Maine’s still a long way away from having cannabis ‘lounges’

Nearly a decade ago, Maine voters said they wanted to be able to smoke a joint in a lounge or order a THC-infused drink at a bar. But despite the 2016 referendum approval, cannabis “social clubs” have remained off the table for almost 10 years. That could be changing.

A new report from The Maine Office of Cannabis Policy’s Cannabis Hospitality Task Force includes recommendations for a bill to regulate “cannabis hospitality establishments” in the state.

The task force was required to consider licensing for different business models, how to regulate consumption, what other services could be offered, training for employees and various aspects of local control.

The report is intended to serve as a guide for legislators drafting future bills, but there are still a number of hurdles to clear and issues to work out before Mainers could see any of these clubs in action.

The 20-member task force included cannabis industry representatives, public health advocates, chefs and hospitality professionals, policy experts and state and municipal officials.

The group looked at several options, including restaurants and bud-and-breakfast-style inns but ultimately recommended two business models for on-site consumption: cannabis-specific trade shows or events, and consumption lounges.

The majority of the group also supported the idea of consumption at non cannabis-specific events like concerts and fairs.

But how the products should be consumed is still up for debate.

According to the report, there were strong opinions both for and against allowing inhalable cannabis. Supporters said hospitality establishments would not have a real impact without the option of smoking, as that’s the primary way people consume the drug. In January, “usable” cannabis like flower and pre-rolls accounted for more than half of the products sold in the state’s recreational market, according to the Office of Cannabis Policy.

But opponents argued that allowing smoking would conflict with Maine smoking laws and could create ventilation and safety concerns for workers.

There was more of a consensus around edibles, particularly nano-emulsified beverages, which often have a lower THC content and, as with alcohol, the effects are often felt within 20 minutes, rather than the hour or more common with other edible products.

But still, there remain concerns about dosing and standardizing consumption limits when everyone has a different THC tolerance, according to the report.

The group agreed that municipalities should have the final say in whether to opt in to any future hospitality programs, but there was little consensus on how licensing should work.

Cannabis “social clubs,” sites licensed to sell retail cannabis to be consumed onsite as bars do with alcohol, are not legal in Maine despite originally being approved in the 2016 referendum that legalized recreational cannabis.

Under state statute, consumption is permitted only in a private residence or on private property “not generally accessible by the public” and with explicit permission to consume cannabis on the property.

Maine would have become the first state in the country to legalize cannabis social clubs, but the Legislature rewrote the law in 2017, and then again in 2018, eliminating on-site consumption to secure the votes to override the veto of former Gov. Paul LePage.

Since then, 12 states including Alaska, Nevada, California, Colorado and New Jersey, have moved to allow social consumption and are in various stages of implementation.

The issue of licensing social clubs has come up at least four times in the last two legislative sessions.

Steve Rusnack, owner of Full Bloom Cannabis, which has locations in both the medical and recreational markets, said the industry would “jump on” the option if it were available.

“It’s a new avenue, and I think as far as the customers and patients are concerned, they see a lot of this going on in other places and they want it too,” said Rusnack, who was on the task force.

The option is likely to be popular with tourists, who may want to use cannabis but can’t smoke in their hotel room or while out and about, he said.

Last year, Maine’s recreational cannabis industry brought in $244 million.

The work sessions provided a good foundation, Rusnack said, but there’s still a lot that needs to be worked out.

According to the report, “outstanding questions around licensing, consumption methods, demand, and insurance need to be addressed in order to move forward with suggested legislation and policy proposals.” The task force recommended the Legislature convene another study or survey that includes a subgroup of cannabis consumers “to examine the issues considered throughout this report in more detail.”