Cannabis consumption events

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? WHAT ARE DESIGNATED CONSUMPTION ESTABLISHMENTS?

while visiting and legally consume at one of these lounges or events in the state. 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 in groups to consume cannabis. FRITZ 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

Consumption establishments are similar to bars and coffee shops in the sense that patrons can visit the business and consume a particular substance while at the establishment. Except with cannabis consumption establishments (a.k.a. cannabis lounges & cafes), customers must bring their own product to consume. The lounges are allowed to offer food to guests, but the businesses are not permitted to serve alcohol. While the regulations allow a licensed proprietor to offer a space for customers to frequent where they can consume cannabis, the rules do not allow the consumption lounges to sell cannabis products. This means that customers must bring their own cannabis to the lounge with them. The customers then use the lounge as a safe, legal place to consume with others. To make this a lucrative business option, the state will continue to see cannabis retail businesses (provisioning centers) opening up next to consumption lounges. Through this model, business owners can capitalize on selling products that customers 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, including the Rec Center located in Genesee County. This business is credited with being the first operating recreational consumption lounge in the state. It’s uniquely set up like Punch Bowl Social in Detroit and the Board Room in Washington, D.C. in that the lounge offers the public a place to come play arcade and board games. Unlike the other establishments, the Rec Center doesn’t serve alcohol, but instead allows guests to consume cannabis. In Marquette, the Cannabis Lupus Café is currently open for medical and recreational sales while its smoke lounge and dab bar should be opening soon. Consumption lounges have started to offer monthly memberships. A customer pays a monthly fee to have access to use the lounge for certain periods of time or on a certain schedule. This offering will continue to be popular as more lounges open across the state. Detroit’s ordinance indicates the city will license up to 35 designated consumption lounges. However, licensing in Detroit is currently paused due to a lawsuit.

WHAT ARE TEMPORARY MARIJUANA EVENTS?

A temporary marijuana event is like a festival. The general rule for consuming cannabis 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