Zoning is a major feature and often a huge hindrance for many people trying open a cannabis-centered business. As a matter of public policy, the legislation passed in January outlined strict regulations to prevent abuse, stymie the unregulated market, adhere to residence concerns and most importantly provide cogency to the law. Cannabis, much like tobacco and alcohol, cannot be used in public spaces or near certain places like schools or parks which makes smoking relegated to a few places like your home (if you domicile/property allows it) or where the law explicitly authorizes its use. The one thing that the legislation does allow is for cities to make their own ordinances and to amend or create regulations to suit their needs. The City of West Hollywood made such an exception by producing an ordinance that authorizes business licenses for consumption areas, where cannabis can be purchased and consumed on-site.
What are cannabis consumption areas?
This term is entirely made up. Nothing in the legislation passed by the state outlines what a cannabis consumption is or any requirements that would deem areas as such or vice versa. The definition is also noticeably absent in the ordinance. The ordinance did state in section 5 that the zone text amendment (ZTA) which would allow for the establishment of lounges is categorically exempt from the California Environmental Quality Act and that the ZTA does not change the zoning for any properties, are similar to already existing permitted general uses such as retail with the only difference being the product sold or consumed (i.e. cannabis). Although the language is quite generic, the reasoning behind their decision is quite sound.
Section 5.70.040 (8)(a) outlines the framework for cannabis consumption areas. The ordinance, per its language, is treating cannabis like a hybrid of alcohol and tobacco. Alcohol, much like cannabis, cannot be used in public (unless specified) and is more often relegated to places that have a license to serve such beverages e.g. lounges, bars, and other limited venues. Tobacco can be smoked unless proscribed by law or ordinance in public; smoking is normally relegated to designated areas in public and is generally prohibited by signs that indicate that the area is “smoke-free.” The ordinance seemingly combines these concepts; alcohol does not have an “alcohol consumption area” but can be served if a valid license is available i.e. festivals or bars and cannabis licenses are heavily monitored and regulated with homologous restraints. Similar to cigarettes, smoking cannabis or its consumption would only be in the cannabis consumption area which is inside the building; consumption of cannabis in any form is prohibited outside the CCA which includes patios or terraces attached to the cannabis retailer e.g. smoke-free zones. These parameters aren’t explicitly outlined in the ordinance but the language in section 5 suggests they’re following the standard practices of similar retailers with the difference being the “product consumed.”
Some other operating requirements for CCAs include providing sufficient security and lighting, security guards who possess at all times a valid Department of Consumer Affairs “Security Guard Card”, prohibition of alcohol or tobacco and everyone who enters must be 21 or above with valid identification. Further stipulations require lounges to close at 2 am (but can open any time after 6:00 am) and enjoins employees to explain the products to be consumed to its patrons.
Potential issues
The ordinance also has some grey area that may be a little confusing for some. The ordinance states that CCAs that are ancillary to adult or medical use retailers cannot exceed 50% of the total floor area of the business. The issue is that the word “area” does not necessarily mean “business”, but reading each condition in the ordinance a CCA must be in a building or would nominally be attached to a retailer. Additionally, the “area” cannot be made visible to the public or by any person under the age of 21 but must have signs posted within the CCA requesting patrons to be respectful to the business neighbors. If the “area” must remain invisible to the public and somehow also people under the age of 21, this would preclude that any “area” can be anything outside. The ordinance does not explain what the word “visible” means in this context; cannabis advertisements are prohibited however what about address listings online? It does draw into question the extent of what “visible” or “area” means and the ordinance does little to clarify many of the terms used in the document. Interestingly, the ordinance limits CCAs to one of two methods of consumption: either consumption of cannabis by smoking, vaping, and ingestion or consumption by ingestion only. The reason for this rule may be a result of some of the restrictions in the ordinance exposing lounges to more liability in regard to patrons on their premises; lounges, under the conduct of patron provision, are afforded a lot of control over customers and have to take more precautionary measures than other businesses to ensure compliance and safety. Outside of these restrictions and regulations, there is little direction as to what a CCA will look like or how it should function, this is ostensibly uncharted waters. You can find the ordinance here.
What’s next?
The City of West Hollywood’s four existing Medical-Use Dispensaries have been authorized to allow Adult-Use retail sales at their current locations on a temporary basis beginning on Tuesday, January 2, 2018:
- Alternative Herbal Health Services (AHHS) / 7828 Santa Monica Boulevard
- The Los Angeles Patients & Caregivers Group (LAPCG) / 7213 Santa Monica Boulevard
- MedMen WeHo / 8208 Santa Monica Boulevard, West Hollywood
- Zen Healing / 8464 Santa Monica Boulevard, West Hollywood
West Hollywood’s City Council approved an ordinance that authorizes a number of licenses, including eight licenses for cannabis smoking lounges that will be attached to cannabis stores. Along with the eight licenses for smoking lounges attached to cannabis stores, customers can try pot candies, brownies, and other cannabis-infused foods. The new regulations will also allow cannabis products to be purchased and consumed at these consumption lounges without a medical recommendation. Still, they will likely be attached to an existing cannabis dispensary. West Hollywood is far and away ahead of Los Angeles regarding Cannabis and may be a good archetype for other cities in creating and implementing cannabis rules and regulations.
– Marc Johnson