Enrolled Copy H.B. 54
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Cannabinoid Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jennifer Dailey-Provost
Senate Sponsor: Evan J. Vickers
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LONG TITLE
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General Description:
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This bill amends provisions related to hemp and medical cannabis regulation.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ prohibits certain cannabinoids from being used in cannabinoid products;
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▸ allows the Department of Agriculture and Food to limit certain types of cannabinoids that
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are found in a cannabinoid product;
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▸ amends background check requirements for cannabinoid processor licenses;
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▸ amends qualifications for obtaining a cannabinoid processor license;
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▸ requires industrial hemp retailers to maintain a video surveillance system;
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▸ amends provisions related to cannabinoid product enforcement;
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▸ requires a person to have a cannabinoid processor license to transport hemp concentrate;
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▸ removes the requirement that certain cannabinoid products be in a medicinal dosage form;
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▸ allows for additional medical cannabis pharmacies;
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▸ creates a new medical cannabis pharmacy license for independent medical cannabis
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pharmacies;
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▸ creates ownership restrictions for independent medical cannabis pharmacies;
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▸ adjusts fees for certain medical cannabis pharmacy licenses;
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▸ amends provisions regarding cannabis production and sanitation;
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▸ modifies provisions related to enforcement and appeals;
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▸ amends provisions related to closed-door medical cannabis pharmacies;
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▸ allows a cannabis processing facility to have a website that includes product information;
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▸ amends provisions regarding when the department may seize products and test products; H.B. 54 Enrolled Copy
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▸ amends provisions related to information a medical cannabis pharmacy must have
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available to a patient purchasing medical cannabis;
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▸ creates a reporting requirement for the department;
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▸ repeals sections related to the state central patient portal; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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4-41-102, as last amended by Laws of Utah 2024, Chapter 35
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4-41-103.2, as last amended by Laws of Utah 2023, Chapter 146
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4-41-103.3, as last amended by Laws of Utah 2023, Chapters 146, 327
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4-41-105, as last amended by Laws of Utah 2024, Chapter 35
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4-41-404, as last amended by Laws of Utah 2019, Chapter 23
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4-41a-102, as last amended by Laws of Utah 2024, Chapters 217, 238 and 240
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4-41a-403, as last amended by Laws of Utah 2023, Chapter 327
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4-41a-501, as last amended by Laws of Utah 2023, Chapter 313
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4-41a-701, as last amended by Laws of Utah 2023, Chapters 313, 317
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4-41a-801, as renumbered and amended by Laws of Utah 2018, Third Special Session,
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Chapter 1
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4-41a-802, as last amended by Laws of Utah 2024, Chapter 217
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4-41a-1001, as last amended by Laws of Utah 2024, Chapters 217, 238 and 240
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4-41a-1003, as last amended by Laws of Utah 2023, Chapter 435 and renumbered and
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amended by Laws of Utah 2023, Chapters 273, 307 and last amended by Coordination Clause,
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Laws of Utah 2023, Chapter 307
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4-41a-1005, as last amended by Laws of Utah 2024, Chapter 217
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4-41a-1101, as last amended by Laws of Utah 2024, Chapter 217
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4-41a-1201, as enacted by Laws of Utah 2023, Chapter 273
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4-41a-1202, as last amended by Laws of Utah 2024, Chapters 217, 240
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4-41a-1203, as renumbered and amended by Laws of Utah 2023, Chapters 273, 307 and
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last amended by Coordination Clause, Laws of Utah 2023, Chapter 307
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4-41a-1206, as enacted by Laws of Utah 2024, Chapter 238
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26B-1-435, as last amended by Laws of Utah 2024, Chapters 238, 240
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26B-4-201, as last amended by Laws of Utah 2024, Chapters 217, 240
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26B-4-202, as last amended by Laws of Utah 2024, Chapters 217, 240
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26B-4-214, as last amended by Laws of Utah 2024, Chapter 240
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26B-4-222, as last amended by Laws of Utah 2024, Chapter 240
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58-37-3.6, as last amended by Laws of Utah 2024, Chapter 35
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58-85-102, as last amended by Laws of Utah 2018, Third Special Session, Chapter 1
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63N-3-1301, as enacted by Laws of Utah 2024, Chapter 35
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77-39-101, as last amended by Laws of Utah 2024, Chapter 35
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ENACTS:
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4-41-405, Utah Code Annotated 1953
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4-41a-1006, Utah Code Annotated 1953
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REPEALS:
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26B-4-236, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered
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and amended by Laws of Utah 2023, Chapter 307 and last amended by Coordination Clause,
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Laws of Utah 2023, Chapter 307
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 4-41-102 is amended to read:
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4-41-102 . Definitions.
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As used in this chapter:
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(1) "Adulterant" means any poisonous or deleterious substance in a quantity that may be
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injurious to human health, including:
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(a) pesticides;
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(b) heavy metals;
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(c) solvents;
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(d) microbial life;
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(e) artificially derived cannabinoids;
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(f) toxins; or
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(g) foreign matter.
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(2)(a) "Artificially derived cannabinoid" means a chemical substance that is created by a
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chemical reaction that changes the molecular structure of any chemical substances
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derived from the cannabis plant.
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(b) "Artificially derived cannabinoid" does not include:
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(i) a naturally occurring chemical substance that is separated from the cannabis plant
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by a chemical or mechanical extraction process; or
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(ii) cannabinoids that are produced by decarboxylation from a naturally occurring
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cannabinoid acid without the use of a chemical catalyst.
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(3) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 13956-29-1.
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(4) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS# 1244-58-2.
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(5) "Cannabinoid processor license" means a license that the department issues to a person
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for the purpose of processing a cannabinoid product.
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(6) "Cannabinoid product" means a product that:
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(a) contains or is represented to contain one or more naturally occurring cannabinoids;
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(b) contains less than the cannabinoid product THC level, by dry weight;
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(c) contains a combined amount of total THC and any THC analog that does not exceed
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10% of the total cannabinoid content;
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(d) does not exceed a total of THC and any THC analog that is greater than:
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(i) 5 milligrams per serving; and
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(ii) 150 milligrams per package; and
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(e) unless the product is in an oil based suspension, has a serving size that:
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(i) is an integer; and
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(ii) is a discrete unit of the cannabinoid product.
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(7) "Cannabinoid product class" means a group of cannabinoid products that:
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(a) have all ingredients in common; and
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(b) are produced by or for the same company.
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(8) "Cannabinoid product THC level" means a combined concentration of total THC and
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any THC analog of less than 0.3% on a dry weight basis if laboratory testing confirms a
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result within a measurement of uncertainty that includes the combined concentration of
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0.3%.
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(9) "Cannabis" means the same as that term is defined in Section 26B-4-201.
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(10) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid identified as
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CAS# 1972-08-3, the primary psychotropic cannabinoid in cannabis.
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(11) "Industrial hemp" means any part of a cannabis plant, whether growing or not, with a
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concentration of less than 0.3% tetrahydrocannabinol by dry weight.
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(12) "Industrial hemp producer registration" means a registration that the department issues
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to a person for the purpose of processing industrial hemp or an industrial hemp product.
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(13)(a) "Industrial hemp product" means a product made by processing industrial hemp
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plants or industrial hemp parts.
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(b) "Industrial hemp product" does not include cannabinoid material or a cannabinoid
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product.
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[(13)] (14) "Industrial hemp retailer permit" means a permit that the department issues to a
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retailer who sells any viable industrial hemp seed or cannabinoid product.
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[(14)(a) "Industrial hemp product" means a product made by processing industrial hemp
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plants or industrial hemp parts.]
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[(b) "Industrial hemp product" does not include cannabinoid material.]
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(15) "Key participant" means any of the following:
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(a) a licensee;
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(b) an operation manager;
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(c) a site manager; or
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(d) an employee who has access to any industrial hemp material with a THC
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concentration above 0.3%.
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(16) "Licensee" means a person possessing a cannabinoid processor license that the
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department issues under this chapter.
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(17) "Newly identified cannabinoid" means a cannabinoid that:
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(a) is not expressly identified by chemical name or CAS number in this chapter; and
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(b) is identified by the department under Section 4-41-405.
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[(17)] (18) "Non-compliant material" means:
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(a) a hemp plant that does not comply with this chapter, including a cannabis plant with
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a concentration of 0.3% tetrahydrocannabinol or greater by dry weight;[ and]
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(b) a cannabinoid product, chemical, or compound with a concentration that exceeds the
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cannabinoid product THC level[.] ; and
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(c) a cannabinoid product containing any of the following:
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(i) delta-9-tetrahydrocannabiphorol (THCP), the cannabinoid identified as CAS#
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54763-99-4;
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(ii) delta-8-tetrahydrocannabiphorol (THCP), the cannabinoid identified as CAS#
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51768-60-6;
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(iii) delta-9-tetrahyrdocannabinol (THC) acetate, the cannabinoid identified as CAS#
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23132-17-4;
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(iv) delta-8-tetrahydrocannabinol (THC) acetate, the cannabinoid identified as CAS#
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23050-54-6;
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(v) 9(s)-hexahydrocannabinol (HHC), the cannabinoid identified as CAS#
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36403-91-5; or
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(vi) 9(r)-hexahyrdocannabinol (HHC), the cannabinoid identified as CAS#
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36403-90-4.
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[(18)] (19) "Permittee" means a person possessing a permit that the department issues under
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this chapter.
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[(19)] (20) "Person" means:
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(a) an individual, partnership, association, firm, trust, limited liability company, or
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corporation; and
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(b) an agent or employee of an individual, partnership, association, firm, trust, limited
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liability company, or corporation.
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[(20)] (21) "Retailer permittee" means a person possessing an industrial hemp retailer permit
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that the department issues under this chapter.
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[(21)] (22) "Tetrahydrocannabinol" or "THC" means a delta-9-tetrahydrocannabinol, the
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cannabinoid identified as CAS# 1972-08-3.
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[(22)] (23)(a) "THC analog" means a substance that is structurally or pharmacologically
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substantially similar to, or is represented as being similar to, delta-9-THC.
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(b) "THC analog" does not include the following substances or the naturally occurring
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acid forms of the following substances:
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(i) cannabichromene (CBC), the cannabinoid identified as CAS# 20675-51-8;
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(ii) cannabicyclol (CBL), the cannabinoid identified as CAS# 21366-63-2;
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(iii) cannabidiol (CBD), the cannabinoid identified as CAS# 13956-29-1;
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(iv) cannabidivarol (CBDV), the cannabinoid identified as CAS# 24274-48-4;
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(v) cannabielsoin (CBE), the cannabinoid identified as CAS# 52025-76-0;
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(vi) cannabigerol (CBG), the cannabinoid identified as CAS# 25654-31-3;
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(vii) cannabigerovarin (CBGV), the cannabinoid identified as CAS# 55824-11-8;
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(viii) cannabinol (CBN), the cannabinoid identified as CAS# 521-35-7;
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(ix) cannabivarin (CBV), the cannabinoid identified as CAS# 33745-21-0; or
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(x) delta-9-tetrahydrocannabivarin (THCV), the cannabinoid identified as CAS#
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31262-37-0.
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[(23)] (24) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
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and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)".
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[(24)] (25) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
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amounts of delta-9-THC, tertrahydrocannabinolic acid, calculated as "total THC =
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delta-9-THC + (THCA x 0.877)".
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[(25)] (26) "Transportable industrial hemp concentrate" means any amount of a natural
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cannabinoid in a purified state that:
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(a) is the product of any chemical or physical process applied to naturally occurring
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biomass that concentrates or isolates the cannabinoids contained in the biomass;
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(b) is derived from a cannabis plant that, based on sampling that was collected no more
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than 30 days before the day on which the cannabis plant was harvested, contains a
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combined concentration of total THC and any THC analog of less than 0.3% on a dry
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weight basis;
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(c) has a THC and THC analog concentration total that is less than 20% when
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concentrated from the cannabis plant to the purified state; and
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(d) is intended to be processed into a cannabinoid product.
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Section 2. Section 4-41-103.2 is amended to read:
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4-41-103.2 . Cannabinoid processor license.
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(1) The department or a licensee of the department may process a cannabinoid product.
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(2) A person seeking a cannabinoid processor license shall provide to the department:
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(a) the legal description and global positioning coordinates sufficient for locating the
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facility the person uses to process industrial hemp; and
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(b) written consent allowing a representative of the department and local law
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enforcement to enter all premises where the person processes or stores industrial
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hemp for the purpose of:
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(i) conducting a physical inspection; or
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(ii) ensuring compliance with the requirements of this chapter.
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[(3) An individual who has been convicted of a drug-related felony within the last 10 years
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is not eligible to obtain a cannabinoid processor license.]
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[(4)] (3) The department may set a fee in accordance with Subsection 4-2-103(2) for the
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application for a cannabinoid processor license.
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[(5)] (4) A licensee may only market a cannabinoid product that the licensee processes.
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(5)(a) An applicant for a cannabinoid processor license shall:
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(i) be at least 18 years old; and
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(ii) submit a nationwide criminal history from the Federal Bureau of Investigation to
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the department.
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(b) The department shall reject an individual's application for a cannabinoid processor
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license if the criminal history described in Subsection (5)(a)(ii) was not completed in
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the previous 90 days before the day the applicant submits the license application to
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the department.
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(6) An applicant is not eligible to receive a cannabinoid processor license if the applicant
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has:
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(a) been convicted of a felony; or
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(b) been convicted of a drug-related misdemeanor within the previous 10 years.
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[(6)(a) Each applicant for a license to process cannabinoid products shall submit to the
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department, at the time of application, from each key participant:]
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[(i) a fingerprint card in a form acceptable to the Department of Public Safety;]
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[(ii) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
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registration of the individual's fingerprints in the Federal Bureau of Investigation
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Next Generation Identification System's Rap Back Service; and]
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[(iii) consent to a fingerprint background check by:]
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[(A) the Bureau of Criminal Identification; and]
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[(B) the Federal Bureau of Investigation.]
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[(b) The Bureau of Criminal Identification shall:]
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[(i) check the fingerprints the applicant submits under Subsection (6)(a) against the
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applicable state, regional, and national criminal records databases, including the
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Federal Bureau of Investigation Next Generation Identification System;]
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[(ii) report the results of the background check to the department;]
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[(iii) maintain a separate file of fingerprints that applicants submit under Subsection
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(6)(a) for search by future submissions to the local and regional criminal records
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databases, including latent prints;]
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[(iv) request that the fingerprints be retained in the Federal Bureau of Investigation
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Next Generation Identification System's Rap Back Service for search by future
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submissions to national criminal records databases, including the Next Generation
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Identification System and latent prints; and]
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[(v) establish a privacy risk mitigation strategy to ensure that the department only
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receives notifications for an individual with whom the department maintains an
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authorizing relationship.]
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[(c) The department shall:]
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[(i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
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amount that the department sets in accordance with Section 63J-1-504 for the
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services that the Bureau of Criminal Identification or another authorized agency
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provides under this section; and]
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[(ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
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Identification.]
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Section 3. Section 4-41-103.3 is amended to read:
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4-41-103.3 . Industrial hemp retailer permit.
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(1) Except as provided in Subsection [(4)] (5), a retailer permittee of the department may
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market or sell a cannabinoid product or a viable industrial hemp seed.
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(2) A person seeking an industrial hemp retailer permit shall provide to the department:
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(a) the name of the person that is seeking to market or sell a cannabinoid product or a
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viable industrial hemp seed;
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(b) the address of each location where a cannabinoid product or a viable industrial hemp
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seed will be sold; and
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(c) written consent allowing a representative of the department to enter all premises
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where the person is selling a cannabinoid product or a viable industrial hemp seed for
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the purpose of:
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(i) conducting a physical inspection; or
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(ii) ensuring compliance with the requirements of this chapter.
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(3) Beginning January 1, 2026, an industrial hemp retailer permittee shall:
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(a) maintain a video surveillance system that:
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(i) is able to monitor who purchases a cannabinoid product from the permittee;
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(ii) is tamper proof; and
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(iii) stores a video record for at least 45 days; and
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(b) provide the department access to the video surveillance system upon request.
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[(3)] (4) The department may set a fee in accordance with Subsection 4-2-103(2) for the
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application for an industrial hemp retailer permit.
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[(4)] (5) Any marketing for a cannabinoid product or a viable industrial hemp seed shall
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include a notice to consumers that the product is hemp and is not cannabis or medical
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cannabis, as those terms are defined in Section 26B-4-201.
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Section 4. Section 4-41-105 is amended to read:
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4-41-105 . Unlawful acts.
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(1) It is unlawful for a person to handle, process, or market living industrial hemp plants,
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viable hemp seeds, leaf materials, or floral materials derived from industrial hemp
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without the appropriate license or permit issued by the department under this chapter.
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(2)(a) It is unlawful for any person to:
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(i) distribute, sell, or market a cannabinoid product that is:
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(A) not registered with the department under Section 4-41-104; or
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(B) noncompliant material;
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(ii) except as provided in Subsection (2)(b), transport into or out of the state extracted
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material or final product that contains 0.3% or more of total THC and any THC
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analog;
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(iii) sell or use a cannabinoid product that is:
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(A) added to a conventional food or beverage, as the department further defines in
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rules described in Section 4-41-403;
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(B) marketed or manufactured to be enticing to children, as further defined in
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rules described in Section 4-41-403; or
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(C) smokable flower; or
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(iv) knowingly or intentionally sell or give a cannabinoid product that contains THC
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or a THC analog in the course of business to an individual who is not at least 21
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years old.
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(b) A person may transport transportable industrial hemp concentrate if the person:
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(i) complies with rules created by the department under Section 4-41-103.1 related to
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transportable industrial hemp concentrate; and
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(ii)(A) has [an industrial hemp producer registration] a cannabinoid processor
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license; or
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(B) the equivalent to [an industrial hemp producer registration] a cannabinoid
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processor license from another state.
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(3) The department may seize and destroy non-compliant material.
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(4) Nothing in this chapter authorizes any person to violate federal law, regulation, or any
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provision of this title.
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Section 5. Section 4-41-404 is amended to read:
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4-41-404 . Department duties.
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The department [shall assess the fine described in Subsection 4-41-403(4) ] may take an
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enforcement action in accordance with Section 4-41-106 against any person who offers an
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unregistered cannabinoid product for sale in this state.
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Section 6. Section 4-41-405 is enacted to read:
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4-41-405 . Newly identified cannabinoid.
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(1) For a newly identified cannabinoid, the department may:
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(a) establish a maximum allowable concentration that a cannabinoid product may
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contain of the newly identified cannabinoid;
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(b) prohibit the newly identified cannabinoid from appearing in a cannabinoid product;
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or
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(c) modify the maximum allowable concentration described in Subsection (1)(a) as
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necessary if it would not create a threat to public health.
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(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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department shall make rules to implement Subsection (1).
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Section 7. Section 4-41a-102 is amended to read:
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4-41a-102 . Definitions.
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As used in this chapter:
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(1) "Adulterant" means any poisonous or deleterious substance in a quantity that may be
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injurious to health, including:
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(a) pesticides;
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(b) heavy metals;
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(c) solvents;
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(d) microbial life;
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(e) artificially derived cannabinoid;
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(f) toxins; or
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(g) foreign matter.
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(2) "Advertise" or "advertising" means information provided by a person in any medium:
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(a) to the public; and
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(b) that is not age restricted to an individual who is at least 21 years old.
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(3) "Advisory board" means the Medical Cannabis Policy Advisory Board created in
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Section 26B-1-435.
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(4)(a) "Anticompetitive business practice" means any practice that reduces the amount
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of competition in the medical cannabis market that would be considered an attempt to
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monopolize, as defined in Section 76-10-3103.
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(b) "Anticompetitive business practice" may include:
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(i) agreements that may be considered unreasonable when competitors interact to the
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extent that they are:
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(A) no longer acting independently; or
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(B) when collaborating are able to wield market power together;
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(ii) monopolizing or attempting to monopolize trade by:
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(A) acting to maintain or acquire a dominant position in the market; or
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(B) preventing new entry into the market; or
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(iii) other conduct outlined in rule.
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(5)(a) "Artificially derived cannabinoid" means a chemical substance that is created by a
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chemical reaction that changes the molecular structure of any chemical substance
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derived from the cannabis plant.
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(b) "Artificially derived cannabinoid" does not include:
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(i) a naturally occurring chemical substance that is separated from the cannabis plant
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by a chemical or mechanical extraction process; or
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(ii) a cannabinoid that is produced by decarboxylation from a naturally occurring
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cannabinoid acid without the use of a chemical catalyst.
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(6) "Batch" means a quantity of:
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(a) cannabis extract produced on a particular date and time and produced between
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completion of equipment and facility sanitation protocols until the next required
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sanitation cycle during which lots of cannabis are used;
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(b) cannabis product produced on a particular date and time and produced between
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completion of equipment and facility sanitation protocols until the next required
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sanitation cycle during which cannabis extract is used; or
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(c) cannabis flower packaged on a particular date and time and produced between
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completion of equipment and facility sanitation protocols until the next required
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sanitation cycle during which lots of cannabis are being used.
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[(6)] (7) "Cannabis Research Review Board" means the Cannabis Research Review Board
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created in Section 26B-1-420.
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[(7)] (8) "Cannabis" means the same as that term is defined in Section 26B-4-201.
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[(8)] (9) "Cannabis concentrate" means:
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(a) the product of any chemical or physical process applied to naturally occurring
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biomass that concentrates or isolates the cannabinoids contained in the biomass; and
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(b) any amount of a natural cannabinoid or artificially derived cannabinoid in an
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artificially derived cannabinoid's purified state.
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[(9)] (10) "Cannabis cultivation byproduct" means any portion of a cannabis plant that is not
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intended to be sold as a cannabis plant product.
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[(10)] (11) "Cannabis cultivation facility" means a person that:
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(a) possesses cannabis;
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(b) grows or intends to grow cannabis; and
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(c) sells or intends to sell cannabis to a cannabis cultivation facility, a cannabis
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processing facility, or a medical cannabis research licensee.
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[(11)] (12) "Cannabis cultivation facility agent" means an individual who
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holds a valid cannabis production establishment agent registration card with a cannabis
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cultivation facility designation.
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[(12)] (13) "Cannabis derivative product" means a product made using cannabis concentrate.
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[(13)] (14) "Cannabis plant product" means any portion of a cannabis plant intended to be
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sold in a form that is recognizable as a portion of a cannabis plant.
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[(14)] (15) "Cannabis processing facility" means a person that:
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(a) acquires or intends to acquire cannabis from a cannabis production establishment;
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(b) possesses cannabis with the intent to manufacture a cannabis product;
411
(c) manufactures or intends to manufacture a cannabis product from unprocessed
412
cannabis or a cannabis extract; and
413
(d) sells or intends to sell a cannabis product to a medical cannabis pharmacy or a
414
medical cannabis research licensee.
415 [(15)] (16) "Cannabis processing facility agent" means an individual who
416
holds a valid cannabis production establishment agent registration card with a cannabis
417
processing facility designation.
418
[(16)] (17) "Cannabis product" means the same as that term is defined in Section 26B-4-201.
419
[(17)] (18) "Cannabis production establishment" means a cannabis cultivation facility, a
420
cannabis processing facility, or an independent cannabis testing laboratory.
421
[(18)] (19) "Cannabis production establishment agent" means a cannabis cultivation facility
422
agent, a cannabis processing facility agent, or an independent cannabis testing laboratory
423
agent.
424
[(19)] (20) "Cannabis production establishment agent registration card" means a registration
425
card that the department issues that:
426
(a) authorizes an individual to act as a cannabis production establishment agent; and
427
(b) designates the type of cannabis production establishment for which an individual is
428
authorized to act as an agent.
429
[(20)] (21) "Closed-door medical cannabis pharmacy" means a facility operated by a home
430
delivery medical cannabis pharmacy for delivering [cannabis or a medical cannabis
431
product] medical cannabis.
432
[(21)] (22) "Community location" means a public or private elementary or secondary school,
433
a church, a public library, a public playground, or a public park.
434
[(22)] (23) "Cultivation space" means, quantified in square feet, the horizontal area in which
435
a cannabis cultivation facility cultivates cannabis, including each level of horizontal area
- 13 - H.B. 54 Enrolled Copy
436
if the cannabis cultivation facility hangs, suspends, stacks, or otherwise positions plants
437
above other plants in multiple levels.
438
[(23)] (24) "Delivery address" means:
439
(a) for a medical cannabis cardholder who is not a facility:
440
(i) the medical cannabis cardholder's home address; or
441
(ii) an address designated by the medical cannabis cardholder that:
442
(A) is the medical cannabis cardholder's workplace; and
443
(B) is not a community location; or
444
(b) for a medical cannabis cardholder that is a facility, the facility's address.
445
[(24)] (25) "Department" means the Department of Agriculture and Food.
446
[(25)] (26) "Family member" means a parent, step-parent, spouse, child, sibling,
447
step-sibling, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law,
448
brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent, or grandchild.
449
[(26)] (27) "Government issued photo identification" means the same as that term is defined
450
in Section 26B-4-201, including expired identification in accordance with Section
451
26B-4-244.
452
[(27)] (28) "Home delivery medical cannabis pharmacy" means a medical cannabis
453
pharmacy that the department authorizes, as part of the pharmacy's license, to deliver
454
medical cannabis shipments to a delivery address to fulfill electronic orders[ that the
455
state central patient portal facilitates].
456
[(28)] (29)(a) "Independent cannabis testing laboratory" means a person that:
457
(i) conducts a chemical or other analysis of cannabis or a cannabis product; or
458
(ii) acquires, possesses, and transports cannabis or a cannabis product with the intent
459
to conduct a chemical or other analysis of the cannabis or cannabis product.
460
(b) "Independent cannabis testing laboratory" includes a laboratory that the department
461
or a research university operates in accordance with Subsection 4-41a-201(14).
462 [(29)] (30) "Independent cannabis testing laboratory agent" means an individual who
463
holds a valid cannabis production establishment agent registration card with an
464
independent cannabis testing laboratory designation.
465
[(30)] (31) "Inventory control system" means a system described in Section 4-41a-103.
466
[(31)] (32) "Licensing board" or "board" means the Cannabis Production Establishment and
467
Pharmacy Licensing Advisory Board created in Section 4-41a-201.1.
468
[(32)] (33) "Medical cannabis" or "medical cannabis product" means the same as that term is
469
defined in Section 26B-4-201.
- 14 - Enrolled Copy H.B. 54
470
[(33)] (34) "Medical cannabis card" means the same as that term is defined in Section
471
26B-4-201.
472
[(34)] (35) "Medical cannabis courier" means a courier that:
473
(a) the department licenses in accordance with Section 4-41a-1201; and
474
(b) contracts with a home delivery medical cannabis pharmacy to deliver medical
475
cannabis shipments to fulfill electronic orders[ that the state central patient portal
476
facilitates].
477
[(35)] (36) "Medical cannabis courier agent" means an individual who:
478
(a) is an employee of a medical cannabis courier; and
479
(b) who holds a valid medical cannabis courier agent registration card.
480
[(36)] (37) "Medical cannabis pharmacy" means the same as that term is defined in Section
481
26B-4-201.
482
[(37)] (38) "Medical cannabis pharmacy agent" means the same as that term is defined in
483
Section 26B-4-201.
484
[(38)] (39) "Medical cannabis research license" means a license that the department issues to
485
a research university for the purpose of obtaining and possessing medical cannabis for
486
academic research.
487
[(39)] (40) "Medical cannabis research licensee" means a research university that the
488
department licenses to obtain and possess medical cannabis for academic research, in
489
accordance with Section 4-41a-901.
490
[(40)] (41) "Medical cannabis shipment" means a shipment of medical cannabis that a home
491
delivery medical cannabis pharmacy or a medical cannabis courier delivers to a delivery
492
address to fulfill an electronic medical cannabis order[ that the state central patient portal
493
facilitates].
494
[(41)] (42) "Medical cannabis treatment" means the same as that term is defined in Section
495
26B-4-201.
496
[(42)] (43) "Medicinal dosage form" means the same as that term is defined in Section
497
26B-4-201.
498
[(43)] (44) "Pharmacy ownership limit" means an amount equal to 30% of the total number
499
of medical cannabis pharmacy licenses issued by the department rounded down to the
500
nearest whole number.
501
[(44)] (45) "Pharmacy medical provider" means the same as that term is defined in Section
502
26B-4-201.
503
[(45)] (46) "Qualified medical provider" means the same as that term is defined in Section
- 15 - H.B. 54 Enrolled Copy
504
26B-4-201.
505
[(46)] (47) "Qualified Production Enterprise Fund" means the fund created in Section
506
4-41a-104.
507
[(47)] (48) "Recommending medical provider" means the same as that term is defined in
508
Section 26B-4-201.
509
[(48)] (49) "Research university" means the same as that term is defined in Section
510
53B-7-702 and a private, nonprofit college or university in the state that:
511
(a) is accredited by the Northwest Commission on Colleges and Universities;
512
(b) grants doctoral degrees; and
513
(c) has a laboratory containing or a program researching a schedule I controlled
514
substance described in Section 58-37-4.
515
[(49)] (50) "State electronic verification system" means the system described in Section
516
26B-4-202.
517
[(50)] (51) "Targeted marketing" means the promotion of [a cannabis product,] medical
518
cannabis, a medical cannabis brand, or a medical cannabis device using any of the
519
following methods:
520
(a) electronic communication to an individual who is at least 21 years old and has
521
requested to receive promotional information;
522
(b) an in-person marketing event that is:
523
(i) held inside a medical cannabis pharmacy; and
524
(ii) in an area where only a medical cannabis cardholder may access the event;
525
(c) other marketing material that is physically available or digitally displayed in a
526
medical cannabis pharmacy; or
527
(d) a leaflet a medical cannabis pharmacy places in the opaque package or box that is
528
provided to an individual when obtaining medical cannabis:
529
(i) in the medical cannabis pharmacy;
530
(ii) at the medical cannabis pharmacy's drive-through pick up window; or
531
(iii) in a medical cannabis shipment.
532
[(51)] (52) "Tetrahydrocannabinol" or "THC" means the same as that term is defined in
533
Section 4-41-102.
534
[(52)] (53) "THC analog" means the same as that term is defined in Section 4-41-102.
535
[(53)] (54) "Total composite tetrahydrocannabinol" means all detectable forms of
536
tetrahydrocannabinol.
537
[(54)] (55) "Total tetrahydrocannabinol" or "total THC" means the same as that term is
- 16 - Enrolled Copy H.B. 54
538
defined in Section 4-41-102.
539
Section 8. Section 4-41a-403 is amended to read:
540
4-41a-403 . Advertising.
541
(1) Except as provided in this section and Section 4-41a-604, a cannabis production
542
establishment may not advertise to the general public in any medium.
543
(2) A cannabis production establishment may advertise an employment opportunity at the
544
cannabis production establishment.
545
(3)(a) A cannabis production establishment may maintain a website that:
546
[(a)] (i) contains information about the establishment and employees; and
547
[(b)] (ii) except as provided in Subsection (3)(b), does not advertise any medical
548
cannabis, cannabis products, or medical cannabis devices.
549
(b) A cannabis processing facility may:
550
(i) if the website has age verification mechanisms that effectively prevent access by
551
individuals under 21 years old, maintain a website that contains:
552
(A) educational information regarding medical cannabis produced by the cannabis
553
processing facility, including the certificate of analysis that is created by an
554
independent cannabis testing facility; and
555
(B) where medical cannabis produced by the cannabis processing facility may be
556
purchased in the state; and
557
(ii) engage in targeted marketing in accordance with Section 4-41a-604 for
558
advertising a particular medical cannabis product, medical cannabis device, or
559
medical cannabis brand.
560
(4)(a) Notwithstanding any municipal or county ordinance prohibiting signage, a
561
cannabis production establishment may use signage on the outside of the cannabis
562
production establishment that:
563
(i) includes only:
564
(A) in accordance with Subsection (4)(b), the cannabis production establishment's
565
name, logo, and hours of operation; and
566
(B) a green cross; and
567
(ii) complies with local ordinances regulating signage.
568
(b) The department shall define standards for a cannabis production establishment's
569
name and logo to ensure a medical rather than recreational disposition.
570
(5)(a) A cannabis production establishment may hold an educational event for the public
571
or medical providers in accordance with this Subsection (5) and the rules described in
- 17 - H.B. 54 Enrolled Copy
572
Subsection (5)(c).
573
(b) A cannabis production establishment may not include in an educational event
574
described in Subsection (5)(a):
575
(i) any topic that conflicts with this chapter or Title 26B, Chapter 4, Part 2,
576
Cannabinoid Research and Medical Cannabis;
577
(ii) any gift items or merchandise other than educational materials, as those terms are
578
defined by the department;
579
(iii) any marketing for a specific product from the cannabis production establishment
580
or any other statement, claim, or information that would violate the federal Food,
581
Drug, and Cosmetic Act, 21 U.S.C. Sec. 301, et seq.; or
582
(iv) a presenter other than the following:
583
(A) a cannabis production establishment agent;
584
(B) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
585
(C) an advanced practice registered nurse licensed under Title 58, Chapter 31b,
586
Nurse Practice Act;
587
(D) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
588
Title 58, Chapter 68, Utah Osteopathic Medical Practice Act;
589
(E) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
590
Assistant Act; or
591
(F) a state employee.
592
(c) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
593
Administrative Rulemaking Act, to define the elements of and restrictions on the
594
educational event described in Subsection (5)(a), including a minimum age of 21
595
years old for attendees.
596
Section 9. Section 4-41a-501 is amended to read:
597
4-41a-501 . Cannabis cultivation facility -- Operating requirements.
598
(1) A cannabis cultivation facility shall ensure that any cannabis growing at the cannabis
599
cultivation facility is not visible from the ground level of the cannabis cultivation facility
600
perimeter.
601
(2) A cannabis cultivation facility shall use a unique identifier that is connected to the
602
facility's inventory control system to identify:
603
(a) beginning at the time a cannabis plant is eight inches tall and has a root ball, each
604
cannabis plant;
605
(b) each unique harvest of cannabis plants;
- 18 - Enrolled Copy H.B. 54
606
(c) each batch of cannabis the facility transfers to a medical cannabis pharmacy, a
607
cannabis processing facility, or an independent cannabis testing laboratory; and
608
(d) any excess, contaminated, or deteriorated cannabis of which the cannabis cultivation
609
facility disposes.
610
(3) A cannabis cultivation facility shall identify cannabis biomass as cannabis byproduct or
611
cannabis plant product before transferring the cannabis biomass from the facility.
612
(4) A cannabis cultivation facility shall either:
613
(a) ensure that a cannabis processing facility chemically or physically processes
614
cannabis cultivation byproduct to produce a cannabis concentrate for incorporation
615
into cannabis derivative products; or
616
(b) destroy cannabis cultivation byproduct in accordance with Section 4-41a-405.
617
(5) A cannabis cultivation facility may utilize radiation-based methods and equipment for
618
quality assurance or remediation purposes.
619
(6) The department shall make rules establishing:
620
(a) the records a cannabis cultivation facility must keep regarding each batch, amount of
621
product treated, and the methods used; and
622
(b) disclosure requirements to a cannabis processor receiving the material subject to the
623
radiation including the methods and equipment used.
624
Section 10. Section 4-41a-701 is amended to read:
625
4-41a-701 . Cannabis and cannabis product testing.
626
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
627
department may make rules to:
628
(a) determine required adulterant tests for a cannabis plant product, cannabis
629
concentrate, or cannabis product;
630
(b) determine the amount of any adulterant that is safe for human consumption;
631
(c) immediately ban or limit the presence of any ingredient in a medical cannabis
632
product after receiving a recommendation to do so from a public health authority
633
under Section 26B-1-102;
634
(d) establish protocols for a recall of [cannabis or a cannabis product] medical cannabis
635
by a cannabis production establishment; or
636
(e) allow the propagation of testing results forward to derived product if the processing
637
steps the cannabis production establishment uses to produce the product are unlikely
638
to change the results of the test.
639
(2)(a) The department may require testing for a toxin if:
- 19 - H.B. 54 Enrolled Copy
640
[(a)] (i) the department receives information indicating the potential presence of a
641
toxin; or
642
[(b)] (ii) the department's inspector has reason to believe a toxin may be present based
643
on the inspection of a facility.
644
(b) The department may not require a cannabis processor to test a cannabis batch or a
645
cannabis product batch a third time if the cannabis batch or cannabis product has
646
previously met all testing requirements after being tested by:
647
(i) an independent cannabis testing laboratory that is not the department; and
648
(ii) the department.
649
(3)(a) A cannabis production establishment may not:
650
(i) incorporate cannabis concentrate into a cannabis derivative product until an
651
independent cannabis testing laboratory tests the cannabis concentrate in
652
accordance with department rule; or
653
(ii) transfer cannabis or a cannabis product to a medical cannabis pharmacy until an
654
independent cannabis testing laboratory tests a representative sample of the
655
cannabis or cannabis product in accordance with department rule.
656
(b) A medical cannabis pharmacy may not offer any cannabis or cannabis product for
657
sale unless an independent cannabis testing laboratory has tested a representative
658
sample of the cannabis or cannabis product in accordance with department rule.
659
(4) Before the sale of a medical cannabis product, an independent cannabis testing
660
laboratory shall:
661
(a) identify and quantify any cannabinoid known to be present in [a] the medical
662
cannabis product; and
663
(b) test terpene profiles for the following products:
664
(i) raw cannabis; or
665
(ii) a cannabis product:
666
(A) contained in a vaporizer cartridge; or
667
(B) in concentrate form; and
668
(c) record the five highest terpene profiles tested under Subsection (4)(b).
669
(5) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah
670
Administrative Rulemaking Act, the standards, methods, practices, and procedures for
671
the testing of cannabis and cannabis products by independent cannabis testing
672
laboratories.
673
(6) The department may require an independent cannabis testing laboratory to participate in
- 20 - Enrolled Copy H.B. 54
674
a proficiency evaluation that the department conducts or that an organization that the
675
department approves conducts.
676
Section 11. Section 4-41a-801 is amended to read:
677
4-41a-801 . Enforcement -- Fine -- Citation.
678
(1) If a person that is a cannabis production establishment or a cannabis production
679
establishment agent violates this chapter, the department may:
680
(a) revoke the person's license or cannabis production establishment agent registration
681
card;
682
(b) decline to renew the person's license or cannabis production establishment agent
683
registration card; or
684
(c) assess the person an administrative penalty that the department establishes by rule in
685
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
686
(2) The department shall deposit an administrative penalty imposed under this section into
687
the General Fund.
688
(3)(a) The department may take an action described in Subsection (3)(b) if the
689
department concludes, upon investigation, that, for a person that is a cannabis
690
production establishment or a cannabis production establishment agent:
691
(i) the person has violated the provisions of this chapter, a rule made under this
692
chapter, or an order issued under this chapter; or.
693
(ii) the person produced cannabis or a cannabis product batch that contains a
694
substance, other than cannabis, that poses a significant threat to human health.
695
(b) If the department makes the determination about a person described in Subsection
696
(3)(a), the department shall:
697
(i) issue the person a written administrative citation;
698
(ii) attempt to negotiate a stipulated settlement;
699
[(iii) seize, embargo, or destroy the cannabis or cannabis product batch;]
700
[(iv)] (iii) order the person to cease and desist from the action that creates a violation; [
701
and] or
702
[(v)] (iv) direct the person to appear before an adjudicative proceeding conducted
703
under Title 63G, Chapter 4, Administrative Procedures Act.
704
(c) If the department concludes, upon investigation, that a cannabis production
705
establishment or a cannabis production establishment agent has produced a cannabis
706
batch or a cannabis product batch that contains a substance that poses a significant
707
threat to human health, the department shall seize, embargo, or destroy the cannabis
- 21 - H.B. 54 Enrolled Copy
708
batch or cannabis product batch.
709
(4) The department may, for a person subject to an uncontested citation, a stipulated
710
settlement, or a finding of a violation in an adjudicative proceeding under this section,
711
for a fine amount not already specified in law, assess the person, who is not an
712
individual, a fine of up to $5,000 per violation, in accordance with a fine schedule that
713
the department establishes by rule in accordance with Title 63G, Chapter 3, Utah
714
Administrative Rulemaking Act.
715
(5) The department may not revoke a [cannabis production establishment's ]license without
716
first directing the [cannabis production establishment] licensee to appear before an
717
adjudicative proceeding conducted under Title 63G, Chapter 4, Administrative
718
Procedures Act.
719
(6) If within [20] 30 calendar days after the day on which a department serves a citation for
720
a violation of this chapter, the person that is the subject of the citation fails to request a
721
hearing to contest the citation, the citation becomes the department's final order.
722
(7) The department may, for a person who fails to comply with a citation under this section:
723
(a) refuse to issue or renew the person's license or cannabis production establishment
724
agent registration card; or
725
(b) suspend, revoke, or place on probation the person's license or cannabis production
726
establishment registration card.
727
(8)(a) Except where a criminal penalty is expressly provided for a specific violation of
728
this chapter, if an individual:
729
(i) violates a provision of this chapter, the individual is:
730
(A) guilty of an infraction; and
731
(B) subject to a $100 fine; or
732
(ii) intentionally or knowingly violates a provision of this chapter or violates this
733
chapter three or more times, the individual is:
734
(A) guilty of a class B misdemeanor; and
735
(B) subject to a $1,000 fine.
736
(b) An individual who is guilty of a violation described in Subsection (8)(a) is not guilty
737
of a violation of Title 58, Chapter 37, Utah Controlled Substances Act, for the
738
conduct underlying the violation described in Subsection (8)(a).
739
(9) Nothing in this section prohibits the department from referring potential criminal
740
activity to law enforcement.
741
(10) An appeal of administrative action taken under this chapter shall be heard by an
- 22 - Enrolled Copy H.B. 54
742
administrative law judge as an informal proceeding in accordance with Title 63G,
743
Chapter 4, Administrative Procedures Act.
744
Section 12. Section 4-41a-802 is amended to read:
745
4-41a-802 . Report.
746
(1) At or before the November interim meeting each year, the department shall report to the
747
Health and Human Services Interim Committee on:
748
(a) the number of applications and renewal applications that the department receives
749
under this chapter;
750
(b) the number of each type of cannabis production facility that the department licenses
751
in each county;
752
(c) the amount of cannabis that licensees grow;
753
(d) the amount of cannabis that licensees manufacture into cannabis products;
754
(e) the number of licenses the department revokes under this chapter;
755
(f) the department's operation of an independent cannabis testing laboratory under
756
Section 4-41a-201, including:
757
(i) the cannabis and cannabis products the department tested; and
758
(ii) the results of the tests the department performed;
759
(g) the expenses incurred and revenues generated under this chapter; and
760
(h) an analysis of product availability in medical cannabis pharmacies in consultation
761
with the Department of Health and Human Services.
762
(2) The department may not include personally identifying information in the report
763
described in this section.
764
(3) The department shall report to the working group described in Section 36-12-8.2 as
765
requested by the working group.
766
(4)(a) Before August 1, of each year, the department shall provide a report to the
767
working group described in Section 36-12-8.2 that provides the following for each
768
fine issued by the department under this chapter:
769
(i) the date of the fine;
770
(ii) the reference to the statute or rule that was violated for each fine issued; and
771
(iii) a short description explaining why the fine was issued.
772
(b) The report described in Subsection (4)(a) may not include identifying information of
773
the person that was subject to the fine.
774
Section 13. Section 4-41a-1001 is amended to read:
775
4-41a-1001 . Medical cannabis pharmacy -- License -- Eligibility.
- 23 - H.B. 54 Enrolled Copy
776
(1) A person may not:
777
(a) operate as a medical cannabis pharmacy without a license that the department issues
778
under this part;
779
(b) obtain a medical cannabis pharmacy license if obtaining the license would cause the
780
person to exceed the pharmacy ownership limit;
781
(c) obtain a partial ownership share of a medical cannabis pharmacy if obtaining the
782
partial ownership share would cause the person to exceed the pharmacy ownership
783
limit; or
784
(d) enter into any contract or agreement that allows the person to directly or indirectly
785
control the operations of a medical cannabis pharmacy if the person's control of the
786
medical cannabis pharmacy would cause the person to effectively exceed the
787
pharmacy ownership limit.
788
(2)(a)(i) Subject to Subsections (4) and (5) and to Section 4-41a-1005, the department
789
shall issue a license to operate a medical cannabis pharmacy through the licensing
790
board created under Section 4-41a-201.1.
791
(ii) The department may not issue a license to operate a medical cannabis pharmacy
792
to an applicant who is not eligible for a license under this section.
793
(b) An applicant is eligible for a license under this section if the applicant submits to the
794
department:
795
(i) subject to Subsection (2)(c), a proposed name and address where the applicant will
796
operate the medical cannabis pharmacy;
797
(ii) the name and address of an individual who:
798
(A) for a publicly traded company, has a financial or voting interest of 10% or
799
greater in the proposed medical cannabis pharmacy;
800
(B) for a privately held company, a financial or voting interest in the proposed
801
medical cannabis pharmacy; or
802
(C) has the power to direct or cause the management or control of a proposed
803
medical cannabis pharmacy;
804
(iii) for each application that the applicant submits to the department, a statement
805
from the applicant that the applicant will obtain and maintain:
806
(A) a performance bond in the amount of $100,000 issued by a surety authorized
807
to transact surety business in the state; or
808
(B) a liquid cash account in the amount of $100,000 with a financial institution;
809
(iv) an operating plan that:
- 24 - Enrolled Copy H.B. 54
810
(A) complies with Section 4-41a-1004;
811
(B) includes operating procedures to comply with the operating requirements for a
812
medical cannabis pharmacy described in this part and with a relevant municipal
813
or county law that is consistent with Section 4-41a-1106; and
814
(C) the department approves;
815
(v) an application fee in an amount that, subject to Subsection 4-41a-104(5), the
816
department sets in accordance with Section 63J-1-504; and
817
(vi) a description of any investigation or adverse action taken by any licensing
818
jurisdiction, government agency, law enforcement agency, or court in any state for
819
any violation or detrimental conduct in relation to any of the applicant's
820
cannabis-related operations or businesses.
821
(c)(i) A person may not locate a medical cannabis pharmacy:
822
(A) within 200 feet of a community location; or
823
(B) in or within 600 feet of a district that the relevant municipality or county has
824
zoned as primarily residential.
825
(ii) The proximity requirements described in Subsection (2)(c)(i) shall be measured
826
from the nearest entrance to the medical cannabis pharmacy establishment by
827
following the shortest route of ordinary pedestrian travel to the property boundary
828
of the community location or residential area.
829
(iii) The department may grant a waiver to reduce the proximity requirements in
830
Subsection (2)(c)(i) by up to 20% if the department determines that it is not
831
reasonably feasible for the applicant to cite the proposed medical cannabis
832
pharmacy without the waiver.
833
(iv) An applicant for a license under this section shall provide evidence of
834
compliance with the proximity requirements described in Subsection (2)(c)(i).
835
(d) The department may not issue a license to an eligible applicant that the department
836
has selected to receive a license until the selected eligible applicant complies with the
837
bond or liquid cash requirement described in Subsection (2)(b)(iii).
838
(e) If the department receives more than one application for a medical cannabis
839
pharmacy within the same city or town, the department shall consult with the local
840
land use authority before approving any of the applications pertaining to that city or
841
town.
842
(f) In considering the issuance of a medical cannabis pharmacy license under this
843
section, the department may consider the extent to which the pharmacy can increase
- 25 - H.B. 54 Enrolled Copy
844
efficiency and reduce cost to patients of medical cannabis.
845
[(3) If the department selects an applicant ]
846
(3)(a) After an entity has been selected for a medical cannabis pharmacy license under
847
this section, the department shall:
848
[(a)] (i) charge the applicant an initial license fee in an amount that, subject to
849
Subsection 4-41a-104(5), the department sets in accordance with Section
850
63J-1-504;
851
[(b)] (ii) notify the Department of Public Safety of the license approval and the names
852
of each individual described in Subsection (2)(b)(ii); and
853
[(c)] (iii) charge the licensee a fee in an amount that, subject to Subsection 4-41a-104
854
(5), the department sets in accordance with Section 63J-1-504, for any change in
855
location, ownership, or company structure.
856
(b) For a fee described in Subsection (3)(a)(i), a license fee for a medical cannabis
857
pharmacy located in a medically underserved area as determined by the federal
858
Health Resources and Services Administration shall be 50% less than what is charged
859
for other medical cannabis pharmacies.
860
(4) The department may not issue a license to operate a medical cannabis pharmacy to an
861
applicant if an individual described in Subsection (2)(b)(ii):
862
(a) has been convicted under state or federal law of:
863
(i) a felony in the preceding 10 years; or
864
(ii) after December 3, 2018, a misdemeanor for drug distribution;
865
(b) is younger than 21 years old; or
866
(c) after September 23, 2019, until January 1, 2023, is actively serving as a legislator.
867
(5)[(a)] If an applicant for a medical cannabis pharmacy license under this section holds
868
another license under this chapter, the department may not give preference to the
869
applicant based on the applicant's status as a holder of the license.
870
[(b) If an applicant for a medical cannabis pharmacy license under this section holds a
871
license to operate a cannabis cultivation facility under this section, the department
872
may give consideration to the applicant's status as a holder of the license if:]
873
[(i) the applicant demonstrates that a decrease in costs to patients is more likely to
874
result from the applicant's vertical integration than from a more competitive
875
marketplace; and]
876
[(ii) the department finds multiple other factors, in addition to the existing license,
877
that support granting the new license.]
- 26 - Enrolled Copy H.B. 54
878
(6) The licensing board may revoke a license under this part:
879
(a) if the medical cannabis pharmacy does not begin operations within one year after the
880
day on which the department issues an announcement of the department's intent to
881
award a license to the medical cannabis pharmacy;
882
(b) after the third the same violation of this chapter in any of the licensee's licensed
883
cannabis production establishments or medical cannabis pharmacies;
884
(c) if an individual described in Subsection (2)(b)(ii) is convicted, while the license is
885
active, under state or federal law of:
886
(i) a felony; or
887
(ii) after December 3, 2018, a misdemeanor for drug distribution;
888
(d) if the licensee fails to provide the information described in Subsection (2)(b)(vi) at
889
the time of application, or fails to supplement the information described in
890
Subsection (2)(b)(vi) with any investigation or adverse action that occurs after the
891
submission of the application within 14 calendar days after the licensee receives
892
notice of the investigation or adverse action;
893
(e) if the medical cannabis pharmacy demonstrates a willful or reckless disregard for the
894
requirements of this chapter or the rules the department makes in accordance with
895
this chapter;
896
(f) if, after a change of ownership described in Subsection (11)(c), the department
897
determines that the medical cannabis pharmacy no longer meets the minimum
898
standards for licensure and operation of the medical cannabis pharmacy described in
899
this chapter; or
900
(g) if through an investigation conducted under Subsection 4-41a-201.1(11) and in
901
accordance with Title 63G, Chapter 4, Administrative Procedures Act, the board
902
finds that the licensee has participated in anticompetitive business practices.
903
(7)(a) A person who receives a medical cannabis pharmacy license under this chapter, if
904
the municipality or county where the licensed medical cannabis pharmacy will be
905
located requires a local land use permit, shall submit to the department a copy of the
906
licensee's approved application for the land use permit within 120 days after the day
907
on which the department issues the license.
908
(b) If a licensee fails to submit to the department a copy the licensee's approved land use
909
permit application in accordance with Subsection (7)(a), the department may revoke
910
the licensee's license.
911
(8) The department shall deposit the proceeds of a fee imposed by this section into the
- 27 - H.B. 54 Enrolled Copy
912
Qualified Production Enterprise Fund.
913
(9) The department shall begin accepting applications under this part on or before March 1,
914
2020.
915
(10)(a) The department's authority to issue a license under this section is plenary and is
916
not subject to review.
917
(b) Notwithstanding Subsection (2), the decision of the department to award a license to
918
an applicant is not subject to:
919
(i) Title 63G, Chapter 6a, Part 16, Protests; or
920
(ii) Title 63G, Chapter 6a, Part 17, Procurement Appeals Board.
921
(11)(a) A medical cannabis pharmacy license is not transferrable or assignable.
922
(b) A medical cannabis pharmacy shall report in writing to the department no later than
923
10 business days before the date of any change of ownership of the medical cannabis
924
pharmacy.
925
(c) If the ownership of a medical cannabis pharmacy changes by 50% or more:
926
(i) concurrent with the report described in Subsection (11)(b), the medical cannabis
927
pharmacy shall submit a new application described in Subsection (2)(b), subject to
928
Subsection (2)(c);
929
(ii) within 30 days of the submission of the application, the department shall:
930
(A) conduct an application review; and
931
(B) award a license to the medical cannabis pharmacy for the remainder of the
932
term of the medical cannabis pharmacy's license before the ownership change
933
if the medical cannabis pharmacy meets the minimum standards for licensure
934
and operation of the medical cannabis pharmacy described in this chapter; and
935
(iii) if the department approves the license application, notwithstanding Subsection
936
(3), the medical cannabis pharmacy shall pay a license fee that the department sets
937
in accordance with Section 63J-1-504 in an amount that covers the department's
938
cost of conducting the application review.
939
Section 14. Section 4-41a-1003 is amended to read:
940
4-41a-1003 . Renewal -- Notice of available license.
941
(1)(a) The department shall renew a license [under Sections 4-41a-1001 through
942
4-41a-1005] issued under this part every year if, at the time of renewal:
943
[(a)] (i) the licensee meets the requirements of Section 4-41a-1001;
944
[(b)] (ii) the licensee pays the department a license renewal fee in an amount that,
945
subject to Subsection 4-41a-1004(5), the department sets in accordance with
- 28 - Enrolled Copy H.B. 54
946
Section 63J-1-504; and
947
[(c)] (iii) if the medical cannabis pharmacy changes the operating plan described in
948
Section 4-41a-1004 that the department approved under Subsection
949
4-41a-1001(2)(b)(iv), the department approves the new operating plan.
950
(b) A license fee for a medical cannabis pharmacy located in a county of the third,
951
fourth, fifth, or sixth class shall be 50% less than what is charged for other medical
952
cannabis pharmacies.
953
(2)(a) If a licensed medical cannabis pharmacy abandons the medical cannabis
954
pharmacy's license, the department shall publish notice of an available license[ ], for
955
the geographic area in which the medical cannabis pharmacy license is available, as a
956
class A notice under Section 63G-30-102, for at least seven days.
957
(b) The department may establish criteria, in collaboration with the Division of
958
Professional Licensing and the Board of Pharmacy and in accordance with Title 63G,
959
Chapter 3, Utah Administrative Rulemaking Act, to identify the medical cannabis
960
pharmacy actions that constitute abandonment of a medical cannabis pharmacy
961
license.
962
(3) If the department has not completed the necessary processes to make a determination on
963
a license renewal under Subsections (1)(a) and (c) before the expiration of a license, the
964
department may issue a conditional medical cannabis pharmacy license to a licensed
965
medical cannabis pharmacy that has applied for license renewal under this section and
966
paid the fee described in Subsection (1)(b).
967
Section 15. Section 4-41a-1005 is amended to read:
968
4-41a-1005 . Maximum number of licenses.
969
(1)[(a) Except as provided in Subsection (1)(b) or (d), if a sufficient number of
970
applicants apply, the department] The licensing board shall issue up to [15] 17 medical
971
cannabis pharmacy licenses in accordance with this section including the two medical
972
cannabis pharmacy licenses in accordance with Section 4-41a-1006.
973
[(b) If an insufficient number of qualified applicants apply for the available number of
974
medical cannabis pharmacy licenses, the department shall issue a medical cannabis
975
pharmacy license to each qualified applicant.]
976
[(c) The department may issue the licenses described in Subsection (1)(a) in accordance
977
with this Subsection (1)(c).]
978
[(i) Using one procurement process, the department may issue eight licenses to an
979
initial group of medical cannabis pharmacies and six licenses to a second group of
- 29 - H.B. 54 Enrolled Copy
980
medical cannabis pharmacies.]
981
[(ii) The department shall:]
982
[(A) divide the state into no less than four geographic regions, set by the
983
department in rule;]
984
[(B) issue at least one license in each geographic region during each phase of
985
issuing licenses; and]
986
[(C) complete the process of issuing medical cannabis pharmacy licenses no later
987
than July 1, 2020.]
988
[(iii) In issuing a 15th license under Subsection (1), the department shall ensure that
989
the license recipient will locate the medical cannabis pharmacy within Dagget,
990
Duchesne, Uintah, Carbon, Sevier, Emery, Grand, or San Juan County.]
991
[(d)(i) The department may issue licenses to operate a medical cannabis pharmacy in
992
addition to the licenses described in Subsection (1)(a) if the department
993
determines, in consultation with the Department of Health and Human Services
994
and after an annual or more frequent analysis of the current and anticipated market
995
for medical cannabis, that each additional license is necessary to provide an
996
adequate supply, quality, or variety of medical cannabis to medical cannabis
997
cardholders.]
998
[(ii) The department shall:]
999
[(A) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
1000
Act, make rules to establish criteria and processes for the consultation,
1001
analysis, and application for a license described in Subsection (1)(d)(i); and]
1002
[(B) report to the Executive Appropriations Committee of the Legislature before
1003
each time the department issues an additional license under Subsection
1004
(1)(d)(i) regarding the results of the consultation and analysis described in
1005
Subsection (1)(d)(i) and the application of the criteria described in Subsection
1006
(1)(d)(ii)(A).]
1007
(2)(a) [If there are more qualified applicants than there are available licenses for medical
1008
cannabis pharmacies, the department] The licensing board shall:
1009
(i) evaluate each applicant and award the license to the applicant that best
1010
demonstrates:
1011
(A) experience with establishing and successfully operating a business that
1012
involves complying with a regulatory environment, tracking inventory, and
1013
training, evaluating, and monitoring employees;
- 30 - Enrolled Copy H.B. 54
1014
(B) an operating plan that will best ensure the safety and security of patrons and
1015
the community;
1016
(C) positive connections to the local community;
1017
(D) the suitability of the proposed location and the location's accessibility for
1018
qualifying patients;
1019
(E) the extent to which the applicant can increase efficiency and reduce the cost of
1020
medical cannabis for patients; and
1021
(F) a strategic plan described in Subsection 4-41a-1004(7) that has a
1022
comparatively high likelihood of success; and
1023
(ii) ensure a geographic dispersal among licensees that is sufficient to reasonably
1024
maximize access to the largest number of medical cannabis cardholders.
1025
(b) In making the evaluation described in Subsection (2)(a), the licensing board may
1026
give increased consideration to applicants who indicate a willingness to:
1027
(i) site a medical cannabis pharmacy in an area or population center designated as a
1028
medically underserved area or population as determined by the federal Health
1029
Resources and Services Administration; and
1030
(ii) operate as a home delivery medical cannabis pharmacy that accepts electronic
1031
medical cannabis orders.
1032
[(b) In making the evaluation described in Subsection (2)(a), the department may give
1033
increased consideration to applicants who indicate a willingness to:]
1034
[(i) operate as a home delivery medical cannabis pharmacy that accepts electronic
1035
medical cannabis orders that the state central patient portal facilitates; and]
1036
[(ii) accept payments through:]
1037
[(A) a payment provider that the Division of Finance approves, in consultation
1038
with the state treasurer, in accordance with Section 4-41a-108; or]
1039
[(B) a financial institution in accordance with Subsection 4-41a-108(4).]
1040
(3) The [department] licensing board may conduct a face-to-face interview with an applicant
1041
for a license that the [department] licensing board evaluates under Subsection (2).
1042
Section 16. Section 4-41a-1006 is enacted to read:
1043
4-41a-1006 . Independent medical cannabis licenses.
1044
(1)(a) Subject to the requirements of Subsection (3) and the criteria established for
1045
obtaining a medical cannabis pharmacy license under this chapter, the licensing
1046
board shall:
1047
(i) before January 1, 2026, select one entity to receive a medical cannabis pharmacy
- 31 - H.B. 54 Enrolled Copy
1048
license; and
1049
(ii) before January 1, 2027, but not before January 1, 2026, select one entity to
1050
receive a medical cannabis pharmacy license.
1051
(b) When selecting entities under this section, if there is a conflict between the criteria
1052
established for obtaining a medical cannabis pharmacy license under the other
1053
sections of this chapter and this section, this section controls.
1054
(2) For the license described in Subsection (1)(a)(ii), the licensing board may not select an
1055
entity:
1056
(a) that owns any interest in or operates a medical cannabis production establishment; or
1057
(b) that is owned, partially or entirely, or operated by a medical cannabis production
1058
establishment.
1059
(3) The licensing board:
1060
(a) may not select an entity to receive a license under this section if the entity owns a
1061
financial interest in a medical cannabis pharmacy or is owned by an entity that owns
1062
a financial interest in a medical cannabis pharmacy; and
1063
(b) shall select an entity that will site a medical cannabis pharmacy license issued under
1064
this section in an area:
1065
(i) designated as a medically underserved area as determined by the federal Health
1066
Resources and Services Administration; and
1067
(ii) located in a county of the third, fourth, fifth, or sixth class.
1068
(4) A license described in this section may not be transferred to another entity unless that
1069
entity meets the requirements of Subsections (2) and (3) that the transferring entity met
1070
when obtaining the license.
1071
(5) Notwithstanding Subsection (4), for a license described in Subsection (1)(a)(i), an
1072
applicant shall commit to not alienating or otherwise transferring control of the license
1073
or of the entity that holds the license to another person for at least 15 years from the day
1074
the license is issued under this chapter.
1075
(6) The department shall provide regular updates to the Medical Cannabis Governance
1076
Structure Working Group created in Section 36-12-8.2 regarding the application and
1077
selection process for licenses issued under this section.
1078
Section 17. Section 4-41a-1101 is amended to read:
1079
4-41a-1101 . Operating requirements -- General.
1080
(1)(a) A medical cannabis pharmacy shall operate:
1081
(i) at the physical address provided to the department under Section 4-41a-1001; and
- 32 - Enrolled Copy H.B. 54
1082
(ii) in accordance with the operating plan provided to the department under Section
1083
4-41a-1001 and, if applicable, Section 4-41a-1004.
1084
(b) A medical cannabis pharmacy shall notify the department before a change in the
1085
medical cannabis pharmacy's physical address or operating plan.
1086
(2) An individual may not enter a medical cannabis pharmacy unless the individual:
1087
(a) is at least 18 years old or is an emancipated minor under Section 80-7-105; and
1088
(b) except as provided in Subsection (4):
1089
(i) possesses a valid:
1090
(A) medical cannabis pharmacy agent registration card;
1091
(B) pharmacy medical provider registration card; or
1092
(C) medical cannabis card;
1093
(ii) is an employee of the department performing an inspection under Section
1094
4-41a-1103; or
1095
(iii) is another individual as the department provides.
1096
(3) A medical cannabis pharmacy may not employ an individual who is younger than 21
1097
years old.
1098
(4) Notwithstanding Subsection (2)(a), a medical cannabis pharmacy may authorize an
1099
individual who is not a medical cannabis pharmacy agent or pharmacy medical provider
1100
to access the medical cannabis pharmacy if the medical cannabis pharmacy tracks and
1101
monitors the individual at all times while the individual is at the medical cannabis
1102
pharmacy and maintains a record of the individual's access.
1103
(5) A medical cannabis pharmacy shall operate in a facility that has:
1104
(a) a single, secure public entrance;
1105
(b) a security system with a backup power source that:
1106
(i) detects and records entry into the medical cannabis pharmacy; and
1107
(ii) provides notice of an unauthorized entry to law enforcement when the medical
1108
cannabis pharmacy is closed; and
1109
(c) a lock on each area where the medical cannabis pharmacy stores [cannabis or a
1110
cannabis product] medical cannabis.
1111
(6) A medical cannabis pharmacy shall post, both clearly and conspicuously in the medical
1112
cannabis pharmacy, the limit on the purchase of cannabis described in Subsection
1113
4-41a-1102(2).
1114
(7) Except for an emergency situation described in Subsection 26B-4-213(3)(c), a medical
1115
cannabis pharmacy may not allow any individual to consume cannabis on the property
- 33 - H.B. 54 Enrolled Copy
1116
or premises of the medical cannabis pharmacy.
1117
(8) A medical cannabis pharmacy may not sell [cannabis or a cannabis product] medical
1118
cannabis without first indicating on the [cannabis or cannabis product] medical cannabis
1119
label the name of the medical cannabis pharmacy.
1120
(9)(a) Each medical cannabis pharmacy shall retain in the pharmacy's records the
1121
following information regarding each recommendation underlying a transaction:
1122
(i) the recommending medical provider's name, address, and telephone number;
1123
(ii) the patient's name and address;
1124
(iii) the date of issuance;
1125
(iv) directions of use and dosing guidelines or an indication that the recommending
1126
medical provider did not recommend specific directions of use or dosing
1127
guidelines; and
1128
(v) if the patient did not complete the transaction, the name of the medical cannabis
1129
cardholder who completed the transaction.
1130
(b)(i) Except as provided in Subsection (9)(b)(iii), a medical cannabis pharmacy may
1131
not sell medical cannabis unless the medical cannabis has a label securely affixed
1132
to the container indicating the following minimum information:
1133
(A) the name, address, and telephone number of the medical cannabis pharmacy;
1134
(B) the unique identification number that the medical cannabis pharmacy assigns;
1135
(C) the date of the sale;
1136
(D) the name of the patient;
1137
(E) the name of the recommending medical provider who recommended the
1138
medical cannabis treatment;
1139
(F) directions for use and cautionary statements, if any;
1140
(G) the amount dispensed and the cannabinoid content;
1141
(H) the suggested use date;
1142
(I) for unprocessed cannabis flower, the legal use termination date; and
1143
(J) any other requirements that the department determines, in consultation with the
1144
Division of Professional Licensing and the Board of Pharmacy.
1145
(ii) A medical cannabis pharmacy is exempt from the requirement to provide the
1146
following information under Subsection (9)(b)(i) if the information is already
1147
provided on the product label that a cannabis production establishment affixes:
1148
(A) a unique identification number;
1149
(B) directions for use and cautionary statements;
- 34 - Enrolled Copy H.B. 54
1150
(C) amount and cannabinoid content; and
1151
(D) a suggested use date.
1152
(iii) If the size of a medical cannabis container does not allow sufficient space to
1153
include the labeling requirements described in Subsection (9)(b)(i), the medical
1154
cannabis pharmacy may provide the following information described in
1155
Subsection (9)(b)(i) on a supplemental label attached to the container or an
1156
informational enclosure that accompanies the container:
1157
(A) the cannabinoid content;
1158
(B) the suggested use date; and
1159
(C) any other requirements that the department determines.
1160
(iv) A medical cannabis pharmacy may sell medical cannabis to another medical
1161
cannabis pharmacy without a label described in Subsection (9)(b)(i).
1162
(10) A pharmacy medical provider or medical cannabis pharmacy agent shall:
1163
(a) upon receipt of an order from a limited medical provider in accordance with
1164
Subsections 26B-4-204(1)(b) through (d):
1165
(i) for a written order or an electronic order under circumstances that the department
1166
determines, contact the limited medical provider or the limited medical provider's
1167
office to verify the validity of the recommendation; and
1168
(ii) for an order that the pharmacy medical provider or medical cannabis pharmacy
1169
agent verifies under Subsection (10)(a)(i) or an electronic order that is not subject
1170
to verification under Subsection (10)(a)(i), enter the limited medical provider's
1171
recommendation or renewal, including any associated directions of use, dosing
1172
guidelines, or caregiver indication, in the state electronic verification system;
1173
(b) in processing an order for a holder of a conditional medical cannabis card described
1174
in Subsection 26B-4-213(1)(b) that appears irregular or suspicious in the judgment of
1175
the pharmacy medical provider or medical cannabis pharmacy agent, contact the
1176
recommending medical provider or the recommending medical provider's office to
1177
verify the validity of the recommendation before processing the cardholder's order;
1178
(c) unless the medical cannabis cardholder has had a consultation under Subsection
1179
26B-4-231(5), verbally offer to a medical cannabis cardholder at the time of a
1180
purchase of [cannabis, a cannabis product,] medical cannabis or a medical cannabis
1181
device, personal counseling with the pharmacy medical provider; and
1182
(d) provide a telephone number or website by which the cardholder may contact a
1183
pharmacy medical provider for counseling.
- 35 - H.B. 54 Enrolled Copy
1184
(11)(a) A medical cannabis pharmacy may create a medical cannabis disposal program
1185
that allows an individual to deposit unused or excess medical cannabis or cannabis
1186
residue from a medical cannabis device in a locked box or other secure receptacle
1187
within the medical cannabis pharmacy.
1188
(b) A medical cannabis pharmacy with a disposal program described in Subsection
1189
(11)(a) shall ensure that only a medical cannabis pharmacy agent or pharmacy
1190
medical provider can access deposited medical cannabis.
1191
(c) A medical cannabis pharmacy shall dispose of any deposited medical cannabis by:
1192
(i) rendering the deposited medical cannabis unusable and unrecognizable before
1193
transporting deposited medical cannabis from the medical cannabis pharmacy; and
1194
(ii) disposing of the deposited medical cannabis in accordance with:
1195
(A) federal and state law, rules, and regulations related to hazardous waste;
1196
(B) the Resource Conservation and Recovery Act, 42 U.S.C. Sec. 6991 et seq.;
1197
(C) Title 19, Chapter 6, Part 5, Solid Waste Management Act; and
1198
(D) other regulations that the department makes in accordance with Title 63G,
1199
Chapter 3, Utah Administrative Rulemaking Act.
1200
(12) A medical cannabis pharmacy:
1201
(a) shall employ a pharmacist who is licensed under Title 58, Chapter 17b, Pharmacy
1202
Practice Act, as a pharmacy medical provider;
1203
(b) may employ a physician who has the authority to write a prescription and is licensed
1204
under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah
1205
Osteopathic Medical Practice Act, as a pharmacy medical provider;
1206
(c) shall ensure that a pharmacy medical provider described in Subsection (12)(a) works
1207
onsite during all business hours;
1208
(d) shall designate one pharmacy medical provider described in Subsection (12)(a) as the
1209
pharmacist-in-charge to oversee the operation of and generally supervise the medical
1210
cannabis pharmacy;[ and]
1211
(e) shall allow the pharmacist-in-charge to determine which [cannabis and cannabis
1212
products] medical cannabis products the medical cannabis pharmacy maintains in the
1213
medical cannabis pharmacy's inventory[.] ; and
1214
(f) for each medical cannabis product sold by the medical cannabis pharmacy, shall:
1215
(i) allow a medical cannabis cardholder located in the pharmacy to view the back
1216
panel of the product when requested; and
1217
(ii) beginning July 1, 2025, include a picture of the back panel of the product on the
- 36 - Enrolled Copy H.B. 54
1218
medical cannabis pharmacy's website.
1219
(13) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah
1220
Administrative Rulemaking Act, protocols for a recall of cannabis and cannabis products
1221
by a medical cannabis pharmacy.
1222
Section 18. Section 4-41a-1201 is amended to read:
1223
4-41a-1201 . Medical cannabis home delivery designation.
1224
(1) The department may designate a medical cannabis pharmacy as a home delivery
1225
medical cannabis pharmacy if the department determines that the medical cannabis
1226
pharmacy's operating plan demonstrates the functional and technical ability to:
1227
(a) safely conduct transactions for medical cannabis shipments;
1228
(b) accept electronic medical cannabis orders[ that the state central patient portal
1229
facilitates]; and
1230
(c) accept payments through:
1231
(i) a payment provider that the Division of Finance approves, in consultation with the
1232
state treasurer, in accordance with Section 26-61a-603; or
1233
(ii) a financial institution in accordance with Subsection 26-61a-603(4).
1234
(2) An applicant seeking a designation as a home delivery medical cannabis pharmacy shall
1235
identify in the applicant's operating plan any information relevant to the department's
1236
evaluation described in Subsection (1), including:
1237
(a) the name and contact information of the payment provider;
1238
(b) the nature of the relationship between the prospective licensee and the payment
1239
provider;
1240
(c) the processes of the following to safely and reliably conduct transactions for medical
1241
cannabis shipments:
1242
(i) the prospective licensee; and
1243
(ii) the electronic payment provider or the financial institution described in
1244
Subsection (1)(c); and
1245
(d) the ability of the licensee to comply with the department's rules regarding the secure
1246
transportation and delivery of medical cannabis [or medical cannabis product ]to a
1247
medical cannabis cardholder.
1248
(3) Notwithstanding any county or municipal ordinance, a medical cannabis pharmacy that
1249
the department designates as a home delivery medical cannabis pharmacy may deliver
1250
medical cannabis shipments in accordance with this part.
1251
Section 19. Section 4-41a-1202 is amended to read:
- 37 - H.B. 54 Enrolled Copy
1252
4-41a-1202 . Home delivery of medical cannabis shipments -- Medical cannabis
1253
couriers -- License.
1254
(1) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
1255
Administrative Rulemaking Act, to ensure the safety, security, and efficiency of a home
1256
delivery medical cannabis pharmacy's fulfillment of electronic medical cannabis orders[
1257
that the state central patient portal facilitates], including rules regarding the safe and
1258
controlled delivery of medical cannabis shipments.
1259
(2) A person may not operate as a medical cannabis courier without a license that the
1260
department issues under this section.
1261
(3)(a) Subject to Subsections (5) and (6), the department shall issue a license to operate
1262
as a medical cannabis courier to an applicant who is eligible for a license under this
1263
section.
1264
(b) An applicant is eligible for a license under this section if the applicant submits to the
1265
department:
1266
(i) the name and address of an individual who:
1267
(A) has a financial or voting interest of 10% or greater in the proposed medical
1268
cannabis courier; or
1269
(B) has the power to direct or cause the management or control of a proposed
1270
cannabis production establishment;
1271
(ii) an operating plan that includes operating procedures to comply with the operating
1272
requirements for a medical cannabis courier described in this chapter; and
1273
(iii) an application fee in an amount that, subject to Subsection 4-41a-104(5), the
1274
department sets in accordance with Section 63J-1-504.
1275
(4) If the department determines that an applicant is eligible for a license under this section,
1276
the department shall:
1277
(a) charge the applicant an initial license fee in an amount that, subject to Subsection
1278
4-41a-104(5), the department sets in accordance with Section 63J-1-504; and
1279
(b) notify the Department of Public Safety of the license approval and the names of each
1280
individual described in Subsection (3)(b)(i).
1281
(5) The department may not issue a license to operate as a medical cannabis courier to an
1282
applicant if an individual described in Subsection (3)(b)(i):
1283
(a) has been convicted under state or federal law of:
1284
(i) a felony in the preceding 10 years; or
1285
(ii) after September 23, 2019, a misdemeanor for drug distribution; or
- 38 - Enrolled Copy H.B. 54
1286
(b) is younger than 21 years old.
1287
(6) The department may revoke a license under this part if:
1288
(a) the medical cannabis courier does not begin operations within one year after the day
1289
on which the department issues the initial license;
1290
(b) the medical cannabis courier makes the same violation of this chapter three times;
1291
(c) an individual described in Subsection (3)(b)(i) is convicted, while the license is
1292
active, under state or federal law of:
1293
(i) a felony; or
1294
(ii) after September 23, 2019, a misdemeanor for drug distribution; or
1295
(d) after a change of ownership described in Subsection (14)(c), the department
1296
determines that the medical cannabis courier no longer meets the minimum standards
1297
for licensure and operation of the medical cannabis courier described in this chapter.
1298
(7) The department shall deposit the proceeds of a fee imposed by this section in the
1299
Qualified Production Enterprise Fund.
1300
(8) The department's authority to issue a license under this section is plenary and is not
1301
subject to review.
1302
(9) Each applicant for a license as a medical cannabis courier shall submit, at the time of
1303
application, from each individual who has a financial or voting interest of 10% or
1304
greater in the applicant or who has the power to direct or cause the management or
1305
control of the applicant:
1306
(a) a fingerprint card in a form acceptable to the Department of Public Safety;
1307
(b) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
1308
registration of the individual's fingerprints in the Federal Bureau of Investigation
1309
Next Generation Identification System's Rap Back Service; and
1310
(c) consent to a fingerprint background check by:
1311
(i) the Bureau of Criminal Identification; and
1312
(ii) the Federal Bureau of Investigation.
1313
(10) The Bureau of Criminal Identification shall:
1314
(a) check the fingerprints the applicant submits under Subsection (9) against the
1315
applicable state, regional, and national criminal records databases, including the
1316
Federal Bureau of Investigation Next Generation Identification System;
1317
(b) report the results of the background check to the department;
1318
(c) maintain a separate file of fingerprints that applicants submit under Subsection (9)
1319
for search by future submissions to the local and regional criminal records databases,
- 39 - H.B. 54 Enrolled Copy
1320
including latent prints;
1321
(d) request that the fingerprints be retained in the Federal Bureau of Investigation Next
1322
Generation Identification System's Rap Back Service for search by future
1323
submissions to national criminal records databases, including the Next Generation
1324
Identification System and latent prints; and
1325
(e) establish a privacy risk mitigation strategy to ensure that the department only
1326
receives notifications for an individual with whom the department maintains an
1327
authorizing relationship.
1328
(11) The department shall:
1329
(a) assess an individual who submits fingerprints under Subsection (9) a fee in an
1330
amount that the department sets in accordance with Section 63J-1-504 for the
1331
services that the Bureau of Criminal Identification or another authorized agency
1332
provides under this section; and
1333
(b) remit the fee described in Subsection (11)(a) to the Bureau of Criminal Identification.
1334
(12) The department shall renew a license under this section every year if, at the time of
1335
renewal:
1336
(a) the licensee meets the requirements of this section; and
1337
(b) the licensee pays the department a license renewal fee in an amount that, subject to
1338
Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504.
1339
(13) A person applying for a medical cannabis courier license shall submit to the
1340
department a proposed operating plan that complies with this section and that includes:
1341
(a) a description of the physical characteristics of any proposed facilities, including a
1342
floor plan and an architectural elevation, and delivery vehicles;
1343
(b) a description of the credentials and experience of each officer, director, or owner of
1344
the proposed medical cannabis courier;
1345
(c) the medical cannabis courier's employee training standards;
1346
(d) a security plan; and
1347
(e) storage and delivery protocols, both short and long term, to ensure that medical
1348
cannabis shipments are stored and delivered in a manner that is sanitary and
1349
preserves the integrity of the cannabis.
1350
(14)(a) A medical cannabis courier license is not transferable or assignable.
1351
(b) A medical cannabis courier shall report in writing to the department no later than 10
1352
business days before the date of any change of ownership of the medical cannabis
1353
courier.
- 40 - Enrolled Copy H.B. 54
1354
(c) If the ownership of a medical cannabis courier changes by 50% or more:
1355
(i) concurrent with the report described in Subsection (14)(b), the medical cannabis
1356
courier shall submit a new application described in Subsection (3)(b);
1357
(ii) within 30 days of the submission of the application, the department shall:
1358
(A) conduct an application review; and
1359
(B) award a license to the medical cannabis courier for the remainder of the term
1360
of the medical cannabis courier's license before the ownership change if the
1361
medical cannabis courier meets the minimum standards for licensure and
1362
operation of the medical cannabis courier described in this chapter; and
1363
(iii) if the department approves the license application, notwithstanding Subsection
1364
(4), the medical cannabis courier shall pay a license fee that the department sets in
1365
accordance with Section 63J-1-504 in an amount that covers the board's cost of
1366
conducting the application review.
1367
(15)(a) Except as provided in Subsection(15)(b), a person may not advertise regarding
1368
the transportation of medical cannabis.
1369
(b) Notwithstanding Subsection (14)(a) and subject to Section 4-41a-109, a licensed
1370
home delivery medical cannabis pharmacy or a licensed medical cannabis courier
1371
may advertise:
1372
(i) a green cross;
1373
(ii) the pharmacy's or courier's name and logo; and
1374
(iii) that the pharmacy or courier is licensed to transport medical cannabis shipments.
1375
Section 20. Section 4-41a-1203 is amended to read:
1376
4-41a-1203 . Medical cannabis shipment transportation.
1377
(1) The department shall ensure that each home delivery medical cannabis pharmacy is
1378
capable of delivering, directly or through a medical cannabis courier, medical cannabis
1379
shipments in a secure manner.
1380
(2)(a) A home delivery medical cannabis pharmacy may contract with a licensed
1381
medical cannabis courier to deliver medical cannabis shipments to fulfill electronic
1382
medical cannabis orders[ that the state central patient portal facilitates].
1383
(b) If a home delivery medical cannabis pharmacy enters into a contract described in
1384
Subsection (2)(a), the pharmacy shall:
1385
(i) impose security and personnel requirements on the medical cannabis courier
1386
sufficient to ensure the security and safety of medical cannabis shipments; and
1387
(ii) provide regular oversight of the medical cannabis courier.
- 41 - H.B. 54 Enrolled Copy
1388
(3) Notwithstanding Subsection 4-41a-404(1), an individual may transport a medical
1389
cannabis shipment if the individual is:
1390
(a) a registered pharmacy medical provider;
1391
(b) a registered medical cannabis pharmacy agent; or
1392
(c) a registered agent of the medical cannabis courier described in Subsection (2).
1393
(4) An individual transporting a medical cannabis shipment under Subsection (3) shall
1394
comply with the requirements of Subsection 4-41a-404(3).
1395
(5) In addition to the requirements in Subsections (3) and (4), the department may establish
1396
by rule, in collaboration with the Division of Professional Licensing and the Board of
1397
Pharmacy and in accordance with Title 63G, Chapter 3, Utah Administrative
1398
Rulemaking Act, requirements for transporting medical cannabis shipments that are
1399
related to safety for human consumption of [cannabis or a cannabis product] medical
1400
cannabis.
1401
(6)(a) It is unlawful for an individual to transport a medical cannabis shipment with a
1402
manifest that does not meet the requirements of Subsection (4).
1403
(b) Except as provided in Subsection (6)(d), an individual who violates Subsection (6)(a)
1404
is:
1405
(i) guilty of an infraction; and
1406
(ii) subject to a $100 fine.
1407
(c) An individual who is guilty of a violation described in Subsection (6)(b) is not guilty
1408
of a violation of Title 58, Chapter 37, Utah Controlled Substances Act, for the
1409
conduct underlying the violation described in Subsection (6)(b).
1410
(d) If the individual described in Subsection (6)(a) is transporting more cannabis,
1411
cannabis product, or medical cannabis devices than the manifest identifies, except for
1412
a de minimis administrative error:
1413
(i) this chapter does not apply; and
1414
(ii) the individual is subject to penalties under Title 58, Chapter 37, Utah Controlled
1415
Substances Act.
1416
Section 21. Section 4-41a-1206 is amended to read:
1417
4-41a-1206 . Closed-door medical cannabis pharmacy.
1418
(1)(a) Subject to Subsections (1)(b) and (c), a home delivery medical cannabis pharmacy
1419
may open a single closed-door medical cannabis pharmacy.
1420
(b) A home delivery medical cannabis pharmacy may not open a closed-door medical
1421
cannabis pharmacy unless the home delivery medical cannabis pharmacy:
- 42 - Enrolled Copy H.B. 54
1422
(i) has an operating plan that includes a closed-door medical cannabis pharmacy; and
1423
(ii) obtains a license issued by the department for a closed-door medical cannabis
1424
pharmacy.
1425
(c) An entity that owns multiple home delivery medical cannabis pharmacies may open
1426
only one closed-door medical cannabis pharmacy.
1427
(d) The department may institute a fee in accordance with Section 63J-1-504 to
1428
administer this section.
1429
(2) A home delivery medical cannabis pharmacy that opens a closed-door medical cannabis
1430
pharmacy under Subsection (1) shall ensure:
1431
(a) that a pharmacy medical provider who is a licensed pharmacist:
1432
(i) is directly supervising the packaging of an order; and
1433
(ii) is present in the closed-door medical cannabis pharmacy when an order is
1434
packaged for delivery; and
1435
(b) all record keeping requirements, labeling requirements, and patient counseling
1436
requirements described in this chapter and Title 26B, Chapter 4, Part 2, Cannabinoid
1437
Research and Medical Cannabis, are satisfied before sending out an order.
1438
(3) An individual who prepares an order at a closed-door medical cannabis pharmacy under
1439
this section shall be registered as:
1440
(a) a pharmacy medical provider; or
1441
(b) a medical cannabis pharmacy agent.
1442
(4)(a) A closed-door medical cannabis pharmacy shall operate:
1443
(i) except as provided in Subsection (4)(b), in a facility that is accessible only by an
1444
individual who is a pharmacy medical provider or a medical cannabis pharmacy
1445
agent; and
1446
(ii) at a physical address in accordance with Subsection (6).
1447
(b) A closed-door medical cannabis pharmacy may authorize an individual who is at
1448
least 18 years old and is not a pharmacy medical provider or a cannabis pharmacy
1449
agent to access the closed-door medical cannabis pharmacy if the closed-door
1450
medical cannabis pharmacy:
1451
(i) tracks and monitors the individual at all times while the individual is at the
1452
closed-door medical cannabis pharmacy; and
1453
(ii) maintains a record of the individual's access, including arrival and departure.
1454
(c) A closed-door medical cannabis pharmacy shall operate in a facility that has:
1455
(i) a single, secure public entrance; and
- 43 - H.B. 54 Enrolled Copy
1456
(ii) a security system with a backup power source that:
1457
(A) detects and records entry into the closed-door medical cannabis pharmacy;
1458
(B) provides notice of an unauthorized entry to law enforcement when the
1459
closed-door medical cannabis pharmacy is closed; and
1460
(C) a lock or equivalent restrictive security feature on any area where the
1461
closed-door medical cannabis pharmacy stores a cannabis product.
1462
(d) A closed-door medical cannabis pharmacy shall ensure that any cannabis or cannabis
1463
products in the closed-door medical cannabis pharmacy that are intended for home
1464
delivery are separated in a manner that is readily distinguishable from any other
1465
cannabis or cannabis product in the facility.
1466
(5) A closed-door medical cannabis pharmacy may only provide cannabis or a cannabis
1467
product to an individual through a delivery that complies with this part.
1468
(6)(a) A person may not locate a closed-door medical cannabis pharmacy:
1469
(i) within 1,000 feet of a community location; or
1470
(ii) in or within 600 feet of a district that the relevant municipality or county has
1471
zoned as primarily residential.
1472
(b) The proximity requirements described in Subsection (6)(a) shall be measured from
1473
the nearest entrance to the closed-door medical cannabis pharmacy by following the
1474
shortest route of ordinary pedestrian travel to the property boundary of the
1475
community location or residential area.
1476
(c) The licensing board may grant a waiver to reduce the proximity requirements in
1477
Subsection (6)(a) by up to 20% if the licensing board determines that it is not
1478
reasonably feasible for the applicant to site the proposed closed-door medical
1479
cannabis pharmacy without the waiver.
1480
(d) An applicant for a license under this section shall provide evidence of compliance
1481
with the proximity requirements described in Subsection (6)(a).
1482
(7) When determining where a closed-door medical cannabis pharmacy may open, the
1483
licensing board:
1484
(a) shall utilize geographic regions created by the department through rule;
1485
(b) shall prioritize allowing entities that do not have a medical cannabis pharmacy in a
1486
region to open a closed-door medical cannabis pharmacy in the region;
1487
(c) of the total amount of closed-door medical cannabis pharmacies, may allow only
1488
three closed-door medical cannabis pharmacies to operate in counties of the first and
1489
second class as described in Section 17-50-501; and
- 44 - Enrolled Copy H.B. 54
1490
(d) for determining the three closed-door medical cannabis pharmacies described in
1491
Subsection (7)(c), consider the following:
1492
(i) the history of compliance with state law and rules for all licenses issued under this
1493
chapter;
1494
(ii) the medical cannabis pharmacy's willingness to offer a variety of brands and
1495
products;
1496
(iii) the ability of the operating plan to ensure the safety and security of the
1497
community;
1498
(iv) the suitability of the proposed location and the location's ability to serve the local
1499
community; and
1500
(v) any other relevant information determined through rule.
1501
(8) A closed-door medical cannabis pharmacy may not account for more than:
1502
(a) for an entity that holds a single medical cannabis pharmacy license, the greater of:
1503
(i) 35% of the medical cannabis pharmacy's total revenue; or
1504
(ii) $2,000,000 in total revenue; or
1505
(b) for an entity that holds more than one medical cannabis pharmacy license, the greater
1506
of:
1507
(i) 35% of the total revenue of the entity's medical cannabis pharmacy that generates
1508
the most revenue; or
1509
(ii) $2,000,000 in total revenue.
1510
(9) Notwithstanding any other provision of this section, the [department] licensing board
1511
may issue only [three] one closed-door medical cannabis pharmacy [licenses] license
1512
before July 1, 2027.
1513
(10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1514
department shall make rules to implement this section.
1515
Section 22. Section 26B-1-435 is amended to read:
1516
26B-1-435 . Medical Cannabis Policy Advisory Board creation -- Membership --
1517
Duties.
1518
(1) There is created within the department the Medical Cannabis Policy Advisory Board.
1519
(2)(a) The advisory board shall consist of the following members:
1520
(i) appointed by the executive director:
1521
(A) a qualified medical provider who has recommended medical cannabis to at
1522
least 100 patients before being appointed;
1523
[(B) a medical research professional;]
- 45 - H.B. 54 Enrolled Copy
1524
[(C)] (B) a mental health specialist;
1525
[(D)] (C) an individual who represents an organization that advocates for medical
1526
cannabis patients;
1527
[(E)] (D) [an individual] a member of the general public who holds a medical
1528
cannabis patient card; and
1529
[(F)] (E) a member of the general public who does not hold a medical cannabis
1530
card;[ and]
1531
(ii) appointed by the commissioner of the Department of Agriculture and Food:
1532
(A) an individual who owns or operates a licensed cannabis cultivation facility, as
1533
defined in Section 4-41a-102;
1534
(B) an individual who owns or operates a licensed medical cannabis pharmacy;
1535
and
1536
(C) a law enforcement officer[.] ; and
1537
(iii) a representative from the Center for Medical Cannabis Research created in
1538
Section 53B-14-1402, appointed by the Center for Medical Cannabis Research.
1539
(b) The commissioner of the Department of Agriculture and Food shall ensure that at
1540
least one individual appointed under Subsection (2)(a)(ii)(A) or (B) also owns or
1541
operates a licensed cannabis processing facility.
1542
(3)(a) Subject to Subsection (3)(b), a member of the advisory board shall serve for a four
1543
year term.
1544
(b) When appointing the initial membership of the advisory board, the executive director
1545
and the commissioner of the Department of Agriculture and Food shall coordinate to
1546
appoint four advisory board members to serve a term of two years to ensure that
1547
approximately half of the board is appointed every two years.
1548
(4)(a) If an advisory board member is no longer able to serve as a member, a new
1549
member shall be appointed in the same manner as the original appointment.
1550
(b) A member appointed in accordance with Subsection (4)(a) shall serve for the
1551
remainder of the unexpired term of the original appointment.
1552
(5)(a) A majority of the advisory board members constitutes a quorum.
1553
(b) The action of a majority of a quorum constitutes an action of the advisory board.
1554
(c) For a term lasting one year, the advisory board shall annually designate members of
1555
the advisory board to serve as chair and vice-chair.
1556
(d) When designating the chair and vice-chair, the advisory board shall ensure that at
1557
least one individual described Subsection (2)(a)(i) is appointed as chair or vice-chair.
- 46 - Enrolled Copy H.B. 54
1558
(6) An advisory board member may not receive compensation or benefits for the member's
1559
service on the advisory board but may receive per diem and reimbursement for travel
1560
expenses incurred as an advisory board member in accordance with:
1561
(a) Sections 63A-3-106 and 63A-3-107; and
1562
(b) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1563
63A-3-107.
1564
(7) The department shall:
1565
(a) provide staff support for the advisory board; and
1566
(b) assist the advisory board in conducting meetings.
1567
(8) The advisory board may recommend:
1568
(a) to the department or the Department of Agriculture and Food changes to current or
1569
proposed medical cannabis rules or statutes; and
1570
(b) to the appropriate legislative committee whether the advisory board supports a
1571
change to medical cannabis statutes.
1572
(9) The advisory board shall:
1573
(a) review any draft rule that is authorized under [this chapter] Chapter 4, Part 2,
1574
Cannabinoid Research and Medical Cannabis, or Title 4, Chapter 41a, Cannabis
1575
Production Establishments and Pharmacies;
1576
(b) consult with the Department of Agriculture and Food regarding the issuance of an
1577
additional:
1578
(i) cultivation facility license under Section 4-41a-205; or
1579
(ii) pharmacy license under Section 4-41a-1005;
1580
(c) consult with the department regarding cannabis patient education;
1581
(d) consult regarding the reasonableness of any fees set by the department or the
1582
Department of Agriculture and Food that pertain to the medical cannabis program;
1583
and
1584
(e) consult regarding any issue pertaining to medical cannabis when asked by the
1585
department or the Utah Department of Agriculture and Food.
1586
Section 23. Section 26B-4-201 is amended to read:
1587
26B-4-201 . Definitions.
1588
As used in this part:
1589
(1) "Active tetrahydrocannabinol" means THC, any THC analog, and
1590
tetrahydrocannabinolic acid.
1591
(2) "Administration of criminal justice" means the performance of detection, apprehension,
- 47 - H.B. 54 Enrolled Copy
1592
detention, pretrial release, post-trial release, prosecution, and adjudication.
1593
(3) "Advertise" means information provided by a person in any medium:
1594
(a) to the public; and
1595
(b) that is not age restricted to an individual who is at least 21 years old.
1596
(4) "Advisory board" means the Medical Cannabis Policy Advisory Board created in
1597
Section 26B-1-435.
1598
(5) "Cannabis Research Review Board" means the Cannabis Research Review Board
1599
created in Section 26B-1-420.
1600
(6) "Cannabis" means marijuana.
1601
(7) "Cannabis processing facility" means the same as that term is defined in Section
1602
4-41a-102.
1603
(8) "Cannabis product" means a product that:
1604
(a) is intended for human use; and
1605
(b) contains cannabis or any tetrahydrocannabinol or THC analog in a total
1606
concentration of 0.3% or greater on a dry weight basis.
1607
(9) "Cannabis production establishment" means the same as that term is defined in Section
1608
4-41a-102.
1609
(10) "Cannabis production establishment agent" means the same as that term is defined in
1610
Section 4-41a-102.
1611
(11) "Cannabis production establishment agent registration card" means the same as that
1612
term is defined in Section 4-41a-102.
1613
(12) "Conditional medical cannabis card" means an electronic medical cannabis card that
1614
the department issues in accordance with Subsection 26B-4-213(1)(b) to allow an
1615
applicant for a medical cannabis card to access medical cannabis during the department's
1616
review of the application.
1617
(13) "Controlled substance database" means the controlled substance database created in
1618
Section 58-37f-201.
1619
(14) "Delivery address" means the same as that term is defined in Section 4-41a-102.
1620
(15) "Department" means the Department of Health and Human Services.
1621
(16) "Designated caregiver" means:
1622
(a) an individual:
1623
(i) whom an individual with a medical cannabis patient card or a medical cannabis
1624
guardian card designates as the patient's caregiver; and
1625
(ii) who registers with the department under Section 26B-4-214; or
- 48 - Enrolled Copy H.B. 54
1626
(b)(i) a facility that an individual designates as a designated caregiver in accordance
1627
with Subsection 26B-4-214(1)(b); or
1628
(ii) an assigned employee of the facility described in Subsection 26B-4-214(1)(b)(ii).
1629
(17) "Directions of use" means recommended routes of administration for a medical
1630
cannabis treatment and suggested usage guidelines.
1631
(18) "Dosing guidelines" means a quantity range and frequency of administration for a
1632
recommended treatment of medical cannabis.
1633
(19) "Government issued photo identification" means any of the following forms of
1634
identification:
1635
(a) a valid state-issued driver license or identification card;
1636
(b) a valid United States federal-issued photo identification, including:
1637
(i) a United States passport;
1638
(ii) a United States passport card;
1639
(iii) a United States military identification card; or
1640
(iv) a permanent resident card or alien registration receipt card; or
1641
(c) a foreign passport.
1642
(20) "Home delivery medical cannabis pharmacy" means a medical cannabis pharmacy that
1643
the department authorizes, as part of the pharmacy's license, to deliver medical cannabis
1644
shipments to a delivery address to fulfill electronic orders[ that the state central patient
1645
portal facilitates].
1646
(21) "Inventory control system" means the system described in Section 4-41a-103.
1647
(22) "Legal dosage limit" means an amount that:
1648
(a) is sufficient to provide 30 days of treatment based on the dosing guidelines that the
1649
relevant recommending medical provider or [the state central patient portal or ]
1650
pharmacy medical provider, in accordance with Subsection [26B-4-230(5)]
1651
26B-4-231(5), recommends; and
1652
(b) may not exceed:
1653
(i) for unprocessed cannabis in a medicinal dosage form, 113 grams by weight; and
1654
(ii) for a cannabis product in a medicinal dosage form, a quantity that contains, in
1655
total, greater than 20 grams of active tetrahydrocannabinol.
1656
(23) "Legal use termination date" means a date on the label of a container of unprocessed
1657
cannabis flower:
1658
(a) that is 60 days after the date of purchase of the cannabis; and
1659
(b) after which, the cannabis is no longer in a medicinal dosage form outside of the
- 49 - H.B. 54 Enrolled Copy
1660
primary residence of the relevant medical cannabis patient cardholder.
1661
(24) "Limited medical provider" means an individual who:
1662
(a) meets the recommending qualifications; and
1663
(b) has no more than 15 patients with a valid medical cannabis patient card as a result of
1664
the individual's recommendation, in accordance with Subsection 26B-4-204(1)(b).
1665
(25) "Marijuana" means the same as that term is defined in Section 58-37-2.
1666
(26) "Medical cannabis" or "medical cannabis product" means cannabis in a medicinal
1667
dosage form or a cannabis product in a medicinal dosage form.
1668
(27) "Medical cannabis card" means a medical cannabis patient card, a medical cannabis
1669
guardian card, a medical cannabis caregiver card, or a conditional medical cannabis card.
1670
(28) "Medical cannabis cardholder" means:
1671
(a) a holder of a medical cannabis card; or
1672
(b) a facility or assigned employee, described in Subsection (16)(b), only:
1673
(i) within the scope of the facility's or assigned employee's performance of the role of
1674
a medical cannabis patient cardholder's caregiver designation under Subsection
1675
26B-4-214(1)(b); and
1676
(ii) while in possession of documentation that establishes:
1677
(A) a caregiver designation described in Subsection 26B-4-214(1)(b);
1678
(B) the identity of the individual presenting the documentation; and
1679
(C) the relation of the individual presenting the documentation to the caregiver
1680
designation.
1681
(29) "Medical cannabis caregiver card" means an electronic document that a cardholder
1682
may print or store on an electronic device or a physical card or document that:
1683
(a) the department issues to an individual whom a medical cannabis patient cardholder
1684
or a medical cannabis guardian cardholder designates as a designated caregiver; and
1685
(b) is connected to the electronic verification system.
1686
(30) "Medical cannabis courier" means the same as that term is defined in Section
1687
4-41a-102.
1688
(31)(a) "Medical cannabis device" means a device that an individual uses to ingest or
1689
inhale [cannabis in a medicinal dosage form or a cannabis product in a medicinal
1690
dosage form] medical cannabis.
1691
(b) "Medical cannabis device" does not include a device that:
1692
(i) facilitates cannabis combustion; or
1693
(ii) an individual uses to ingest substances other than cannabis.
- 50 - Enrolled Copy H.B. 54
1694
(32) "Medical cannabis guardian card" means an electronic document that a cardholder may
1695
print or store on an electronic device or a physical card or document that:
1696
(a) the department issues to the parent or legal guardian of a minor with a qualifying
1697
condition; and
1698
(b) is connected to the electronic verification system.
1699
(33) "Medical cannabis patient card" means an electronic document that a cardholder may
1700
print or store on an electronic device or a physical card or document that:
1701
(a) the department issues to an individual with a qualifying condition; and
1702
(b) is connected to the electronic verification system.
1703
(34) "Medical cannabis pharmacy" means a person that:
1704
(a)(i) acquires or intends to acquire medical cannabis [or a cannabis product in a
1705
medicinal dosage form ]from a cannabis processing facility or another medical
1706
cannabis pharmacy or a medical cannabis device; or
1707
(ii) possesses medical cannabis or a medical cannabis device; and
1708
(b) sells or intends to sell medical cannabis or a medical cannabis device to a medical
1709
cannabis cardholder.
1710
(35) "Medical cannabis pharmacy agent" means an individual who holds a valid medical
1711
cannabis pharmacy agent registration card issued by the department.
1712
(36) "Medical cannabis pharmacy agent registration card" means a registration card issued
1713
by the department that authorizes an individual to act as a medical cannabis pharmacy
1714
agent.
1715
(37) "Medical cannabis shipment" means the same as that term is defined in Section
1716
4-41a-102.
1717
(38) "Medical cannabis treatment" means [cannabis in a medicinal dosage form, a cannabis
1718
product in a medicinal dosage form, or] medical cannabis or a medical cannabis device.
1719
(39)(a) "Medicinal dosage form" means:
1720
(i) for processed medical cannabis, the following with a specific and consistent
1721
cannabinoid content:
1722
(A) a tablet;
1723
(B) a capsule;
1724
(C) a concentrated liquid or viscous oil;
1725
(D) a liquid suspension that does not exceed 30 milliliters;
1726
(E) a topical preparation;
1727
(F) a transdermal preparation;
- 51 - H.B. 54 Enrolled Copy
1728
(G) a sublingual preparation;
1729
(H) a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or
1730
rectangular cuboid shape;
1731
(I) a resin or wax;
1732
(J) an aerosol;
1733
(K) a suppository preparation; or
1734
(L) a soft or hard confection that is a uniform rectangular cuboid or uniform
1735
spherical shape, is homogeneous in color and texture, and each piece is a single
1736
serving; or
1737
(ii) for unprocessed cannabis flower, a container described in Section 4-41a-602 that:
1738
(A) contains cannabis flower in a quantity that varies by no more than 10% from
1739
the stated weight at the time of packaging;
1740
(B) at any time the medical cannabis cardholder transports or possesses the
1741
container in public, is contained within an opaque bag or box that the medical
1742
cannabis pharmacy provides; and
1743
(C) is labeled with the container's content and weight, the date of purchase, the
1744
legal use termination date, and a barcode that provides information connected
1745
to an inventory control system.
1746
(b) "Medicinal dosage form" includes a portion of unprocessed cannabis flower that:
1747
(i) the medical cannabis cardholder has recently removed from the container
1748
described in Subsection (39)(a)(ii) for use; and
1749
(ii) does not exceed the quantity described in Subsection (39)(a)(ii).
1750
(c) "Medicinal dosage form" does not include:
1751
(i) any unprocessed cannabis flower outside of the container described in Subsection
1752
(39)(a)(ii), except as provided in Subsection (39)(b);
1753
(ii) any unprocessed cannabis flower in a container described in Subsection (39)(a)(ii)
1754
after the legal use termination date;
1755
(iii) a process of vaporizing and inhaling concentrated cannabis by placing the
1756
cannabis on a nail or other metal object that is heated by a flame, including a
1757
blowtorch;
1758
(iv) a liquid suspension that is branded as a beverage;
1759
(v) a substance described in Subsection (39)(a)(i) or (ii) if the substance is not
1760
measured in grams, milligrams, or milliliters; or
1761
(vi) a substance that contains or is covered to any degree with chocolate.
- 52 - Enrolled Copy H.B. 54
1762
(40) "Nonresident patient" means an individual who:
1763
(a) is not a resident of Utah or has been a resident of Utah for less than 45 days;
1764
(b) has a currently valid medical cannabis card or the equivalent of a medical cannabis
1765
card under the laws of another state, district, territory, commonwealth, or insular
1766
possession of the United States; and
1767
(c) has been diagnosed with a qualifying condition as described in Section 26B-4-203.
1768
(41) "Pharmacy medical provider" means the medical provider required to be on site at a
1769
medical cannabis pharmacy under Section 26B-4-219.
1770
(42) "Provisional patient card" means a card that:
1771
(a) the department issues to a minor with a qualifying condition for whom:
1772
(i) a recommending medical provider has recommended a medical cannabis
1773
treatment; and
1774
(ii) the department issues a medical cannabis guardian card to the minor's parent or
1775
legal guardian; and
1776
(b) is connected to the electronic verification system.
1777
(43) "Qualified medical provider" means an individual:
1778
(a) who meets the recommending qualifications; and
1779
(b) whom the department registers to recommend treatment with cannabis in a medicinal
1780
dosage form under Section 26B-4-204.
1781
(44) "Qualified Patient Enterprise Fund" means the enterprise fund created in Section
1782
26B-1-310.
1783
(45) "Qualifying condition" means a condition described in Section 26B-4-203.
1784
(46) "Recommend" or "recommendation" means, for a recommending medical provider, the
1785
act of suggesting the use of medical cannabis treatment, which:
1786
(a) certifies the patient's eligibility for a medical cannabis card; and
1787
(b) may include, at the recommending medical provider's discretion, directions of use,
1788
with or without dosing guidelines.
1789
(47) "Recommending medical provider" means a qualified medical provider or a limited
1790
medical provider.
1791
(48) "Recommending qualifications" means that an individual:
1792
(a)(i) has the authority to write a prescription;
1793
(ii) is licensed to prescribe a controlled substance under Title 58, Chapter 37, Utah
1794
Controlled Substances Act; and
1795
(iii) possesses the authority, in accordance with the individual's scope of practice, to
- 53 - H.B. 54 Enrolled Copy
1796
prescribe a Schedule II controlled substance; and
1797
(b) is licensed as:
1798
(i) a podiatrist under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
1799
(ii) an advanced practice registered nurse under Title 58, Chapter 31b, Nurse Practice
1800
Act;
1801
(iii) a physician under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58,
1802
Chapter 68, Utah Osteopathic Medical Practice Act; or
1803
(iv) a physician assistant under Title 58, Chapter 70a, Utah Physician Assistant Act.
1804
[(49) "State central patient portal" means the website the department creates, in accordance
1805
with Section 26B-4-236, to facilitate patient safety, education, and an electronic medical
1806
cannabis order.]
1807
[(50)] (49) "State electronic verification system" means the system described in Section
1808
26B-4-202.
1809
[(51)] (50) "Targeted marketing" means the promotion by a qualified medical provider,
1810
medical clinic, or medical office that employs a qualified medical provider of a medical
1811
cannabis recommendation service using any of the following methods:
1812
(a) electronic communication to an individual who is at least 21 years old and has
1813
requested to receive promotional information;
1814
(b) an in-person marketing event that is held in an area where only an individual who is
1815
at least 21 years old may access the event;
1816
(c) other marketing material that is physically or digitally displayed in the office of the
1817
medical clinic or office that employs a qualified medical provider; or
1818
(d) a leaflet that a qualified medical provider, medical clinic, or medical office that
1819
employs a qualified medical provider shares with an individual who is at least 21
1820
years old.
1821
[(52)] (51) "Tetrahydrocannabinol" or "THC" means a substance derived from cannabis or a
1822
synthetic equivalent as described in Subsection 58-37-4(2)(a)(iii)(AA).
1823
[(53)] (52) "THC analog" means the same as that term is defined in Section 4-41-102.
1824
Section 24. Section 26B-4-202 is amended to read:
1825
26B-4-202 . Electronic verification system.
1826
(1) The Department of Agriculture and Food, the department, the Department of Public
1827
Safety, and the Division of Technology Services shall:
1828
(a) enter into a memorandum of understanding in order to determine the function and
1829
operation of the state electronic verification system in accordance with Subsection (2);
- 54 - Enrolled Copy H.B. 54
1830
(b) coordinate with the Division of Purchasing, under Title 63G, Chapter 6a, Utah
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
- 55 - H.B. 54 Enrolled Copy
1864
recommended a medical cannabis treatment during a face-to-face visit with the
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;
- 56 - Enrolled Copy H.B. 54
1898
(C) any cannabis production establishment, any medical cannabis pharmacy, or
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
- 57 - H.B. 54 Enrolled Copy
1932
through a database used by law enforcement; and
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.
- 58 - Enrolled Copy H.B. 54
1966
(5) The department may release limited data that the system collects for the purpose of:
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
- 59 - H.B. 54 Enrolled Copy
2000
Health Insurance Portability and Accountability Act of 1996; or
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
- 60 - Enrolled Copy H.B. 54
2034
card, in accordance with this Subsection (1)(d).
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
- 61 - H.B. 54 Enrolled Copy
2068
(C) complies with this section; and
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
- 62 - Enrolled Copy H.B. 54
2102
(iv) any additional information that the department requests to assist in matching the
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
- 63 - H.B. 54 Enrolled Copy
2136
facilitates];
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;]
- 64 - Enrolled Copy H.B. 54
2170
[(iii) contains a combined amount of total THC and any THC analog that does not
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
- 65 - H.B. 54 Enrolled Copy
2204
hemp concentrate if the transportable industrial hemp concentrate is handled in
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
- 66 - Enrolled Copy H.B. 54
2238
investigational drug or device.
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.
- 67 - H.B. 54 Enrolled Copy
2272
(c) Immediately following a purchase or attempted purchase or as soon as practical the
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.
- 68 - Enrolled Copy H.B. 54
2306
(6)(a) Except as provided in Subsection (6)(b), a purchase attempted under this section
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.
- 69 - H.B. 54 Enrolled Copy
2340
Section 32. Effective Date.
2341
This bill takes effect on May 7, 2025.
- 70 -