As the cannabis industry faces challenging times, county looks to legalize smoking lounges.

Cannabis is now easy to buy in many parts of Monterey County. But it’s not always easy to smoke it, with restrictions for many renters in their homes, and for tourists in hotel rooms, rental cars and public parks.

The Monterey County Cannabis Committee, comprising county supervisors Mary Adams and Chris Lopez, gave its support on Dec. 1 to legalize cannabis consumption lounges adjacent to existing retail sites. Think of a bar, but for cannabis: You can buy products at the dispensary, then hang out onsite and consume them. No alcohol or tobacco would be permitted, and no outside products (except the possibility of food delivery). Concerns include drugged driving and providing sufficient customer restrooms.

“This is one additional aspect of cannabis and if we want to be supportive of the industry, this is a very good way for us to do so,” Adams said. “We can make this work.”

The industry is looking for support as it faces a sharp downturn. According to data compiled by the county’s cannabis program staff, 22 cannabis businesses have shut down since 2019 due to insolvency. The workforce in the industry has shrunk from 2,400 people in July of 2021 to 1,400 in October 2022, a 40-percent decrease. Cannabis tax revenue to the county is down this year from a high of $19.8 million in fiscal year 2020-21 to less than zero, because of refunds issued during a time of tax deferrals to help prop up a stressed industry.

Looking at the declining numbers, county Cannabis Program Manager Joann Iwamoto suggested exploring lounges. “This may increase local tax revenue,” she told the committee.

The next step will be for the full Board of Supervisors to consider the lounge concept.