally consume at one of these lounges or events in the state.
WHAT ARE DESIGNATED CONSUMPTION ESTABLISHMENTS?
ers then take next door to a separate facility to consume. This setup is a workaround to the rules that prohibit the lounges from selling cannabis products.
There are already a few consumption lounges operating or set to open soon, Consumption establishments are similar including the Rec Center located in Geneto bars and coffee shops in the sense see County. This business is credited with that patrons can visit the business and being the first operating recreational conconsume a particular substance while at sumption lounge in the state. It’s uniquely the establishment. Except with cannaset up like Punch Bowl Social in Detroit bis consumption establishments (a.k.a. and the Board Room in Washington, D.C. in cannabis lounges & cafes), customers must that the lounge offers the public a place to bring their own product to consume. The come play arcade and board games. Unlike lounges are allowed to offer food to guests, the other establishments, the Rec Center but the businesses are not permitted to doesn’t serve alcohol, but instead allows serve alcohol. guests to consume cannabis. In Marquette, the Cannabis Lupus Café is currently open While the regulations allow for medical and recreational sales while a licensed proprietor to its smoke lounge and dab bar should be offer a space for customers opening soon. to frequent where they can consume cannabis, the rules Consumption lounges have started to offer do not allow the consumpmonthly memberships. A customer pays tion lounges to sell cannabis a monthly fee to have access to use the products. This means that cus- lounge for certain periods of time or on a tomers must bring their own certain schedule. This offering will continue cannabis to the lounge with to be popular as more lounges open across them. The customers then the state. Detroit’s ordinance indicates the use the lounge as a safe, legal city will license up to 35 designated conplace to consume with others. sumption lounges. However, licensing in To make this a lucrative business option, Detroit is currently paused due to a lawsuit. the state will continue to see cannabis retail businesses (provisioning centers) WHAT ARE TEMPORARY MARIJUANA EVENTS? opening up next to consumption lounges. A temporary marijuana event is like a fesThrough this model, business owners can capitalize on selling products that custom- tival. The general rule for consuming can-
nabis in Michigan is that you can consume the substance inside a private residence. The law prohibits public consumption except at designated consumption establishments or temporary marijuana events. These events consist of members of the public paying a fee to access vendors selling cannabis products and other festivities. The other feature of the license is that event attendees can also consume cannabis publically. To host a temporary marijuana event, someone must secure a marijuana event organizer license from the Marijuana Regulatory Agency (“MRA”). Only individuals over the age of 21 may attend these events, and there are strict requirements with which the event organizer must comply. One requirement is that the organizer must submit an application to hold a temporary event at least 90 days before the first day of the event. This rule is meant to afford the MRA enough response and investigation time. The first event of this kind was set to occur in Hazel Park last April. However, organizers cancelled the event due to COVID-19. Yet, Michigan residents and visitors can expect to see more consumption lounges opening and licensed cannabis events occurring as facilities can open up to welcome larger groups of people. Koral Fritz is a licensed attorney and Professor of Cannabis Business at Lake Superior State University
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