03-07 10:17 2nd Sub. (Gray) H.B. 54
Evan J. Vickers proposes the following substitute bill:
1
Cannabinoid Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jennifer Dailey-Provost
Senate Sponsor: Evan J. Vickers
2
3
LONG TITLE
4
General Description:
5
This bill amends provisions related to hemp and medical cannabis regulation.
6
Highlighted Provisions:
7
This bill:
8
▸ defines terms;
9
▸ prohibits certain cannabinoids from being used in cannabinoid products;
10
▸ allows the Department of Agriculture and Food to limit certain types of cannabinoids that
11
are found in a cannabinoid product;
12
▸ amends background check requirements for cannabinoid processor licenses;
13
▸ amends qualifications for obtaining a cannabinoid processor license;
14
▸ requires industrial hemp retailers to maintain a video surveillance system;
15
▸ amends provisions related to cannabinoid product enforcement;
16
▸ requires a person to have a cannabis processor license to transport hemp concentrate;
17
▸ removes the requirement that certain cannabinoid products be in a medicinal dosage form;
18
▸ allows for additional medical cannabis pharmacies;
19
▸ creates a new medical cannabis pharmacy license for independent medical cannabis
20
pharmacies;
21
▸ creates ownership restrictions for independent medical cannabis pharmacies;
22
▸ adjusts fees for certain medical cannabis pharmacy licenses;
23
▸ amends provisions regarding cannabis production and sanitation;
24
▸ modifies provisions related to enforcement and appeals;
25
▸ amends provisions related to closed-door medical cannabis pharmacies;
26
▸ allows a cannabis processing facility to have a website that includes product information;
27
▸ amends provisions regarding when the department may seize products and test products;
28
▸ amends provisions related to information a medical cannabis pharmacy must have
2nd Sub. H.B. 54 2nd Sub. (Gray) H.B. 54 03-07 10:17
29
available to a patient purchasing medical cannabis;
30
▸ creates a reporting requirement for the department;
31
▸ repeals sections related to the state central patient portal; and
32
▸ makes technical and conforming changes.
33
Money Appropriated in this Bill:
34
None
35
Other Special Clauses:
36
None
37
Utah Code Sections Affected:
38
AMENDS:
39
4-41-102, as last amended by Laws of Utah 2024, Chapter 35
40
4-41-103.2, as last amended by Laws of Utah 2023, Chapter 146
41
4-41-103.3, as last amended by Laws of Utah 2023, Chapters 146, 327
42
4-41-105, as last amended by Laws of Utah 2024, Chapter 35
43
4-41-404, as last amended by Laws of Utah 2019, Chapter 23
44
4-41a-102, as last amended by Laws of Utah 2024, Chapters 217, 238 and 240
45
4-41a-403, as last amended by Laws of Utah 2023, Chapter 327
46
4-41a-501, as last amended by Laws of Utah 2023, Chapter 313
47
4-41a-701, as last amended by Laws of Utah 2023, Chapters 313, 317
48
4-41a-801, as renumbered and amended by Laws of Utah 2018, Third Special Session,
49
Chapter 1
50
4-41a-802, as last amended by Laws of Utah 2024, Chapter 217
51
4-41a-1001, as last amended by Laws of Utah 2024, Chapters 217, 238 and 240
52
4-41a-1003, as last amended by Laws of Utah 2023, Chapter 435 and renumbered and
53
amended by Laws of Utah 2023, Chapters 273, 307 and last amended by Coordination Clause,
54
Laws of Utah 2023, Chapter 307
55
4-41a-1005, as last amended by Laws of Utah 2024, Chapter 217
56
4-41a-1101, as last amended by Laws of Utah 2024, Chapter 217
57
4-41a-1201, as enacted by Laws of Utah 2023, Chapter 273
58
4-41a-1202, as last amended by Laws of Utah 2024, Chapters 217, 240
59
4-41a-1203, as renumbered and amended by Laws of Utah 2023, Chapters 273, 307 and
60
last amended by Coordination Clause, Laws of Utah 2023, Chapter 307
61
4-41a-1206, as enacted by Laws of Utah 2024, Chapter 238
62
26B-1-435, as last amended by Laws of Utah 2024, Chapters 238, 240
- 2 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
63
26B-4-201, as last amended by Laws of Utah 2024, Chapters 217, 240
64
26B-4-202, as last amended by Laws of Utah 2024, Chapters 217, 240
65
26B-4-214, as last amended by Laws of Utah 2024, Chapter 240
66
26B-4-222, as last amended by Laws of Utah 2024, Chapter 240
67
58-37-3.6, as last amended by Laws of Utah 2024, Chapter 35
68
58-85-102, as last amended by Laws of Utah 2018, Third Special Session, Chapter 1
69
63N-3-1301, as enacted by Laws of Utah 2024, Chapter 35
70
77-39-101, as last amended by Laws of Utah 2024, Chapter 35
71
ENACTS:
72
4-41-405, Utah Code Annotated 1953
73
4-41a-1006, Utah Code Annotated 1953
74
REPEALS:
75
26B-4-236, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered
76
and amended by Laws of Utah 2023, Chapter 307 and last amended by Coordination Clause,
77
Laws of Utah 2023, Chapter 307
78
79
Be it enacted by the Legislature of the state of Utah:
80
Section 1. Section 4-41-102 is amended to read:
81
4-41-102 . Definitions.
82
As used in this chapter:
83
(1) "Adulterant" means any poisonous or deleterious substance in a quantity that may be
84
injurious to human health, including:
85
(a) pesticides;
86
(b) heavy metals;
87
(c) solvents;
88
(d) microbial life;
89
(e) artificially derived cannabinoids;
90
(f) toxins; or
91
(g) foreign matter.
92
(2)(a) "Artificially derived cannabinoid" means a chemical substance that is created by a
93
chemical reaction that changes the molecular structure of any chemical substances
94
derived from the cannabis plant.
95
(b) "Artificially derived cannabinoid" does not include:
96
(i) a naturally occurring chemical substance that is separated from the cannabis plant
- 3 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
97
by a chemical or mechanical extraction process; or
98
(ii) cannabinoids that are produced by decarboxylation from a naturally occurring
99
cannabinoid acid without the use of a chemical catalyst.
100
(3) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 13956-29-1.
101
(4) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS# 1244-58-2.
102
(5) "Cannabinoid processor license" means a license that the department issues to a person
103
for the purpose of processing a cannabinoid product.
104
(6) "Cannabinoid product" means a product that:
105
(a) contains or is represented to contain one or more naturally occurring cannabinoids;
106
(b) contains less than the cannabinoid product THC level, by dry weight;
107
(c) contains a combined amount of total THC and any THC analog that does not exceed
108
10% of the total cannabinoid content;
109
(d) does not exceed a total of THC and any THC analog that is greater than:
110
(i) 5 milligrams per serving; and
111
(ii) 150 milligrams per package; and
112
(e) unless the product is in an oil based suspension, has a serving size that:
113
(i) is an integer; and
114
(ii) is a discrete unit of the cannabinoid product.
115
(7) "Cannabinoid product class" means a group of cannabinoid products that:
116
(a) have all ingredients in common; and
117
(b) are produced by or for the same company.
118
(8) "Cannabinoid product THC level" means a combined concentration of total THC and
119
any THC analog of less than 0.3% on a dry weight basis if laboratory testing confirms a
120
result within a measurement of uncertainty that includes the combined concentration of
121
0.3%.
122
(9) "Cannabis" means the same as that term is defined in Section 26B-4-201.
123
(10) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid identified as
124
CAS# 1972-08-3, the primary psychotropic cannabinoid in cannabis.
125
(11) "Industrial hemp" means any part of a cannabis plant, whether growing or not, with a
126
concentration of less than 0.3% tetrahydrocannabinol by dry weight.
127
(12) "Industrial hemp producer registration" means a registration that the department issues
128
to a person for the purpose of processing industrial hemp or an industrial hemp product.
129
(13)(a) "Industrial hemp product" means a product made by processing industrial hemp
130
plants or industrial hemp parts.
- 4 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
131
(b) "Industrial hemp product" does not include cannabinoid material or a cannabinoid
132
product.
133
[(13)] (14) "Industrial hemp retailer permit" means a permit that the department issues to a
134
retailer who sells any viable industrial hemp seed or cannabinoid product.
135
[(14)(a) "Industrial hemp product" means a product made by processing industrial hemp
136
plants or industrial hemp parts.]
137
[(b) "Industrial hemp product" does not include cannabinoid material.]
138
(15) "Key participant" means any of the following:
139
(a) a licensee;
140
(b) an operation manager;
141
(c) a site manager; or
142
(d) an employee who has access to any industrial hemp material with a THC
143
concentration above 0.3%.
144
(16) "Licensee" means a person possessing a cannabinoid processor license that the
145
department issues under this chapter.
146
(17) "Newly identified cannabinoid" means a cannabinoid that:
147
(a) is not expressly identified by chemical name or CAS number in this chapter; and
148
(b) is identified by the department under Section 4-41-405.
149
[(17)] (18) "Non-compliant material" means:
150
(a) a hemp plant that does not comply with this chapter, including a cannabis plant with
151
a concentration of 0.3% tetrahydrocannabinol or greater by dry weight;[ and]
152
(b) a cannabinoid product, chemical, or compound with a concentration that exceeds the
153
cannabinoid product THC level[.] ; and
154
(c) a cannabinoid product containing any of the following:
155
(i) delta-9-tetrahydrocannabiphorol (THCP), the cannabinoid identified as CAS#
156
54763-99-4;
157
(ii) delta-8-tetrahydrocannabiphorol (THCP), the cannabinoid identified as CAS#
158
51768-60-6;
159
(iii) delta-9-tetrahyrdocannabinol (THC) acetate, the cannabinoid identified as CAS#
160
23132-17-4;
161
(iv) delta-8-tetrahydrocannabinol (THC) acetate, the cannabinoid identified as CAS#
162
23050-54-6;
163
(v) 9(s)-hexahydrocannabinol (HHC), the cannabinoid identified as CAS#
164
36403-91-5; or
- 5 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
165
(vi) 9(r)-hexahyrdocannabinol (HHC), the cannabinoid identified as CAS#
166
36403-90-4.
167
[(18)] (19) "Permittee" means a person possessing a permit that the department issues under
168
this chapter.
169
[(19)] (20) "Person" means:
170
(a) an individual, partnership, association, firm, trust, limited liability company, or
171
corporation; and
172
(b) an agent or employee of an individual, partnership, association, firm, trust, limited
173
liability company, or corporation.
174
[(20)] (21) "Retailer permittee" means a person possessing an industrial hemp retailer permit
175
that the department issues under this chapter.
176
[(21)] (22) "Tetrahydrocannabinol" or "THC" means a delta-9-tetrahydrocannabinol, the
177
cannabinoid identified as CAS# 1972-08-3.
178
[(22)] (23)(a) "THC analog" means a substance that is structurally or pharmacologically
179
substantially similar to, or is represented as being similar to, delta-9-THC.
180
(b) "THC analog" does not include the following substances or the naturally occurring
181
acid forms of the following substances:
182
(i) cannabichromene (CBC), the cannabinoid identified as CAS# 20675-51-8;
183
(ii) cannabicyclol (CBL), the cannabinoid identified as CAS# 21366-63-2;
184
(iii) cannabidiol (CBD), the cannabinoid identified as CAS# 13956-29-1;
185
(iv) cannabidivarol (CBDV), the cannabinoid identified as CAS# 24274-48-4;
186
(v) cannabielsoin (CBE), the cannabinoid identified as CAS# 52025-76-0;
187
(vi) cannabigerol (CBG), the cannabinoid identified as CAS# 25654-31-3;
188
(vii) cannabigerovarin (CBGV), the cannabinoid identified as CAS# 55824-11-8;
189
(viii) cannabinol (CBN), the cannabinoid identified as CAS# 521-35-7;
190
(ix) cannabivarin (CBV), the cannabinoid identified as CAS# 33745-21-0; or
191
(x) delta-9-tetrahydrocannabivarin (THCV), the cannabinoid identified as CAS#
192
31262-37-0.
193
[(23)] (24) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
194
and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)".
195
[(24)] (25) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
196
amounts of delta-9-THC, tertrahydrocannabinolic acid, calculated as "total THC =
197
delta-9-THC + (THCA x 0.877)".
198
[(25)] (26) "Transportable industrial hemp concentrate" means any amount of a natural
- 6 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
199
cannabinoid in a purified state that:
200
(a) is the product of any chemical or physical process applied to naturally occurring
201
biomass that concentrates or isolates the cannabinoids contained in the biomass;
202
(b) is derived from a cannabis plant that, based on sampling that was collected no more
203
than 30 days before the day on which the cannabis plant was harvested, contains a
204
combined concentration of total THC and any THC analog of less than 0.3% on a dry
205
weight basis;
206
(c) has a THC and THC analog concentration total that is less than 20% when
207
concentrated from the cannabis plant to the purified state; and
208
(d) is intended to be processed into a cannabinoid product.
209
Section 2. Section 4-41-103.2 is amended to read:
210
4-41-103.2 . Cannabinoid processor license.
211
(1) The department or a licensee of the department may process a cannabinoid product.
212
(2) A person seeking a cannabinoid processor license shall provide to the department:
213
(a) the legal description and global positioning coordinates sufficient for locating the
214
facility the person uses to process industrial hemp; and
215
(b) written consent allowing a representative of the department and local law
216
enforcement to enter all premises where the person processes or stores industrial
217
hemp for the purpose of:
218
(i) conducting a physical inspection; or
219
(ii) ensuring compliance with the requirements of this chapter.
220
[(3) An individual who has been convicted of a drug-related felony within the last 10 years
221
is not eligible to obtain a cannabinoid processor license.]
222
[(4)] (3) The department may set a fee in accordance with Subsection 4-2-103(2) for the
223
application for a cannabinoid processor license.
224
[(5)] (4) A licensee may only market a cannabinoid product that the licensee processes.
225
(5)(a) An applicant for a cannabis processor license shall:
226
(i) be at least 18 years old; and
227
(ii) submit a nationwide criminal history from the Federal Bureau of Investigation to
228
the department.
229
(b) The department shall reject an individual's application for a cannabis processor
230
license if the criminal history described in Subsection (5)(a)(ii) was not completed in
231
the previous 90 days before the day the applicant submits the license application to
232
the department.
- 7 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
233
(6) An applicant is not eligible to receive a cannabis processor license if the applicant has:
234
(a) been convicted of a felony; or
235
(b) been convicted of a drug-related misdemeanor within the previous ten years.
236
[(6)(a) Each applicant for a license to process cannabinoid products shall submit to the
237
department, at the time of application, from each key participant:]
238
[(i) a fingerprint card in a form acceptable to the Department of Public Safety;]
239
[(ii) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
240
registration of the individual's fingerprints in the Federal Bureau of Investigation
241
Next Generation Identification System's Rap Back Service; and]
242
[(iii) consent to a fingerprint background check by:]
243
[(A) the Bureau of Criminal Identification; and]
244
[(B) the Federal Bureau of Investigation.]
245
[(b) The Bureau of Criminal Identification shall:]
246
[(i) check the fingerprints the applicant submits under Subsection (6)(a) against the
247
applicable state, regional, and national criminal records databases, including the
248
Federal Bureau of Investigation Next Generation Identification System;]
249
[(ii) report the results of the background check to the department;]
250
[(iii) maintain a separate file of fingerprints that applicants submit under Subsection
251
(6)(a) for search by future submissions to the local and regional criminal records
252
databases, including latent prints;]
253
[(iv) request that the fingerprints be retained in the Federal Bureau of Investigation
254
Next Generation Identification System's Rap Back Service for search by future
255
submissions to national criminal records databases, including the Next Generation
256
Identification System and latent prints; and]
257
[(v) establish a privacy risk mitigation strategy to ensure that the department only
258
receives notifications for an individual with whom the department maintains an
259
authorizing relationship.]
260
[(c) The department shall:]
261
[(i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
262
amount that the department sets in accordance with Section 63J-1-504 for the
263
services that the Bureau of Criminal Identification or another authorized agency
264
provides under this section; and]
265
[(ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
266
Identification.]
- 8 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
267
Section 3. Section 4-41-103.3 is amended to read:
268
4-41-103.3 . Industrial hemp retailer permit.
269
(1) Except as provided in Subsection [(4)] (5), a retailer permittee of the department may
270
market or sell a cannabinoid product or a viable industrial hemp seed.
271
(2) A person seeking an industrial hemp retailer permit shall provide to the department:
272
(a) the name of the person that is seeking to market or sell a cannabinoid product or a
273
viable industrial hemp seed;
274
(b) the address of each location where a cannabinoid product or a viable industrial hemp
275
seed will be sold; and
276
(c) written consent allowing a representative of the department to enter all premises
277
where the person is selling a cannabinoid product or a viable industrial hemp seed for
278
the purpose of:
279
(i) conducting a physical inspection; or
280
(ii) ensuring compliance with the requirements of this chapter.
281
(3) Beginning January 1, 2026, an industrial hemp retailer permittee shall:
282
(a) maintain a video surveillance system that:
283
(i) is able to monitor who purchases a cannabinoid product from the permittee;
284
(ii) is tamper proof; and
285
(iii) stores a video record for at least 45 days; and
286
(b) provide the department access to the video surveillance system upon request.
287
[(3)] (4) The department may set a fee in accordance with Subsection 4-2-103(2) for the
288
application for an industrial hemp retailer permit.
289
[(4)] (5) Any marketing for a cannabinoid product or a viable industrial hemp seed shall
290
include a notice to consumers that the product is hemp and is not cannabis or medical
291
cannabis, as those terms are defined in Section 26B-4-201.
292
Section 4. Section 4-41-105 is amended to read:
293
4-41-105 . Unlawful acts.
294
(1) It is unlawful for a person to handle, process, or market living industrial hemp plants,
295
viable hemp seeds, leaf materials, or floral materials derived from industrial hemp
296
without the appropriate license or permit issued by the department under this chapter.
297
(2)(a) It is unlawful for any person to:
298
(i) distribute, sell, or market a cannabinoid product that is:
299
(A) not registered with the department under Section 4-41-104; or
300
(B) noncompliant material;
- 9 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
301
(ii) except as provided in Subsection (2)(b), transport into or out of the state extracted
302
material or final product that contains 0.3% or more of total THC and any THC
303
analog;
304
(iii) sell or use a cannabinoid product that is:
305
(A) added to a conventional food or beverage, as the department further defines in
306
rules described in Section 4-41-403;
307
(B) marketed or manufactured to be enticing to children, as further defined in
308
rules described in Section 4-41-403; or
309
(C) smokable flower; or
310
(iv) knowingly or intentionally sell or give a cannabinoid product that contains THC
311
or a THC analog in the course of business to an individual who is not at least 21
312
years old.
313
(b) A person may transport transportable industrial hemp concentrate if the person:
314
(i) complies with rules created by the department under Section 4-41-103.1 related to
315
transportable industrial hemp concentrate; and
316
(ii)(A) has [an industrial hemp producer registration] a cannabinoid processor
317
license; or
318
(B) the equivalent to [an industrial hemp producer registration] a cannabinoid
319
processor license from another state.
320
(3) The department may seize and destroy non-compliant material.
321
(4) Nothing in this chapter authorizes any person to violate federal law, regulation, or any
322
provision of this title.
323
Section 5. Section 4-41-404 is amended to read:
324
4-41-404 . Department duties.
325
The department [shall assess the fine described in Subsection 4-41-403(4) ] may take an
326
enforcement action in accordance with Section 4-41-106 against any person who offers an
327
unregistered cannabinoid product for sale in this state.
328
Section 6. Section 4-41-405 is enacted to read:
329
4-41-405 . Newly identified cannabinoid.
330
(1) For a newly identified cannabinoid, the department may:
331
(a) establish a maximum allowable concentration that a cannabinoid product may
332
contain of the newly identified cannabinoid;
333
(b) prohibit the newly identified cannabinoid from appearing in a cannabinoid product;
334
or
- 10 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
335
(c) modify the maximum allowable concentration described in Subsection (1)(a) as
336
necessary if it would not create a threat to public health.
337
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
338
department shall make rules to implement Subsection (1).
339
Section 7. Section 4-41a-102 is amended to read:
340
4-41a-102 . Definitions.
341
As used in this chapter:
342
(1) "Adulterant" means any poisonous or deleterious substance in a quantity that may be
343
injurious to health, including:
344
(a) pesticides;
345
(b) heavy metals;
346
(c) solvents;
347
(d) microbial life;
348
(e) artificially derived cannabinoid;
349
(f) toxins; or
350
(g) foreign matter.
351
(2) "Advertise" or "advertising" means information provided by a person in any medium:
352
(a) to the public; and
353
(b) that is not age restricted to an individual who is at least 21 years old.
354
(3) "Advisory board" means the Medical Cannabis Policy Advisory Board created in
355
Section 26B-1-435.
356
(4)(a) "Anticompetitive business practice" means any practice that reduces the amount
357
of competition in the medical cannabis market that would be considered an attempt to
358
monopolize, as defined in Section 76-10-3103.
359
(b) "Anticompetitive business practice" may include:
360
(i) agreements that may be considered unreasonable when competitors interact to the
361
extent that they are:
362
(A) no longer acting independently; or
363
(B) when collaborating are able to wield market power together;
364
(ii) monopolizing or attempting to monopolize trade by:
365
(A) acting to maintain or acquire a dominant position in the market; or
366
(B) preventing new entry into the market; or
367
(iii) other conduct outlined in rule.
368
(5)(a) "Artificially derived cannabinoid" means a chemical substance that is created by a
- 11 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
369
chemical reaction that changes the molecular structure of any chemical substance
370
derived from the cannabis plant.
371
(b) "Artificially derived cannabinoid" does not include:
372
(i) a naturally occurring chemical substance that is separated from the cannabis plant
373
by a chemical or mechanical extraction process; or
374
(ii) a cannabinoid that is produced by decarboxylation from a naturally occurring
375
cannabinoid acid without the use of a chemical catalyst.
376
(6) "Batch" means a quantity of:
377
(a) cannabis extract produced on a particular date and time and produced between
378
completion of equipment and facility sanitation protocols until the next required
379
sanitation cycle during which lots of cannabis are used;
380
(b) cannabis product produced on a particular date and time and produced between
381
completion of equipment and facility sanitation protocols until the next required
382
sanitation cycle during which cannabis extract is used; or
383
(c) cannabis flower packaged on a particular date and time and produced between
384
completion of equipment and facility sanitation protocols until the next required
385
sanitation cycle during which lots of cannabis are being used.
386
[(6)] (7) "Cannabis Research Review Board" means the Cannabis Research Review Board
387
created in Section 26B-1-420.
388
[(7)] (8) "Cannabis" means the same as that term is defined in Section 26B-4-201.
389
[(8)] (9) "Cannabis concentrate" means:
390
(a) the product of any chemical or physical process applied to naturally occurring
391
biomass that concentrates or isolates the cannabinoids contained in the biomass; and
392
(b) any amount of a natural cannabinoid or artificially derived cannabinoid in an
393
artificially derived cannabinoid's purified state.
394
[(9)] (10) "Cannabis cultivation byproduct" means any portion of a cannabis plant that is not
395
intended to be sold as a cannabis plant product.
396
[(10)] (11) "Cannabis cultivation facility" means a person that:
397
(a) possesses cannabis;
398
(b) grows or intends to grow cannabis; and
399
(c) sells or intends to sell cannabis to a cannabis cultivation facility, a cannabis
400
processing facility, or a medical cannabis research licensee.
401 [(11)] (12) "Cannabis cultivation facility agent" means an individual who
402
holds a valid cannabis production establishment agent registration card with a cannabis
- 12 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
403
cultivation facility designation.
404
[(12)] (13) "Cannabis derivative product" means a product made using cannabis concentrate.
405
[(13)] (14) "Cannabis plant product" means any portion of a cannabis plant intended to be
406
sold in a form that is recognizable as a portion of a cannabis plant.
407
[(14)] (15) "Cannabis processing facility" means a person that:
408
(a) acquires or intends to acquire cannabis from a cannabis production establishment;
409
(b) possesses cannabis with the intent to manufacture a cannabis product;
410
(c) manufactures or intends to manufacture a cannabis product from unprocessed
411
cannabis or a cannabis extract; and
412
(d) sells or intends to sell a cannabis product to a medical cannabis pharmacy or a
413
medical cannabis research licensee.
414 [(15)] (16) "Cannabis processing facility agent" means an individual who
415
holds a valid cannabis production establishment agent registration card with a cannabis
416
processing facility designation.
417
[(16)] (17) "Cannabis product" means the same as that term is defined in Section 26B-4-201.
418
[(17)] (18) "Cannabis production establishment" means a cannabis cultivation facility, a
419
cannabis processing facility, or an independent cannabis testing laboratory.
420
[(18)] (19) "Cannabis production establishment agent" means a cannabis cultivation facility
421
agent, a cannabis processing facility agent, or an independent cannabis testing laboratory
422
agent.
423
[(19)] (20) "Cannabis production establishment agent registration card" means a registration
424
card that the department issues that:
425
(a) authorizes an individual to act as a cannabis production establishment agent; and
426
(b) designates the type of cannabis production establishment for which an individual is
427
authorized to act as an agent.
428
[(20)] (21) "Closed-door medical cannabis pharmacy" means a facility operated by a home
429
delivery medical cannabis pharmacy for delivering [cannabis or a medical cannabis
430
product] medical cannabis.
431
[(21)] (22) "Community location" means a public or private elementary or secondary school,
432
a church, a public library, a public playground, or a public park.
433
[(22)] (23) "Cultivation space" means, quantified in square feet, the horizontal area in which
434
a cannabis cultivation facility cultivates cannabis, including each level of horizontal area
435
if the cannabis cultivation facility hangs, suspends, stacks, or otherwise positions plants
436
above other plants in multiple levels.
- 13 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
437
[(23)] (24) "Delivery address" means:
438
(a) for a medical cannabis cardholder who is not a facility:
439
(i) the medical cannabis cardholder's home address; or
440
(ii) an address designated by the medical cannabis cardholder that:
441
(A) is the medical cannabis cardholder's workplace; and
442
(B) is not a community location; or
443
(b) for a medical cannabis cardholder that is a facility, the facility's address.
444
[(24)] (25) "Department" means the Department of Agriculture and Food.
445
[(25)] (26) "Family member" means a parent, step-parent, spouse, child, sibling,
446
step-sibling, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law,
447
brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent, or grandchild.
448
[(26)] (27) "Government issued photo identification" means the same as that term is defined
449
in Section 26B-4-201, including expired identification in accordance with Section
450
26B-4-244.
451
[(27)] (28) "Home delivery medical cannabis pharmacy" means a medical cannabis
452
pharmacy that the department authorizes, as part of the pharmacy's license, to deliver
453
medical cannabis shipments to a delivery address to fulfill electronic orders[ that the
454
state central patient portal facilitates].
455
[(28)] (29)(a) "Independent cannabis testing laboratory" means a person that:
456
(i) conducts a chemical or other analysis of cannabis or a cannabis product; or
457
(ii) acquires, possesses, and transports cannabis or a cannabis product with the intent
458
to conduct a chemical or other analysis of the cannabis or cannabis product.
459
(b) "Independent cannabis testing laboratory" includes a laboratory that the department
460
or a research university operates in accordance with Subsection 4-41a-201(14).
461 [(29)] (30) "Independent cannabis testing laboratory agent" means an individual who
462
holds a valid cannabis production establishment agent registration card with an
463
independent cannabis testing laboratory designation.
464
[(30)] (31) "Inventory control system" means a system described in Section 4-41a-103.
465
[(31)] (32) "Licensing board" or "board" means the Cannabis Production Establishment and
466
Pharmacy Licensing Advisory Board created in Section 4-41a-201.1.
467
[(32)] (33) "Medical cannabis" or "medical cannabis product" means the same as that term is
468
defined in Section 26B-4-201.
469
[(33)] (34) "Medical cannabis card" means the same as that term is defined in Section
470
26B-4-201.
- 14 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
471
[(34)] (35) "Medical cannabis courier" means a courier that:
472
(a) the department licenses in accordance with Section 4-41a-1201; and
473
(b) contracts with a home delivery medical cannabis pharmacy to deliver medical
474
cannabis shipments to fulfill electronic orders[ that the state central patient portal
475
facilitates].
476
[(35)] (36) "Medical cannabis courier agent" means an individual who:
477
(a) is an employee of a medical cannabis courier; and
478
(b) who holds a valid medical cannabis courier agent registration card.
479
[(36)] (37) "Medical cannabis pharmacy" means the same as that term is defined in Section
480
26B-4-201.
481
[(37)] (38) "Medical cannabis pharmacy agent" means the same as that term is defined in
482
Section 26B-4-201.
483
[(38)] (39) "Medical cannabis research license" means a license that the department issues to
484
a research university for the purpose of obtaining and possessing medical cannabis for
485
academic research.
486
[(39)] (40) "Medical cannabis research licensee" means a research university that the
487
department licenses to obtain and possess medical cannabis for academic research, in
488
accordance with Section 4-41a-901.
489
[(40)] (41) "Medical cannabis shipment" means a shipment of medical cannabis that a home
490
delivery medical cannabis pharmacy or a medical cannabis courier delivers to a delivery
491
address to fulfill an electronic medical cannabis order[ that the state central patient portal
492
facilitates].
493
[(41)] (42) "Medical cannabis treatment" means the same as that term is defined in Section
494
26B-4-201.
495
[(42)] (43) "Medicinal dosage form" means the same as that term is defined in Section
496
26B-4-201.
497
[(43)] (44) "Pharmacy ownership limit" means an amount equal to 30% of the total number
498
of medical cannabis pharmacy licenses issued by the department rounded down to the
499
nearest whole number.
500
[(44)] (45) "Pharmacy medical provider" means the same as that term is defined in Section
501
26B-4-201.
502
[(45)] (46) "Qualified medical provider" means the same as that term is defined in Section
503
26B-4-201.
504
[(46)] (47) "Qualified Production Enterprise Fund" means the fund created in Section
- 15 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
505
4-41a-104.
506
[(47)] (48) "Recommending medical provider" means the same as that term is defined in
507
Section 26B-4-201.
508
[(48)] (49) "Research university" means the same as that term is defined in Section
509
53B-7-702 and a private, nonprofit college or university in the state that:
510
(a) is accredited by the Northwest Commission on Colleges and Universities;
511
(b) grants doctoral degrees; and
512
(c) has a laboratory containing or a program researching a schedule I controlled
513
substance described in Section 58-37-4.
514
[(49)] (50) "State electronic verification system" means the system described in Section
515
26B-4-202.
516
[(50)] (51) "Targeted marketing" means the promotion of [a cannabis product,] medical
517
cannabis, a medical cannabis brand, or a medical cannabis device using any of the
518
following methods:
519
(a) electronic communication to an individual who is at least 21 years old and has
520
requested to receive promotional information;
521
(b) an in-person marketing event that is:
522
(i) held inside a medical cannabis pharmacy; and
523
(ii) in an area where only a medical cannabis cardholder may access the event;
524
(c) other marketing material that is physically available or digitally displayed in a
525
medical cannabis pharmacy; or
526
(d) a leaflet a medical cannabis pharmacy places in the opaque package or box that is
527
provided to an individual when obtaining medical cannabis:
528
(i) in the medical cannabis pharmacy;
529
(ii) at the medical cannabis pharmacy's drive-through pick up window; or
530
(iii) in a medical cannabis shipment.
531
[(51)] (52) "Tetrahydrocannabinol" or "THC" means the same as that term is defined in
532
Section 4-41-102.
533
[(52)] (53) "THC analog" means the same as that term is defined in Section 4-41-102.
534
[(53)] (54) "Total composite tetrahydrocannabinol" means all detectable forms of
535
tetrahydrocannabinol.
536
[(54)] (55) "Total tetrahydrocannabinol" or "total THC" means the same as that term is
537
defined in Section 4-41-102.
538
Section 8. Section 4-41a-403 is amended to read:
- 16 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
539
4-41a-403 . Advertising.
540
(1) Except as provided in this section and Section 4-41a-604, a cannabis production
541
establishment may not advertise to the general public in any medium.
542
(2) A cannabis production establishment may advertise an employment opportunity at the
543
cannabis production establishment.
544
(3)(a) A cannabis production establishment may maintain a website that:
545
[(a)] (i) contains information about the establishment and employees; and
546
[(b)] (ii) except as provided in Subsection (3)(b), does not advertise any medical
547
cannabis, cannabis products, or medical cannabis devices.
548
(b) A cannabis processing facility may:
549
(i) if the website has age verification mechanisms that effectively prevent access by
550
individuals under 21 years of age, maintain a website that contains:
551
(A) educational information regarding medical cannabis produced by the cannabis
552
processing facility, including the certificate of analysis that is created by an
553
independent cannabis testing facility; and
554
(B) where medical cannabis produced by the cannabis processing facility may be
555
purchased in the state; and
556
(ii) engage in targeted marketing in accordance with Section 4-41a-604 for
557
advertising a particular medical cannabis product, medical cannabis device, or
558
medical cannabis brand.
559
(4)(a) Notwithstanding any municipal or county ordinance prohibiting signage, a
560
cannabis production establishment may use signage on the outside of the cannabis
561
production establishment that:
562
(i) includes only:
563
(A) in accordance with Subsection (4)(b), the cannabis production establishment's
564
name, logo, and hours of operation; and
565
(B) a green cross; and
566
(ii) complies with local ordinances regulating signage.
567
(b) The department shall define standards for a cannabis production establishment's
568
name and logo to ensure a medical rather than recreational disposition.
569
(5)(a) A cannabis production establishment may hold an educational event for the public
570
or medical providers in accordance with this Subsection (5) and the rules described in
571
Subsection (5)(c).
572
(b) A cannabis production establishment may not include in an educational event
- 17 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
573
described in Subsection (5)(a):
574
(i) any topic that conflicts with this chapter or Title 26B, Chapter 4, Part 2,
575
Cannabinoid Research and Medical Cannabis;
576
(ii) any gift items or merchandise other than educational materials, as those terms are
577
defined by the department;
578
(iii) any marketing for a specific product from the cannabis production establishment
579
or any other statement, claim, or information that would violate the federal Food,
580
Drug, and Cosmetic Act, 21 U.S.C. Sec. 301, et seq.; or
581
(iv) a presenter other than the following:
582
(A) a cannabis production establishment agent;
583
(B) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
584
(C) an advanced practice registered nurse licensed under Title 58, Chapter 31b,
585
Nurse Practice Act;
586
(D) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
587
Title 58, Chapter 68, Utah Osteopathic Medical Practice Act;
588
(E) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
589
Assistant Act; or
590
(F) a state employee.
591
(c) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
592
Administrative Rulemaking Act, to define the elements of and restrictions on the
593
educational event described in Subsection (5)(a), including a minimum age of 21
594
years old for attendees.
595
Section 9. Section 4-41a-501 is amended to read:
596
4-41a-501 . Cannabis cultivation facility -- Operating requirements.
597
(1) A cannabis cultivation facility shall ensure that any cannabis growing at the cannabis
598
cultivation facility is not visible from the ground level of the cannabis cultivation facility
599
perimeter.
600
(2) A cannabis cultivation facility shall use a unique identifier that is connected to the
601
facility's inventory control system to identify:
602
(a) beginning at the time a cannabis plant is eight inches tall and has a root ball, each
603
cannabis plant;
604
(b) each unique harvest of cannabis plants;
605
(c) each batch of cannabis the facility transfers to a medical cannabis pharmacy, a
606
cannabis processing facility, or an independent cannabis testing laboratory; and
- 18 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
607
(d) any excess, contaminated, or deteriorated cannabis of which the cannabis cultivation
608
facility disposes.
609
(3) A cannabis cultivation facility shall identify cannabis biomass as cannabis byproduct or
610
cannabis plant product before transferring the cannabis biomass from the facility.
611
(4) A cannabis cultivation facility shall either:
612
(a) ensure that a cannabis processing facility chemically or physically processes
613
cannabis cultivation byproduct to produce a cannabis concentrate for incorporation
614
into cannabis derivative products; or
615
(b) destroy cannabis cultivation byproduct in accordance with Section 4-41a-405.
616
(5) A cannabis cultivation facility may utilize radiation-based methods and equipment for
617
quality assurance or remediation purposes.
618
(6) The department shall make rules establishing:
619
(a) the records a cannabis cultivation facility must keep regarding each batch, amount of
620
product treated, and the methods used; and
621
(b) disclosure requirements to a cannabis processor receiving the material subject to the
622
radiation including the methods and equipment used.
623
Section 10. Section 4-41a-701 is amended to read:
624
4-41a-701 . Cannabis and cannabis product testing.
625
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
626
department may make rules to:
627
(a) determine required adulterant tests for a cannabis plant product, cannabis
628
concentrate, or cannabis product;
629
(b) determine the amount of any adulterant that is safe for human consumption;
630
(c) immediately ban or limit the presence of any ingredient in a medical cannabis
631
product after receiving a recommendation to do so from a public health authority
632
under Section 26B-1-102;
633
(d) establish protocols for a recall of [cannabis or a cannabis product] medical cannabis
634
by a cannabis production establishment; or
635
(e) allow the propagation of testing results forward to derived product if the processing
636
steps the cannabis production establishment uses to produce the product are unlikely
637
to change the results of the test.
638
(2)(a) The department may require testing for a toxin if:
639
[(a)] (i) the department receives information indicating the potential presence of a
640
toxin; or
- 19 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
641
[(b)] (ii) the department's inspector has reason to believe a toxin may be present based
642
on the inspection of a facility.
643
(b) The department may not require a cannabis processor to test a cannabis batch or a
644
cannabis product batch a third time if the cannabis batch or cannabis product has
645
previously met all testing requirements after being tested by:
646
(i) an independent cannabis testing laboratory that is not the department; and
647
(ii) the department.
648
(3)(a) A cannabis production establishment may not:
649
(i) incorporate cannabis concentrate into a cannabis derivative product until an
650
independent cannabis testing laboratory tests the cannabis concentrate in
651
accordance with department rule; or
652
(ii) transfer cannabis or a cannabis product to a medical cannabis pharmacy until an
653
independent cannabis testing laboratory tests a representative sample of the
654
cannabis or cannabis product in accordance with department rule.
655
(b) A medical cannabis pharmacy may not offer any cannabis or cannabis product for
656
sale unless an independent cannabis testing laboratory has tested a representative
657
sample of the cannabis or cannabis product in accordance with department rule.
658
(4) Before the sale of a medical cannabis product, an independent cannabis testing
659
laboratory shall:
660
(a) identify and quantify any cannabinoid known to be present in [a] the medical
661
cannabis product; and
662
(b) test terpene profiles for the following products:
663
(i) raw cannabis; or
664
(ii) a cannabis product:
665
(A) contained in a vaporizer cartridge; or
666
(B) in concentrate form; and
667
(c) record the five highest terpene profiles tested under Subsection (4)(b).
668
(5) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah
669
Administrative Rulemaking Act, the standards, methods, practices, and procedures for
670
the testing of cannabis and cannabis products by independent cannabis testing
671
laboratories.
672
(6) The department may require an independent cannabis testing laboratory to participate in
673
a proficiency evaluation that the department conducts or that an organization that the
674
department approves conducts.
- 20 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
675
Section 11. Section 4-41a-801 is amended to read:
676
4-41a-801 . Enforcement -- Fine -- Citation.
677
(1) If a person that is a cannabis production establishment or a cannabis production
678
establishment agent violates this chapter, the department may:
679
(a) revoke the person's license or cannabis production establishment agent registration
680
card;
681
(b) decline to renew the person's license or cannabis production establishment agent
682
registration card; or
683
(c) assess the person an administrative penalty that the department establishes by rule in
684
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
685
(2) The department shall deposit an administrative penalty imposed under this section into
686
the General Fund.
687
(3)(a) The department may take an action described in Subsection (3)(b) if the
688
department concludes, upon investigation, that, for a person that is a cannabis
689
production establishment or a cannabis production establishment agent:
690
(i) the person has violated the provisions of this chapter, a rule made under this
691
chapter, or an order issued under this chapter; or.
692
(ii) the person produced cannabis or a cannabis product batch that contains a
693
substance, other than cannabis, that poses a significant threat to human health.
694
(b) If the department makes the determination about a person described in Subsection
695
(3)(a), the department shall:
696
(i) issue the person a written administrative citation;
697
(ii) attempt to negotiate a stipulated settlement;
698
[(iii) seize, embargo, or destroy the cannabis or cannabis product batch;]
699
[(iv)] (iii) order the person to cease and desist from the action that creates a violation; [
700
and] or
701
[(v)] (iv) direct the person to appear before an adjudicative proceeding conducted
702
under Title 63G, Chapter 4, Administrative Procedures Act.
703
(c) If the department concludes, upon investigation, that a cannabis production
704
establishment or a cannabis production establishment agent has produced a cannabis
705
batch or a cannabis product batch that contains a substance that poses a significant
706
threat to human health, the department shall seize, embargo, or destroy the cannabis
707
batch or cannabis product batch.
708
(4) The department may, for a person subject to an uncontested citation, a stipulated
- 21 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
709
settlement, or a finding of a violation in an adjudicative proceeding under this section,
710
for a fine amount not already specified in law, assess the person, who is not an
711
individual, a fine of up to $5,000 per violation, in accordance with a fine schedule that
712
the department establishes by rule in accordance with Title 63G, Chapter 3, Utah
713
Administrative Rulemaking Act.
714
(5) The department may not revoke a [cannabis production establishment's ]license without
715
first directing the [cannabis production establishment] licensee to appear before an
716
adjudicative proceeding conducted under Title 63G, Chapter 4, Administrative
717
Procedures Act.
718
(6) If within [20] 30 calendar days after the day on which a department serves a citation for
719
a violation of this chapter, the person that is the subject of the citation fails to request a
720
hearing to contest the citation, the citation becomes the department's final order.
721
(7) The department may, for a person who fails to comply with a citation under this section:
722
(a) refuse to issue or renew the person's license or cannabis production establishment
723
agent registration card; or
724
(b) suspend, revoke, or place on probation the person's license or cannabis production
725
establishment registration card.
726
(8)(a) Except where a criminal penalty is expressly provided for a specific violation of
727
this chapter, if an individual:
728
(i) violates a provision of this chapter, the individual is:
729
(A) guilty of an infraction; and
730
(B) subject to a $100 fine; or
731
(ii) intentionally or knowingly violates a provision of this chapter or violates this
732
chapter three or more times, the individual is:
733
(A) guilty of a class B misdemeanor; and
734
(B) subject to a $1,000 fine.
735
(b) An individual who is guilty of a violation described in Subsection (8)(a) is not guilty
736
of a violation of Title 58, Chapter 37, Utah Controlled Substances Act, for the
737
conduct underlying the violation described in Subsection (8)(a).
738
(9) Nothing in this section prohibits the department from referring potential criminal
739
activity to law enforcement.
740
(10) An appeal of administrative action taken under this chapter shall be heard by an
741
administrative law judge as an informal proceeding in accordance with Title 63G,
742
Chapter 4, Administrative Procedures Act.
- 22 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
743
Section 12. Section 4-41a-802 is amended to read:
744
4-41a-802 . Report.
745
(1) At or before the November interim meeting each year, the department shall report to the
746
Health and Human Services Interim Committee on:
747
(a) the number of applications and renewal applications that the department receives
748
under this chapter;
749
(b) the number of each type of cannabis production facility that the department licenses
750
in each county;
751
(c) the amount of cannabis that licensees grow;
752
(d) the amount of cannabis that licensees manufacture into cannabis products;
753
(e) the number of licenses the department revokes under this chapter;
754
(f) the department's operation of an independent cannabis testing laboratory under
755
Section 4-41a-201, including:
756
(i) the cannabis and cannabis products the department tested; and
757
(ii) the results of the tests the department performed;
758
(g) the expenses incurred and revenues generated under this chapter; and
759
(h) an analysis of product availability in medical cannabis pharmacies in consultation
760
with the Department of Health and Human Services.
761
(2) The department may not include personally identifying information in the report
762
described in this section.
763
(3) The department shall report to the working group described in Section 36-12-8.2 as
764
requested by the working group.
765
(4)(a) Before August 1, of each year, the department shall provide a report to the
766
working group described in Section 36-12-8.2 that provides the following for each
767
fine issued by the department under this chapter:
768
(i) the date of the fine;
769
(ii) the reference to the statute or rule that was violated for each fine issued; and
770
(iii) a short description explaining why the fine was issued.
771
(b) The report described in Subsection (4)(a) may not include identifying information of
772
the person that was subject to the fine.
773
Section 13. Section 4-41a-1001 is amended to read:
774
4-41a-1001 . Medical cannabis pharmacy -- License -- Eligibility.
775
(1) A person may not:
776
(a) operate as a medical cannabis pharmacy without a license that the department issues
- 23 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
777
under this part;
778
(b) obtain a medical cannabis pharmacy license if obtaining the license would cause the
779
person to exceed the pharmacy ownership limit;
780
(c) obtain a partial ownership share of a medical cannabis pharmacy if obtaining the
781
partial ownership share would cause the person to exceed the pharmacy ownership
782
limit; or
783
(d) enter into any contract or agreement that allows the person to directly or indirectly
784
control the operations of a medical cannabis pharmacy if the person's control of the
785
medical cannabis pharmacy would cause the person to effectively exceed the
786
pharmacy ownership limit.
787
(2)(a)(i) Subject to Subsections (4) and (5) and to Section 4-41a-1005, the department
788
shall issue a license to operate a medical cannabis pharmacy through the licensing
789
board created under Section 4-41a-201.1.
790
(ii) The department may not issue a license to operate a medical cannabis pharmacy
791
to an applicant who is not eligible for a license under this section.
792
(b) An applicant is eligible for a license under this section if the applicant submits to the
793
department:
794
(i) subject to Subsection (2)(c), a proposed name and address where the applicant will
795
operate the medical cannabis pharmacy;
796
(ii) the name and address of an individual who:
797
(A) for a publicly traded company, has a financial or voting interest of 10% or
798
greater in the proposed medical cannabis pharmacy;
799
(B) for a privately held company, a financial or voting interest in the proposed
800
medical cannabis pharmacy; or
801
(C) has the power to direct or cause the management or control of a proposed
802
medical cannabis pharmacy;
803
(iii) for each application that the applicant submits to the department, a statement
804
from the applicant that the applicant will obtain and maintain:
805
(A) a performance bond in the amount of $100,000 issued by a surety authorized
806
to transact surety business in the state; or
807
(B) a liquid cash account in the amount of $100,000 with a financial institution;
808
(iv) an operating plan that:
809
(A) complies with Section 4-41a-1004;
810
(B) includes operating procedures to comply with the operating requirements for a
- 24 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
811
medical cannabis pharmacy described in this part and with a relevant municipal
812
or county law that is consistent with Section 4-41a-1106; and
813
(C) the department approves;
814
(v) an application fee in an amount that, subject to Subsection 4-41a-104(5), the
815
department sets in accordance with Section 63J-1-504; and
816
(vi) a description of any investigation or adverse action taken by any licensing
817
jurisdiction, government agency, law enforcement agency, or court in any state for
818
any violation or detrimental conduct in relation to any of the applicant's
819
cannabis-related operations or businesses.
820
(c)(i) A person may not locate a medical cannabis pharmacy:
821
(A) within 200 feet of a community location; or
822
(B) in or within 600 feet of a district that the relevant municipality or county has
823
zoned as primarily residential.
824
(ii) The proximity requirements described in Subsection (2)(c)(i) shall be measured
825
from the nearest entrance to the medical cannabis pharmacy establishment by
826
following the shortest route of ordinary pedestrian travel to the property boundary
827
of the community location or residential area.
828
(iii) The department may grant a waiver to reduce the proximity requirements in
829
Subsection (2)(c)(i) by up to 20% if the department determines that it is not
830
reasonably feasible for the applicant to cite the proposed medical cannabis
831
pharmacy without the waiver.
832
(iv) An applicant for a license under this section shall provide evidence of
833
compliance with the proximity requirements described in Subsection (2)(c)(i).
834
(d) The department may not issue a license to an eligible applicant that the department
835
has selected to receive a license until the selected eligible applicant complies with the
836
bond or liquid cash requirement described in Subsection (2)(b)(iii).
837
(e) If the department receives more than one application for a medical cannabis
838
pharmacy within the same city or town, the department shall consult with the local
839
land use authority before approving any of the applications pertaining to that city or
840
town.
841
(f) In considering the issuance of a medical cannabis pharmacy license under this
842
section, the department may consider the extent to which the pharmacy can increase
843
efficiency and reduce cost to patients of medical cannabis.
844
[(3) If the department selects an applicant ]
- 25 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
845
(3)(a) After an entity has been selected for a medical cannabis pharmacy license under
846
this section, the department shall:
847
[(a)] (i) charge the applicant an initial license fee in an amount that, subject to
848
Subsection 4-41a-104(5), the department sets in accordance with Section
849
63J-1-504;
850
[(b)] (ii) notify the Department of Public Safety of the license approval and the names
851
of each individual described in Subsection (2)(b)(ii); and
852
[(c)] (iii) charge the licensee a fee in an amount that, subject to Subsection 4-41a-104
853
(5), the department sets in accordance with Section 63J-1-504, for any change in
854
location, ownership, or company structure.
855
(b) For a fee described in Subsection (3)(a)(i), a license fee for a medical cannabis
856
pharmacy located in a medically underserved area as determined by the federal
857
Health Resources and Services Administration shall be 50% less than what is charged
858
for other medical cannabis pharmacies.
859
(4) The department may not issue a license to operate a medical cannabis pharmacy to an
860
applicant if an individual described in Subsection (2)(b)(ii):
861
(a) has been convicted under state or federal law of:
862
(i) a felony in the preceding 10 years; or
863
(ii) after December 3, 2018, a misdemeanor for drug distribution;
864
(b) is younger than 21 years old; or
865
(c) after September 23, 2019, until January 1, 2023, is actively serving as a legislator.
866
(5)[(a)] If an applicant for a medical cannabis pharmacy license under this section holds
867
another license under this chapter, the department may not give preference to the
868
applicant based on the applicant's status as a holder of the license.
869
[(b) If an applicant for a medical cannabis pharmacy license under this section holds a
870
license to operate a cannabis cultivation facility under this section, the department
871
may give consideration to the applicant's status as a holder of the license if:]
872
[(i) the applicant demonstrates that a decrease in costs to patients is more likely to
873
result from the applicant's vertical integration than from a more competitive
874
marketplace; and]
875
[(ii) the department finds multiple other factors, in addition to the existing license,
876
that support granting the new license.]
877
(6) The licensing board may revoke a license under this part:
878
(a) if the medical cannabis pharmacy does not begin operations within one year after the
- 26 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
879
day on which the department issues an announcement of the department's intent to
880
award a license to the medical cannabis pharmacy;
881
(b) after the third the same violation of this chapter in any of the licensee's licensed
882
cannabis production establishments or medical cannabis pharmacies;
883
(c) if an individual described in Subsection (2)(b)(ii) is convicted, while the license is
884
active, under state or federal law of:
885
(i) a felony; or
886
(ii) after December 3, 2018, a misdemeanor for drug distribution;
887
(d) if the licensee fails to provide the information described in Subsection (2)(b)(vi) at
888
the time of application, or fails to supplement the information described in
889
Subsection (2)(b)(vi) with any investigation or adverse action that occurs after the
890
submission of the application within 14 calendar days after the licensee receives
891
notice of the investigation or adverse action;
892
(e) if the medical cannabis pharmacy demonstrates a willful or reckless disregard for the
893
requirements of this chapter or the rules the department makes in accordance with
894
this chapter;
895
(f) if, after a change of ownership described in Subsection (11)(c), the department
896
determines that the medical cannabis pharmacy no longer meets the minimum
897
standards for licensure and operation of the medical cannabis pharmacy described in
898
this chapter; or
899
(g) if through an investigation conducted under Subsection 4-41a-201.1(11) and in
900
accordance with Title 63G, Chapter 4, Administrative Procedures Act, the board
901
finds that the licensee has participated in anticompetitive business practices.
902
(7)(a) A person who receives a medical cannabis pharmacy license under this chapter, if
903
the municipality or county where the licensed medical cannabis pharmacy will be
904
located requires a local land use permit, shall submit to the department a copy of the
905
licensee's approved application for the land use permit within 120 days after the day
906
on which the department issues the license.
907
(b) If a licensee fails to submit to the department a copy the licensee's approved land use
908
permit application in accordance with Subsection (7)(a), the department may revoke
909
the licensee's license.
910
(8) The department shall deposit the proceeds of a fee imposed by this section into the
911
Qualified Production Enterprise Fund.
912
(9) The department shall begin accepting applications under this part on or before March 1,
- 27 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
913
2020.
914
(10)(a) The department's authority to issue a license under this section is plenary and is
915
not subject to review.
916
(b) Notwithstanding Subsection (2), the decision of the department to award a license to
917
an applicant is not subject to:
918
(i) Title 63G, Chapter 6a, Part 16, Protests; or
919
(ii) Title 63G, Chapter 6a, Part 17, Procurement Appeals Board.
920
(11)(a) A medical cannabis pharmacy license is not transferrable or assignable.
921
(b) A medical cannabis pharmacy shall report in writing to the department no later than
922
10 business days before the date of any change of ownership of the medical cannabis
923
pharmacy.
924
(c) If the ownership of a medical cannabis pharmacy changes by 50% or more:
925
(i) concurrent with the report described in Subsection (11)(b), the medical cannabis
926
pharmacy shall submit a new application described in Subsection (2)(b), subject to
927
Subsection (2)(c);
928
(ii) within 30 days of the submission of the application, the department shall:
929
(A) conduct an application review; and
930
(B) award a license to the medical cannabis pharmacy for the remainder of the
931
term of the medical cannabis pharmacy's license before the ownership change
932
if the medical cannabis pharmacy meets the minimum standards for licensure
933
and operation of the medical cannabis pharmacy described in this chapter; and
934
(iii) if the department approves the license application, notwithstanding Subsection
935
(3), the medical cannabis pharmacy shall pay a license fee that the department sets
936
in accordance with Section 63J-1-504 in an amount that covers the department's
937
cost of conducting the application review.
938
Section 14. Section 4-41a-1003 is amended to read:
939
4-41a-1003 . Renewal - Notice of available license.
940
(1)(a) The department shall renew a license [under Sections 4-41a-1001 through
941
4-41a-1005] issued under this part every year if, at the time of renewal:
942
[(a)] (i) the licensee meets the requirements of Section 4-41a-1001;
943
[(b)] (ii) the licensee pays the department a license renewal fee in an amount that,
944
subject to Subsection 4-41a-1004(5), the department sets in accordance with
945
Section 63J-1-504; and
946
[(c)] (iii) if the medical cannabis pharmacy changes the operating plan described in
- 28 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
947
Section 4-41a-1004 that the department approved under Subsection
948
4-41a-1001(2)(b)(iv), the department approves the new operating plan.
949
(b) A license fee for a medical cannabis pharmacy located in a county of the third,
950
fourth, fifth, or sixth class shall be 50% less than what is charged for other medical
951
cannabis pharmacies.
952
(2)(a) If a licensed medical cannabis pharmacy abandons the medical cannabis
953
pharmacy's license, the department shall publish notice of an available license[ ], for
954
the geographic area in which the medical cannabis pharmacy license is available, as a
955
class A notice under Section 63G-30-102, for at least seven days.
956
(b) The department may establish criteria, in collaboration with the Division of
957
Professional Licensing and the Board of Pharmacy and in accordance with Title 63G,
958
Chapter 3, Utah Administrative Rulemaking Act, to identify the medical cannabis
959
pharmacy actions that constitute abandonment of a medical cannabis pharmacy
960
license.
961
(3) If the department has not completed the necessary processes to make a determination on
962
a license renewal under Subsections (1)(a) and (c) before the expiration of a license, the
963
department may issue a conditional medical cannabis pharmacy license to a licensed
964
medical cannabis pharmacy that has applied for license renewal under this section and
965
paid the fee described in Subsection (1)(b).
966
Section 15. Section 4-41a-1005 is amended to read:
967
4-41a-1005 . Maximum number of licenses.
968
(1)(a) [Except as provided in Subsection (1)(b) or (d), if a sufficient number of
969
applicants apply, the department] The licensing board shall issue up to [15] 17 medical
970
cannabis pharmacy licenses in accordance with this section including the two medical
971
cannabis pharmacy licenses in accordance with Section 4-41a-1006.
972
[(b) If an insufficient number of qualified applicants apply for the available number of
973
medical cannabis pharmacy licenses, the department shall issue a medical cannabis
974
pharmacy license to each qualified applicant.]
975
[(c) The department may issue the licenses described in Subsection (1)(a) in accordance
976
with this Subsection (1)(c).]
977
[(i) Using one procurement process, the department may issue eight licenses to an
978
initial group of medical cannabis pharmacies and six licenses to a second group of
979
medical cannabis pharmacies.]
980
[(ii) The department shall:]
- 29 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
981
[(A) divide the state into no less than four geographic regions, set by the
982
department in rule;]
983
[(B) issue at least one license in each geographic region during each phase of
984
issuing licenses; and]
985
[(C) complete the process of issuing medical cannabis pharmacy licenses no later
986
than July 1, 2020.]
987
[(iii) In issuing a 15th license under Subsection (1), the department shall ensure that
988
the license recipient will locate the medical cannabis pharmacy within Dagget,
989
Duchesne, Uintah, Carbon, Sevier, Emery, Grand, or San Juan County.]
990
[(d)(i) The department may issue licenses to operate a medical cannabis pharmacy in
991
addition to the licenses described in Subsection (1)(a) if the department
992
determines, in consultation with the Department of Health and Human Services
993
and after an annual or more frequent analysis of the current and anticipated market
994
for medical cannabis, that each additional license is necessary to provide an
995
adequate supply, quality, or variety of medical cannabis to medical cannabis
996
cardholders.]
997
[(ii) The department shall:]
998
[(A) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
999
Act, make rules to establish criteria and processes for the consultation,
1000
analysis, and application for a license described in Subsection (1)(d)(i); and]
1001
[(B) report to the Executive Appropriations Committee of the Legislature before
1002
each time the department issues an additional license under Subsection
1003
(1)(d)(i) regarding the results of the consultation and analysis described in
1004
Subsection (1)(d)(i) and the application of the criteria described in Subsection
1005
(1)(d)(ii)(A).]
1006
(2)(a) [If there are more qualified applicants than there are available licenses for medical
1007
cannabis pharmacies, the department] The licensing board shall:
1008
(i) evaluate each applicant and award the license to the applicant that best
1009
demonstrates:
1010
(A) experience with establishing and successfully operating a business that
1011
involves complying with a regulatory environment, tracking inventory, and
1012
training, evaluating, and monitoring employees;
1013
(B) an operating plan that will best ensure the safety and security of patrons and
1014
the community;
- 30 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1015
(C) positive connections to the local community;
1016
(D) the suitability of the proposed location and the location's accessibility for
1017
qualifying patients;
1018
(E) the extent to which the applicant can increase efficiency and reduce the cost of
1019
medical cannabis for patients; and
1020
(F) a strategic plan described in Subsection 4-41a-1004(7) that has a
1021
comparatively high likelihood of success; and
1022
(ii) ensure a geographic dispersal among licensees that is sufficient to reasonably
1023
maximize access to the largest number of medical cannabis cardholders.
1024
(b) In making the evaluation described in Subsection (2)(a), the licensing board may
1025
give increased consideration to applicants who indicate a willingness to:
1026
(i) site a medical cannabis pharmacy in an area or population center designated as a
1027
medically underserved area or population as determined by the federal Health
1028
Resources and Services Administration; and
1029
(ii) operate as a home delivery medical cannabis pharmacy that accepts electronic
1030
medical cannabis orders.
1031
[(b) In making the evaluation described in Subsection (2)(a), the department may give
1032
increased consideration to applicants who indicate a willingness to:]
1033
[(i) operate as a home delivery medical cannabis pharmacy that accepts electronic
1034
medical cannabis orders that the state central patient portal facilitates; and]
1035
[(ii) accept payments through:]
1036
[(A) a payment provider that the Division of Finance approves, in consultation
1037
with the state treasurer, in accordance with Section 4-41a-108; or]
1038
[(B) a financial institution in accordance with Subsection 4-41a-108(4).]
1039
(3) The [department] licensing board may conduct a face-to-face interview with an applicant
1040
for a license that the [department] licensing board evaluates under Subsection (2).
1041
Section 16. Section 4-41a-1006 is enacted to read:
1042
4-41a-1006 . Independent medical cannabis licenses.
1043
(1)(a) Subject to the requirements of Subsection (3) and the criteria established for
1044
obtaining a medical cannabis pharmacy license under this chapter, the licensing
1045
board shall:
1046
(i) before January 1, 2026, select one entity to receive a medical cannabis pharmacy
1047
license; and
1048
(ii) before January 1, 2027, but not before January 1, 2026, select one entity to
- 31 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1049
receive a medical cannabis pharmacy license.
1050
(b) When selecting entities under this section, if there is a conflict between the criteria
1051
established for obtaining a medical cannabis pharmacy license under the other
1052
sections of this chapter and this section, this section controls.
1053
(2) For the license described in Subsection (1)(a)(ii), the licensing board may not select an
1054
entity:
1055
(a) that owns any interest in or operates a medical cannabis production establishment; or
1056
(b) that is owned, partially or entirely, or operated by a medical cannabis production
1057
establishment.
1058
(3) The licensing board:
1059
(a) may not select an entity to receive a license under this section if the entity owns a
1060
financial interest in a medical cannabis pharmacy or is owned by an entity that owns
1061
a financial interest in a medical cannabis pharmacy; and
1062
(b) shall select an entity that will site a medical cannabis pharmacy license issued under
1063
this section in an area:
1064
(i) designated as a medically underserved area as determined by the federal Health
1065
Resources and Services Administration; and
1066
(ii) located in a county of the third, fourth, fifth, or sixth class.
1067
(4) A license described in this section may not be transferred to another entity unless that
1068
entity meets the requirements of Subsections (2) and (3) that the transferring entity met
1069
when obtaining the license.
1070
(5) Notwithstanding Subsection (4), for a license described in Subsection (1)(a)(i), an
1071
applicant shall commit to not alienating or otherwise transferring control of the license
1072
or of the entity that holds the license to another person for at least 15 years from the day
1073
the license is issued under this chapter.
1074
(6) The department shall provide regular updates to the Medical Cannabis Governance
1075
Structure Working Group created in Section 36-12-8.2 regarding the application and
1076
selection process for licenses issued under this section.
1077
Section 17. Section 4-41a-1101 is amended to read:
1078
4-41a-1101 . Operating requirements -- General.
1079
(1)(a) A medical cannabis pharmacy shall operate:
1080
(i) at the physical address provided to the department under Section 4-41a-1001; and
1081
(ii) in accordance with the operating plan provided to the department under Section
1082
4-41a-1001 and, if applicable, Section 4-41a-1004.
- 32 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1083
(b) A medical cannabis pharmacy shall notify the department before a change in the
1084
medical cannabis pharmacy's physical address or operating plan.
1085
(2) An individual may not enter a medical cannabis pharmacy unless the individual:
1086
(a) is at least 18 years old or is an emancipated minor under Section 80-7-105; and
1087
(b) except as provided in Subsection (4):
1088
(i) possesses a valid:
1089
(A) medical cannabis pharmacy agent registration card;
1090
(B) pharmacy medical provider registration card; or
1091
(C) medical cannabis card;
1092
(ii) is an employee of the department performing an inspection under Section
1093
4-41a-1103; or
1094
(iii) is another individual as the department provides.
1095
(3) A medical cannabis pharmacy may not employ an individual who is younger than 21
1096
years old.
1097
(4) Notwithstanding Subsection (2)(a), a medical cannabis pharmacy may authorize an
1098
individual who is not a medical cannabis pharmacy agent or pharmacy medical provider
1099
to access the medical cannabis pharmacy if the medical cannabis pharmacy tracks and
1100
monitors the individual at all times while the individual is at the medical cannabis
1101
pharmacy and maintains a record of the individual's access.
1102
(5) A medical cannabis pharmacy shall operate in a facility that has:
1103
(a) a single, secure public entrance;
1104
(b) a security system with a backup power source that:
1105
(i) detects and records entry into the medical cannabis pharmacy; and
1106
(ii) provides notice of an unauthorized entry to law enforcement when the medical
1107
cannabis pharmacy is closed; and
1108
(c) a lock on each area where the medical cannabis pharmacy stores [cannabis or a
1109
cannabis product] medical cannabis.
1110
(6) A medical cannabis pharmacy shall post, both clearly and conspicuously in the medical
1111
cannabis pharmacy, the limit on the purchase of cannabis described in Subsection
1112
4-41a-1102(2).
1113
(7) Except for an emergency situation described in Subsection 26B-4-213(3)(c), a medical
1114
cannabis pharmacy may not allow any individual to consume cannabis on the property
1115
or premises of the medical cannabis pharmacy.
1116
(8) A medical cannabis pharmacy may not sell [cannabis or a cannabis product] medical
- 33 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1117
cannabis without first indicating on the [cannabis or cannabis product] medical cannabis
1118
label the name of the medical cannabis pharmacy.
1119
(9)(a) Each medical cannabis pharmacy shall retain in the pharmacy's records the
1120
following information regarding each recommendation underlying a transaction:
1121
(i) the recommending medical provider's name, address, and telephone number;
1122
(ii) the patient's name and address;
1123
(iii) the date of issuance;
1124
(iv) directions of use and dosing guidelines or an indication that the recommending
1125
medical provider did not recommend specific directions of use or dosing
1126
guidelines; and
1127
(v) if the patient did not complete the transaction, the name of the medical cannabis
1128
cardholder who completed the transaction.
1129
(b)(i) Except as provided in Subsection (9)(b)(iii), a medical cannabis pharmacy may
1130
not sell medical cannabis unless the medical cannabis has a label securely affixed
1131
to the container indicating the following minimum information:
1132
(A) the name, address, and telephone number of the medical cannabis pharmacy;
1133
(B) the unique identification number that the medical cannabis pharmacy assigns;
1134
(C) the date of the sale;
1135
(D) the name of the patient;
1136
(E) the name of the recommending medical provider who recommended the
1137
medical cannabis treatment;
1138
(F) directions for use and cautionary statements, if any;
1139
(G) the amount dispensed and the cannabinoid content;
1140
(H) the suggested use date;
1141
(I) for unprocessed cannabis flower, the legal use termination date; and
1142
(J) any other requirements that the department determines, in consultation with the
1143
Division of Professional Licensing and the Board of Pharmacy.
1144
(ii) A medical cannabis pharmacy is exempt from the requirement to provide the
1145
following information under Subsection (9)(b)(i) if the information is already
1146
provided on the product label that a cannabis production establishment affixes:
1147
(A) a unique identification number;
1148
(B) directions for use and cautionary statements;
1149
(C) amount and cannabinoid content; and
1150
(D) a suggested use date.
- 34 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1151
(iii) If the size of a medical cannabis container does not allow sufficient space to
1152
include the labeling requirements described in Subsection (9)(b)(i), the medical
1153
cannabis pharmacy may provide the following information described in
1154
Subsection (9)(b)(i) on a supplemental label attached to the container or an
1155
informational enclosure that accompanies the container:
1156
(A) the cannabinoid content;
1157
(B) the suggested use date; and
1158
(C) any other requirements that the department determines.
1159
(iv) A medical cannabis pharmacy may sell medical cannabis to another medical
1160
cannabis pharmacy without a label described in Subsection (9)(b)(i).
1161
(10) A pharmacy medical provider or medical cannabis pharmacy agent shall:
1162
(a) upon receipt of an order from a limited medical provider in accordance with
1163
Subsections 26B-4-204(1)(b) through (d):
1164
(i) for a written order or an electronic order under circumstances that the department
1165
determines, contact the limited medical provider or the limited medical provider's
1166
office to verify the validity of the recommendation; and
1167
(ii) for an order that the pharmacy medical provider or medical cannabis pharmacy
1168
agent verifies under Subsection (10)(a)(i) or an electronic order that is not subject
1169
to verification under Subsection (10)(a)(i), enter the limited medical provider's
1170
recommendation or renewal, including any associated directions of use, dosing
1171
guidelines, or caregiver indication, in the state electronic verification system;
1172
(b) in processing an order for a holder of a conditional medical cannabis card described
1173
in Subsection 26B-4-213(1)(b) that appears irregular or suspicious in the judgment of
1174
the pharmacy medical provider or medical cannabis pharmacy agent, contact the
1175
recommending medical provider or the recommending medical provider's office to
1176
verify the validity of the recommendation before processing the cardholder's order;
1177
(c) unless the medical cannabis cardholder has had a consultation under Subsection
1178
26B-4-231(5), verbally offer to a medical cannabis cardholder at the time of a
1179
purchase of [cannabis, a cannabis product,] medical cannabis or a medical cannabis
1180
device, personal counseling with the pharmacy medical provider; and
1181
(d) provide a telephone number or website by which the cardholder may contact a
1182
pharmacy medical provider for counseling.
1183
(11)(a) A medical cannabis pharmacy may create a medical cannabis disposal program
1184
that allows an individual to deposit unused or excess medical cannabis or cannabis
- 35 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1185
residue from a medical cannabis device in a locked box or other secure receptacle
1186
within the medical cannabis pharmacy.
1187
(b) A medical cannabis pharmacy with a disposal program described in Subsection
1188
(11)(a) shall ensure that only a medical cannabis pharmacy agent or pharmacy
1189
medical provider can access deposited medical cannabis.
1190
(c) A medical cannabis pharmacy shall dispose of any deposited medical cannabis by:
1191
(i) rendering the deposited medical cannabis unusable and unrecognizable before
1192
transporting deposited medical cannabis from the medical cannabis pharmacy; and
1193
(ii) disposing of the deposited medical cannabis in accordance with:
1194
(A) federal and state law, rules, and regulations related to hazardous waste;
1195
(B) the Resource Conservation and Recovery Act, 42 U.S.C. Sec. 6991 et seq.;
1196
(C) Title 19, Chapter 6, Part 5, Solid Waste Management Act; and
1197
(D) other regulations that the department makes in accordance with Title 63G,
1198
Chapter 3, Utah Administrative Rulemaking Act.
1199
(12) A medical cannabis pharmacy:
1200
(a) shall employ a pharmacist who is licensed under Title 58, Chapter 17b, Pharmacy
1201
Practice Act, as a pharmacy medical provider;
1202
(b) may employ a physician who has the authority to write a prescription and is licensed
1203
under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah
1204
Osteopathic Medical Practice Act, as a pharmacy medical provider;
1205
(c) shall ensure that a pharmacy medical provider described in Subsection (12)(a) works
1206
onsite during all business hours;
1207
(d) shall designate one pharmacy medical provider described in Subsection (12)(a) as the
1208
pharmacist-in-charge to oversee the operation of and generally supervise the medical
1209
cannabis pharmacy;[ and]
1210
(e) shall allow the pharmacist-in-charge to determine which [cannabis and cannabis
1211
products] medical cannabis products the medical cannabis pharmacy maintains in the
1212
medical cannabis pharmacy's inventory[.] ; and
1213
(f) for each medical cannabis product sold by the medical cannabis pharmacy, shall:
1214
(i) allow a medical cannabis cardholder located in the pharmacy to view the back
1215
panel of the product when requested; and
1216
(ii) beginning July 1, 2025, include a picture of the back panel of the product on the
1217
medical cannabis pharmacy's website.
1218
(13) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah
- 36 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1219
Administrative Rulemaking Act, protocols for a recall of cannabis and cannabis products
1220
by a medical cannabis pharmacy.
1221
Section 18. Section 4-41a-1201 is amended to read:
1222
4-41a-1201 . Medical cannabis home delivery designation.
1223
(1) The department may designate a medical cannabis pharmacy as a home delivery
1224
medical cannabis pharmacy if the department determines that the medical cannabis
1225
pharmacy's operating plan demonstrates the functional and technical ability to:
1226
(a) safely conduct transactions for medical cannabis shipments;
1227
(b) accept electronic medical cannabis orders[ that the state central patient portal
1228
facilitates]; and
1229
(c) accept payments through:
1230
(i) a payment provider that the Division of Finance approves, in consultation with the
1231
state treasurer, in accordance with Section 26-61a-603; or
1232
(ii) a financial institution in accordance with Subsection 26-61a-603(4).
1233
(2) An applicant seeking a designation as a home delivery medical cannabis pharmacy shall
1234
identify in the applicant's operating plan any information relevant to the department's
1235
evaluation described in Subsection (1), including:
1236
(a) the name and contact information of the payment provider;
1237
(b) the nature of the relationship between the prospective licensee and the payment
1238
provider;
1239
(c) the processes of the following to safely and reliably conduct transactions for medical
1240
cannabis shipments:
1241
(i) the prospective licensee; and
1242
(ii) the electronic payment provider or the financial institution described in
1243
Subsection (1)(c); and
1244
(d) the ability of the licensee to comply with the department's rules regarding the secure
1245
transportation and delivery of medical cannabis [or medical cannabis product ]to a
1246
medical cannabis cardholder.
1247
(3) Notwithstanding any county or municipal ordinance, a medical cannabis pharmacy that
1248
the department designates as a home delivery medical cannabis pharmacy may deliver
1249
medical cannabis shipments in accordance with this part.
1250
Section 19. Section 4-41a-1202 is amended to read:
1251
4-41a-1202 . Home delivery of medical cannabis shipments -- Medical cannabis
1252
couriers -- License.
- 37 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1253
(1) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
1254
Administrative Rulemaking Act, to ensure the safety, security, and efficiency of a home
1255
delivery medical cannabis pharmacy's fulfillment of electronic medical cannabis orders[
1256
that the state central patient portal facilitates], including rules regarding the safe and
1257
controlled delivery of medical cannabis shipments.
1258
(2) A person may not operate as a medical cannabis courier without a license that the
1259
department issues under this section.
1260
(3)(a) Subject to Subsections (5) and (6), the department shall issue a license to operate
1261
as a medical cannabis courier to an applicant who is eligible for a license under this
1262
section.
1263
(b) An applicant is eligible for a license under this section if the applicant submits to the
1264
department:
1265
(i) the name and address of an individual who:
1266
(A) has a financial or voting interest of 10% or greater in the proposed medical
1267
cannabis courier; or
1268
(B) has the power to direct or cause the management or control of a proposed
1269
cannabis production establishment;
1270
(ii) an operating plan that includes operating procedures to comply with the operating
1271
requirements for a medical cannabis courier described in this chapter; and
1272
(iii) an application fee in an amount that, subject to Subsection 4-41a-104(5), the
1273
department sets in accordance with Section 63J-1-504.
1274
(4) If the department determines that an applicant is eligible for a license under this section,
1275
the department shall:
1276
(a) charge the applicant an initial license fee in an amount that, subject to Subsection
1277
4-41a-104(5), the department sets in accordance with Section 63J-1-504; and
1278
(b) notify the Department of Public Safety of the license approval and the names of each
1279
individual described in Subsection (3)(b)(i).
1280
(5) The department may not issue a license to operate as a medical cannabis courier to an
1281
applicant if an individual described in Subsection (3)(b)(i):
1282
(a) has been convicted under state or federal law of:
1283
(i) a felony in the preceding 10 years; or
1284
(ii) after September 23, 2019, a misdemeanor for drug distribution; or
1285
(b) is younger than 21 years old.
1286
(6) The department may revoke a license under this part if:
- 38 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1287
(a) the medical cannabis courier does not begin operations within one year after the day
1288
on which the department issues the initial license;
1289
(b) the medical cannabis courier makes the same violation of this chapter three times;
1290
(c) an individual described in Subsection (3)(b)(i) is convicted, while the license is
1291
active, under state or federal law of:
1292
(i) a felony; or
1293
(ii) after September 23, 2019, a misdemeanor for drug distribution; or
1294
(d) after a change of ownership described in Subsection (14)(c), the department
1295
determines that the medical cannabis courier no longer meets the minimum standards
1296
for licensure and operation of the medical cannabis courier described in this chapter.
1297
(7) The department shall deposit the proceeds of a fee imposed by this section in the
1298
Qualified Production Enterprise Fund.
1299
(8) The department's authority to issue a license under this section is plenary and is not
1300
subject to review.
1301
(9) Each applicant for a license as a medical cannabis courier shall submit, at the time of
1302
application, from each individual who has a financial or voting interest of 10% or
1303
greater in the applicant or who has the power to direct or cause the management or
1304
control of the applicant:
1305
(a) a fingerprint card in a form acceptable to the Department of Public Safety;
1306
(b) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
1307
registration of the individual's fingerprints in the Federal Bureau of Investigation
1308
Next Generation Identification System's Rap Back Service; and
1309
(c) consent to a fingerprint background check by:
1310
(i) the Bureau of Criminal Identification; and
1311
(ii) the Federal Bureau of Investigation.
1312
(10) The Bureau of Criminal Identification shall:
1313
(a) check the fingerprints the applicant submits under Subsection (9) against the
1314
applicable state, regional, and national criminal records databases, including the
1315
Federal Bureau of Investigation Next Generation Identification System;
1316
(b) report the results of the background check to the department;
1317
(c) maintain a separate file of fingerprints that applicants submit under Subsection (9)
1318
for search by future submissions to the local and regional criminal records databases,
1319
including latent prints;
1320
(d) request that the fingerprints be retained in the Federal Bureau of Investigation Next
- 39 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1321
Generation Identification System's Rap Back Service for search by future
1322
submissions to national criminal records databases, including the Next Generation
1323
Identification System and latent prints; and
1324
(e) establish a privacy risk mitigation strategy to ensure that the department only
1325
receives notifications for an individual with whom the department maintains an
1326
authorizing relationship.
1327
(11) The department shall:
1328
(a) assess an individual who submits fingerprints under Subsection (9) a fee in an
1329
amount that the department sets in accordance with Section 63J-1-504 for the
1330
services that the Bureau of Criminal Identification or another authorized agency
1331
provides under this section; and
1332
(b) remit the fee described in Subsection (11)(a) to the Bureau of Criminal Identification.
1333
(12) The department shall renew a license under this section every year if, at the time of
1334
renewal:
1335
(a) the licensee meets the requirements of this section; and
1336
(b) the licensee pays the department a license renewal fee in an amount that, subject to
1337
Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504.
1338
(13) A person applying for a medical cannabis courier license shall submit to the
1339
department a proposed operating plan that complies with this section and that includes:
1340
(a) a description of the physical characteristics of any proposed facilities, including a
1341
floor plan and an architectural elevation, and delivery vehicles;
1342
(b) a description of the credentials and experience of each officer, director, or owner of
1343
the proposed medical cannabis courier;
1344
(c) the medical cannabis courier's employee training standards;
1345
(d) a security plan; and
1346
(e) storage and delivery protocols, both short and long term, to ensure that medical
1347
cannabis shipments are stored and delivered in a manner that is sanitary and
1348
preserves the integrity of the cannabis.
1349
(14)(a) A medical cannabis courier license is not transferable or assignable.
1350
(b) A medical cannabis courier shall report in writing to the department no later than 10
1351
business days before the date of any change of ownership of the medical cannabis
1352
courier.
1353
(c) If the ownership of a medical cannabis courier changes by 50% or more:
1354
(i) concurrent with the report described in Subsection (14)(b), the medical cannabis
- 40 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1355
courier shall submit a new application described in Subsection (3)(b);
1356
(ii) within 30 days of the submission of the application, the department shall:
1357
(A) conduct an application review; and
1358
(B) award a license to the medical cannabis courier for the remainder of the term
1359
of the medical cannabis courier's license before the ownership change if the
1360
medical cannabis courier meets the minimum standards for licensure and
1361
operation of the medical cannabis courier described in this chapter; and
1362
(iii) if the department approves the license application, notwithstanding Subsection
1363
(4), the medical cannabis courier shall pay a license fee that the department sets in
1364
accordance with Section 63J-1-504 in an amount that covers the board's cost of
1365
conducting the application review.
1366
(15)(a) Except as provided in Subsection(15)(b), a person may not advertise regarding
1367
the transportation of medical cannabis.
1368
(b) Notwithstanding Subsection (14)(a) and subject to Section 4-41a-109, a licensed
1369
home delivery medical cannabis pharmacy or a licensed medical cannabis courier
1370
may advertise:
1371
(i) a green cross;
1372
(ii) the pharmacy's or courier's name and logo; and
1373
(iii) that the pharmacy or courier is licensed to transport medical cannabis shipments.
1374
Section 20. Section 4-41a-1203 is amended to read:
1375
4-41a-1203 . Medical cannabis shipment transportation.
1376
(1) The department shall ensure that each home delivery medical cannabis pharmacy is
1377
capable of delivering, directly or through a medical cannabis courier, medical cannabis
1378
shipments in a secure manner.
1379
(2)(a) A home delivery medical cannabis pharmacy may contract with a licensed
1380
medical cannabis courier to deliver medical cannabis shipments to fulfill electronic
1381
medical cannabis orders[ that the state central patient portal facilitates].
1382
(b) If a home delivery medical cannabis pharmacy enters into a contract described in
1383
Subsection (2)(a), the pharmacy shall:
1384
(i) impose security and personnel requirements on the medical cannabis courier
1385
sufficient to ensure the security and safety of medical cannabis shipments; and
1386
(ii) provide regular oversight of the medical cannabis courier.
1387
(3) Notwithstanding Subsection 4-41a-404(1), an individual may transport a medical
1388
cannabis shipment if the individual is:
- 41 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1389
(a) a registered pharmacy medical provider;
1390
(b) a registered medical cannabis pharmacy agent; or
1391
(c) a registered agent of the medical cannabis courier described in Subsection (2).
1392
(4) An individual transporting a medical cannabis shipment under Subsection (3) shall
1393
comply with the requirements of Subsection 4-41a-404(3).
1394
(5) In addition to the requirements in Subsections (3) and (4), the department may establish
1395
by rule, in collaboration with the Division of Professional Licensing and the Board of
1396
Pharmacy and in accordance with Title 63G, Chapter 3, Utah Administrative
1397
Rulemaking Act, requirements for transporting medical cannabis shipments that are
1398
related to safety for human consumption of [cannabis or a cannabis product] medical
1399
cannabis.
1400
(6)(a) It is unlawful for an individual to transport a medical cannabis shipment with a
1401
manifest that does not meet the requirements of Subsection (4).
1402
(b) Except as provided in Subsection (6)(d), an individual who violates Subsection (6)(a)
1403
is:
1404
(i) guilty of an infraction; and
1405
(ii) subject to a $100 fine.
1406
(c) An individual who is guilty of a violation described in Subsection (6)(b) is not guilty
1407
of a violation of Title 58, Chapter 37, Utah Controlled Substances Act, for the
1408
conduct underlying the violation described in Subsection (6)(b).
1409
(d) If the individual described in Subsection (6)(a) is transporting more cannabis,
1410
cannabis product, or medical cannabis devices than the manifest identifies, except for
1411
a de minimis administrative error:
1412
(i) this chapter does not apply; and
1413
(ii) the individual is subject to penalties under Title 58, Chapter 37, Utah Controlled
1414
Substances Act.
1415
Section 21. Section 4-41a-1206 is amended to read:
1416
4-41a-1206 . Closed-door medical cannabis pharmacy.
1417
(1)(a) Subject to Subsections (1)(b) and (c), a home delivery medical cannabis pharmacy
1418
may open a single closed-door medical cannabis pharmacy.
1419
(b) A home delivery medical cannabis pharmacy may not open a closed-door medical
1420
cannabis pharmacy unless the home delivery medical cannabis pharmacy:
1421
(i) has an operating plan that includes a closed-door medical cannabis pharmacy; and
1422
(ii) obtains a license issued by the department for a closed-door medical cannabis
- 42 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1423
pharmacy.
1424
(c) An entity that owns multiple home delivery medical cannabis pharmacies may open
1425
only one closed-door medical cannabis pharmacy.
1426
(d) The department may institute a fee in accordance with Section 63J-1-504 to
1427
administer this section.
1428
(2) A home delivery medical cannabis pharmacy that opens a closed-door medical cannabis
1429
pharmacy under Subsection (1) shall ensure:
1430
(a) that a pharmacy medical provider who is a licensed pharmacist:
1431
(i) is directly supervising the packaging of an order; and
1432
(ii) is present in the closed-door medical cannabis pharmacy when an order is
1433
packaged for delivery; and
1434
(b) all record keeping requirements, labeling requirements, and patient counseling
1435
requirements described in this chapter and Title 26B, Chapter 4, Part 2, Cannabinoid
1436
Research and Medical Cannabis, are satisfied before sending out an order.
1437
(3) An individual who prepares an order at a closed-door medical cannabis pharmacy under
1438
this section shall be registered as:
1439
(a) a pharmacy medical provider; or
1440
(b) a medical cannabis pharmacy agent.
1441
(4)(a) A closed-door medical cannabis pharmacy shall operate:
1442
(i) except as provided in Subsection (4)(b), in a facility that is accessible only by an
1443
individual who is a pharmacy medical provider or a medical cannabis pharmacy
1444
agent; and
1445
(ii) at a physical address in accordance with Subsection (6).
1446
(b) A closed-door medical cannabis pharmacy may authorize an individual who is at
1447
least 18 years old and is not a pharmacy medical provider or a cannabis pharmacy
1448
agent to access the closed-door medical cannabis pharmacy if the closed-door
1449
medical cannabis pharmacy:
1450
(i) tracks and monitors the individual at all times while the individual is at the
1451
closed-door medical cannabis pharmacy; and
1452
(ii) maintains a record of the individual's access, including arrival and departure.
1453
(c) A closed-door medical cannabis pharmacy shall operate in a facility that has:
1454
(i) a single, secure public entrance; and
1455
(ii) a security system with a backup power source that:
1456
(A) detects and records entry into the closed-door medical cannabis pharmacy;
- 43 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1457
(B) provides notice of an unauthorized entry to law enforcement when the
1458
closed-door medical cannabis pharmacy is closed; and
1459
(C) a lock or equivalent restrictive security feature on any area where the
1460
closed-door medical cannabis pharmacy stores a cannabis product.
1461
(d) A closed-door medical cannabis pharmacy shall ensure that any cannabis or cannabis
1462
products in the closed-door medical cannabis pharmacy that are intended for home
1463
delivery are separated in a manner that is readily distinguishable from any other
1464
cannabis or cannabis product in the facility.
1465
(5) A closed-door medical cannabis pharmacy may only provide cannabis or a cannabis
1466
product to an individual through a delivery that complies with this part.
1467
(6)(a) A person may not locate a closed-door medical cannabis pharmacy:
1468
(i) within 1,000 feet of a community location; or
1469
(ii) in or within 600 feet of a district that the relevant municipality or county has
1470
zoned as primarily residential.
1471
(b) The proximity requirements described in Subsection (6)(a) shall be measured from
1472
the nearest entrance to the closed-door medical cannabis pharmacy by following the
1473
shortest route of ordinary pedestrian travel to the property boundary of the
1474
community location or residential area.
1475
(c) The licensing board may grant a waiver to reduce the proximity requirements in
1476
Subsection (6)(a) by up to 20% if the licensing board determines that it is not
1477
reasonably feasible for the applicant to site the proposed closed-door medical
1478
cannabis pharmacy without the waiver.
1479
(d) An applicant for a license under this section shall provide evidence of compliance
1480
with the proximity requirements described in Subsection (6)(a).
1481
(7) When determining where a closed-door medical cannabis pharmacy may open, the
1482
licensing board:
1483
(a) shall utilize geographic regions created by the department through rule;
1484
(b) shall prioritize allowing entities that do not have a medical cannabis pharmacy in a
1485
region to open a closed-door medical cannabis pharmacy in the region;
1486
(c) of the total amount of closed-door medical cannabis pharmacies, may allow only
1487
three closed-door medical cannabis pharmacies to operate in counties of the first and
1488
second class as described in Section 17-50-501; and
1489
(d) for determining the three closed-door medical cannabis pharmacies described in
1490
Subsection (7)(c), consider the following:
- 44 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1491
(i) the history of compliance with state law and rules for all licenses issued under this
1492
chapter;
1493
(ii) the medical cannabis pharmacy's willingness to offer a variety of brands and
1494
products;
1495
(iii) the ability of the operating plan to ensure the safety and security of the
1496
community;
1497
(iv) the suitability of the proposed location and the location's ability to serve the local
1498
community; and
1499
(v) any other relevant information determined through rule.
1500
(8) A closed-door medical cannabis pharmacy may not account for more than:
1501
(a) for an entity that holds a single medical cannabis pharmacy license, the greater of:
1502
(i) 35% of the medical cannabis pharmacy's total revenue; or
1503
(ii) $2,000,000 in total revenue; or
1504
(b) for an entity that holds more than one medical cannabis pharmacy license, the greater
1505
of:
1506
(i) 35% of the total revenue of the entity's medical cannabis pharmacy that generates
1507
the most revenue; or
1508
(ii) $2,000,000 in total revenue.
1509
(9) Notwithstanding any other provision of this section, the [department] licensing board
1510
may issue only [three] one closed-door medical cannabis pharmacy [licenses] license
1511
before July 1, 2027.
1512
(10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1513
department shall make rules to implement this section.
1514
Section 22. Section 26B-1-435 is amended to read:
1515
26B-1-435 . Medical Cannabis Policy Advisory Board creation -- Membership --
1516
Duties.
1517
(1) There is created within the department the Medical Cannabis Policy Advisory Board.
1518
(2)(a) The advisory board shall consist of the following members:
1519
(i) appointed by the executive director:
1520
(A) a qualified medical provider who has recommended medical cannabis to at
1521
least 100 patients before being appointed;
1522
[(B) a medical research professional;]
1523
[(C)] (B) a mental health specialist;
1524
[(D)] (C) an individual who represents an organization that advocates for medical
- 45 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1525
cannabis patients;
1526
[(E)] (D) [an individual] a member of the general public who holds a medical
1527
cannabis patient card; and
1528
[(F)] (E) a member of the general public who does not hold a medical cannabis
1529
card;[ and]
1530
(ii) appointed by the commissioner of the Department of Agriculture and Food:
1531
(A) an individual who owns or operates a licensed cannabis cultivation facility, as
1532
defined in Section 4-41a-102;
1533
(B) an individual who owns or operates a licensed medical cannabis pharmacy;
1534
and
1535
(C) a law enforcement officer[.] ; and
1536
(iii) a representative from the Center for Medical Cannabis Research created in
1537
Section 53B-14-1402, appointed by the Center for Medical Cannabis Research.
1538
(b) The commissioner of the Department of Agriculture and Food shall ensure that at
1539
least one individual appointed under Subsection (2)(a)(ii)(A) or (B) also owns or
1540
operates a licensed cannabis processing facility.
1541
(3)(a) Subject to Subsection (3)(b), a member of the advisory board shall serve for a four
1542
year term.
1543
(b) When appointing the initial membership of the advisory board, the executive director
1544
and the commissioner of the Department of Agriculture and Food shall coordinate to
1545
appoint four advisory board members to serve a term of two years to ensure that
1546
approximately half of the board is appointed every two years.
1547
(4)(a) If an advisory board member is no longer able to serve as a member, a new
1548
member shall be appointed in the same manner as the original appointment.
1549
(b) A member appointed in accordance with Subsection (4)(a) shall serve for the
1550
remainder of the unexpired term of the original appointment.
1551
(5)(a) A majority of the advisory board members constitutes a quorum.
1552
(b) The action of a majority of a quorum constitutes an action of the advisory board.
1553
(c) For a term lasting one year, the advisory board shall annually designate members of
1554
the advisory board to serve as chair and vice-chair.
1555
(d) When designating the chair and vice-chair, the advisory board shall ensure that at
1556
least one individual described Subsection (2)(a)(i) is appointed as chair or vice-chair.
1557
(6) An advisory board member may not receive compensation or benefits for the member's
1558
service on the advisory board but may receive per diem and reimbursement for travel
- 46 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1559
expenses incurred as an advisory board member in accordance with:
1560
(a) Sections 63A-3-106 and 63A-3-107; and
1561
(b) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1562
63A-3-107.
1563
(7) The department shall:
1564
(a) provide staff support for the advisory board; and
1565
(b) assist the advisory board in conducting meetings.
1566
(8) The advisory board may recommend:
1567
(a) to the department or the Department of Agriculture and Food changes to current or
1568
proposed medical cannabis rules or statutes; and
1569
(b) to the appropriate legislative committee whether the advisory board supports a
1570
change to medical cannabis statutes.
1571
(9) The advisory board shall:
1572
(a) review any draft rule that is authorized under [this chapter] Chapter 4, Part 2,
1573
Cannabinoid Research and Medical Cannabis, or Title 4, Chapter 41a, Cannabis
1574
Production Establishments and Pharmacies;
1575
(b) consult with the Department of Agriculture and Food regarding the issuance of an
1576
additional:
1577
(i) cultivation facility license under Section 4-41a-205; or
1578
(ii) pharmacy license under Section 4-41a-1005;
1579
(c) consult with the department regarding cannabis patient education;
1580
(d) consult regarding the reasonableness of any fees set by the department or the
1581
Department of Agriculture and Food that pertain to the medical cannabis program;
1582
and
1583
(e) consult regarding any issue pertaining to medical cannabis when asked by the
1584
department or the Utah Department of Agriculture and Food.
1585
Section 23. Section 26B-4-201 is amended to read:
1586
26B-4-201 . Definitions.
1587
As used in this part:
1588
(1) "Active tetrahydrocannabinol" means THC, any THC analog, and
1589
tetrahydrocannabinolic acid.
1590
(2) "Administration of criminal justice" means the performance of detection, apprehension,
1591
detention, pretrial release, post-trial release, prosecution, and adjudication.
1592
(3) "Advertise" means information provided by a person in any medium:
- 47 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1593
(a) to the public; and
1594
(b) that is not age restricted to an individual who is at least 21 years old.
1595
(4) "Advisory board" means the Medical Cannabis Policy Advisory Board created in
1596
Section 26B-1-435.
1597
(5) "Cannabis Research Review Board" means the Cannabis Research Review Board
1598
created in Section 26B-1-420.
1599
(6) "Cannabis" means marijuana.
1600
(7) "Cannabis processing facility" means the same as that term is defined in Section
1601
4-41a-102.
1602
(8) "Cannabis product" means a product that:
1603
(a) is intended for human use; and
1604
(b) contains cannabis or any tetrahydrocannabinol or THC analog in a total
1605
concentration of 0.3% or greater on a dry weight basis.
1606
(9) "Cannabis production establishment" means the same as that term is defined in Section
1607
4-41a-102.
1608
(10) "Cannabis production establishment agent" means the same as that term is defined in
1609
Section 4-41a-102.
1610
(11) "Cannabis production establishment agent registration card" means the same as that
1611
term is defined in Section 4-41a-102.
1612
(12) "Conditional medical cannabis card" means an electronic medical cannabis card that
1613
the department issues in accordance with Subsection 26B-4-213(1)(b) to allow an
1614
applicant for a medical cannabis card to access medical cannabis during the department's
1615
review of the application.
1616
(13) "Controlled substance database" means the controlled substance database created in
1617
Section 58-37f-201.
1618
(14) "Delivery address" means the same as that term is defined in Section 4-41a-102.
1619
(15) "Department" means the Department of Health and Human Services.
1620
(16) "Designated caregiver" means:
1621
(a) an individual:
1622
(i) whom an individual with a medical cannabis patient card or a medical cannabis
1623
guardian card designates as the patient's caregiver; and
1624
(ii) who registers with the department under Section 26B-4-214; or
1625
(b)(i) a facility that an individual designates as a designated caregiver in accordance
1626
with Subsection 26B-4-214(1)(b); or
- 48 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1627
(ii) an assigned employee of the facility described in Subsection 26B-4-214(1)(b)(ii).
1628
(17) "Directions of use" means recommended routes of administration for a medical
1629
cannabis treatment and suggested usage guidelines.
1630
(18) "Dosing guidelines" means a quantity range and frequency of administration for a
1631
recommended treatment of medical cannabis.
1632
(19) "Government issued photo identification" means any of the following forms of
1633
identification:
1634
(a) a valid state-issued driver license or identification card;
1635
(b) a valid United States federal-issued photo identification, including:
1636
(i) a United States passport;
1637
(ii) a United States passport card;
1638
(iii) a United States military identification card; or
1639
(iv) a permanent resident card or alien registration receipt card; or
1640
(c) a foreign passport.
1641
(20) "Home delivery medical cannabis pharmacy" means a medical cannabis pharmacy that
1642
the department authorizes, as part of the pharmacy's license, to deliver medical cannabis
1643
shipments to a delivery address to fulfill electronic orders[ that the state central patient
1644
portal facilitates].
1645
(21) "Inventory control system" means the system described in Section 4-41a-103.
1646
(22) "Legal dosage limit" means an amount that:
1647
(a) is sufficient to provide 30 days of treatment based on the dosing guidelines that the
1648
relevant recommending medical provider or [the state central patient portal or ]
1649
pharmacy medical provider, in accordance with Subsection 26B-4-230(5),
1650
recommends; and
1651
(b) may not exceed:
1652
(i) for unprocessed cannabis in a medicinal dosage form, 113 grams by weight; and
1653
(ii) for a cannabis product in a medicinal dosage form, a quantity that contains, in
1654
total, greater than 20 grams of active tetrahydrocannabinol.
1655
(23) "Legal use termination date" means a date on the label of a container of unprocessed
1656
cannabis flower:
1657
(a) that is 60 days after the date of purchase of the cannabis; and
1658
(b) after which, the cannabis is no longer in a medicinal dosage form outside of the
1659
primary residence of the relevant medical cannabis patient cardholder.
1660
(24) "Limited medical provider" means an individual who:
- 49 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1661
(a) meets the recommending qualifications; and
1662
(b) has no more than 15 patients with a valid medical cannabis patient card as a result of
1663
the individual's recommendation, in accordance with Subsection 26B-4-204(1)(b).
1664
(25) "Marijuana" means the same as that term is defined in Section 58-37-2.
1665
(26) "Medical cannabis" or "medical cannabis product" means cannabis in a medicinal
1666
dosage form or a cannabis product in a medicinal dosage form.
1667
(27) "Medical cannabis card" means a medical cannabis patient card, a medical cannabis
1668
guardian card, a medical cannabis caregiver card, or a conditional medical cannabis card.
1669
(28) "Medical cannabis cardholder" means:
1670
(a) a holder of a medical cannabis card; or
1671
(b) a facility or assigned employee, described in Subsection (16)(b), only:
1672
(i) within the scope of the facility's or assigned employee's performance of the role of
1673
a medical cannabis patient cardholder's caregiver designation under Subsection
1674
26B-4-214(1)(b); and
1675
(ii) while in possession of documentation that establishes:
1676
(A) a caregiver designation described in Subsection 26B-4-214(1)(b);
1677
(B) the identity of the individual presenting the documentation; and
1678
(C) the relation of the individual presenting the documentation to the caregiver
1679
designation.
1680
(29) "Medical cannabis caregiver card" means an electronic document that a cardholder
1681
may print or store on an electronic device or a physical card or document that:
1682
(a) the department issues to an individual whom a medical cannabis patient cardholder
1683
or a medical cannabis guardian cardholder designates as a designated caregiver; and
1684
(b) is connected to the electronic verification system.
1685
(30) "Medical cannabis courier" means the same as that term is defined in Section
1686
4-41a-102.
1687
(31)(a) "Medical cannabis device" means a device that an individual uses to ingest or
1688
inhale [cannabis in a medicinal dosage form or a cannabis product in a medicinal
1689
dosage form] medical cannabis.
1690
(b) "Medical cannabis device" does not include a device that:
1691
(i) facilitates cannabis combustion; or
1692
(ii) an individual uses to ingest substances other than cannabis.
1693
(32) "Medical cannabis guardian card" means an electronic document that a cardholder may
1694
print or store on an electronic device or a physical card or document that:
- 50 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1695
(a) the department issues to the parent or legal guardian of a minor with a qualifying
1696
condition; and
1697
(b) is connected to the electronic verification system.
1698
(33) "Medical cannabis patient card" means an electronic document that a cardholder may
1699
print or store on an electronic device or a physical card or document that:
1700
(a) the department issues to an individual with a qualifying condition; and
1701
(b) is connected to the electronic verification system.
1702
(34) "Medical cannabis pharmacy" means a person that:
1703
(a)(i) acquires or intends to acquire medical cannabis [or a cannabis product in a
1704
medicinal dosage form ]from a cannabis processing facility or another medical
1705
cannabis pharmacy or a medical cannabis device; or
1706
(ii) possesses medical cannabis or a medical cannabis device; and
1707
(b) sells or intends to sell medical cannabis or a medical cannabis device to a medical
1708
cannabis cardholder.
1709
(35) "Medical cannabis pharmacy agent" means an individual who holds a valid medical
1710
cannabis pharmacy agent registration card issued by the department.
1711
(36) "Medical cannabis pharmacy agent registration card" means a registration card issued
1712
by the department that authorizes an individual to act as a medical cannabis pharmacy
1713
agent.
1714
(37) "Medical cannabis shipment" means the same as that term is defined in Section
1715
4-41a-102.
1716
(38) "Medical cannabis treatment" means [cannabis in a medicinal dosage form, a cannabis
1717
product in a medicinal dosage form, or] medical cannabis or a medical cannabis device.
1718
(39)(a) "Medicinal dosage form" means:
1719
(i) for processed medical cannabis, the following with a specific and consistent
1720
cannabinoid content:
1721
(A) a tablet;
1722
(B) a capsule;
1723
(C) a concentrated liquid or viscous oil;
1724
(D) a liquid suspension that does not exceed 30 milliliters;
1725
(E) a topical preparation;
1726
(F) a transdermal preparation;
1727
(G) a sublingual preparation;
1728
(H) a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or
- 51 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1729
rectangular cuboid shape;
1730
(I) a resin or wax;
1731
(J) an aerosol;
1732
(K) a suppository preparation; or
1733
(L) a soft or hard confection that is a uniform rectangular cuboid or uniform
1734
spherical shape, is homogeneous in color and texture, and each piece is a single
1735
serving; or
1736
(ii) for unprocessed cannabis flower, a container described in Section 4-41a-602 that:
1737
(A) contains cannabis flower in a quantity that varies by no more than 10% from
1738
the stated weight at the time of packaging;
1739
(B) at any time the medical cannabis cardholder transports or possesses the
1740
container in public, is contained within an opaque bag or box that the medical
1741
cannabis pharmacy provides; and
1742
(C) is labeled with the container's content and weight, the date of purchase, the
1743
legal use termination date, and a barcode that provides information connected
1744
to an inventory control system.
1745
(b) "Medicinal dosage form" includes a portion of unprocessed cannabis flower that:
1746
(i) the medical cannabis cardholder has recently removed from the container
1747
described in Subsection (39)(a)(ii) for use; and
1748
(ii) does not exceed the quantity described in Subsection (39)(a)(ii).
1749
(c) "Medicinal dosage form" does not include:
1750
(i) any unprocessed cannabis flower outside of the container described in Subsection
1751
(39)(a)(ii), except as provided in Subsection (39)(b);
1752
(ii) any unprocessed cannabis flower in a container described in Subsection
1753
(39)(a)(ii) after the legal use termination date;
1754
(iii) a process of vaporizing and inhaling concentrated cannabis by placing the
1755
cannabis on a nail or other metal object that is heated by a flame, including a
1756
blowtorch;
1757
(iv) a liquid suspension that is branded as a beverage;
1758
(v) a substance described in Subsection (39)(a)(i) or (ii) if the substance is not
1759
measured in grams, milligrams, or milliliters; or
1760
(vi) a substance that contains or is covered to any degree with chocolate.
1761
(40) "Nonresident patient" means an individual who:
1762
(a) is not a resident of Utah or has been a resident of Utah for less than 45 days;
- 52 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1763
(b) has a currently valid medical cannabis card or the equivalent of a medical cannabis
1764
card under the laws of another state, district, territory, commonwealth, or insular
1765
possession of the United States; and
1766
(c) has been diagnosed with a qualifying condition as described in Section 26B-4-203.
1767
(41) "Pharmacy medical provider" means the medical provider required to be on site at a
1768
medical cannabis pharmacy under Section 26B-4-219.
1769
(42) "Provisional patient card" means a card that:
1770
(a) the department issues to a minor with a qualifying condition for whom:
1771
(i) a recommending medical provider has recommended a medical cannabis
1772
treatment; and
1773
(ii) the department issues a medical cannabis guardian card to the minor's parent or
1774
legal guardian; and
1775
(b) is connected to the electronic verification system.
1776
(43) "Qualified medical provider" means an individual:
1777
(a) who meets the recommending qualifications; and
1778
(b) whom the department registers to recommend treatment with cannabis in a medicinal
1779
dosage form under Section 26B-4-204.
1780
(44) "Qualified Patient Enterprise Fund" means the enterprise fund created in Section
1781
26B-1-310.
1782
(45) "Qualifying condition" means a condition described in Section 26B-4-203.
1783
(46) "Recommend" or "recommendation" means, for a recommending medical provider, the
1784
act of suggesting the use of medical cannabis treatment, which:
1785
(a) certifies the patient's eligibility for a medical cannabis card; and
1786
(b) may include, at the recommending medical provider's discretion, directions of use,
1787
with or without dosing guidelines.
1788
(47) "Recommending medical provider" means a qualified medical provider or a limited
1789
medical provider.
1790
(48) "Recommending qualifications" means that an individual:
1791
(a)(i) has the authority to write a prescription;
1792
(ii) is licensed to prescribe a controlled substance under Title 58, Chapter 37, Utah
1793
Controlled Substances Act; and
1794
(iii) possesses the authority, in accordance with the individual's scope of practice, to
1795
prescribe a Schedule II controlled substance; and
1796
(b) is licensed as:
- 53 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1797
(i) a podiatrist under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
1798
(ii) an advanced practice registered nurse under Title 58, Chapter 31b, Nurse Practice
1799
Act;
1800
(iii) a physician under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58,
1801
Chapter 68, Utah Osteopathic Medical Practice Act; or
1802
(iv) a physician assistant under Title 58, Chapter 70a, Utah Physician Assistant Act.
1803
[(49) "State central patient portal" means the website the department creates, in accordance
1804
with Section 26B-4-236, to facilitate patient safety, education, and an electronic medical
1805
cannabis order.]
1806
[(50)] (49) "State electronic verification system" means the system described in Section
1807
26B-4-202.
1808
[(51)] (50) "Targeted marketing" means the promotion by a qualified medical provider,
1809
medical clinic, or medical office that employs a qualified medical provider of a medical
1810
cannabis recommendation service using any of the following methods:
1811
(a) electronic communication to an individual who is at least 21 years old and has
1812
requested to receive promotional information;
1813
(b) an in-person marketing event that is held in an area where only an individual who is
1814
at least 21 years old may access the event;
1815
(c) other marketing material that is physically or digitally displayed in the office of the
1816
medical clinic or office that employs a qualified medical provider; or
1817
(d) a leaflet that a qualified medical provider, medical clinic, or medical office that
1818
employs a qualified medical provider shares with an individual who is at least 21
1819
years old.
1820
[(52)] (51) "Tetrahydrocannabinol" or "THC" means a substance derived from cannabis or a
1821
synthetic equivalent as described in Subsection 58-37-4(2)(a)(iii)(AA).
1822
[(53)] (52) "THC analog" means the same as that term is defined in Section 4-41-102.
1823
Section 24. Section 26B-4-202 is amended to read:
1824
26B-4-202 . Electronic verification system.
1825
(1) The Department of Agriculture and Food, the department, the Department of Public
1826
Safety, and the Division of Technology Services shall:
1827
(a) enter into a memorandum of understanding in order to determine the function and
1828
operation of the state electronic verification system in accordance with Subsection
1829
(2);
1830
(b) coordinate with the Division of Purchasing, under Title 63G, Chapter 6a, Utah
- 54 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1831
Procurement Code, to develop a request for proposals for a third-party provider to
1832
develop and maintain the state electronic verification system in coordination with the
1833
Division of Technology Services; and
1834
(c) select a third-party provider who:
1835
(i) meets the requirements contained in the request for proposals issued under
1836
Subsection (1)(b); and
1837
(ii) may not have any commercial or ownership interest in a cannabis production
1838
establishment or a medical cannabis pharmacy.
1839
(2) The Department of Agriculture and Food, the department, the Department of Public
1840
Safety, and the Division of Technology Services shall ensure that the state electronic
1841
verification system described in Subsection (1):
1842
(a) allows an individual to apply for a medical cannabis patient card or, if applicable, a
1843
medical cannabis guardian card, provided that the card may not become active until:
1844
(i) the relevant qualified medical provider completes the associated medical cannabis
1845
recommendation; or
1846
(ii) for a medical cannabis card related to a limited medical provider's
1847
recommendation, the medical cannabis pharmacy completes the recording
1848
described in Subsection (2)(d);
1849
(b) allows an individual to apply to renew a medical cannabis patient card or a medical
1850
cannabis guardian card in accordance with Section 26B-4-213;
1851
(c) allows a qualified medical provider, or an employee described in Subsection (3)
1852
acting on behalf of the qualified medical provider, to:
1853
(i) access dispensing and card status information regarding a patient:
1854
(A) with whom the qualified medical provider has a provider-patient relationship;
1855
and
1856
(B) for whom the qualified medical provider has recommended or is considering
1857
recommending a medical cannabis card;
1858
(ii) electronically recommend treatment with [cannabis in a medicinal dosage form or
1859
a cannabis product in a medicinal dosage form] medical cannabis and optionally
1860
recommend dosing guidelines;
1861
(iii) electronically renew a recommendation to a medical cannabis patient cardholder
1862
or medical cannabis guardian cardholder:
1863
(A) using telehealth services, for the qualified medical provider who originally
1864
recommended a medical cannabis treatment during a face-to-face visit with the
- 55 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1865
patient; or
1866
(B) during a face-to-face visit with the patient, for a qualified medical provider
1867
who did not originally recommend the medical cannabis treatment during a
1868
face-to-face visit; and
1869
(iv) submit an initial application, renewal application, or application payment on
1870
behalf of an individual applying for any of the following:
1871
(A) a medical cannabis patient card;
1872
(B) a medical cannabis guardian card; or
1873
(C) a medical cannabis caregiver card;
1874
(d) allows a medical cannabis pharmacy medical provider or medical cannabis pharmacy
1875
agent, in accordance with Subsection 4-41a-1101(10)(a), to:
1876
(i) access the electronic verification system to review the history within the system of
1877
a patient with whom the provider or agent is interacting, limited to read-only
1878
access for medical cannabis pharmacy agents unless the medical cannabis
1879
pharmacy's pharmacist in charge authorizes add and edit access;
1880
(ii) record a patient's recommendation from a limited medical provider, including any
1881
directions of use, dosing guidelines, or caregiver indications from the limited
1882
medical provider;
1883
(iii) record a limited medical provider's renewal of the provider's previous
1884
recommendation; and
1885
(iv) submit an initial application, renewal application, or application payment on
1886
behalf of an individual applying for any of the following:
1887
(A) a medical cannabis patient card;
1888
(B) a medical cannabis guardian card; or
1889
(C) a medical cannabis caregiver card;
1890
(e) connects with:
1891
(i) an inventory control system that a medical cannabis pharmacy uses to track in real
1892
time and archive purchases of any [cannabis in a medicinal dosage form, cannabis
1893
product in a medicinal dosage form,] medical cannabis or a medical cannabis
1894
device, including:
1895
(A) the time and date of each purchase;
1896
(B) the quantity and type of [cannabis, cannabis product,] medical cannabis or
1897
medical cannabis device purchased;
1898
(C) any cannabis production establishment, any medical cannabis pharmacy, or
- 56 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1899
any medical cannabis courier associated with the [cannabis, cannabis product,]
1900
medical cannabis or medical cannabis device; and
1901
(D) the personally identifiable information of the medical cannabis cardholder
1902
who made the purchase; and
1903
(ii) any commercially available inventory control system that a cannabis production
1904
establishment utilizes in accordance with Section 4-41a-103 to use data that the
1905
Department of Agriculture and Food requires by rule, in accordance with Title
1906
63G, Chapter 3, Utah Administrative Rulemaking Act, from the inventory
1907
tracking system that a licensee uses to track and confirm compliance;
1908
(f) provides access to:
1909
(i) the department to the extent necessary to carry out the department's functions and
1910
responsibilities under this part;
1911
(ii) the Department of Agriculture and Food to the extent necessary to carry out the
1912
functions and responsibilities of the Department of Agriculture and Food under
1913
Title 4, Chapter 41a, Cannabis Production Establishments and Pharmacies; and
1914
(iii) the Division of Professional Licensing to the extent necessary to carry out the
1915
functions and responsibilities related to the participation of the following in the
1916
recommendation and dispensing of medical cannabis:
1917
(A) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing
1918
Act;
1919
(B) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
1920
(C) an advanced practice registered nurse licensed under Title 58, Chapter 31b,
1921
Nurse Practice Act;
1922
(D) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
1923
Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or
1924
(E) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
1925
Assistant Act;
1926
[(g) provides access to and interaction with the state central patient portal;]
1927
[(h)] (g) communicates dispensing information from a record that a medical cannabis
1928
pharmacy submits to the state electronic verification system under Subsection
1929
4-41a-1102(3)(a)(ii) to the controlled substance database;
1930
[(i)] (h) provides access to state or local law enforcement only to verify the validity of an
1931
individual's medical cannabis card for the administration of criminal justice and
1932
through a database used by law enforcement; and
- 57 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1933
[(j)] (i) creates a record each time a person accesses the system that identifies the person
1934
who accesses the system and the individual whose records the person accesses.
1935
(3)(a) An employee of a qualified medical provider may access the electronic
1936
verification system for a purpose described in Subsection (2)(c) on behalf of the
1937
qualified medical provider if:
1938
(i) the qualified medical provider has designated the employee as an individual
1939
authorized to access the electronic verification system on behalf of the qualified
1940
medical provider;
1941
(ii) the qualified medical provider provides written notice to the department of the
1942
employee's identity and the designation described in Subsection (3)(a)(i); and
1943
(iii) the department grants to the employee access to the electronic verification
1944
system.
1945
(b) An employee of a business that employs a qualified medical provider may access the
1946
electronic verification system for a purpose described in Subsection (2)(c) on behalf
1947
of the qualified medical provider if:
1948
(i) the qualified medical provider has designated the employee as an individual
1949
authorized to access the electronic verification system on behalf of the qualified
1950
medical provider;
1951
(ii) the qualified medical provider and the employing business jointly provide written
1952
notice to the department of the employee's identity and the designation described
1953
in Subsection (3)(b)(i); and
1954
(iii) the department grants to the employee access to the electronic verification
1955
system.
1956
(4)(a) As used in this Subsection (4), "prescribing provider" means:
1957
(i) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
1958
(ii) an advanced practice registered nurse licensed under Title 58, Chapter 31b, Nurse
1959
Practice Act;
1960
(iii) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
1961
Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or
1962
(iv) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
1963
Assistant Act.
1964
(b) A prescribing provider may access information in the electronic verification system
1965
regarding a patient the prescribing provider treats.
1966
(5) The department may release limited data that the system collects for the purpose of:
- 58 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1967
(a) conducting medical and other department approved research;
1968
(b) providing the report required by Section 26B-4-222; and
1969
(c) other official department purposes.
1970
(6) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
1971
Administrative Rulemaking Act, to establish:
1972
(a) the limitations on access to the data in the state electronic verification system as
1973
described in this section; and
1974
(b) standards and procedures to ensure accurate identification of an individual requesting
1975
information or receiving information in this section.
1976
(7) Any person who negligently or recklessly releases any information in the state
1977
electronic verification system in violation of this section is guilty of a class C
1978
misdemeanor.
1979
(8) Any person who obtains or attempts to obtain information from the state electronic
1980
verification system by misrepresentation or fraud is guilty of a third degree felony.
1981
(9)(a) Except as provided in Subsections (9)(c) and (9)(e), a person may not knowingly
1982
and intentionally use, release, publish, or otherwise make available to any other
1983
person information obtained from the state electronic verification system for any
1984
purpose other than a purpose specified in this section.
1985
(b) Each separate violation of this Subsection (9) is:
1986
(i) a third degree felony; and
1987
(ii) subject to a civil penalty not to exceed $5,000.
1988
(c) A law enforcement officer who uses the database used by law enforcement to access
1989
information in the electronic verification system for a reason that is not the
1990
administration of criminal justice is guilty of a class B misdemeanor.
1991
(d) The department shall determine a civil violation of this Subsection (9) in accordance
1992
with Title 63G, Chapter 4, Administrative Procedures Act.
1993
(e) Civil penalties assessed under this Subsection (9) shall be deposited into the General
1994
Fund.
1995
(f) This Subsection (9) does not prohibit a person who obtains information from the state
1996
electronic verification system under Subsection (2)(a), (c), or (f) from:
1997
(i) including the information in the person's medical chart or file for access by a
1998
person authorized to review the medical chart or file;
1999
(ii) providing the information to a person in accordance with the requirements of the
2000
Health Insurance Portability and Accountability Act of 1996; or
- 59 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2001
(iii) discussing or sharing that information about the patient with the patient.
2002
Section 25. Section 26B-4-214 is amended to read:
2003
26B-4-214 . Medical cannabis caregiver card -- Registration -- Renewal --
2004
Revocation.
2005
(1)(a) A cardholder described in Section 26B-4-213 may designate[, through the state
2006
central patient portal,] up to two individuals, or an individual and a facility in
2007
accordance with Subsection (1)(b), to serve as a designated caregiver for the
2008
cardholder.
2009
(b)(i) A cardholder described in Section 26B-4-213 may designate one of the
2010
following types of facilities as one of the caregivers described in Subsection (1)(a):
2011
(A) for a patient or resident, an assisted living facility, as that term is defined in
2012
Section 26B-2-201;
2013
(B) for a patient or resident, a nursing care facility, as that term is defined in
2014
Section 26B-2-201; or
2015
(C) for a patient, a general acute hospital, as that term is defined in Section
2016
26B-2-201.
2017
(ii) A facility may:
2018
(A) assign one or more employees to assist patients with medical cannabis
2019
treatment under the caregiver designation described in this Subsection (1)(b);
2020
and
2021
(B) receive a medical cannabis shipment from a medical cannabis pharmacy or a
2022
medical cannabis courier on behalf of the medical cannabis cardholder within
2023
the facility who designated the facility as a caregiver.
2024
(iii) The department shall make rules to regulate the practice of facilities and facility
2025
employees serving as designated caregivers under this Subsection (1)(b).
2026
(c) A parent or legal guardian described in Subsection 26B-4-213(2)(d), in consultation
2027
with the minor and the minor's qualified medical provider, may designate[, through
2028
the state central patient portal,] up to two individuals to serve as a designated
2029
caregiver for the minor, if the department determines that the parent or legal guardian
2030
is not eligible for a medical cannabis guardian card under Section 26B-4-213.
2031
(d)(i) Upon the entry of a caregiver designation under Subsection (1) by a patient
2032
with a terminal illness described in Section 26B-4-203, the department shall issue
2033
to the designated caregiver an electronic conditional medical cannabis caregiver
2034
card, in accordance with this Subsection (1)(d).
- 60 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2035
(ii) A conditional medical cannabis caregiver card is valid for the lesser of:
2036
(A) 60 days; or
2037
(B) the day on which the department completes the department's review and issues
2038
a medical cannabis caregiver card under Subsection (1)(a), denies the patient's
2039
medical cannabis caregiver card application, or revokes the conditional
2040
medical cannabis caregiver card under Section 26B-4-246.
2041
(iii) The department may issue a conditional medical cannabis card to an individual
2042
applying for a medical cannabis patient card for which approval of the
2043
Compassionate Use Board is not required.
2044
(iv) An individual described in Subsection (1)(b)(iii) has the rights, restrictions, and
2045
obligations under law applicable to a holder of the medical cannabis card for
2046
which the individual applies and for which the department issues the conditional
2047
medical cannabis card.
2048
(2) An individual that the department registers as a designated caregiver under this section
2049
and a facility described in Subsection (1)(b):
2050
(a) for an individual designated caregiver, may carry a valid medical cannabis caregiver
2051
card;
2052
(b) in accordance with this part, may purchase, possess, transport, or assist the patient in
2053
the use of [cannabis in a medicinal dosage form, a cannabis product in a medicinal
2054
dosage form,] medical cannabis or a medical cannabis device on behalf of the
2055
designating medical cannabis cardholder;
2056
(c) may not charge a fee to an individual to act as the individual's designated caregiver
2057
or for a service that the designated caregiver provides in relation to the role as a
2058
designated caregiver; and
2059
(d) may accept reimbursement from the designating medical cannabis cardholder for
2060
direct costs the designated caregiver incurs for assisting with the designating
2061
cardholder's medicinal use of cannabis.
2062
(3)(a) The department shall:
2063
(i) within 15 days after the day on which an individual submits an application in
2064
compliance with this section, issue a medical cannabis card to the applicant if the
2065
applicant:
2066
(A) is designated as a caregiver under Subsection (1);
2067
(B) is eligible for a medical cannabis caregiver card under Subsection (4); and
2068
(C) complies with this section; and
- 61 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2069
(ii) notify the Department of Public Safety of each individual that the department
2070
registers as a designated caregiver.
2071
(b) The department shall ensure that a medical cannabis caregiver card contains the
2072
information described in Subsections (5)(b) and (3)(c)(i).
2073
(c) If a cardholder described in Section 26B-4-213 designates an individual as a
2074
caregiver who already holds a medical cannabis caregiver card, the individual with
2075
the medical cannabis caregiver card:
2076
(i) shall report to the department the information required of applicants under
2077
Subsection (5)(b) regarding the new designation;
2078
(ii) if the individual makes the report described in Subsection (3)(c)(i), is not required
2079
to file an application for another medical cannabis caregiver card;
2080
(iii) may receive an additional medical cannabis caregiver card in relation to each
2081
additional medical cannabis patient who designates the caregiver; and
2082
(iv) is not subject to an additional background check.
2083
(4) An individual is eligible for a medical cannabis caregiver card if the individual:
2084
(a) is at least 21 years old;
2085
(b) is a Utah resident;
2086
(c) pays to the department a fee in an amount that, subject to Subsection 26B-1-310(5),
2087
the department sets in accordance with Section 63J-1-504, plus the cost of the
2088
criminal background check described in Section 26B-4-215; and
2089
(d) signs an acknowledgment stating that the applicant received the information
2090
described in Subsection 26B-4-213(9)[ ].
2091
(5) An eligible applicant for a medical cannabis caregiver card shall:
2092
(a) submit an application for a medical cannabis caregiver card to the department
2093
through an electronic application connected to the state electronic verification
2094
system; and
2095
(b) submit the following information in the application described in Subsection (5)(a):
2096
(i) the applicant's name, gender, age, and address;
2097
(ii) the name, gender, age, and address of the cardholder described in Section
2098
26B-4-213 who designated the applicant;
2099
(iii) if a medical cannabis guardian cardholder designated the caregiver, the name,
2100
gender, and age of the minor receiving a medical cannabis treatment in relation to
2101
the medical cannabis guardian cardholder; and
2102
(iv) any additional information that the department requests to assist in matching the
- 62 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2103
application with the designating medical cannabis patient.
2104
(6) Except as provided in Subsection (6)(b), a medical cannabis caregiver card that the
2105
department issues under this section is valid for the lesser of:
2106
(a) an amount of time that the cardholder described in Section 26B-4-213 who
2107
designated the caregiver determines; or
2108
(b) the amount of time remaining before the card of the cardholder described in Section
2109
26B-4-213 expires.
2110
(7)(a) If a designated caregiver meets the requirements of Subsection (4), the designated
2111
caregiver's medical cannabis caregiver card renews automatically at the time the
2112
cardholder described in Section 26B-4-213 who designated the caregiver:
2113
(i) renews the cardholder's card; and
2114
(ii) renews the caregiver's designation, in accordance with Subsection (7)(b).
2115
(b) The department shall provide a method in the card renewal process to allow a
2116
cardholder described in Section 26B-4-213 who has designated a caregiver to:
2117
(i) signify that the cardholder renews the caregiver's designation;
2118
(ii) remove a caregiver's designation; or
2119
(iii) designate a new caregiver.
2120
(8) The department shall record the issuance or revocation of a medical cannabis card under
2121
this section in the controlled substance database.
2122
Section 26. Section 26B-4-222 is amended to read:
2123
26B-4-222 . Report.
2124
(1) By the November interim meeting each year, the department shall report to the Health
2125
and Human Services Interim Committee on:
2126
(a) the number of applications and renewal applications filed for medical cannabis cards;
2127
(b) the number of qualifying patients and designated caregivers;
2128
(c) the nature of the debilitating medical conditions of the qualifying patients;
2129
(d) the age and county of residence of cardholders;
2130
(e) the number of medical cannabis cards revoked;
2131
(f) the number of practitioners providing recommendations for qualifying patients;
2132
(g) the number of license applications and renewal license applications received;
2133
(h) the number of licenses the department has issued in each county;
2134
(i) the number of licenses the department has revoked;
2135
(j) the quantity of medical cannabis shipments[ that the state central patient portal
2136
facilitates];
- 63 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2137
(k) the number of overall purchases of medical cannabis [and medical cannabis products ]
2138
from each medical cannabis pharmacy;
2139
(l) the expenses incurred and revenues generated from the medical cannabis program;
2140
and
2141
(m) an analysis of product availability in medical cannabis pharmacies in consultation
2142
with the Department of Agriculture and Food.
2143
(2) The report shall include information provided by the Center for Medical Cannabis
2144
Research described in Section 53B-17-1402.
2145
(3) The department may not include personally identifying information in the report
2146
described in this section.
2147
(4) The department shall report to the working group described in Section 36-12-8.2 as
2148
requested by the working group.
2149
Section 27. Section 58-37-3.6 is amended to read:
2150
58-37-3.6 . Exemption for possession or distribution of a cannabinoid product,
2151
expanded cannabinoid product, or transportable industrial hemp concentrate.
2152
(1) As used in this section:
2153
(a) "Cannabinoid product" means a product intended for human ingestion that:
2154
(i) contains an extract or concentrate that is obtained from cannabis; and
2155
[(ii) is prepared in a medicinal dosage form; and]
2156
[(iii)] (ii) contains at least 10 units of cannabidiol for every one unit of
2157
tetrahydrocannabinol.
2158
(b) "Cannabis" means any part of the plant cannabis sativa, whether growing or not.
2159
[(c) "Drug paraphernalia" means the same as that term is defined in Section 58-37a-3.]
2160
[(d)] (c) "Expanded cannabinoid product" means a product intended for human ingestion
2161
that:
2162
(i) contains an extract or concentrate that is obtained from cannabis; and
2163
[(ii) is prepared in a medicinal dosage form; and]
2164
[(iii)] (ii) contains less than 10 units of cannabidiol for every one unit of
2165
tetrahydrocannabinol.
2166
[(e) "Hemp cannabinoid product" means a product that:]
2167
[(i) contains or is represented to contain one or more naturally occurring
2168
cannabinoids;]
2169
[(ii) contains less than the cannabinoid product THC level, by dry weight;]
2170
[(iii) contains a combined amount of total THC and any THC analog that does not
- 64 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2171
exceed 10% of the total cannabinoid content;]
2172
[(iv) does not exceed a total of THC and any THC analog that is greater than five
2173
milligrams per serving and 150 milligrams per package; and]
2174
[(v) unless the product is in an oil based suspension, has a serving size that is an
2175
integer.]
2176
[(f)] (d) "Transportable industrial hemp concentrate" means any amount of a natural
2177
cannabinoid in a purified state that:
2178
(i) is the product of any chemical or physical process applied to naturally occurring
2179
biomass that concentrates or isolates the cannabinoids contained in the biomass;
2180
(ii) is derived from a cannabis plant that, based on sampling that was collected no
2181
more than 30 days before the day on which the cannabis plant was harvested,
2182
contains a combined concentration of total THC and any THC analog of less than
2183
0.3% on a dry weight basis; and
2184
(iii) has a THC and THC analog concentration total less than 20% when concentrated
2185
from the cannabis plant to the purified state.
2186
[(g) "Medicinal dosage form" means:]
2187
[(i) a tablet;]
2188
[(ii) a capsule;]
2189
[(iii) a concentrated oil;]
2190
[(iv) a liquid suspension;]
2191
[(v) a transdermal preparation; or]
2192
[(vi) a sublingual preparation.]
2193
[(h)] (e) "Tetrahydrocannabinol" means a substance derived from cannabis that meets the
2194
description in Subsection 58-37-4(2)(a)(iii)(AA).
2195
(2) Notwithstanding any other provision of this chapter an individual who possesses or
2196
distributes a cannabinoid product or an expanded cannabinoid product is not subject to
2197
the penalties described in this title for the possession or distribution of marijuana or
2198
tetrahydrocannabinol to the extent that the individual's possession or distribution of the
2199
cannabinoid product or expanded cannabinoid product complies with [Title 26B,
2200
Chapter 4, Part 2, Cannabinoid Research and Medical Cannabis] Section 26B-4-212.
2201
(3) Notwithstanding any other provision of this chapter, a person who possesses and
2202
distributes transportable industrial hemp concentrate is not subject to the penalties
2203
described in this chapter for the possession or distribution of transportable industrial
2204
hemp concentrate if the transportable industrial hemp concentrate is handled in
- 65 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2205
accordance with the rules established under Subsection 4-41-103.1(1)(e) or is destroyed.
2206
Section 28. Section 58-85-102 is amended to read:
2207
58-85-102 . Definitions.
2208
As used in this chapter:
2209
(1) "Eligible patient" means an individual who has been diagnosed with a terminal illness
2210
by a physician.
2211
(2) "Insurer" means the same as that term is defined in Section 31A-1-301.
2212
(3) "Investigational device" means a device that:
2213
(a) meets the definition of "investigational device" in 21 C.F.R. Sec. 812.3; and
2214
(b) has successfully completed the United States Food and Drug Administration Phase 1
2215
testing for an investigational device described in 21 C.F.R. Part 812.
2216
(4) "Investigational drug" means a drug that:
2217
(a) meets the definition of "investigational new drug" in 21 C.F.R. Sec. 312.3; and
2218
(b) has successfully completed the United States Food and Drug Administration Phase 1
2219
testing for an investigational new drug described in 21 C.F.R. Part 312.
2220
(5) "Medicinal dosage form" [means the same as that term is defined in Section 58-37-3.6.]
2221
means:
2222
(a) a tablet;
2223
(b) a capsule;
2224
(c) a concentrated oil;
2225
(d) a liquid suspension;
2226
(e) a transdermal preparation; or
2227
(f) a sublingual preparation.
2228
(6) "Physician" means an individual who is licensed under:
2229
(a) Title 58, Chapter 67, Utah Medical Practice Act; or
2230
(b) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act.
2231
(7) "Terminal illness" means a condition of a patient that:
2232
(a) as determined by a physician:
2233
(i) is likely to pose a greater risk to the patient than the risk posed to the patient by
2234
treatment with an investigational drug or investigational device; and
2235
(ii) will inevitably lead to the patient's death; and
2236
(b) presents the patient, after the patient has explored conventional therapy options, with
2237
no treatment option that is satisfactory or comparable to treatment with an
2238
investigational drug or device.
- 66 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2239
Section 29. Section 63N-3-1301 is amended to read:
2240
63N-3-1301 . Definitions.
2241
As used in this part:
2242
(1) "Cannabinoid processor license" means the same as that term is defined in Section
2243
4-41-102.
2244
(2) "Cannabinoid product" means the same as that term is defined in Section 4-41-102.
2245
(3) "Industrial hemp product" means the same as that term is defined in Section 4-41-102.
2246
(4) "Industrial hemp producer registration" means the same as that term is defined in
2247
Section 4-41-102.
2248
Section 30. Section 77-39-101 is amended to read:
2249
77-39-101 . Investigation of sales of alcohol, tobacco products, electronic
2250
cigarette products, nicotine products, and cannabinoid products to underage individuals.
2251
(1) As used in this section:
2252
(a) "Cannabinoid product" means the same as that term is defined in Section 4-41-102.
2253
(b) "Electronic cigarette product" means the same as that term is defined in Section
2254
76-10-101.
2255
(c) "Nicotine product" means the same as that term is defined in Section 76-10-101.
2256
(d) "Peace officer" means the same as the term is described in Section 53-13-109.
2257
(e) "Tobacco product" means the same as that term is defined in Section 76-10-101.
2258
(2)(a) A peace officer may investigate the possible violation of:
2259
(i) Section 32B-4-403 by requesting an individual under 21 years old to enter into
2260
and attempt to purchase or make a purchase of alcohol from a retail establishment;
2261
(ii) Section 76-10-114 by requesting an individual under 21 years old to enter into
2262
and attempt to purchase or make a purchase from a retail establishment of:
2263
(A) a tobacco product;
2264
(B) an electronic cigarette product; or
2265
(C) a nicotine product; or
2266
(iii) Subsection [4-41-105(2)(d)] 4-41-105(2)(a)(iv) by requesting an individual under
2267
21 years old to enter into and attempt to purchase or make a purchase of a
2268
cannabinoid product that contains THC or a THC analog from a retail
2269
establishment.
2270
(b) A peace officer who is present at the site of a proposed purchase shall direct,
2271
supervise, and monitor the individual requested to make the purchase.
2272
(c) Immediately following a purchase or attempted purchase or as soon as practical the
- 67 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2273
supervising peace officer shall inform the cashier and the proprietor or manager of
2274
the retail establishment that the attempted purchaser was under the legal age to
2275
purchase:
2276
(i) alcohol;
2277
(ii)(A) a tobacco product;
2278
(B) an electronic cigarette product; or
2279
(C) a nicotine product; or
2280
(iii) a cannabinoid product that contains THC or a THC analog.
2281
(d) If a citation or information is issued, the citation or information shall be issued
2282
within seven days after the day on which the purchase occurs.
2283
(3)(a) If an individual under 18 years old is requested to attempt a purchase, a written
2284
consent of that individual's parent or guardian shall be obtained before the individual
2285
participates in any attempted purchase.
2286
(b) An individual requested by the peace officer to attempt a purchase may:
2287
(i) be a trained volunteer; or
2288
(ii) receive payment, but may not be paid based on the number of successful
2289
purchases of alcohol, tobacco products, electronic cigarette products, nicotine
2290
products, or cannabinoid products that contain THC or a THC analog.
2291
(4) The individual requested by the peace officer to attempt a purchase and anyone
2292
accompanying the individual attempting a purchase may use false identification in
2293
attempting the purchase if:
2294
(a) the Department of Public Safety created in Section 53-1-103 provides the false
2295
identification;
2296
(b) the false identification:
2297
(i) accurately represents the individual's age; and
2298
(ii) displays a current photo of the individual; and
2299
(c) the peace officer maintains possession of the false identification at all times outside
2300
the attempt to purchase.
2301
(5) An individual requested to attempt to purchase or make a purchase pursuant to this
2302
section is immune from prosecution, suit, or civil liability for the purchase of, attempted
2303
purchase of, or possession of alcohol, a tobacco product, an electronic cigarette product,
2304
a nicotine product, or a cannabinoid product that contains THC or a THC analog if a
2305
peace officer directs, supervises, and monitors the individual.
2306
(6)(a) Except as provided in Subsection (6)(b), a purchase attempted under this section
- 68 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2307
shall be conducted within a 12-month period:
2308
(i) on a random basis at any one retail establishment location, not more often than
2309
four times for the attempted purchase of alcohol;
2310
(ii) a minimum of two times at a retail establishment that sells tobacco products,
2311
electronic cigarette products, or nicotine products for the attempted purchase of a
2312
tobacco product, an electronic cigarette product, or a nicotine product; and
2313
(iii) a minimum of one time at a retail establishment that sells a cannabinoid product
2314
that contains THC or a THC analog.
2315
(b) This section does not prohibit an investigation or an attempt to purchase alcohol, a
2316
tobacco product, an electronic cigarette product, or a nicotine product under this
2317
section if:
2318
(i) there is reasonable suspicion to believe the retail establishment has sold alcohol, a
2319
tobacco product, an electronic cigarette product, a nicotine product, or a
2320
cannabinoid product that contains THC or a THC analog to an individual under
2321
the age established by Section 32B-4-403, Section76-10-114, or Subsection
2322
4-41-105(2)(d); and
2323
(ii) the supervising peace officer makes a written record of the grounds for the
2324
reasonable suspicion.
2325
(7)(a) The peace officer exercising direction, supervision, and monitoring of the
2326
attempted purchase shall make a report of the attempted purchase, whether or not a
2327
purchase was made.
2328
(b) The report required by this Subsection (7) shall include:
2329
(i) the name of the supervising peace officer;
2330
(ii) the name of the individual attempting the purchase;
2331
(iii) a photograph of the individual attempting the purchase showing how that
2332
individual appeared at the time of the attempted purchase;
2333
(iv) the name and description of the cashier or proprietor from whom the individual
2334
attempted the purchase;
2335
(v) the name and address of the retail establishment; and
2336
(vi) the date and time of the attempted purchase.
2337
Section 31. Repealer.
2338
This bill repeals:
2339
Section 26B-4-236, State central patient portal -- Department duties.
2340
Section 32. Effective Date.
- 69 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2341
This bill takes effect on May 7, 2025.
- 70 -