Committee previews draft language to allow locally approved cannabis consumption lounges; fiscal note attached

Committee analysts presented draft language for LD 1365, which would allow consumption of adult‑use cannabis in locally authorized hospitality lounges. The draft is a minority report and remains subject to revision.

Rachel Olsen said the draft clarifies that a municipality where a licensed cannabis store is located may authorize smoking at a cannabis consumption lounge, and the language distinguishes between traditional smoking and electronic smoking devices. The draft also references the statutory definition of "enclosed area" in Title 22 and explains that a covered pavilion with a floor and ceiling but partial walling could qualify as an enclosed area under the proposed text.

Olsen noted the draft is currently 26 pages and that stakeholders and members may want time to review. The fiscal note attached to the draft estimates a one‑time fiscal year 2627 cost of $262,400: $12,400 in special revenue for Office of Cannabis Policy licensing system updates and $250,000 in OSR funds for a public service campaign tied to on‑premise consumption. The draft did not include an estimate of ongoing revenue from potential endorsement fees.

Representative Boyer urged the committee to consider whether an emergency enactment is warranted and questioned assumptions in the fiscal note; Olsen pointed to unallocated language in page 25 directing the office to develop a public service campaign and suggested that language could be modified to reduce the fiscal impact by requiring incorporation into existing campaigns.

Committee members agreed to table the draft for further review and to return when final language is available.