Several important questions have been raised by state regulators looking at how to license on-site consumption facilities:

May the lounge be attached to a cannabis retail facility or must it be a stand-alone facility?
If cannabis sales are permitted in the lounge, will sales be limited to single-use cannabis products and what are the limits?
Will the customer be allowed to bring in cannabis, and if so, how does one verify that the cannabis was legally purchased from a licensed source?
What will be the packaging, labeling and warning requirements for single-use cannabis products sold on-premises?
What other warnings are required on the premises?
Should there be an education requirement for patrons to ensure against over-consumption and problems caused by delayed effects?
Must cannabis that is purchased at the facility be consumed on-premises or may the customer leave with the product?
What occupational health and safety requirements will be mandated for the protection of employees at the facility to prevent unsafe exposures?
What role do local governments have in zoning and permitting?

At this stage in the development of the regulations and civil tort liability around on-site cannabis consumption, much remains uncertain. Important questions are still unanswered in most jurisdictions that are considering whether to allow on-site cannabis consumption. As we wait for the emergence of recognized standards, operators must closely follow state and local regulations and consider voluntarily adopting other measures that demonstrate advocacy for reasonable use and protection of customers. Efforts to minimize liability and risk should be a key element of the business planning for those seeking to operate in this sector of the cannabis industry.

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