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An example of a cannabis lounge in Portland, Oregon in 2023. The lounge has since shut down.
shutterstock.com | quiggyt4
The cannabis industry is taking a leap with consumption lounges expected to pop up across New Jersey in the coming months.
Lounges are intended to be a space for both recreational and medicinal cannabis customers to consume safely and responsibly.
The New Jersey Cannabis Regulatory Commission began accepting applications in January, but, for some municipalities, acceptance of marijuana lounges may be a bit tougher than approvals of retail cannabis stores.
For example, in Merchantville, the Borough Council received a proposal from Gynsyng, dispensary, to open a lounge, sparking debate among residents in several council meetings.
Residents and council members raised concerns about public safety, fearing a cannabis consumption lounge could result in speeding vehicles and pedestrian safety. Worried residents also found it unsuitable considering its proximity to routes frequented by children walking to school.
When the regulatory commission began to accept applications for cannabis consumption areas in January it also set an initial application fee of $200, with another fee of $800 once the application is approved.
Dianna Houenou, chair of the regulatory commission, said the fees will be used to “offset the cost of the administrative work to process and monitor those consumption areas.” The initiative is viewed as a viable business opportunity for cannabis retailers and a convenience for cannabis customers who want to consume with others.
“This is meant to be a much faster approval process than it was for standard licenses,” Houenou said.
As long as businesses adhere to regulations, “the sky’s the limit,” said Houenou. Lounges are allowed to host events, activities and present live music. They can decide whether to charge admission or to ban cannabis they did not sell.
“I think we’ll really start to see a fun culture around cannabis start to develop around these consumption areas, and we’ll see what the creative minds behind these business owners put in place,” said Houenou.
In Merchantville, council members had divided responses to concerns surrounding dispensary Gynsyng’s cannabis consumption lounge request.
Some had reservations about testing for cannabis impairment and also worried that patrons would not arrive sober. They indicated that inadequacies in the existing enforcement of traffic regulations made them hesitant to be pioneers in permitting on-site cannabis consumption.
Those supporting the lounge highlighted its potential to mitigate safety risks by providing a controlled, state-regulated environment and expressed confidence in the state’s ability to ensure responsible consumption practices.
“The expectation is that primarily they’re going to be seeing 55 and olders and folks that live in housing units or apartment complexes that don’t allow smoking ,” said Merchantville Council member, Sean Fitzgerald. “They’re looking for a little bit more of a controlled environment for them to be able to consume in a way that works best for them.”
Fitzgerald said he is confident that police are well trained to handle DUI cases. He describes Gynsyng as “good neighbors” who abide by regulations and even go above and beyond in terms of filtration systems, putting air purifiers in the room.
“Everything that’s come from the state they’ve followed, to the letter, to the teeth,” said Fitzgerald.
Despite some concerns that the lounge could disrupt the character of Merchantville, most were supportive. Only two of six council members voted against the lounge. Council member Fitzgerald said he found that the decision wasn’t very contentious.
“They were surprised that it hadn’t happened yet, versus being shocked at the idea that it would happen at all,” he said.
There are strict state standards for consumption areas: Lounges must be attached to a cannabis retailer and adhere to ventilation requirements. They must abide by the NJ Smoke Free Air Act and age restrictions. Businesses are required to make an effort not to over-serve patrons.
“These are the same kind of responsibilities, or same standards, that we hold our bartenders to,” said regulator Houenou.
Dan Ulloa, publisher and editor of Heady NJ, an online site covering cannabis news, has high hopes for consumption lounges providing spaces for renters who are not allowed to consume cannabis in their homes or to foster a welcoming community for ill patients using cannabis to heal.
People who use cannabis are “calm, sedated people,” Ulloa said, attributing the concerns of residents to the long-standing stigma surrounding cannabis.
“I would say that this is just as concerning as the neighborhood bar that’s been in operation for 30-plus years. They are not violent drunkards. They are not junkies on heroin,” Ulloa said . “People don’t really understand you could be a workaholic on cannabis, and you could be treating chronic conditions on cannabis, and be a leading member of the community.”
Applications now are open to social equity businesses, which include those majority owned by either people with prior marijuana convictions or who live in a designated economically disadvantaged area and meet certain household income requirements, according to Houenou.
Next Wedneday, April 2, applications will open to all micro businesses and businesses owned by minorities, women or disabled veterans.
Then, on July 2, the final round of applications will open for any other dispensary that wants to operate a consumption area.
The pace of applications will likely pick up over the summer as the application process is opened to more types of businesses. The commission has already received one application. According to Houenou, while there is no exact date or timeline, consumption lounges should begin to open up soon.
Adds cannabis journalist Ulloa: “This is something that’s been a long time coming. We’re happy to see progress bit by bit.”
This story was written by Rebecca Wechter through a journalism course at The College of New Jersey. 70and73.com is committed to giving students real-life news reporting experience.
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