West Hollywood Business License Commission Greenlights Two Permits for Onsite Cannabis Consumption

On Tuesday, July 16, 2019, the West Hollywood Business License Commission took a major step toward greenlighting the first onsite cannabis consumption restaurants in the United States.

The Commission approved two business license applications, one for Flore Flora, LLC d/b/a Lowell Café, and the other for Pleasure Med LLC, both permitting on-site consumption of adult-use cannabis, which would count toward the 8 total licenses authorized for on-site consumption areas within West Hollywood city limits.

West Hollywood Cannabis On-Site Consumption Laws 

Both applications fall under West Hollywood Municipal Code § 5.70.41 (Cannabis Consumption Area with On-Site Adult Use Retail – Operating Requirements), which provides, among other things:

• There shall be no on-site sales of alcohol or tobacco, though “on-site sale of food and food items infused with cannabis is permitted,”
• Hours of operation are limited from 6:00 a.m. to 2:00 a.m.,
• Entry to the premises shall be limited to persons 21 years old or more,
• Cannabis consumption shall only be provided “in an amount reasonable for on-site consumption and consistent with personal possession and use limits” within the state of California.

§ 5.70.41 further restricts where the cannabis to be consumed on site can be sourced to only the following:

• Limited ancillary cultivation of cannabis on-site is permitted. The space devoted to cultivation shall not exceed twenty-five percent of the total floor area, but in no case more than one thousand five hundred square feet or greater than ten feet in height, and be in compliance with Section 19.36.030.
• From an off-site location where cannabis is cultivated or manufactured in accordance with applicable state law and zoning regulations in the jurisdiction in which it is cultivated or manufactured.
• The on-site production of cannabis-infused food items.

Additionally, consumption areas must feature an "odor absorbing ventilation and exhaust system . . . so that odor generated inside the business is not detected outside the property or lease area boundaries, or anywhere on adjacent property or public rights-of-way, or within any other unit located within the same building as the cannabis use."

Proposed Sites Offer Diverse Concepts

Both Lowell Café and PleasureMed offer different concepts, with Lowell Café focusing on food service and consumption operations, as well as community organizations, while PleasureMed will integrate a high-end retail environment and combine a range of product offerings an educational resources, with an emphasis on organic options. PleasureMed also intends to offer delivery services, in addition to adult-use retail and medical dispensary sales and onsite consumption.

While the approval of both licenses is a significant step in the direction of realizing the first legal adult-use on-site consumption of cannabis in the United States, both applicants are still required to obtain all applicable licenses from the state to California, as well as all requisite permits and approvals from the City, including approvals from the Finance, Planning, Building & Safety & Code Compliance divisions before becoming operational.