Security and Safety for Cannabis Consumption Lounges

Though consumption lounges are unlike other cannabis business license types in that they allow customers to consume cannabis on-site, they can still fall victim to many of the same security risks as dispensaries, cultivation facilities, and other high-risk businesses. Additionally, cannabis consumption lounges have their own set of unique security challenges in order to prevent over-consumption and ensure customer safety.

States like Colorado and Nevada currently have cannabis consumption lounges open for business, with the first cannabis consumption lounge in the United States likely opening in West Hollywood, California over three years ago. Additionally, states like New Jersey and New York will have consumption lounges or sites available in the coming years following an upcoming licensing process.

Security and Safety for Cannabis Consumption Lounges

For consumption lounges and other cannabis businesses, security typically starts during the licensing process in the form of security plan required by either the state, the locality, or both. Prospective business owners must submit a written plan that indicates the business’ commitment to compliance and the security that will be in place on the premises. This includes the use of video surveillance systems, access control systems, alarms, and other security measures to ensure that the business is protected at all hours.

Laws and regulations regarding cannabis consumption lounges vary across the U.S., with some states allowing the ability to attach the lounge to a sales area, while others are only permitting standalone facilities. In addition, some cannabis consumption lounges may be prohibited from allowing customers to bring their own legally purchased cannabis into the facility, while this practice may be permitted for cannabis lounges located in other areas. Cannabis consumption lounges should ensure that they adhere to all applicable state and local regulations prior to operating.

One of the unique security and safety challenges that comes with operating a cannabis consumption lounge is preventing over-consumption of cannabis or cannabis products. Many locations have mandated only single use cannabis products be sold on-site, such as pre-rolls, edibles, or beverages, instead of selling flower. Measures must be put in place by the cannabis lounge to prevent over-consumption that might include limits on the total THC amount of all goods purchased and/or limits on the amount of time spent in the consumption lounge. In addition, operators must ensure that the amount of cannabis sold is not above the daily purchaser limits established by regulation for retailers.

While all cannabis businesses must deal with the challenges of preventing shoplifting and customer theft, cannabis lounge operators must also deal with the potential of a customer leaving the premises with a product intended only for consumption on-site within the lounge. This is often prohibited by state and local law and could lead to hefty fines and other legal consequences for both the operator and the customer, even if accidental.

Cannabis Consumption Lounge Staff Training

Proper training for consumption lounge staff is one of the best ways to prevent over-consumption, customer diversion, and other security and safety risks. Consumption lounge staff should be trained to verify customer identification prior to allowing a customer to enter a cannabis consumption space, as well as again before allowing the consumption of cannabis or cannabis products. Staff should understand the established customer limits at the lounge and should be trained to recognize signs of over-consumption and not allow customers to drive if they may have over-consumed cannabis.

Staff that are tasked with serving cannabis and cannabis products to consumers should be knowledgeable about their potency, effects, and duration. To prevent customers from accidentally over-consuming, staff should inform customers of these details prior to facilitating cannabis consumption. Customers should also be informed of the business’ established limits and any applicable laws in place, such as those preventing customers from taking purchased cannabis home from the lounge.

While it can seem difficult to balance security measures and the need to establish a hospitable and welcoming environment for customers, it is the only way to ensure the long-term success of the business. Although operators must ensure strict adherence to established limits and applicable laws, this does not prevent them from creating an enjoyable and safe space for consumers to enjoy cannabis.

How Can Sapphire Risk Help?

Tony Gallo and the team at Sapphire Risk Advisory Group are prepared to help with licensing and security procedures for consumption lounges across the country, including states like California, Colorado, and New York. Follow us on social media to stay up to date with cannabis industry updates!

Author

Katharine Baxter is the Lead Technical Writer and Industry News Editor for Sapphire Risk Advisory Group and is responsible for creating compliant security plans for cannabis business license applications. Katharine obtained her two Bachelor’s degrees in Journalism and Political Science and has worked in the cannabis industry for over two years. Katharine is a published author on cannabis and security and has covered topics such as cannabis security best practices and industry legal updates.