Utah 2025 Regular Session

Utah House Bill HB0054 Compare Versions

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1-Enrolled Copy H.B. 54
1+03-07 10:17 2nd Sub. (Gray) H.B. 54
2+Evan J. Vickers proposes the following substitute bill:
23 1
34 Cannabinoid Amendments
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Jennifer Dailey-Provost
78 Senate Sponsor: Evan J. Vickers
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
1516 This bill amends provisions related to hemp and medical cannabis regulation.
1617 6
1718 Highlighted Provisions:
1819 7
1920 This bill:
2021 8
2122 ▸ defines terms;
2223 9
2324 ▸ prohibits certain cannabinoids from being used in cannabinoid products;
2425 10
2526 ▸ allows the Department of Agriculture and Food to limit certain types of cannabinoids that
2627 11
2728 are found in a cannabinoid product;
2829 12
2930 ▸ amends background check requirements for cannabinoid processor licenses;
3031 13
3132 ▸ amends qualifications for obtaining a cannabinoid processor license;
3233 14
3334 ▸ requires industrial hemp retailers to maintain a video surveillance system;
3435 15
3536 ▸ amends provisions related to cannabinoid product enforcement;
3637 16
37-▸ requires a person to have a cannabinoid processor license to transport hemp concentrate;
38+▸ requires a person to have a cannabis processor license to transport hemp concentrate;
3839 17
3940 ▸ removes the requirement that certain cannabinoid products be in a medicinal dosage form;
4041 18
4142 ▸ allows for additional medical cannabis pharmacies;
4243 19
4344 ▸ creates a new medical cannabis pharmacy license for independent medical cannabis
4445 20
4546 pharmacies;
4647 21
4748 ▸ creates ownership restrictions for independent medical cannabis pharmacies;
4849 22
4950 ▸ adjusts fees for certain medical cannabis pharmacy licenses;
5051 23
5152 ▸ amends provisions regarding cannabis production and sanitation;
5253 24
5354 ▸ modifies provisions related to enforcement and appeals;
5455 25
5556 ▸ amends provisions related to closed-door medical cannabis pharmacies;
5657 26
5758 ▸ allows a cannabis processing facility to have a website that includes product information;
5859 27
59-▸ amends provisions regarding when the department may seize products and test products; H.B. 54 Enrolled Copy
60+▸ amends provisions regarding when the department may seize products and test products;
6061 28
6162 ▸ amends provisions related to information a medical cannabis pharmacy must have
63+2nd Sub. H.B. 54 2nd Sub. (Gray) H.B. 54 03-07 10:17
6264 29
6365 available to a patient purchasing medical cannabis;
6466 30
6567 ▸ creates a reporting requirement for the department;
6668 31
6769 ▸ repeals sections related to the state central patient portal; and
6870 32
6971 ▸ makes technical and conforming changes.
7072 33
7173 Money Appropriated in this Bill:
7274 34
7375 None
7476 35
7577 Other Special Clauses:
7678 36
7779 None
7880 37
7981 Utah Code Sections Affected:
8082 38
8183 AMENDS:
8284 39
8385 4-41-102, as last amended by Laws of Utah 2024, Chapter 35
8486 40
8587 4-41-103.2, as last amended by Laws of Utah 2023, Chapter 146
8688 41
8789 4-41-103.3, as last amended by Laws of Utah 2023, Chapters 146, 327
8890 42
8991 4-41-105, as last amended by Laws of Utah 2024, Chapter 35
9092 43
9193 4-41-404, as last amended by Laws of Utah 2019, Chapter 23
9294 44
9395 4-41a-102, as last amended by Laws of Utah 2024, Chapters 217, 238 and 240
9496 45
9597 4-41a-403, as last amended by Laws of Utah 2023, Chapter 327
9698 46
9799 4-41a-501, as last amended by Laws of Utah 2023, Chapter 313
98100 47
99101 4-41a-701, as last amended by Laws of Utah 2023, Chapters 313, 317
100102 48
101103 4-41a-801, as renumbered and amended by Laws of Utah 2018, Third Special Session,
102104 49
103105 Chapter 1
104106 50
105107 4-41a-802, as last amended by Laws of Utah 2024, Chapter 217
106108 51
107109 4-41a-1001, as last amended by Laws of Utah 2024, Chapters 217, 238 and 240
108110 52
109111 4-41a-1003, as last amended by Laws of Utah 2023, Chapter 435 and renumbered and
110112 53
111113 amended by Laws of Utah 2023, Chapters 273, 307 and last amended by Coordination Clause,
112114 54
113115 Laws of Utah 2023, Chapter 307
114116 55
115117 4-41a-1005, as last amended by Laws of Utah 2024, Chapter 217
116118 56
117119 4-41a-1101, as last amended by Laws of Utah 2024, Chapter 217
118120 57
119121 4-41a-1201, as enacted by Laws of Utah 2023, Chapter 273
120122 58
121123 4-41a-1202, as last amended by Laws of Utah 2024, Chapters 217, 240
122124 59
123125 4-41a-1203, as renumbered and amended by Laws of Utah 2023, Chapters 273, 307 and
124126 60
125127 last amended by Coordination Clause, Laws of Utah 2023, Chapter 307
126128 61
127129 4-41a-1206, as enacted by Laws of Utah 2024, Chapter 238
128-- 2 - Enrolled Copy H.B. 54
129130 62
130131 26B-1-435, as last amended by Laws of Utah 2024, Chapters 238, 240
132+- 2 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
131133 63
132134 26B-4-201, as last amended by Laws of Utah 2024, Chapters 217, 240
133135 64
134136 26B-4-202, as last amended by Laws of Utah 2024, Chapters 217, 240
135137 65
136138 26B-4-214, as last amended by Laws of Utah 2024, Chapter 240
137139 66
138140 26B-4-222, as last amended by Laws of Utah 2024, Chapter 240
139141 67
140142 58-37-3.6, as last amended by Laws of Utah 2024, Chapter 35
141143 68
142144 58-85-102, as last amended by Laws of Utah 2018, Third Special Session, Chapter 1
143145 69
144146 63N-3-1301, as enacted by Laws of Utah 2024, Chapter 35
145147 70
146148 77-39-101, as last amended by Laws of Utah 2024, Chapter 35
147149 71
148150 ENACTS:
149151 72
150152 4-41-405, Utah Code Annotated 1953
151153 73
152154 4-41a-1006, Utah Code Annotated 1953
153155 74
154156 REPEALS:
155157 75
156158 26B-4-236, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered
157159 76
158160 and amended by Laws of Utah 2023, Chapter 307 and last amended by Coordination Clause,
159161 77
160162 Laws of Utah 2023, Chapter 307
161163 78
162164
163165 79
164166 Be it enacted by the Legislature of the state of Utah:
165167 80
166168 Section 1. Section 4-41-102 is amended to read:
167169 81
168170 4-41-102 . Definitions.
169171 82
170172 As used in this chapter:
171173 83
172174 (1) "Adulterant" means any poisonous or deleterious substance in a quantity that may be
173175 84
174176 injurious to human health, including:
175177 85
176178 (a) pesticides;
177179 86
178180 (b) heavy metals;
179181 87
180182 (c) solvents;
181183 88
182184 (d) microbial life;
183185 89
184186 (e) artificially derived cannabinoids;
185187 90
186188 (f) toxins; or
187189 91
188190 (g) foreign matter.
189191 92
190192 (2)(a) "Artificially derived cannabinoid" means a chemical substance that is created by a
191193 93
192194 chemical reaction that changes the molecular structure of any chemical substances
193195 94
194196 derived from the cannabis plant.
195197 95
196198 (b) "Artificially derived cannabinoid" does not include:
197-- 3 - H.B. 54 Enrolled Copy
198199 96
199200 (i) a naturally occurring chemical substance that is separated from the cannabis plant
201+- 3 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
200202 97
201203 by a chemical or mechanical extraction process; or
202204 98
203205 (ii) cannabinoids that are produced by decarboxylation from a naturally occurring
204206 99
205207 cannabinoid acid without the use of a chemical catalyst.
206208 100
207209 (3) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 13956-29-1.
208210 101
209211 (4) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS# 1244-58-2.
210212 102
211213 (5) "Cannabinoid processor license" means a license that the department issues to a person
212214 103
213215 for the purpose of processing a cannabinoid product.
214216 104
215217 (6) "Cannabinoid product" means a product that:
216218 105
217219 (a) contains or is represented to contain one or more naturally occurring cannabinoids;
218220 106
219221 (b) contains less than the cannabinoid product THC level, by dry weight;
220222 107
221223 (c) contains a combined amount of total THC and any THC analog that does not exceed
222224 108
223225 10% of the total cannabinoid content;
224226 109
225227 (d) does not exceed a total of THC and any THC analog that is greater than:
226228 110
227229 (i) 5 milligrams per serving; and
228230 111
229231 (ii) 150 milligrams per package; and
230232 112
231233 (e) unless the product is in an oil based suspension, has a serving size that:
232234 113
233235 (i) is an integer; and
234236 114
235237 (ii) is a discrete unit of the cannabinoid product.
236238 115
237239 (7) "Cannabinoid product class" means a group of cannabinoid products that:
238240 116
239241 (a) have all ingredients in common; and
240242 117
241243 (b) are produced by or for the same company.
242244 118
243245 (8) "Cannabinoid product THC level" means a combined concentration of total THC and
244246 119
245247 any THC analog of less than 0.3% on a dry weight basis if laboratory testing confirms a
246248 120
247249 result within a measurement of uncertainty that includes the combined concentration of
248250 121
249251 0.3%.
250252 122
251253 (9) "Cannabis" means the same as that term is defined in Section 26B-4-201.
252254 123
253255 (10) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid identified as
254256 124
255257 CAS# 1972-08-3, the primary psychotropic cannabinoid in cannabis.
256258 125
257259 (11) "Industrial hemp" means any part of a cannabis plant, whether growing or not, with a
258260 126
259261 concentration of less than 0.3% tetrahydrocannabinol by dry weight.
260262 127
261263 (12) "Industrial hemp producer registration" means a registration that the department issues
262264 128
263265 to a person for the purpose of processing industrial hemp or an industrial hemp product.
264266 129
265267 (13)(a) "Industrial hemp product" means a product made by processing industrial hemp
266-- 4 - Enrolled Copy H.B. 54
267268 130
268269 plants or industrial hemp parts.
270+- 4 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
269271 131
270272 (b) "Industrial hemp product" does not include cannabinoid material or a cannabinoid
271273 132
272274 product.
273275 133
274276 [(13)] (14) "Industrial hemp retailer permit" means a permit that the department issues to a
275277 134
276278 retailer who sells any viable industrial hemp seed or cannabinoid product.
277279 135
278280 [(14)(a) "Industrial hemp product" means a product made by processing industrial hemp
279281 136
280282 plants or industrial hemp parts.]
281283 137
282284 [(b) "Industrial hemp product" does not include cannabinoid material.]
283285 138
284286 (15) "Key participant" means any of the following:
285287 139
286288 (a) a licensee;
287289 140
288290 (b) an operation manager;
289291 141
290292 (c) a site manager; or
291293 142
292294 (d) an employee who has access to any industrial hemp material with a THC
293295 143
294296 concentration above 0.3%.
295297 144
296298 (16) "Licensee" means a person possessing a cannabinoid processor license that the
297299 145
298300 department issues under this chapter.
299301 146
300302 (17) "Newly identified cannabinoid" means a cannabinoid that:
301303 147
302304 (a) is not expressly identified by chemical name or CAS number in this chapter; and
303305 148
304306 (b) is identified by the department under Section 4-41-405.
305307 149
306308 [(17)] (18) "Non-compliant material" means:
307309 150
308310 (a) a hemp plant that does not comply with this chapter, including a cannabis plant with
309311 151
310312 a concentration of 0.3% tetrahydrocannabinol or greater by dry weight;[ and]
311313 152
312314 (b) a cannabinoid product, chemical, or compound with a concentration that exceeds the
313315 153
314316 cannabinoid product THC level[.] ; and
315317 154
316318 (c) a cannabinoid product containing any of the following:
317319 155
318320 (i) delta-9-tetrahydrocannabiphorol (THCP), the cannabinoid identified as CAS#
319321 156
320322 54763-99-4;
321323 157
322324 (ii) delta-8-tetrahydrocannabiphorol (THCP), the cannabinoid identified as CAS#
323325 158
324326 51768-60-6;
325327 159
326328 (iii) delta-9-tetrahyrdocannabinol (THC) acetate, the cannabinoid identified as CAS#
327329 160
328330 23132-17-4;
329331 161
330332 (iv) delta-8-tetrahydrocannabinol (THC) acetate, the cannabinoid identified as CAS#
331333 162
332334 23050-54-6;
333335 163
334336 (v) 9(s)-hexahydrocannabinol (HHC), the cannabinoid identified as CAS#
335-- 5 - H.B. 54 Enrolled Copy
336337 164
337338 36403-91-5; or
339+- 5 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
338340 165
339341 (vi) 9(r)-hexahyrdocannabinol (HHC), the cannabinoid identified as CAS#
340342 166
341343 36403-90-4.
342344 167
343345 [(18)] (19) "Permittee" means a person possessing a permit that the department issues under
344346 168
345347 this chapter.
346348 169
347349 [(19)] (20) "Person" means:
348350 170
349351 (a) an individual, partnership, association, firm, trust, limited liability company, or
350352 171
351353 corporation; and
352354 172
353355 (b) an agent or employee of an individual, partnership, association, firm, trust, limited
354356 173
355357 liability company, or corporation.
356358 174
357359 [(20)] (21) "Retailer permittee" means a person possessing an industrial hemp retailer permit
358360 175
359361 that the department issues under this chapter.
360362 176
361363 [(21)] (22) "Tetrahydrocannabinol" or "THC" means a delta-9-tetrahydrocannabinol, the
362364 177
363365 cannabinoid identified as CAS# 1972-08-3.
364366 178
365367 [(22)] (23)(a) "THC analog" means a substance that is structurally or pharmacologically
366368 179
367369 substantially similar to, or is represented as being similar to, delta-9-THC.
368370 180
369371 (b) "THC analog" does not include the following substances or the naturally occurring
370372 181
371373 acid forms of the following substances:
372374 182
373375 (i) cannabichromene (CBC), the cannabinoid identified as CAS# 20675-51-8;
374376 183
375377 (ii) cannabicyclol (CBL), the cannabinoid identified as CAS# 21366-63-2;
376378 184
377379 (iii) cannabidiol (CBD), the cannabinoid identified as CAS# 13956-29-1;
378380 185
379381 (iv) cannabidivarol (CBDV), the cannabinoid identified as CAS# 24274-48-4;
380382 186
381383 (v) cannabielsoin (CBE), the cannabinoid identified as CAS# 52025-76-0;
382384 187
383385 (vi) cannabigerol (CBG), the cannabinoid identified as CAS# 25654-31-3;
384386 188
385387 (vii) cannabigerovarin (CBGV), the cannabinoid identified as CAS# 55824-11-8;
386388 189
387389 (viii) cannabinol (CBN), the cannabinoid identified as CAS# 521-35-7;
388390 190
389391 (ix) cannabivarin (CBV), the cannabinoid identified as CAS# 33745-21-0; or
390392 191
391393 (x) delta-9-tetrahydrocannabivarin (THCV), the cannabinoid identified as CAS#
392394 192
393395 31262-37-0.
394396 193
395397 [(23)] (24) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
396398 194
397399 and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)".
398400 195
399401 [(24)] (25) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
400402 196
401403 amounts of delta-9-THC, tertrahydrocannabinolic acid, calculated as "total THC =
402404 197
403405 delta-9-THC + (THCA x 0.877)".
404-- 6 - Enrolled Copy H.B. 54
405406 198
406407 [(25)] (26) "Transportable industrial hemp concentrate" means any amount of a natural
408+- 6 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
407409 199
408410 cannabinoid in a purified state that:
409411 200
410412 (a) is the product of any chemical or physical process applied to naturally occurring
411413 201
412414 biomass that concentrates or isolates the cannabinoids contained in the biomass;
413415 202
414416 (b) is derived from a cannabis plant that, based on sampling that was collected no more
415417 203
416418 than 30 days before the day on which the cannabis plant was harvested, contains a
417419 204
418420 combined concentration of total THC and any THC analog of less than 0.3% on a dry
419421 205
420422 weight basis;
421423 206
422424 (c) has a THC and THC analog concentration total that is less than 20% when
423425 207
424426 concentrated from the cannabis plant to the purified state; and
425427 208
426428 (d) is intended to be processed into a cannabinoid product.
427429 209
428430 Section 2. Section 4-41-103.2 is amended to read:
429431 210
430432 4-41-103.2 . Cannabinoid processor license.
431433 211
432434 (1) The department or a licensee of the department may process a cannabinoid product.
433435 212
434436 (2) A person seeking a cannabinoid processor license shall provide to the department:
435437 213
436438 (a) the legal description and global positioning coordinates sufficient for locating the
437439 214
438440 facility the person uses to process industrial hemp; and
439441 215
440442 (b) written consent allowing a representative of the department and local law
441443 216
442444 enforcement to enter all premises where the person processes or stores industrial
443445 217
444446 hemp for the purpose of:
445447 218
446448 (i) conducting a physical inspection; or
447449 219
448450 (ii) ensuring compliance with the requirements of this chapter.
449451 220
450452 [(3) An individual who has been convicted of a drug-related felony within the last 10 years
451453 221
452454 is not eligible to obtain a cannabinoid processor license.]
453455 222
454456 [(4)] (3) The department may set a fee in accordance with Subsection 4-2-103(2) for the
455457 223
456458 application for a cannabinoid processor license.
457459 224
458460 [(5)] (4) A licensee may only market a cannabinoid product that the licensee processes.
459461 225
460-(5)(a) An applicant for a cannabinoid processor license shall:
462+(5)(a) An applicant for a cannabis processor license shall:
461463 226
462464 (i) be at least 18 years old; and
463465 227
464466 (ii) submit a nationwide criminal history from the Federal Bureau of Investigation to
465467 228
466468 the department.
467469 229
468-(b) The department shall reject an individual's application for a cannabinoid processor
470+(b) The department shall reject an individual's application for a cannabis processor
469471 230
470472 license if the criminal history described in Subsection (5)(a)(ii) was not completed in
471473 231
472474 the previous 90 days before the day the applicant submits the license application to
473-- 7 - H.B. 54 Enrolled Copy
474475 232
475476 the department.
477+- 7 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
476478 233
477-(6) An applicant is not eligible to receive a cannabinoid processor license if the applicant
479+(6) An applicant is not eligible to receive a cannabis processor license if the applicant has:
478480 234
479-has:
481+(a) been convicted of a felony; or
480482 235
481-(a) been convicted of a felony; or
483+(b) been convicted of a drug-related misdemeanor within the previous ten years.
482484 236
483-(b) been convicted of a drug-related misdemeanor within the previous 10 years.
485+[(6)(a) Each applicant for a license to process cannabinoid products shall submit to the
484486 237
485-[(6)(a) Each applicant for a license to process cannabinoid products shall submit to the
487+department, at the time of application, from each key participant:]
486488 238
487-department, at the time of application, from each key participant:]
489+[(i) a fingerprint card in a form acceptable to the Department of Public Safety;]
488490 239
489-[(i) a fingerprint card in a form acceptable to the Department of Public Safety;]
491+[(ii) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
490492 240
491-[(ii) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
493+registration of the individual's fingerprints in the Federal Bureau of Investigation
492494 241
495+Next Generation Identification System's Rap Back Service; and]
496+242
497+[(iii) consent to a fingerprint background check by:]
498+243
499+[(A) the Bureau of Criminal Identification; and]
500+244
501+[(B) the Federal Bureau of Investigation.]
502+245
503+[(b) The Bureau of Criminal Identification shall:]
504+246
505+[(i) check the fingerprints the applicant submits under Subsection (6)(a) against the
506+247
507+applicable state, regional, and national criminal records databases, including the
508+248
509+Federal Bureau of Investigation Next Generation Identification System;]
510+249
511+[(ii) report the results of the background check to the department;]
512+250
513+[(iii) maintain a separate file of fingerprints that applicants submit under Subsection
514+251
515+(6)(a) for search by future submissions to the local and regional criminal records
516+252
517+databases, including latent prints;]
518+253
519+[(iv) request that the fingerprints be retained in the Federal Bureau of Investigation
520+254
521+Next Generation Identification System's Rap Back Service for search by future
522+255
523+submissions to national criminal records databases, including the Next Generation
524+256
525+Identification System and latent prints; and]
526+257
527+[(v) establish a privacy risk mitigation strategy to ensure that the department only
528+258
529+receives notifications for an individual with whom the department maintains an
530+259
531+authorizing relationship.]
532+260
533+[(c) The department shall:]
534+261
535+[(i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
536+262
537+amount that the department sets in accordance with Section 63J-1-504 for the
538+263
539+services that the Bureau of Criminal Identification or another authorized agency
540+264
541+provides under this section; and]
542+265
543+[(ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
544+266
545+Identification.]
546+- 8 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
547+267
548+Section 3. Section 4-41-103.3 is amended to read:
549+268
550+4-41-103.3 . Industrial hemp retailer permit.
551+269
552+(1) Except as provided in Subsection [(4)] (5), a retailer permittee of the department may
553+270
554+market or sell a cannabinoid product or a viable industrial hemp seed.
555+271
556+(2) A person seeking an industrial hemp retailer permit shall provide to the department:
557+272
558+(a) the name of the person that is seeking to market or sell a cannabinoid product or a
559+273
560+viable industrial hemp seed;
561+274
562+(b) the address of each location where a cannabinoid product or a viable industrial hemp
563+275
564+seed will be sold; and
565+276
566+(c) written consent allowing a representative of the department to enter all premises
567+277
568+where the person is selling a cannabinoid product or a viable industrial hemp seed for
569+278
570+the purpose of:
571+279
572+(i) conducting a physical inspection; or
573+280
574+(ii) ensuring compliance with the requirements of this chapter.
575+281
576+(3) Beginning January 1, 2026, an industrial hemp retailer permittee shall:
577+282
578+(a) maintain a video surveillance system that:
579+283
580+(i) is able to monitor who purchases a cannabinoid product from the permittee;
581+284
582+(ii) is tamper proof; and
583+285
584+(iii) stores a video record for at least 45 days; and
585+286
586+(b) provide the department access to the video surveillance system upon request.
587+287
588+[(3)] (4) The department may set a fee in accordance with Subsection 4-2-103(2) for the
589+288
590+application for an industrial hemp retailer permit.
591+289
592+[(4)] (5) Any marketing for a cannabinoid product or a viable industrial hemp seed shall
593+290
594+include a notice to consumers that the product is hemp and is not cannabis or medical
595+291
596+cannabis, as those terms are defined in Section 26B-4-201.
597+292
598+Section 4. Section 4-41-105 is amended to read:
599+293
600+4-41-105 . Unlawful acts.
601+294
602+(1) It is unlawful for a person to handle, process, or market living industrial hemp plants,
603+295
604+viable hemp seeds, leaf materials, or floral materials derived from industrial hemp
605+296
606+without the appropriate license or permit issued by the department under this chapter.
607+297
608+(2)(a) It is unlawful for any person to:
609+298
610+(i) distribute, sell, or market a cannabinoid product that is:
611+299
612+(A) not registered with the department under Section 4-41-104; or
613+300
614+(B) noncompliant material;
615+- 9 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
616+301
617+(ii) except as provided in Subsection (2)(b), transport into or out of the state extracted
618+302
619+material or final product that contains 0.3% or more of total THC and any THC
620+303
621+analog;
622+304
623+(iii) sell or use a cannabinoid product that is:
624+305
625+(A) added to a conventional food or beverage, as the department further defines in
626+306
627+rules described in Section 4-41-403;
628+307
629+(B) marketed or manufactured to be enticing to children, as further defined in
630+308
631+rules described in Section 4-41-403; or
632+309
633+(C) smokable flower; or
634+310
635+(iv) knowingly or intentionally sell or give a cannabinoid product that contains THC
636+311
637+or a THC analog in the course of business to an individual who is not at least 21
638+312
639+years old.
640+313
641+(b) A person may transport transportable industrial hemp concentrate if the person:
642+314
643+(i) complies with rules created by the department under Section 4-41-103.1 related to
644+315
645+transportable industrial hemp concentrate; and
646+316
647+(ii)(A) has [an industrial hemp producer registration] a cannabinoid processor
648+317
649+license; or
650+318
651+(B) the equivalent to [an industrial hemp producer registration] a cannabinoid
652+319
653+processor license from another state.
654+320
655+(3) The department may seize and destroy non-compliant material.
656+321
657+(4) Nothing in this chapter authorizes any person to violate federal law, regulation, or any
658+322
659+provision of this title.
660+323
661+Section 5. Section 4-41-404 is amended to read:
662+324
663+4-41-404 . Department duties.
664+325
665+ The department [shall assess the fine described in Subsection 4-41-403(4) ] may take an
666+326
667+enforcement action in accordance with Section 4-41-106 against any person who offers an
668+327
669+unregistered cannabinoid product for sale in this state.
670+328
671+Section 6. Section 4-41-405 is enacted to read:
672+329
673+4-41-405 . Newly identified cannabinoid.
674+330
675+(1) For a newly identified cannabinoid, the department may:
676+331
677+(a) establish a maximum allowable concentration that a cannabinoid product may
678+332
679+contain of the newly identified cannabinoid;
680+333
681+(b) prohibit the newly identified cannabinoid from appearing in a cannabinoid product;
682+334
683+or
684+- 10 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
685+335
686+(c) modify the maximum allowable concentration described in Subsection (1)(a) as
687+336
688+necessary if it would not create a threat to public health.
689+337
690+(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
691+338
692+department shall make rules to implement Subsection (1).
693+339
694+Section 7. Section 4-41a-102 is amended to read:
695+340
696+4-41a-102 . Definitions.
697+341
698+ As used in this chapter:
699+342
700+(1) "Adulterant" means any poisonous or deleterious substance in a quantity that may be
701+343
702+injurious to health, including:
703+344
704+(a) pesticides;
705+345
706+(b) heavy metals;
707+346
708+(c) solvents;
709+347
710+(d) microbial life;
711+348
712+(e) artificially derived cannabinoid;
713+349
714+(f) toxins; or
715+350
716+(g) foreign matter.
717+351
718+(2) "Advertise" or "advertising" means information provided by a person in any medium:
719+352
720+(a) to the public; and
721+353
722+(b) that is not age restricted to an individual who is at least 21 years old.
723+354
724+(3) "Advisory board" means the Medical Cannabis Policy Advisory Board created in
725+355
726+Section 26B-1-435.
727+356
728+(4)(a) "Anticompetitive business practice" means any practice that reduces the amount
729+357
730+of competition in the medical cannabis market that would be considered an attempt to
731+358
732+monopolize, as defined in Section 76-10-3103.
733+359
734+(b) "Anticompetitive business practice" may include:
735+360
736+(i) agreements that may be considered unreasonable when competitors interact to the
737+361
738+extent that they are:
739+362
740+(A) no longer acting independently; or
741+363
742+(B) when collaborating are able to wield market power together;
743+364
744+(ii) monopolizing or attempting to monopolize trade by:
745+365
746+(A) acting to maintain or acquire a dominant position in the market; or
747+366
748+(B) preventing new entry into the market; or
749+367
750+(iii) other conduct outlined in rule.
751+368
752+(5)(a) "Artificially derived cannabinoid" means a chemical substance that is created by a
753+- 11 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
754+369
755+chemical reaction that changes the molecular structure of any chemical substance
756+370
757+derived from the cannabis plant.
758+371
759+(b) "Artificially derived cannabinoid" does not include:
760+372
761+(i) a naturally occurring chemical substance that is separated from the cannabis plant
762+373
763+by a chemical or mechanical extraction process; or
764+374
765+(ii) a cannabinoid that is produced by decarboxylation from a naturally occurring
766+375
767+cannabinoid acid without the use of a chemical catalyst.
768+376
769+(6) "Batch" means a quantity of:
770+377
771+(a) cannabis extract produced on a particular date and time and produced between
772+378
773+completion of equipment and facility sanitation protocols until the next required
774+379
775+sanitation cycle during which lots of cannabis are used;
776+380
777+(b) cannabis product produced on a particular date and time and produced between
778+381
779+completion of equipment and facility sanitation protocols until the next required
780+382
781+sanitation cycle during which cannabis extract is used; or
782+383
783+(c) cannabis flower packaged on a particular date and time and produced between
784+384
785+completion of equipment and facility sanitation protocols until the next required
786+385
787+sanitation cycle during which lots of cannabis are being used.
788+386
789+[(6)] (7) "Cannabis Research Review Board" means the Cannabis Research Review Board
790+387
791+created in Section 26B-1-420.
792+388
793+[(7)] (8) "Cannabis" means the same as that term is defined in Section 26B-4-201.
794+389
795+[(8)] (9) "Cannabis concentrate" means:
796+390
797+(a) the product of any chemical or physical process applied to naturally occurring
798+391
799+biomass that concentrates or isolates the cannabinoids contained in the biomass; and
800+392
801+(b) any amount of a natural cannabinoid or artificially derived cannabinoid in an
802+393
803+artificially derived cannabinoid's purified state.
804+394
805+[(9)] (10) "Cannabis cultivation byproduct" means any portion of a cannabis plant that is not
806+395
807+intended to be sold as a cannabis plant product.
808+396
809+[(10)] (11) "Cannabis cultivation facility" means a person that:
810+397
811+(a) possesses cannabis;
812+398
813+(b) grows or intends to grow cannabis; and
814+399
815+(c) sells or intends to sell cannabis to a cannabis cultivation facility, a cannabis
816+400
817+processing facility, or a medical cannabis research licensee.
818+401 [(11)] (12) "Cannabis cultivation facility agent" means an individual who
819+402
820+ holds a valid cannabis production establishment agent registration card with a cannabis
821+- 12 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
822+403
823+cultivation facility designation.
824+404
825+[(12)] (13) "Cannabis derivative product" means a product made using cannabis concentrate.
826+405
827+[(13)] (14) "Cannabis plant product" means any portion of a cannabis plant intended to be
828+406
829+sold in a form that is recognizable as a portion of a cannabis plant.
830+407
831+[(14)] (15) "Cannabis processing facility" means a person that:
832+408
833+(a) acquires or intends to acquire cannabis from a cannabis production establishment;
834+409
835+(b) possesses cannabis with the intent to manufacture a cannabis product;
836+410
837+(c) manufactures or intends to manufacture a cannabis product from unprocessed
838+411
839+cannabis or a cannabis extract; and
840+412
841+(d) sells or intends to sell a cannabis product to a medical cannabis pharmacy or a
842+413
843+medical cannabis research licensee.
844+414 [(15)] (16) "Cannabis processing facility agent" means an individual who
845+415
846+ holds a valid cannabis production establishment agent registration card with a cannabis
847+416
848+processing facility designation.
849+417
850+[(16)] (17) "Cannabis product" means the same as that term is defined in Section 26B-4-201.
851+418
852+[(17)] (18) "Cannabis production establishment" means a cannabis cultivation facility, a
853+419
854+cannabis processing facility, or an independent cannabis testing laboratory.
855+420
856+[(18)] (19) "Cannabis production establishment agent" means a cannabis cultivation facility
857+421
858+agent, a cannabis processing facility agent, or an independent cannabis testing laboratory
859+422
860+agent.
861+423
862+[(19)] (20) "Cannabis production establishment agent registration card" means a registration
863+424
864+card that the department issues that:
865+425
866+(a) authorizes an individual to act as a cannabis production establishment agent; and
867+426
868+(b) designates the type of cannabis production establishment for which an individual is
869+427
870+authorized to act as an agent.
871+428
872+[(20)] (21) "Closed-door medical cannabis pharmacy" means a facility operated by a home
873+429
874+delivery medical cannabis pharmacy for delivering [cannabis or a medical cannabis
875+430
876+product] medical cannabis.
877+431
878+[(21)] (22) "Community location" means a public or private elementary or secondary school,
879+432
880+a church, a public library, a public playground, or a public park.
881+433
882+[(22)] (23) "Cultivation space" means, quantified in square feet, the horizontal area in which
883+434
884+a cannabis cultivation facility cultivates cannabis, including each level of horizontal area
885+435
886+if the cannabis cultivation facility hangs, suspends, stacks, or otherwise positions plants
887+436
888+above other plants in multiple levels.
889+- 13 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
890+437
891+[(23)] (24) "Delivery address" means:
892+438
893+(a) for a medical cannabis cardholder who is not a facility:
894+439
895+(i) the medical cannabis cardholder's home address; or
896+440
897+(ii) an address designated by the medical cannabis cardholder that:
898+441
899+(A) is the medical cannabis cardholder's workplace; and
900+442
901+(B) is not a community location; or
902+443
903+(b) for a medical cannabis cardholder that is a facility, the facility's address.
904+444
905+[(24)] (25) "Department" means the Department of Agriculture and Food.
906+445
907+[(25)] (26) "Family member" means a parent, step-parent, spouse, child, sibling,
908+446
909+step-sibling, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law,
910+447
911+brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent, or grandchild.
912+448
913+[(26)] (27) "Government issued photo identification" means the same as that term is defined
914+449
915+in Section 26B-4-201, including expired identification in accordance with Section
916+450
917+26B-4-244.
918+451
919+[(27)] (28) "Home delivery medical cannabis pharmacy" means a medical cannabis
920+452
921+pharmacy that the department authorizes, as part of the pharmacy's license, to deliver
922+453
923+medical cannabis shipments to a delivery address to fulfill electronic orders[ that the
924+454
925+state central patient portal facilitates].
926+455
927+[(28)] (29)(a) "Independent cannabis testing laboratory" means a person that:
928+456
929+(i) conducts a chemical or other analysis of cannabis or a cannabis product; or
930+457
931+(ii) acquires, possesses, and transports cannabis or a cannabis product with the intent
932+458
933+to conduct a chemical or other analysis of the cannabis or cannabis product.
934+459
935+(b) "Independent cannabis testing laboratory" includes a laboratory that the department
936+460
937+or a research university operates in accordance with Subsection 4-41a-201(14).
938+461 [(29)] (30) "Independent cannabis testing laboratory agent" means an individual who
939+462
940+ holds a valid cannabis production establishment agent registration card with an
941+463
942+independent cannabis testing laboratory designation.
943+464
944+[(30)] (31) "Inventory control system" means a system described in Section 4-41a-103.
945+465
946+[(31)] (32) "Licensing board" or "board" means the Cannabis Production Establishment and
947+466
948+Pharmacy Licensing Advisory Board created in Section 4-41a-201.1.
949+467
950+[(32)] (33) "Medical cannabis" or "medical cannabis product" means the same as that term is
951+468
952+defined in Section 26B-4-201.
953+469
954+[(33)] (34) "Medical cannabis card" means the same as that term is defined in Section
955+470
956+26B-4-201.
957+- 14 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
958+471
959+[(34)] (35) "Medical cannabis courier" means a courier that:
960+472
961+(a) the department licenses in accordance with Section 4-41a-1201; and
962+473
963+(b) contracts with a home delivery medical cannabis pharmacy to deliver medical
964+474
965+cannabis shipments to fulfill electronic orders[ that the state central patient portal
966+475
967+facilitates].
968+476
969+[(35)] (36) "Medical cannabis courier agent" means an individual who:
970+477
971+(a) is an employee of a medical cannabis courier; and
972+478
973+(b) who holds a valid medical cannabis courier agent registration card.
974+479
975+[(36)] (37) "Medical cannabis pharmacy" means the same as that term is defined in Section
976+480
977+26B-4-201.
978+481
979+[(37)] (38) "Medical cannabis pharmacy agent" means the same as that term is defined in
980+482
981+Section 26B-4-201.
982+483
983+[(38)] (39) "Medical cannabis research license" means a license that the department issues to
984+484
985+a research university for the purpose of obtaining and possessing medical cannabis for
986+485
987+academic research.
988+486
989+[(39)] (40) "Medical cannabis research licensee" means a research university that the
990+487
991+department licenses to obtain and possess medical cannabis for academic research, in
992+488
993+accordance with Section 4-41a-901.
994+489
995+[(40)] (41) "Medical cannabis shipment" means a shipment of medical cannabis that a home
996+490
997+delivery medical cannabis pharmacy or a medical cannabis courier delivers to a delivery
998+491
999+address to fulfill an electronic medical cannabis order[ that the state central patient portal
1000+492
1001+facilitates].
1002+493
1003+[(41)] (42) "Medical cannabis treatment" means the same as that term is defined in Section
1004+494
1005+26B-4-201.
1006+495
1007+[(42)] (43) "Medicinal dosage form" means the same as that term is defined in Section
1008+496
1009+26B-4-201.
1010+497
1011+[(43)] (44) "Pharmacy ownership limit" means an amount equal to 30% of the total number
1012+498
1013+of medical cannabis pharmacy licenses issued by the department rounded down to the
1014+499
1015+nearest whole number.
1016+500
1017+[(44)] (45) "Pharmacy medical provider" means the same as that term is defined in Section
1018+501
1019+26B-4-201.
1020+502
1021+[(45)] (46) "Qualified medical provider" means the same as that term is defined in Section
1022+503
1023+26B-4-201.
1024+504
1025+[(46)] (47) "Qualified Production Enterprise Fund" means the fund created in Section
1026+- 15 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1027+505
1028+4-41a-104.
1029+506
1030+[(47)] (48) "Recommending medical provider" means the same as that term is defined in
1031+507
1032+Section 26B-4-201.
1033+508
1034+[(48)] (49) "Research university" means the same as that term is defined in Section
1035+509
1036+53B-7-702 and a private, nonprofit college or university in the state that:
1037+510
1038+(a) is accredited by the Northwest Commission on Colleges and Universities;
1039+511
1040+(b) grants doctoral degrees; and
1041+512
1042+(c) has a laboratory containing or a program researching a schedule I controlled
1043+513
1044+substance described in Section 58-37-4.
1045+514
1046+[(49)] (50) "State electronic verification system" means the system described in Section
1047+515
1048+26B-4-202.
1049+516
1050+[(50)] (51) "Targeted marketing" means the promotion of [a cannabis product,] medical
1051+517
1052+cannabis, a medical cannabis brand, or a medical cannabis device using any of the
1053+518
1054+following methods:
1055+519
1056+(a) electronic communication to an individual who is at least 21 years old and has
1057+520
1058+requested to receive promotional information;
1059+521
1060+(b) an in-person marketing event that is:
1061+522
1062+(i) held inside a medical cannabis pharmacy; and
1063+523
1064+(ii) in an area where only a medical cannabis cardholder may access the event;
1065+524
1066+(c) other marketing material that is physically available or digitally displayed in a
1067+525
1068+medical cannabis pharmacy; or
1069+526
1070+(d) a leaflet a medical cannabis pharmacy places in the opaque package or box that is
1071+527
1072+provided to an individual when obtaining medical cannabis:
1073+528
1074+(i) in the medical cannabis pharmacy;
1075+529
1076+(ii) at the medical cannabis pharmacy's drive-through pick up window; or
1077+530
1078+(iii) in a medical cannabis shipment.
1079+531
1080+[(51)] (52) "Tetrahydrocannabinol" or "THC" means the same as that term is defined in
1081+532
1082+Section 4-41-102.
1083+533
1084+[(52)] (53) "THC analog" means the same as that term is defined in Section 4-41-102.
1085+534
1086+[(53)] (54) "Total composite tetrahydrocannabinol" means all detectable forms of
1087+535
1088+tetrahydrocannabinol.
1089+536
1090+[(54)] (55) "Total tetrahydrocannabinol" or "total THC" means the same as that term is
1091+537
1092+defined in Section 4-41-102.
1093+538
1094+Section 8. Section 4-41a-403 is amended to read:
1095+- 16 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1096+539
1097+4-41a-403 . Advertising.
1098+540
1099+(1) Except as provided in this section and Section 4-41a-604, a cannabis production
1100+541
1101+establishment may not advertise to the general public in any medium.
1102+542
1103+(2) A cannabis production establishment may advertise an employment opportunity at the
1104+543
1105+cannabis production establishment.
1106+544
1107+(3)(a) A cannabis production establishment may maintain a website that:
1108+545
1109+[(a)] (i) contains information about the establishment and employees; and
1110+546
1111+[(b)] (ii) except as provided in Subsection (3)(b), does not advertise any medical
1112+547
1113+cannabis, cannabis products, or medical cannabis devices.
1114+548
1115+(b) A cannabis processing facility may:
1116+549
1117+(i) if the website has age verification mechanisms that effectively prevent access by
1118+550
1119+individuals under 21 years of age, maintain a website that contains:
1120+551
1121+(A) educational information regarding medical cannabis produced by the cannabis
1122+552
1123+processing facility, including the certificate of analysis that is created by an
1124+553
1125+independent cannabis testing facility; and
1126+554
1127+(B) where medical cannabis produced by the cannabis processing facility may be
1128+555
1129+purchased in the state; and
1130+556
1131+(ii) engage in targeted marketing in accordance with Section 4-41a-604 for
1132+557
1133+advertising a particular medical cannabis product, medical cannabis device, or
1134+558
1135+medical cannabis brand.
1136+559
1137+(4)(a) Notwithstanding any municipal or county ordinance prohibiting signage, a
1138+560
1139+cannabis production establishment may use signage on the outside of the cannabis
1140+561
1141+production establishment that:
1142+562
1143+(i) includes only:
1144+563
1145+(A) in accordance with Subsection (4)(b), the cannabis production establishment's
1146+564
1147+name, logo, and hours of operation; and
1148+565
1149+(B) a green cross; and
1150+566
1151+(ii) complies with local ordinances regulating signage.
1152+567
1153+(b) The department shall define standards for a cannabis production establishment's
1154+568
1155+name and logo to ensure a medical rather than recreational disposition.
1156+569
1157+(5)(a) A cannabis production establishment may hold an educational event for the public
1158+570
1159+or medical providers in accordance with this Subsection (5) and the rules described in
1160+571
1161+Subsection (5)(c).
1162+572
1163+(b) A cannabis production establishment may not include in an educational event
1164+- 17 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1165+573
1166+described in Subsection (5)(a):
1167+574
1168+(i) any topic that conflicts with this chapter or Title 26B, Chapter 4, Part 2,
1169+575
1170+Cannabinoid Research and Medical Cannabis;
1171+576
1172+(ii) any gift items or merchandise other than educational materials, as those terms are
1173+577
1174+defined by the department;
1175+578
1176+(iii) any marketing for a specific product from the cannabis production establishment
1177+579
1178+or any other statement, claim, or information that would violate the federal Food,
1179+580
1180+Drug, and Cosmetic Act, 21 U.S.C. Sec. 301, et seq.; or
1181+581
1182+(iv) a presenter other than the following:
1183+582
1184+(A) a cannabis production establishment agent;
1185+583
1186+(B) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
1187+584
1188+(C) an advanced practice registered nurse licensed under Title 58, Chapter 31b,
1189+585
1190+Nurse Practice Act;
1191+586
1192+(D) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
1193+587
1194+Title 58, Chapter 68, Utah Osteopathic Medical Practice Act;
1195+588
1196+(E) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
1197+589
1198+Assistant Act; or
1199+590
1200+(F) a state employee.
1201+591
1202+(c) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
1203+592
1204+Administrative Rulemaking Act, to define the elements of and restrictions on the
1205+593
1206+educational event described in Subsection (5)(a), including a minimum age of 21
1207+594
1208+years old for attendees.
1209+595
1210+Section 9. Section 4-41a-501 is amended to read:
1211+596
1212+4-41a-501 . Cannabis cultivation facility -- Operating requirements.
1213+597
1214+(1) A cannabis cultivation facility shall ensure that any cannabis growing at the cannabis
1215+598
1216+cultivation facility is not visible from the ground level of the cannabis cultivation facility
1217+599
1218+perimeter.
1219+600
1220+(2) A cannabis cultivation facility shall use a unique identifier that is connected to the
1221+601
1222+facility's inventory control system to identify:
1223+602
1224+(a) beginning at the time a cannabis plant is eight inches tall and has a root ball, each
1225+603
1226+cannabis plant;
1227+604
1228+(b) each unique harvest of cannabis plants;
1229+605
1230+(c) each batch of cannabis the facility transfers to a medical cannabis pharmacy, a
1231+606
1232+cannabis processing facility, or an independent cannabis testing laboratory; and
1233+- 18 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1234+607
1235+(d) any excess, contaminated, or deteriorated cannabis of which the cannabis cultivation
1236+608
1237+facility disposes.
1238+609
1239+(3) A cannabis cultivation facility shall identify cannabis biomass as cannabis byproduct or
1240+610
1241+cannabis plant product before transferring the cannabis biomass from the facility.
1242+611
1243+(4) A cannabis cultivation facility shall either:
1244+612
1245+(a) ensure that a cannabis processing facility chemically or physically processes
1246+613
1247+cannabis cultivation byproduct to produce a cannabis concentrate for incorporation
1248+614
1249+into cannabis derivative products; or
1250+615
1251+(b) destroy cannabis cultivation byproduct in accordance with Section 4-41a-405.
1252+616
1253+(5) A cannabis cultivation facility may utilize radiation-based methods and equipment for
1254+617
1255+quality assurance or remediation purposes.
1256+618
1257+(6) The department shall make rules establishing:
1258+619
1259+(a) the records a cannabis cultivation facility must keep regarding each batch, amount of
1260+620
1261+product treated, and the methods used; and
1262+621
1263+(b) disclosure requirements to a cannabis processor receiving the material subject to the
1264+622
1265+radiation including the methods and equipment used.
1266+623
1267+Section 10. Section 4-41a-701 is amended to read:
1268+624
1269+4-41a-701 . Cannabis and cannabis product testing.
1270+625
1271+(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1272+626
1273+department may make rules to:
1274+627
1275+(a) determine required adulterant tests for a cannabis plant product, cannabis
1276+628
1277+concentrate, or cannabis product;
1278+629
1279+(b) determine the amount of any adulterant that is safe for human consumption;
1280+630
1281+(c) immediately ban or limit the presence of any ingredient in a medical cannabis
1282+631
1283+product after receiving a recommendation to do so from a public health authority
1284+632
1285+under Section 26B-1-102;
1286+633
1287+(d) establish protocols for a recall of [cannabis or a cannabis product] medical cannabis
1288+634
1289+by a cannabis production establishment; or
1290+635
1291+(e) allow the propagation of testing results forward to derived product if the processing
1292+636
1293+steps the cannabis production establishment uses to produce the product are unlikely
1294+637
1295+to change the results of the test.
1296+638
1297+(2)(a) The department may require testing for a toxin if:
1298+639
1299+[(a)] (i) the department receives information indicating the potential presence of a
1300+640
1301+toxin; or
1302+- 19 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1303+641
1304+[(b)] (ii) the department's inspector has reason to believe a toxin may be present based
1305+642
1306+on the inspection of a facility.
1307+643
1308+(b) The department may not require a cannabis processor to test a cannabis batch or a
1309+644
1310+cannabis product batch a third time if the cannabis batch or cannabis product has
1311+645
1312+previously met all testing requirements after being tested by:
1313+646
1314+(i) an independent cannabis testing laboratory that is not the department; and
1315+647
1316+(ii) the department.
1317+648
1318+(3)(a) A cannabis production establishment may not:
1319+649
1320+(i) incorporate cannabis concentrate into a cannabis derivative product until an
1321+650
1322+independent cannabis testing laboratory tests the cannabis concentrate in
1323+651
1324+accordance with department rule; or
1325+652
1326+(ii) transfer cannabis or a cannabis product to a medical cannabis pharmacy until an
1327+653
1328+independent cannabis testing laboratory tests a representative sample of the
1329+654
1330+cannabis or cannabis product in accordance with department rule.
1331+655
1332+(b) A medical cannabis pharmacy may not offer any cannabis or cannabis product for
1333+656
1334+sale unless an independent cannabis testing laboratory has tested a representative
1335+657
1336+sample of the cannabis or cannabis product in accordance with department rule.
1337+658
1338+(4) Before the sale of a medical cannabis product, an independent cannabis testing
1339+659
1340+laboratory shall:
1341+660
1342+(a) identify and quantify any cannabinoid known to be present in [a] the medical
1343+661
1344+cannabis product; and
1345+662
1346+(b) test terpene profiles for the following products:
1347+663
1348+(i) raw cannabis; or
1349+664
1350+(ii) a cannabis product:
1351+665
1352+(A) contained in a vaporizer cartridge; or
1353+666
1354+(B) in concentrate form; and
1355+667
1356+(c) record the five highest terpene profiles tested under Subsection (4)(b).
1357+668
1358+(5) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah
1359+669
1360+Administrative Rulemaking Act, the standards, methods, practices, and procedures for
1361+670
1362+the testing of cannabis and cannabis products by independent cannabis testing
1363+671
1364+laboratories.
1365+672
1366+(6) The department may require an independent cannabis testing laboratory to participate in
1367+673
1368+a proficiency evaluation that the department conducts or that an organization that the
1369+674
1370+department approves conducts.
1371+- 20 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1372+675
1373+Section 11. Section 4-41a-801 is amended to read:
1374+676
1375+4-41a-801 . Enforcement -- Fine -- Citation.
1376+677
1377+(1) If a person that is a cannabis production establishment or a cannabis production
1378+678
1379+establishment agent violates this chapter, the department may:
1380+679
1381+(a) revoke the person's license or cannabis production establishment agent registration
1382+680
1383+card;
1384+681
1385+(b) decline to renew the person's license or cannabis production establishment agent
1386+682
1387+registration card; or
1388+683
1389+(c) assess the person an administrative penalty that the department establishes by rule in
1390+684
1391+accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1392+685
1393+(2) The department shall deposit an administrative penalty imposed under this section into
1394+686
1395+the General Fund.
1396+687
1397+(3)(a) The department may take an action described in Subsection (3)(b) if the
1398+688
1399+department concludes, upon investigation, that, for a person that is a cannabis
1400+689
1401+production establishment or a cannabis production establishment agent:
1402+690
1403+(i) the person has violated the provisions of this chapter, a rule made under this
1404+691
1405+chapter, or an order issued under this chapter; or.
1406+692
1407+(ii) the person produced cannabis or a cannabis product batch that contains a
1408+693
1409+substance, other than cannabis, that poses a significant threat to human health.
1410+694
1411+(b) If the department makes the determination about a person described in Subsection
1412+695
1413+(3)(a), the department shall:
1414+696
1415+(i) issue the person a written administrative citation;
1416+697
1417+(ii) attempt to negotiate a stipulated settlement;
1418+698
1419+[(iii) seize, embargo, or destroy the cannabis or cannabis product batch;]
1420+699
1421+[(iv)] (iii) order the person to cease and desist from the action that creates a violation; [
1422+700
1423+and] or
1424+701
1425+[(v)] (iv) direct the person to appear before an adjudicative proceeding conducted
1426+702
1427+under Title 63G, Chapter 4, Administrative Procedures Act.
1428+703
1429+(c) If the department concludes, upon investigation, that a cannabis production
1430+704
1431+establishment or a cannabis production establishment agent has produced a cannabis
1432+705
1433+batch or a cannabis product batch that contains a substance that poses a significant
1434+706
1435+threat to human health, the department shall seize, embargo, or destroy the cannabis
1436+707
1437+batch or cannabis product batch.
1438+708
1439+(4) The department may, for a person subject to an uncontested citation, a stipulated
1440+- 21 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1441+709
1442+settlement, or a finding of a violation in an adjudicative proceeding under this section,
1443+710
1444+for a fine amount not already specified in law, assess the person, who is not an
1445+711
1446+individual, a fine of up to $5,000 per violation, in accordance with a fine schedule that
1447+712
1448+the department establishes by rule in accordance with Title 63G, Chapter 3, Utah
1449+713
1450+Administrative Rulemaking Act.
1451+714
1452+(5) The department may not revoke a [cannabis production establishment's ]license without
1453+715
1454+first directing the [cannabis production establishment] licensee to appear before an
1455+716
1456+adjudicative proceeding conducted under Title 63G, Chapter 4, Administrative
1457+717
1458+Procedures Act.
1459+718
1460+(6) If within [20] 30 calendar days after the day on which a department serves a citation for
1461+719
1462+a violation of this chapter, the person that is the subject of the citation fails to request a
1463+720
1464+hearing to contest the citation, the citation becomes the department's final order.
1465+721
1466+(7) The department may, for a person who fails to comply with a citation under this section:
1467+722
1468+(a) refuse to issue or renew the person's license or cannabis production establishment
1469+723
1470+agent registration card; or
1471+724
1472+(b) suspend, revoke, or place on probation the person's license or cannabis production
1473+725
1474+establishment registration card.
1475+726
1476+(8)(a) Except where a criminal penalty is expressly provided for a specific violation of
1477+727
1478+this chapter, if an individual:
1479+728
1480+(i) violates a provision of this chapter, the individual is:
1481+729
1482+(A) guilty of an infraction; and
1483+730
1484+(B) subject to a $100 fine; or
1485+731
1486+(ii) intentionally or knowingly violates a provision of this chapter or violates this
1487+732
1488+chapter three or more times, the individual is:
1489+733
1490+(A) guilty of a class B misdemeanor; and
1491+734
1492+(B) subject to a $1,000 fine.
1493+735
1494+(b) An individual who is guilty of a violation described in Subsection (8)(a) is not guilty
1495+736
1496+of a violation of Title 58, Chapter 37, Utah Controlled Substances Act, for the
1497+737
1498+conduct underlying the violation described in Subsection (8)(a).
1499+738
1500+(9) Nothing in this section prohibits the department from referring potential criminal
1501+739
1502+activity to law enforcement.
1503+740
1504+(10) An appeal of administrative action taken under this chapter shall be heard by an
1505+741
1506+administrative law judge as an informal proceeding in accordance with Title 63G,
1507+742
1508+Chapter 4, Administrative Procedures Act.
1509+- 22 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1510+743
1511+Section 12. Section 4-41a-802 is amended to read:
1512+744
1513+4-41a-802 . Report.
1514+745
1515+(1) At or before the November interim meeting each year, the department shall report to the
1516+746
1517+Health and Human Services Interim Committee on:
1518+747
1519+(a) the number of applications and renewal applications that the department receives
1520+748
1521+under this chapter;
1522+749
1523+(b) the number of each type of cannabis production facility that the department licenses
1524+750
1525+in each county;
1526+751
1527+(c) the amount of cannabis that licensees grow;
1528+752
1529+(d) the amount of cannabis that licensees manufacture into cannabis products;
1530+753
1531+(e) the number of licenses the department revokes under this chapter;
1532+754
1533+(f) the department's operation of an independent cannabis testing laboratory under
1534+755
1535+Section 4-41a-201, including:
1536+756
1537+(i) the cannabis and cannabis products the department tested; and
1538+757
1539+(ii) the results of the tests the department performed;
1540+758
1541+(g) the expenses incurred and revenues generated under this chapter; and
1542+759
1543+(h) an analysis of product availability in medical cannabis pharmacies in consultation
1544+760
1545+with the Department of Health and Human Services.
1546+761
1547+(2) The department may not include personally identifying information in the report
1548+762
1549+described in this section.
1550+763
1551+(3) The department shall report to the working group described in Section 36-12-8.2 as
1552+764
1553+requested by the working group.
1554+765
1555+(4)(a) Before August 1, of each year, the department shall provide a report to the
1556+766
1557+working group described in Section 36-12-8.2 that provides the following for each
1558+767
1559+fine issued by the department under this chapter:
1560+768
1561+(i) the date of the fine;
1562+769
1563+(ii) the reference to the statute or rule that was violated for each fine issued; and
1564+770
1565+(iii) a short description explaining why the fine was issued.
1566+771
1567+(b) The report described in Subsection (4)(a) may not include identifying information of
1568+772
1569+the person that was subject to the fine.
1570+773
1571+Section 13. Section 4-41a-1001 is amended to read:
1572+774
1573+4-41a-1001 . Medical cannabis pharmacy -- License -- Eligibility.
1574+775
1575+(1) A person may not:
1576+776
1577+(a) operate as a medical cannabis pharmacy without a license that the department issues
1578+- 23 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1579+777
1580+under this part;
1581+778
1582+(b) obtain a medical cannabis pharmacy license if obtaining the license would cause the
1583+779
1584+person to exceed the pharmacy ownership limit;
1585+780
1586+(c) obtain a partial ownership share of a medical cannabis pharmacy if obtaining the
1587+781
1588+partial ownership share would cause the person to exceed the pharmacy ownership
1589+782
1590+limit; or
1591+783
1592+(d) enter into any contract or agreement that allows the person to directly or indirectly
1593+784
1594+control the operations of a medical cannabis pharmacy if the person's control of the
1595+785
1596+medical cannabis pharmacy would cause the person to effectively exceed the
1597+786
1598+pharmacy ownership limit.
1599+787
1600+(2)(a)(i) Subject to Subsections (4) and (5) and to Section 4-41a-1005, the department
1601+788
1602+shall issue a license to operate a medical cannabis pharmacy through the licensing
1603+789
1604+board created under Section 4-41a-201.1.
1605+790
1606+(ii) The department may not issue a license to operate a medical cannabis pharmacy
1607+791
1608+to an applicant who is not eligible for a license under this section.
1609+792
1610+(b) An applicant is eligible for a license under this section if the applicant submits to the
1611+793
1612+department:
1613+794
1614+(i) subject to Subsection (2)(c), a proposed name and address where the applicant will
1615+795
1616+operate the medical cannabis pharmacy;
1617+796
1618+(ii) the name and address of an individual who:
1619+797
1620+(A) for a publicly traded company, has a financial or voting interest of 10% or
1621+798
1622+greater in the proposed medical cannabis pharmacy;
1623+799
1624+(B) for a privately held company, a financial or voting interest in the proposed
1625+800
1626+medical cannabis pharmacy; or
1627+801
1628+(C) has the power to direct or cause the management or control of a proposed
1629+802
1630+medical cannabis pharmacy;
1631+803
1632+(iii) for each application that the applicant submits to the department, a statement
1633+804
1634+from the applicant that the applicant will obtain and maintain:
1635+805
1636+(A) a performance bond in the amount of $100,000 issued by a surety authorized
1637+806
1638+to transact surety business in the state; or
1639+807
1640+(B) a liquid cash account in the amount of $100,000 with a financial institution;
1641+808
1642+(iv) an operating plan that:
1643+809
1644+(A) complies with Section 4-41a-1004;
1645+810
1646+(B) includes operating procedures to comply with the operating requirements for a
1647+- 24 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1648+811
1649+medical cannabis pharmacy described in this part and with a relevant municipal
1650+812
1651+or county law that is consistent with Section 4-41a-1106; and
1652+813
1653+(C) the department approves;
1654+814
1655+(v) an application fee in an amount that, subject to Subsection 4-41a-104(5), the
1656+815
1657+department sets in accordance with Section 63J-1-504; and
1658+816
1659+(vi) a description of any investigation or adverse action taken by any licensing
1660+817
1661+jurisdiction, government agency, law enforcement agency, or court in any state for
1662+818
1663+any violation or detrimental conduct in relation to any of the applicant's
1664+819
1665+cannabis-related operations or businesses.
1666+820
1667+(c)(i) A person may not locate a medical cannabis pharmacy:
1668+821
1669+(A) within 200 feet of a community location; or
1670+822
1671+(B) in or within 600 feet of a district that the relevant municipality or county has
1672+823
1673+zoned as primarily residential.
1674+824
1675+(ii) The proximity requirements described in Subsection (2)(c)(i) shall be measured
1676+825
1677+from the nearest entrance to the medical cannabis pharmacy establishment by
1678+826
1679+following the shortest route of ordinary pedestrian travel to the property boundary
1680+827
1681+of the community location or residential area.
1682+828
1683+(iii) The department may grant a waiver to reduce the proximity requirements in
1684+829
1685+Subsection (2)(c)(i) by up to 20% if the department determines that it is not
1686+830
1687+reasonably feasible for the applicant to cite the proposed medical cannabis
1688+831
1689+pharmacy without the waiver.
1690+832
1691+(iv) An applicant for a license under this section shall provide evidence of
1692+833
1693+compliance with the proximity requirements described in Subsection (2)(c)(i).
1694+834
1695+(d) The department may not issue a license to an eligible applicant that the department
1696+835
1697+has selected to receive a license until the selected eligible applicant complies with the
1698+836
1699+bond or liquid cash requirement described in Subsection (2)(b)(iii).
1700+837
1701+(e) If the department receives more than one application for a medical cannabis
1702+838
1703+pharmacy within the same city or town, the department shall consult with the local
1704+839
1705+land use authority before approving any of the applications pertaining to that city or
1706+840
1707+town.
1708+841
1709+(f) In considering the issuance of a medical cannabis pharmacy license under this
1710+842
1711+section, the department may consider the extent to which the pharmacy can increase
1712+843
1713+efficiency and reduce cost to patients of medical cannabis.
1714+844
1715+[(3) If the department selects an applicant ]
1716+- 25 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1717+845
1718+(3)(a) After an entity has been selected for a medical cannabis pharmacy license under
1719+846
1720+this section, the department shall:
1721+847
1722+[(a)] (i) charge the applicant an initial license fee in an amount that, subject to
1723+848
1724+Subsection 4-41a-104(5), the department sets in accordance with Section
1725+849
1726+63J-1-504;
1727+850
1728+[(b)] (ii) notify the Department of Public Safety of the license approval and the names
1729+851
1730+of each individual described in Subsection (2)(b)(ii); and
1731+852
1732+[(c)] (iii) charge the licensee a fee in an amount that, subject to Subsection 4-41a-104
1733+853
1734+(5), the department sets in accordance with Section 63J-1-504, for any change in
1735+854
1736+location, ownership, or company structure.
1737+855
1738+(b) For a fee described in Subsection (3)(a)(i), a license fee for a medical cannabis
1739+856
1740+pharmacy located in a medically underserved area as determined by the federal
1741+857
1742+Health Resources and Services Administration shall be 50% less than what is charged
1743+858
1744+for other medical cannabis pharmacies.
1745+859
1746+(4) The department may not issue a license to operate a medical cannabis pharmacy to an
1747+860
1748+applicant if an individual described in Subsection (2)(b)(ii):
1749+861
1750+(a) has been convicted under state or federal law of:
1751+862
1752+(i) a felony in the preceding 10 years; or
1753+863
1754+(ii) after December 3, 2018, a misdemeanor for drug distribution;
1755+864
1756+(b) is younger than 21 years old; or
1757+865
1758+(c) after September 23, 2019, until January 1, 2023, is actively serving as a legislator.
1759+866
1760+(5)[(a)] If an applicant for a medical cannabis pharmacy license under this section holds
1761+867
1762+another license under this chapter, the department may not give preference to the
1763+868
1764+applicant based on the applicant's status as a holder of the license.
1765+869
1766+[(b) If an applicant for a medical cannabis pharmacy license under this section holds a
1767+870
1768+license to operate a cannabis cultivation facility under this section, the department
1769+871
1770+may give consideration to the applicant's status as a holder of the license if:]
1771+872
1772+[(i) the applicant demonstrates that a decrease in costs to patients is more likely to
1773+873
1774+result from the applicant's vertical integration than from a more competitive
1775+874
1776+marketplace; and]
1777+875
1778+[(ii) the department finds multiple other factors, in addition to the existing license,
1779+876
1780+that support granting the new license.]
1781+877
1782+(6) The licensing board may revoke a license under this part:
1783+878
1784+(a) if the medical cannabis pharmacy does not begin operations within one year after the
1785+- 26 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1786+879
1787+day on which the department issues an announcement of the department's intent to
1788+880
1789+award a license to the medical cannabis pharmacy;
1790+881
1791+(b) after the third the same violation of this chapter in any of the licensee's licensed
1792+882
1793+cannabis production establishments or medical cannabis pharmacies;
1794+883
1795+(c) if an individual described in Subsection (2)(b)(ii) is convicted, while the license is
1796+884
1797+active, under state or federal law of:
1798+885
1799+(i) a felony; or
1800+886
1801+(ii) after December 3, 2018, a misdemeanor for drug distribution;
1802+887
1803+(d) if the licensee fails to provide the information described in Subsection (2)(b)(vi) at
1804+888
1805+the time of application, or fails to supplement the information described in
1806+889
1807+Subsection (2)(b)(vi) with any investigation or adverse action that occurs after the
1808+890
1809+submission of the application within 14 calendar days after the licensee receives
1810+891
1811+notice of the investigation or adverse action;
1812+892
1813+(e) if the medical cannabis pharmacy demonstrates a willful or reckless disregard for the
1814+893
1815+requirements of this chapter or the rules the department makes in accordance with
1816+894
1817+this chapter;
1818+895
1819+(f) if, after a change of ownership described in Subsection (11)(c), the department
1820+896
1821+determines that the medical cannabis pharmacy no longer meets the minimum
1822+897
1823+standards for licensure and operation of the medical cannabis pharmacy described in
1824+898
1825+this chapter; or
1826+899
1827+(g) if through an investigation conducted under Subsection 4-41a-201.1(11) and in
1828+900
1829+accordance with Title 63G, Chapter 4, Administrative Procedures Act, the board
1830+901
1831+finds that the licensee has participated in anticompetitive business practices.
1832+902
1833+(7)(a) A person who receives a medical cannabis pharmacy license under this chapter, if
1834+903
1835+the municipality or county where the licensed medical cannabis pharmacy will be
1836+904
1837+located requires a local land use permit, shall submit to the department a copy of the
1838+905
1839+licensee's approved application for the land use permit within 120 days after the day
1840+906
1841+on which the department issues the license.
1842+907
1843+(b) If a licensee fails to submit to the department a copy the licensee's approved land use
1844+908
1845+permit application in accordance with Subsection (7)(a), the department may revoke
1846+909
1847+the licensee's license.
1848+910
1849+(8) The department shall deposit the proceeds of a fee imposed by this section into the
1850+911
1851+Qualified Production Enterprise Fund.
1852+912
1853+(9) The department shall begin accepting applications under this part on or before March 1,
1854+- 27 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1855+913
1856+2020.
1857+914
1858+(10)(a) The department's authority to issue a license under this section is plenary and is
1859+915
1860+not subject to review.
1861+916
1862+(b) Notwithstanding Subsection (2), the decision of the department to award a license to
1863+917
1864+an applicant is not subject to:
1865+918
1866+(i) Title 63G, Chapter 6a, Part 16, Protests; or
1867+919
1868+(ii) Title 63G, Chapter 6a, Part 17, Procurement Appeals Board.
1869+920
1870+(11)(a) A medical cannabis pharmacy license is not transferrable or assignable.
1871+921
1872+(b) A medical cannabis pharmacy shall report in writing to the department no later than
1873+922
1874+10 business days before the date of any change of ownership of the medical cannabis
1875+923
1876+pharmacy.
1877+924
1878+(c) If the ownership of a medical cannabis pharmacy changes by 50% or more:
1879+925
1880+(i) concurrent with the report described in Subsection (11)(b), the medical cannabis
1881+926
1882+pharmacy shall submit a new application described in Subsection (2)(b), subject to
1883+927
1884+Subsection (2)(c);
1885+928
1886+(ii) within 30 days of the submission of the application, the department shall:
1887+929
1888+(A) conduct an application review; and
1889+930
1890+(B) award a license to the medical cannabis pharmacy for the remainder of the
1891+931
1892+term of the medical cannabis pharmacy's license before the ownership change
1893+932
1894+if the medical cannabis pharmacy meets the minimum standards for licensure
1895+933
1896+and operation of the medical cannabis pharmacy described in this chapter; and
1897+934
1898+(iii) if the department approves the license application, notwithstanding Subsection
1899+935
1900+(3), the medical cannabis pharmacy shall pay a license fee that the department sets
1901+936
1902+in accordance with Section 63J-1-504 in an amount that covers the department's
1903+937
1904+cost of conducting the application review.
1905+938
1906+Section 14. Section 4-41a-1003 is amended to read:
1907+939
1908+4-41a-1003 . Renewal - Notice of available license.
1909+940
1910+(1)(a) The department shall renew a license [under Sections 4-41a-1001 through
1911+941
1912+4-41a-1005] issued under this part every year if, at the time of renewal:
1913+942
1914+[(a)] (i) the licensee meets the requirements of Section 4-41a-1001;
1915+943
1916+[(b)] (ii) the licensee pays the department a license renewal fee in an amount that,
1917+944
1918+subject to Subsection 4-41a-1004(5), the department sets in accordance with
1919+945
1920+Section 63J-1-504; and
1921+946
1922+[(c)] (iii) if the medical cannabis pharmacy changes the operating plan described in
1923+- 28 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
1924+947
1925+Section 4-41a-1004 that the department approved under Subsection
1926+948
1927+4-41a-1001(2)(b)(iv), the department approves the new operating plan.
1928+949
1929+(b) A license fee for a medical cannabis pharmacy located in a county of the third,
1930+950
1931+fourth, fifth, or sixth class shall be 50% less than what is charged for other medical
1932+951
1933+cannabis pharmacies.
1934+952
1935+(2)(a) If a licensed medical cannabis pharmacy abandons the medical cannabis
1936+953
1937+pharmacy's license, the department shall publish notice of an available license[ ], for
1938+954
1939+the geographic area in which the medical cannabis pharmacy license is available, as a
1940+955
1941+class A notice under Section 63G-30-102, for at least seven days.
1942+956
1943+(b) The department may establish criteria, in collaboration with the Division of
1944+957
1945+Professional Licensing and the Board of Pharmacy and in accordance with Title 63G,
1946+958
1947+Chapter 3, Utah Administrative Rulemaking Act, to identify the medical cannabis
1948+959
1949+pharmacy actions that constitute abandonment of a medical cannabis pharmacy
1950+960
1951+license.
1952+961
1953+(3) If the department has not completed the necessary processes to make a determination on
1954+962
1955+a license renewal under Subsections (1)(a) and (c) before the expiration of a license, the
1956+963
1957+department may issue a conditional medical cannabis pharmacy license to a licensed
1958+964
1959+medical cannabis pharmacy that has applied for license renewal under this section and
1960+965
1961+paid the fee described in Subsection (1)(b).
1962+966
1963+Section 15. Section 4-41a-1005 is amended to read:
1964+967
1965+4-41a-1005 . Maximum number of licenses.
1966+968
1967+(1)(a) [Except as provided in Subsection (1)(b) or (d), if a sufficient number of
1968+969
1969+applicants apply, the department] The licensing board shall issue up to [15] 17 medical
1970+970
1971+cannabis pharmacy licenses in accordance with this section including the two medical
1972+971
1973+cannabis pharmacy licenses in accordance with Section 4-41a-1006.
1974+972
1975+[(b) If an insufficient number of qualified applicants apply for the available number of
1976+973
1977+medical cannabis pharmacy licenses, the department shall issue a medical cannabis
1978+974
1979+pharmacy license to each qualified applicant.]
1980+975
1981+[(c) The department may issue the licenses described in Subsection (1)(a) in accordance
1982+976
1983+with this Subsection (1)(c).]
1984+977
1985+[(i) Using one procurement process, the department may issue eight licenses to an
1986+978
1987+initial group of medical cannabis pharmacies and six licenses to a second group of
1988+979
1989+medical cannabis pharmacies.]
1990+980
1991+[(ii) The department shall:]
1992+- 29 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
1993+981
1994+[(A) divide the state into no less than four geographic regions, set by the
1995+982
1996+department in rule;]
1997+983
1998+[(B) issue at least one license in each geographic region during each phase of
1999+984
2000+issuing licenses; and]
2001+985
2002+[(C) complete the process of issuing medical cannabis pharmacy licenses no later
2003+986
2004+than July 1, 2020.]
2005+987
2006+[(iii) In issuing a 15th license under Subsection (1), the department shall ensure that
2007+988
2008+the license recipient will locate the medical cannabis pharmacy within Dagget,
2009+989
2010+Duchesne, Uintah, Carbon, Sevier, Emery, Grand, or San Juan County.]
2011+990
2012+[(d)(i) The department may issue licenses to operate a medical cannabis pharmacy in
2013+991
2014+addition to the licenses described in Subsection (1)(a) if the department
2015+992
2016+determines, in consultation with the Department of Health and Human Services
2017+993
2018+and after an annual or more frequent analysis of the current and anticipated market
2019+994
2020+for medical cannabis, that each additional license is necessary to provide an
2021+995
2022+adequate supply, quality, or variety of medical cannabis to medical cannabis
2023+996
2024+cardholders.]
2025+997
2026+[(ii) The department shall:]
2027+998
2028+[(A) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
2029+999
2030+Act, make rules to establish criteria and processes for the consultation,
2031+1000
2032+analysis, and application for a license described in Subsection (1)(d)(i); and]
2033+1001
2034+[(B) report to the Executive Appropriations Committee of the Legislature before
2035+1002
2036+each time the department issues an additional license under Subsection
2037+1003
2038+(1)(d)(i) regarding the results of the consultation and analysis described in
2039+1004
2040+Subsection (1)(d)(i) and the application of the criteria described in Subsection
2041+1005
2042+(1)(d)(ii)(A).]
2043+1006
2044+(2)(a) [If there are more qualified applicants than there are available licenses for medical
2045+1007
2046+cannabis pharmacies, the department] The licensing board shall:
2047+1008
2048+(i) evaluate each applicant and award the license to the applicant that best
2049+1009
2050+demonstrates:
2051+1010
2052+(A) experience with establishing and successfully operating a business that
2053+1011
2054+involves complying with a regulatory environment, tracking inventory, and
2055+1012
2056+training, evaluating, and monitoring employees;
2057+1013
2058+(B) an operating plan that will best ensure the safety and security of patrons and
2059+1014
2060+the community;
2061+- 30 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2062+1015
2063+(C) positive connections to the local community;
2064+1016
2065+(D) the suitability of the proposed location and the location's accessibility for
2066+1017
2067+qualifying patients;
2068+1018
2069+(E) the extent to which the applicant can increase efficiency and reduce the cost of
2070+1019
2071+medical cannabis for patients; and
2072+1020
2073+(F) a strategic plan described in Subsection 4-41a-1004(7) that has a
2074+1021
2075+comparatively high likelihood of success; and
2076+1022
2077+(ii) ensure a geographic dispersal among licensees that is sufficient to reasonably
2078+1023
2079+maximize access to the largest number of medical cannabis cardholders.
2080+1024
2081+(b) In making the evaluation described in Subsection (2)(a), the licensing board may
2082+1025
2083+give increased consideration to applicants who indicate a willingness to:
2084+1026
2085+(i) site a medical cannabis pharmacy in an area or population center designated as a
2086+1027
2087+medically underserved area or population as determined by the federal Health
2088+1028
2089+Resources and Services Administration; and
2090+1029
2091+(ii) operate as a home delivery medical cannabis pharmacy that accepts electronic
2092+1030
2093+medical cannabis orders.
2094+1031
2095+[(b) In making the evaluation described in Subsection (2)(a), the department may give
2096+1032
2097+increased consideration to applicants who indicate a willingness to:]
2098+1033
2099+[(i) operate as a home delivery medical cannabis pharmacy that accepts electronic
2100+1034
2101+medical cannabis orders that the state central patient portal facilitates; and]
2102+1035
2103+[(ii) accept payments through:]
2104+1036
2105+[(A) a payment provider that the Division of Finance approves, in consultation
2106+1037
2107+with the state treasurer, in accordance with Section 4-41a-108; or]
2108+1038
2109+[(B) a financial institution in accordance with Subsection 4-41a-108(4).]
2110+1039
2111+(3) The [department] licensing board may conduct a face-to-face interview with an applicant
2112+1040
2113+for a license that the [department] licensing board evaluates under Subsection (2).
2114+1041
2115+Section 16. Section 4-41a-1006 is enacted to read:
2116+1042
2117+4-41a-1006 . Independent medical cannabis licenses.
2118+1043
2119+(1)(a) Subject to the requirements of Subsection (3) and the criteria established for
2120+1044
2121+obtaining a medical cannabis pharmacy license under this chapter, the licensing
2122+1045
2123+board shall:
2124+1046
2125+(i) before January 1, 2026, select one entity to receive a medical cannabis pharmacy
2126+1047
2127+license; and
2128+1048
2129+(ii) before January 1, 2027, but not before January 1, 2026, select one entity to
2130+- 31 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2131+1049
2132+receive a medical cannabis pharmacy license.
2133+1050
2134+(b) When selecting entities under this section, if there is a conflict between the criteria
2135+1051
2136+established for obtaining a medical cannabis pharmacy license under the other
2137+1052
2138+sections of this chapter and this section, this section controls.
2139+1053
2140+(2) For the license described in Subsection (1)(a)(ii), the licensing board may not select an
2141+1054
2142+entity:
2143+1055
2144+(a) that owns any interest in or operates a medical cannabis production establishment; or
2145+1056
2146+(b) that is owned, partially or entirely, or operated by a medical cannabis production
2147+1057
2148+establishment.
2149+1058
2150+(3) The licensing board:
2151+1059
2152+(a) may not select an entity to receive a license under this section if the entity owns a
2153+1060
2154+financial interest in a medical cannabis pharmacy or is owned by an entity that owns
2155+1061
2156+a financial interest in a medical cannabis pharmacy; and
2157+1062
2158+(b) shall select an entity that will site a medical cannabis pharmacy license issued under
2159+1063
2160+this section in an area:
2161+1064
2162+(i) designated as a medically underserved area as determined by the federal Health
2163+1065
2164+Resources and Services Administration; and
2165+1066
2166+(ii) located in a county of the third, fourth, fifth, or sixth class.
2167+1067
2168+(4) A license described in this section may not be transferred to another entity unless that
2169+1068
2170+entity meets the requirements of Subsections (2) and (3) that the transferring entity met
2171+1069
2172+when obtaining the license.
2173+1070
2174+(5) Notwithstanding Subsection (4), for a license described in Subsection (1)(a)(i), an
2175+1071
2176+applicant shall commit to not alienating or otherwise transferring control of the license
2177+1072
2178+or of the entity that holds the license to another person for at least 15 years from the day
2179+1073
2180+the license is issued under this chapter.
2181+1074
2182+(6) The department shall provide regular updates to the Medical Cannabis Governance
2183+1075
2184+Structure Working Group created in Section 36-12-8.2 regarding the application and
2185+1076
2186+selection process for licenses issued under this section.
2187+1077
2188+Section 17. Section 4-41a-1101 is amended to read:
2189+1078
2190+4-41a-1101 . Operating requirements -- General.
2191+1079
2192+(1)(a) A medical cannabis pharmacy shall operate:
2193+1080
2194+(i) at the physical address provided to the department under Section 4-41a-1001; and
2195+1081
2196+(ii) in accordance with the operating plan provided to the department under Section
2197+1082
2198+4-41a-1001 and, if applicable, Section 4-41a-1004.
2199+- 32 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2200+1083
2201+(b) A medical cannabis pharmacy shall notify the department before a change in the
2202+1084
2203+medical cannabis pharmacy's physical address or operating plan.
2204+1085
2205+(2) An individual may not enter a medical cannabis pharmacy unless the individual:
2206+1086
2207+(a) is at least 18 years old or is an emancipated minor under Section 80-7-105; and
2208+1087
2209+(b) except as provided in Subsection (4):
2210+1088
2211+(i) possesses a valid:
2212+1089
2213+(A) medical cannabis pharmacy agent registration card;
2214+1090
2215+(B) pharmacy medical provider registration card; or
2216+1091
2217+(C) medical cannabis card;
2218+1092
2219+(ii) is an employee of the department performing an inspection under Section
2220+1093
2221+4-41a-1103; or
2222+1094
2223+(iii) is another individual as the department provides.
2224+1095
2225+(3) A medical cannabis pharmacy may not employ an individual who is younger than 21
2226+1096
2227+years old.
2228+1097
2229+(4) Notwithstanding Subsection (2)(a), a medical cannabis pharmacy may authorize an
2230+1098
2231+individual who is not a medical cannabis pharmacy agent or pharmacy medical provider
2232+1099
2233+to access the medical cannabis pharmacy if the medical cannabis pharmacy tracks and
2234+1100
2235+monitors the individual at all times while the individual is at the medical cannabis
2236+1101
2237+pharmacy and maintains a record of the individual's access.
2238+1102
2239+(5) A medical cannabis pharmacy shall operate in a facility that has:
2240+1103
2241+(a) a single, secure public entrance;
2242+1104
2243+(b) a security system with a backup power source that:
2244+1105
2245+(i) detects and records entry into the medical cannabis pharmacy; and
2246+1106
2247+(ii) provides notice of an unauthorized entry to law enforcement when the medical
2248+1107
2249+cannabis pharmacy is closed; and
2250+1108
2251+(c) a lock on each area where the medical cannabis pharmacy stores [cannabis or a
2252+1109
2253+cannabis product] medical cannabis.
2254+1110
2255+(6) A medical cannabis pharmacy shall post, both clearly and conspicuously in the medical
2256+1111
2257+cannabis pharmacy, the limit on the purchase of cannabis described in Subsection
2258+1112
2259+4-41a-1102(2).
2260+1113
2261+(7) Except for an emergency situation described in Subsection 26B-4-213(3)(c), a medical
2262+1114
2263+cannabis pharmacy may not allow any individual to consume cannabis on the property
2264+1115
2265+or premises of the medical cannabis pharmacy.
2266+1116
2267+(8) A medical cannabis pharmacy may not sell [cannabis or a cannabis product] medical
2268+- 33 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2269+1117
2270+cannabis without first indicating on the [cannabis or cannabis product] medical cannabis
2271+1118
2272+label the name of the medical cannabis pharmacy.
2273+1119
2274+(9)(a) Each medical cannabis pharmacy shall retain in the pharmacy's records the
2275+1120
2276+following information regarding each recommendation underlying a transaction:
2277+1121
2278+(i) the recommending medical provider's name, address, and telephone number;
2279+1122
2280+(ii) the patient's name and address;
2281+1123
2282+(iii) the date of issuance;
2283+1124
2284+(iv) directions of use and dosing guidelines or an indication that the recommending
2285+1125
2286+medical provider did not recommend specific directions of use or dosing
2287+1126
2288+guidelines; and
2289+1127
2290+(v) if the patient did not complete the transaction, the name of the medical cannabis
2291+1128
2292+cardholder who completed the transaction.
2293+1129
2294+(b)(i) Except as provided in Subsection (9)(b)(iii), a medical cannabis pharmacy may
2295+1130
2296+not sell medical cannabis unless the medical cannabis has a label securely affixed
2297+1131
2298+to the container indicating the following minimum information:
2299+1132
2300+(A) the name, address, and telephone number of the medical cannabis pharmacy;
2301+1133
2302+(B) the unique identification number that the medical cannabis pharmacy assigns;
2303+1134
2304+(C) the date of the sale;
2305+1135
2306+(D) the name of the patient;
2307+1136
2308+(E) the name of the recommending medical provider who recommended the
2309+1137
2310+medical cannabis treatment;
2311+1138
2312+(F) directions for use and cautionary statements, if any;
2313+1139
2314+(G) the amount dispensed and the cannabinoid content;
2315+1140
2316+(H) the suggested use date;
2317+1141
2318+(I) for unprocessed cannabis flower, the legal use termination date; and
2319+1142
2320+(J) any other requirements that the department determines, in consultation with the
2321+1143
2322+Division of Professional Licensing and the Board of Pharmacy.
2323+1144
2324+(ii) A medical cannabis pharmacy is exempt from the requirement to provide the
2325+1145
2326+following information under Subsection (9)(b)(i) if the information is already
2327+1146
2328+provided on the product label that a cannabis production establishment affixes:
2329+1147
2330+(A) a unique identification number;
2331+1148
2332+(B) directions for use and cautionary statements;
2333+1149
2334+(C) amount and cannabinoid content; and
2335+1150
2336+(D) a suggested use date.
2337+- 34 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2338+1151
2339+(iii) If the size of a medical cannabis container does not allow sufficient space to
2340+1152
2341+include the labeling requirements described in Subsection (9)(b)(i), the medical
2342+1153
2343+cannabis pharmacy may provide the following information described in
2344+1154
2345+Subsection (9)(b)(i) on a supplemental label attached to the container or an
2346+1155
2347+informational enclosure that accompanies the container:
2348+1156
2349+(A) the cannabinoid content;
2350+1157
2351+(B) the suggested use date; and
2352+1158
2353+(C) any other requirements that the department determines.
2354+1159
2355+(iv) A medical cannabis pharmacy may sell medical cannabis to another medical
2356+1160
2357+cannabis pharmacy without a label described in Subsection (9)(b)(i).
2358+1161
2359+(10) A pharmacy medical provider or medical cannabis pharmacy agent shall:
2360+1162
2361+(a) upon receipt of an order from a limited medical provider in accordance with
2362+1163
2363+Subsections 26B-4-204(1)(b) through (d):
2364+1164
2365+(i) for a written order or an electronic order under circumstances that the department
2366+1165
2367+determines, contact the limited medical provider or the limited medical provider's
2368+1166
2369+office to verify the validity of the recommendation; and
2370+1167
2371+(ii) for an order that the pharmacy medical provider or medical cannabis pharmacy
2372+1168
2373+agent verifies under Subsection (10)(a)(i) or an electronic order that is not subject
2374+1169
2375+to verification under Subsection (10)(a)(i), enter the limited medical provider's
2376+1170
2377+recommendation or renewal, including any associated directions of use, dosing
2378+1171
2379+guidelines, or caregiver indication, in the state electronic verification system;
2380+1172
2381+(b) in processing an order for a holder of a conditional medical cannabis card described
2382+1173
2383+in Subsection 26B-4-213(1)(b) that appears irregular or suspicious in the judgment of
2384+1174
2385+the pharmacy medical provider or medical cannabis pharmacy agent, contact the
2386+1175
2387+recommending medical provider or the recommending medical provider's office to
2388+1176
2389+verify the validity of the recommendation before processing the cardholder's order;
2390+1177
2391+(c) unless the medical cannabis cardholder has had a consultation under Subsection
2392+1178
2393+26B-4-231(5), verbally offer to a medical cannabis cardholder at the time of a
2394+1179
2395+purchase of [cannabis, a cannabis product,] medical cannabis or a medical cannabis
2396+1180
2397+device, personal counseling with the pharmacy medical provider; and
2398+1181
2399+(d) provide a telephone number or website by which the cardholder may contact a
2400+1182
2401+pharmacy medical provider for counseling.
2402+1183
2403+(11)(a) A medical cannabis pharmacy may create a medical cannabis disposal program
2404+1184
2405+that allows an individual to deposit unused or excess medical cannabis or cannabis
2406+- 35 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2407+1185
2408+residue from a medical cannabis device in a locked box or other secure receptacle
2409+1186
2410+within the medical cannabis pharmacy.
2411+1187
2412+(b) A medical cannabis pharmacy with a disposal program described in Subsection
2413+1188
2414+(11)(a) shall ensure that only a medical cannabis pharmacy agent or pharmacy
2415+1189
2416+medical provider can access deposited medical cannabis.
2417+1190
2418+(c) A medical cannabis pharmacy shall dispose of any deposited medical cannabis by:
2419+1191
2420+(i) rendering the deposited medical cannabis unusable and unrecognizable before
2421+1192
2422+transporting deposited medical cannabis from the medical cannabis pharmacy; and
2423+1193
2424+(ii) disposing of the deposited medical cannabis in accordance with:
2425+1194
2426+(A) federal and state law, rules, and regulations related to hazardous waste;
2427+1195
2428+(B) the Resource Conservation and Recovery Act, 42 U.S.C. Sec. 6991 et seq.;
2429+1196
2430+(C) Title 19, Chapter 6, Part 5, Solid Waste Management Act; and
2431+1197
2432+(D) other regulations that the department makes in accordance with Title 63G,
2433+1198
2434+Chapter 3, Utah Administrative Rulemaking Act.
2435+1199
2436+(12) A medical cannabis pharmacy:
2437+1200
2438+(a) shall employ a pharmacist who is licensed under Title 58, Chapter 17b, Pharmacy
2439+1201
2440+Practice Act, as a pharmacy medical provider;
2441+1202
2442+(b) may employ a physician who has the authority to write a prescription and is licensed
2443+1203
2444+under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah
2445+1204
2446+Osteopathic Medical Practice Act, as a pharmacy medical provider;
2447+1205
2448+(c) shall ensure that a pharmacy medical provider described in Subsection (12)(a) works
2449+1206
2450+onsite during all business hours;
2451+1207
2452+(d) shall designate one pharmacy medical provider described in Subsection (12)(a) as the
2453+1208
2454+pharmacist-in-charge to oversee the operation of and generally supervise the medical
2455+1209
2456+cannabis pharmacy;[ and]
2457+1210
2458+(e) shall allow the pharmacist-in-charge to determine which [cannabis and cannabis
2459+1211
2460+products] medical cannabis products the medical cannabis pharmacy maintains in the
2461+1212
2462+medical cannabis pharmacy's inventory[.] ; and
2463+1213
2464+(f) for each medical cannabis product sold by the medical cannabis pharmacy, shall:
2465+1214
2466+(i) allow a medical cannabis cardholder located in the pharmacy to view the back
2467+1215
2468+panel of the product when requested; and
2469+1216
2470+(ii) beginning July 1, 2025, include a picture of the back panel of the product on the
2471+1217
2472+medical cannabis pharmacy's website.
2473+1218
2474+(13) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah
2475+- 36 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2476+1219
2477+Administrative Rulemaking Act, protocols for a recall of cannabis and cannabis products
2478+1220
2479+by a medical cannabis pharmacy.
2480+1221
2481+Section 18. Section 4-41a-1201 is amended to read:
2482+1222
2483+4-41a-1201 . Medical cannabis home delivery designation.
2484+1223
2485+(1) The department may designate a medical cannabis pharmacy as a home delivery
2486+1224
2487+medical cannabis pharmacy if the department determines that the medical cannabis
2488+1225
2489+pharmacy's operating plan demonstrates the functional and technical ability to:
2490+1226
2491+(a) safely conduct transactions for medical cannabis shipments;
2492+1227
2493+(b) accept electronic medical cannabis orders[ that the state central patient portal
2494+1228
2495+facilitates]; and
2496+1229
2497+(c) accept payments through:
2498+1230
2499+(i) a payment provider that the Division of Finance approves, in consultation with the
2500+1231
2501+state treasurer, in accordance with Section 26-61a-603; or
2502+1232
2503+(ii) a financial institution in accordance with Subsection 26-61a-603(4).
2504+1233
2505+(2) An applicant seeking a designation as a home delivery medical cannabis pharmacy shall
2506+1234
2507+identify in the applicant's operating plan any information relevant to the department's
2508+1235
2509+evaluation described in Subsection (1), including:
2510+1236
2511+(a) the name and contact information of the payment provider;
2512+1237
2513+(b) the nature of the relationship between the prospective licensee and the payment
2514+1238
2515+provider;
2516+1239
2517+(c) the processes of the following to safely and reliably conduct transactions for medical
2518+1240
2519+cannabis shipments:
2520+1241
2521+(i) the prospective licensee; and
2522+1242
2523+(ii) the electronic payment provider or the financial institution described in
2524+1243
2525+Subsection (1)(c); and
2526+1244
2527+(d) the ability of the licensee to comply with the department's rules regarding the secure
2528+1245
2529+transportation and delivery of medical cannabis [or medical cannabis product ]to a
2530+1246
2531+medical cannabis cardholder.
2532+1247
2533+(3) Notwithstanding any county or municipal ordinance, a medical cannabis pharmacy that
2534+1248
2535+the department designates as a home delivery medical cannabis pharmacy may deliver
2536+1249
2537+medical cannabis shipments in accordance with this part.
2538+1250
2539+Section 19. Section 4-41a-1202 is amended to read:
2540+1251
2541+4-41a-1202 . Home delivery of medical cannabis shipments -- Medical cannabis
2542+1252
2543+couriers -- License.
2544+- 37 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2545+1253
2546+(1) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
2547+1254
2548+Administrative Rulemaking Act, to ensure the safety, security, and efficiency of a home
2549+1255
2550+delivery medical cannabis pharmacy's fulfillment of electronic medical cannabis orders[
2551+1256
2552+that the state central patient portal facilitates], including rules regarding the safe and
2553+1257
2554+controlled delivery of medical cannabis shipments.
2555+1258
2556+(2) A person may not operate as a medical cannabis courier without a license that the
2557+1259
2558+department issues under this section.
2559+1260
2560+(3)(a) Subject to Subsections (5) and (6), the department shall issue a license to operate
2561+1261
2562+as a medical cannabis courier to an applicant who is eligible for a license under this
2563+1262
2564+section.
2565+1263
2566+(b) An applicant is eligible for a license under this section if the applicant submits to the
2567+1264
2568+department:
2569+1265
2570+(i) the name and address of an individual who:
2571+1266
2572+(A) has a financial or voting interest of 10% or greater in the proposed medical
2573+1267
2574+cannabis courier; or
2575+1268
2576+(B) has the power to direct or cause the management or control of a proposed
2577+1269
2578+cannabis production establishment;
2579+1270
2580+(ii) an operating plan that includes operating procedures to comply with the operating
2581+1271
2582+requirements for a medical cannabis courier described in this chapter; and
2583+1272
2584+(iii) an application fee in an amount that, subject to Subsection 4-41a-104(5), the
2585+1273
2586+department sets in accordance with Section 63J-1-504.
2587+1274
2588+(4) If the department determines that an applicant is eligible for a license under this section,
2589+1275
2590+the department shall:
2591+1276
2592+(a) charge the applicant an initial license fee in an amount that, subject to Subsection
2593+1277
2594+4-41a-104(5), the department sets in accordance with Section 63J-1-504; and
2595+1278
2596+(b) notify the Department of Public Safety of the license approval and the names of each
2597+1279
2598+individual described in Subsection (3)(b)(i).
2599+1280
2600+(5) The department may not issue a license to operate as a medical cannabis courier to an
2601+1281
2602+applicant if an individual described in Subsection (3)(b)(i):
2603+1282
2604+(a) has been convicted under state or federal law of:
2605+1283
2606+(i) a felony in the preceding 10 years; or
2607+1284
2608+(ii) after September 23, 2019, a misdemeanor for drug distribution; or
2609+1285
2610+(b) is younger than 21 years old.
2611+1286
2612+(6) The department may revoke a license under this part if:
2613+- 38 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2614+1287
2615+(a) the medical cannabis courier does not begin operations within one year after the day
2616+1288
2617+on which the department issues the initial license;
2618+1289
2619+(b) the medical cannabis courier makes the same violation of this chapter three times;
2620+1290
2621+(c) an individual described in Subsection (3)(b)(i) is convicted, while the license is
2622+1291
2623+active, under state or federal law of:
2624+1292
2625+(i) a felony; or
2626+1293
2627+(ii) after September 23, 2019, a misdemeanor for drug distribution; or
2628+1294
2629+(d) after a change of ownership described in Subsection (14)(c), the department
2630+1295
2631+determines that the medical cannabis courier no longer meets the minimum standards
2632+1296
2633+for licensure and operation of the medical cannabis courier described in this chapter.
2634+1297
2635+(7) The department shall deposit the proceeds of a fee imposed by this section in the
2636+1298
2637+Qualified Production Enterprise Fund.
2638+1299
2639+(8) The department's authority to issue a license under this section is plenary and is not
2640+1300
2641+subject to review.
2642+1301
2643+(9) Each applicant for a license as a medical cannabis courier shall submit, at the time of
2644+1302
2645+application, from each individual who has a financial or voting interest of 10% or
2646+1303
2647+greater in the applicant or who has the power to direct or cause the management or
2648+1304
2649+control of the applicant:
2650+1305
2651+(a) a fingerprint card in a form acceptable to the Department of Public Safety;
2652+1306
2653+(b) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
2654+1307
4932655 registration of the individual's fingerprints in the Federal Bureau of Investigation
494-242
495-Next Generation Identification System's Rap Back Service; and]
496-243
497-[(iii) consent to a fingerprint background check by:]
498-244
499-[(A) the Bureau of Criminal Identification; and]
500-245
501-[(B) the Federal Bureau of Investigation.]
502-246
503-[(b) The Bureau of Criminal Identification shall:]
504-247
505-[(i) check the fingerprints the applicant submits under Subsection (6)(a) against the
506-248
2656+1308
2657+Next Generation Identification System's Rap Back Service; and
2658+1309
2659+(c) consent to a fingerprint background check by:
2660+1310
2661+(i) the Bureau of Criminal Identification; and
2662+1311
2663+(ii) the Federal Bureau of Investigation.
2664+1312
2665+(10) The Bureau of Criminal Identification shall:
2666+1313
2667+(a) check the fingerprints the applicant submits under Subsection (9) against the
2668+1314
5072669 applicable state, regional, and national criminal records databases, including the
508-249
509-Federal Bureau of Investigation Next Generation Identification System;]
510-250
511-[(ii) report the results of the background check to the department;]
512-251
513-[(iii) maintain a separate file of fingerprints that applicants submit under Subsection
514-252
515-(6)(a) for search by future submissions to the local and regional criminal records
516-253
517-databases, including latent prints;]
518-254
519-[(iv) request that the fingerprints be retained in the Federal Bureau of Investigation
520-255
521-Next Generation Identification System's Rap Back Service for search by future
522-256
2670+1315
2671+Federal Bureau of Investigation Next Generation Identification System;
2672+1316
2673+(b) report the results of the background check to the department;
2674+1317
2675+(c) maintain a separate file of fingerprints that applicants submit under Subsection (9)
2676+1318
2677+for search by future submissions to the local and regional criminal records databases,
2678+1319
2679+including latent prints;
2680+1320
2681+(d) request that the fingerprints be retained in the Federal Bureau of Investigation Next
2682+- 39 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2683+1321
2684+Generation Identification System's Rap Back Service for search by future
2685+1322
5232686 submissions to national criminal records databases, including the Next Generation
524-257
525-Identification System and latent prints; and]
526-258
527-[(v) establish a privacy risk mitigation strategy to ensure that the department only
528-259
2687+1323
2688+Identification System and latent prints; and
2689+1324
2690+(e) establish a privacy risk mitigation strategy to ensure that the department only
2691+1325
5292692 receives notifications for an individual with whom the department maintains an
530-260
531-authorizing relationship.]
532-261
533-[(c) The department shall:]
534-262
535-[(i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
536-263
2693+1326
2694+authorizing relationship.
2695+1327
2696+(11) The department shall:
2697+1328
2698+(a) assess an individual who submits fingerprints under Subsection (9) a fee in an
2699+1329
5372700 amount that the department sets in accordance with Section 63J-1-504 for the
538-264
2701+1330
5392702 services that the Bureau of Criminal Identification or another authorized agency
540-265
541-provides under this section; and]
542-- 8 - Enrolled Copy H.B. 54
543-266
544-[(ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
545-267
546-Identification.]
547-268
548-Section 3. Section 4-41-103.3 is amended to read:
549-269
550-4-41-103.3 . Industrial hemp retailer permit.
551-270
552-(1) Except as provided in Subsection [(4)] (5), a retailer permittee of the department may
553-271
554-market or sell a cannabinoid product or a viable industrial hemp seed.
555-272
556-(2) A person seeking an industrial hemp retailer permit shall provide to the department:
557-273
558-(a) the name of the person that is seeking to market or sell a cannabinoid product or a
559-274
560-viable industrial hemp seed;
561-275
562-(b) the address of each location where a cannabinoid product or a viable industrial hemp
563-276
564-seed will be sold; and
565-277
566-(c) written consent allowing a representative of the department to enter all premises
567-278
568-where the person is selling a cannabinoid product or a viable industrial hemp seed for
569-279
570-the purpose of:
571-280
572-(i) conducting a physical inspection; or
573-281
574-(ii) ensuring compliance with the requirements of this chapter.
575-282
576-(3) Beginning January 1, 2026, an industrial hemp retailer permittee shall:
577-283
578-(a) maintain a video surveillance system that:
579-284
580-(i) is able to monitor who purchases a cannabinoid product from the permittee;
581-285
582-(ii) is tamper proof; and
583-286
584-(iii) stores a video record for at least 45 days; and
585-287
586-(b) provide the department access to the video surveillance system upon request.
587-288
588-[(3)] (4) The department may set a fee in accordance with Subsection 4-2-103(2) for the
589-289
590-application for an industrial hemp retailer permit.
591-290
592-[(4)] (5) Any marketing for a cannabinoid product or a viable industrial hemp seed shall
593-291
594-include a notice to consumers that the product is hemp and is not cannabis or medical
595-292
596-cannabis, as those terms are defined in Section 26B-4-201.
597-293
598-Section 4. Section 4-41-105 is amended to read:
599-294
600-4-41-105 . Unlawful acts.
601-295
602-(1) It is unlawful for a person to handle, process, or market living industrial hemp plants,
603-296
604-viable hemp seeds, leaf materials, or floral materials derived from industrial hemp
605-297
606-without the appropriate license or permit issued by the department under this chapter.
607-298
608-(2)(a) It is unlawful for any person to:
609-299
610-(i) distribute, sell, or market a cannabinoid product that is:
611-- 9 - H.B. 54 Enrolled Copy
612-300
613-(A) not registered with the department under Section 4-41-104; or
614-301
615-(B) noncompliant material;
616-302
617-(ii) except as provided in Subsection (2)(b), transport into or out of the state extracted
618-303
619-material or final product that contains 0.3% or more of total THC and any THC
620-304
621-analog;
622-305
623-(iii) sell or use a cannabinoid product that is:
624-306
625-(A) added to a conventional food or beverage, as the department further defines in
626-307
627-rules described in Section 4-41-403;
628-308
629-(B) marketed or manufactured to be enticing to children, as further defined in
630-309
631-rules described in Section 4-41-403; or
632-310
633-(C) smokable flower; or
634-311
635-(iv) knowingly or intentionally sell or give a cannabinoid product that contains THC
636-312
637-or a THC analog in the course of business to an individual who is not at least 21
638-313
2703+1331
2704+provides under this section; and
2705+1332
2706+(b) remit the fee described in Subsection (11)(a) to the Bureau of Criminal Identification.
2707+1333
2708+(12) The department shall renew a license under this section every year if, at the time of
2709+1334
2710+renewal:
2711+1335
2712+(a) the licensee meets the requirements of this section; and
2713+1336
2714+(b) the licensee pays the department a license renewal fee in an amount that, subject to
2715+1337
2716+Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504.
2717+1338
2718+(13) A person applying for a medical cannabis courier license shall submit to the
2719+1339
2720+department a proposed operating plan that complies with this section and that includes:
2721+1340
2722+(a) a description of the physical characteristics of any proposed facilities, including a
2723+1341
2724+floor plan and an architectural elevation, and delivery vehicles;
2725+1342
2726+(b) a description of the credentials and experience of each officer, director, or owner of
2727+1343
2728+the proposed medical cannabis courier;
2729+1344
2730+(c) the medical cannabis courier's employee training standards;
2731+1345
2732+(d) a security plan; and
2733+1346
2734+(e) storage and delivery protocols, both short and long term, to ensure that medical
2735+1347
2736+cannabis shipments are stored and delivered in a manner that is sanitary and
2737+1348
2738+preserves the integrity of the cannabis.
2739+1349
2740+(14)(a) A medical cannabis courier license is not transferable or assignable.
2741+1350
2742+(b) A medical cannabis courier shall report in writing to the department no later than 10
2743+1351
2744+business days before the date of any change of ownership of the medical cannabis
2745+1352
2746+courier.
2747+1353
2748+(c) If the ownership of a medical cannabis courier changes by 50% or more:
2749+1354
2750+(i) concurrent with the report described in Subsection (14)(b), the medical cannabis
2751+- 40 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2752+1355
2753+courier shall submit a new application described in Subsection (3)(b);
2754+1356
2755+(ii) within 30 days of the submission of the application, the department shall:
2756+1357
2757+(A) conduct an application review; and
2758+1358
2759+(B) award a license to the medical cannabis courier for the remainder of the term
2760+1359
2761+of the medical cannabis courier's license before the ownership change if the
2762+1360
2763+medical cannabis courier meets the minimum standards for licensure and
2764+1361
2765+operation of the medical cannabis courier described in this chapter; and
2766+1362
2767+(iii) if the department approves the license application, notwithstanding Subsection
2768+1363
2769+(4), the medical cannabis courier shall pay a license fee that the department sets in
2770+1364
2771+accordance with Section 63J-1-504 in an amount that covers the board's cost of
2772+1365
2773+conducting the application review.
2774+1366
2775+(15)(a) Except as provided in Subsection(15)(b), a person may not advertise regarding
2776+1367
2777+the transportation of medical cannabis.
2778+1368
2779+(b) Notwithstanding Subsection (14)(a) and subject to Section 4-41a-109, a licensed
2780+1369
2781+home delivery medical cannabis pharmacy or a licensed medical cannabis courier
2782+1370
2783+may advertise:
2784+1371
2785+(i) a green cross;
2786+1372
2787+(ii) the pharmacy's or courier's name and logo; and
2788+1373
2789+(iii) that the pharmacy or courier is licensed to transport medical cannabis shipments.
2790+1374
2791+Section 20. Section 4-41a-1203 is amended to read:
2792+1375
2793+4-41a-1203 . Medical cannabis shipment transportation.
2794+1376
2795+(1) The department shall ensure that each home delivery medical cannabis pharmacy is
2796+1377
2797+capable of delivering, directly or through a medical cannabis courier, medical cannabis
2798+1378
2799+shipments in a secure manner.
2800+1379
2801+(2)(a) A home delivery medical cannabis pharmacy may contract with a licensed
2802+1380
2803+medical cannabis courier to deliver medical cannabis shipments to fulfill electronic
2804+1381
2805+medical cannabis orders[ that the state central patient portal facilitates].
2806+1382
2807+(b) If a home delivery medical cannabis pharmacy enters into a contract described in
2808+1383
2809+Subsection (2)(a), the pharmacy shall:
2810+1384
2811+(i) impose security and personnel requirements on the medical cannabis courier
2812+1385
2813+sufficient to ensure the security and safety of medical cannabis shipments; and
2814+1386
2815+(ii) provide regular oversight of the medical cannabis courier.
2816+1387
2817+(3) Notwithstanding Subsection 4-41a-404(1), an individual may transport a medical
2818+1388
2819+cannabis shipment if the individual is:
2820+- 41 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2821+1389
2822+(a) a registered pharmacy medical provider;
2823+1390
2824+(b) a registered medical cannabis pharmacy agent; or
2825+1391
2826+(c) a registered agent of the medical cannabis courier described in Subsection (2).
2827+1392
2828+(4) An individual transporting a medical cannabis shipment under Subsection (3) shall
2829+1393
2830+comply with the requirements of Subsection 4-41a-404(3).
2831+1394
2832+(5) In addition to the requirements in Subsections (3) and (4), the department may establish
2833+1395
2834+by rule, in collaboration with the Division of Professional Licensing and the Board of
2835+1396
2836+Pharmacy and in accordance with Title 63G, Chapter 3, Utah Administrative
2837+1397
2838+Rulemaking Act, requirements for transporting medical cannabis shipments that are
2839+1398
2840+related to safety for human consumption of [cannabis or a cannabis product] medical
2841+1399
2842+cannabis.
2843+1400
2844+(6)(a) It is unlawful for an individual to transport a medical cannabis shipment with a
2845+1401
2846+manifest that does not meet the requirements of Subsection (4).
2847+1402
2848+(b) Except as provided in Subsection (6)(d), an individual who violates Subsection (6)(a)
2849+1403
2850+is:
2851+1404
2852+(i) guilty of an infraction; and
2853+1405
2854+(ii) subject to a $100 fine.
2855+1406
2856+(c) An individual who is guilty of a violation described in Subsection (6)(b) is not guilty
2857+1407
2858+of a violation of Title 58, Chapter 37, Utah Controlled Substances Act, for the
2859+1408
2860+conduct underlying the violation described in Subsection (6)(b).
2861+1409
2862+(d) If the individual described in Subsection (6)(a) is transporting more cannabis,
2863+1410
2864+cannabis product, or medical cannabis devices than the manifest identifies, except for
2865+1411
2866+a de minimis administrative error:
2867+1412
2868+(i) this chapter does not apply; and
2869+1413
2870+(ii) the individual is subject to penalties under Title 58, Chapter 37, Utah Controlled
2871+1414
2872+Substances Act.
2873+1415
2874+Section 21. Section 4-41a-1206 is amended to read:
2875+1416
2876+4-41a-1206 . Closed-door medical cannabis pharmacy.
2877+1417
2878+(1)(a) Subject to Subsections (1)(b) and (c), a home delivery medical cannabis pharmacy
2879+1418
2880+may open a single closed-door medical cannabis pharmacy.
2881+1419
2882+(b) A home delivery medical cannabis pharmacy may not open a closed-door medical
2883+1420
2884+cannabis pharmacy unless the home delivery medical cannabis pharmacy:
2885+1421
2886+(i) has an operating plan that includes a closed-door medical cannabis pharmacy; and
2887+1422
2888+(ii) obtains a license issued by the department for a closed-door medical cannabis
2889+- 42 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
2890+1423
2891+pharmacy.
2892+1424
2893+(c) An entity that owns multiple home delivery medical cannabis pharmacies may open
2894+1425
2895+only one closed-door medical cannabis pharmacy.
2896+1426
2897+(d) The department may institute a fee in accordance with Section 63J-1-504 to
2898+1427
2899+administer this section.
2900+1428
2901+(2) A home delivery medical cannabis pharmacy that opens a closed-door medical cannabis
2902+1429
2903+pharmacy under Subsection (1) shall ensure:
2904+1430
2905+(a) that a pharmacy medical provider who is a licensed pharmacist:
2906+1431
2907+(i) is directly supervising the packaging of an order; and
2908+1432
2909+(ii) is present in the closed-door medical cannabis pharmacy when an order is
2910+1433
2911+packaged for delivery; and
2912+1434
2913+(b) all record keeping requirements, labeling requirements, and patient counseling
2914+1435
2915+requirements described in this chapter and Title 26B, Chapter 4, Part 2, Cannabinoid
2916+1436
2917+Research and Medical Cannabis, are satisfied before sending out an order.
2918+1437
2919+(3) An individual who prepares an order at a closed-door medical cannabis pharmacy under
2920+1438
2921+this section shall be registered as:
2922+1439
2923+(a) a pharmacy medical provider; or
2924+1440
2925+(b) a medical cannabis pharmacy agent.
2926+1441
2927+(4)(a) A closed-door medical cannabis pharmacy shall operate:
2928+1442
2929+(i) except as provided in Subsection (4)(b), in a facility that is accessible only by an
2930+1443
2931+individual who is a pharmacy medical provider or a medical cannabis pharmacy
2932+1444
2933+agent; and
2934+1445
2935+(ii) at a physical address in accordance with Subsection (6).
2936+1446
2937+(b) A closed-door medical cannabis pharmacy may authorize an individual who is at
2938+1447
2939+least 18 years old and is not a pharmacy medical provider or a cannabis pharmacy
2940+1448
2941+agent to access the closed-door medical cannabis pharmacy if the closed-door
2942+1449
2943+medical cannabis pharmacy:
2944+1450
2945+(i) tracks and monitors the individual at all times while the individual is at the
2946+1451
2947+closed-door medical cannabis pharmacy; and
2948+1452
2949+(ii) maintains a record of the individual's access, including arrival and departure.
2950+1453
2951+(c) A closed-door medical cannabis pharmacy shall operate in a facility that has:
2952+1454
2953+(i) a single, secure public entrance; and
2954+1455
2955+(ii) a security system with a backup power source that:
2956+1456
2957+(A) detects and records entry into the closed-door medical cannabis pharmacy;
2958+- 43 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
2959+1457
2960+(B) provides notice of an unauthorized entry to law enforcement when the
2961+1458
2962+closed-door medical cannabis pharmacy is closed; and
2963+1459
2964+(C) a lock or equivalent restrictive security feature on any area where the
2965+1460
2966+closed-door medical cannabis pharmacy stores a cannabis product.
2967+1461
2968+(d) A closed-door medical cannabis pharmacy shall ensure that any cannabis or cannabis
2969+1462
2970+products in the closed-door medical cannabis pharmacy that are intended for home
2971+1463
2972+delivery are separated in a manner that is readily distinguishable from any other
2973+1464
2974+cannabis or cannabis product in the facility.
2975+1465
2976+(5) A closed-door medical cannabis pharmacy may only provide cannabis or a cannabis
2977+1466
2978+product to an individual through a delivery that complies with this part.
2979+1467
2980+(6)(a) A person may not locate a closed-door medical cannabis pharmacy:
2981+1468
2982+(i) within 1,000 feet of a community location; or
2983+1469
2984+(ii) in or within 600 feet of a district that the relevant municipality or county has
2985+1470
2986+zoned as primarily residential.
2987+1471
2988+(b) The proximity requirements described in Subsection (6)(a) shall be measured from
2989+1472
2990+the nearest entrance to the closed-door medical cannabis pharmacy by following the
2991+1473
2992+shortest route of ordinary pedestrian travel to the property boundary of the
2993+1474
2994+community location or residential area.
2995+1475
2996+(c) The licensing board may grant a waiver to reduce the proximity requirements in
2997+1476
2998+Subsection (6)(a) by up to 20% if the licensing board determines that it is not
2999+1477
3000+reasonably feasible for the applicant to site the proposed closed-door medical
3001+1478
3002+cannabis pharmacy without the waiver.
3003+1479
3004+(d) An applicant for a license under this section shall provide evidence of compliance
3005+1480
3006+with the proximity requirements described in Subsection (6)(a).
3007+1481
3008+(7) When determining where a closed-door medical cannabis pharmacy may open, the
3009+1482
3010+licensing board:
3011+1483
3012+(a) shall utilize geographic regions created by the department through rule;
3013+1484
3014+(b) shall prioritize allowing entities that do not have a medical cannabis pharmacy in a
3015+1485
3016+region to open a closed-door medical cannabis pharmacy in the region;
3017+1486
3018+(c) of the total amount of closed-door medical cannabis pharmacies, may allow only
3019+1487
3020+three closed-door medical cannabis pharmacies to operate in counties of the first and
3021+1488
3022+second class as described in Section 17-50-501; and
3023+1489
3024+(d) for determining the three closed-door medical cannabis pharmacies described in
3025+1490
3026+Subsection (7)(c), consider the following:
3027+- 44 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
3028+1491
3029+(i) the history of compliance with state law and rules for all licenses issued under this
3030+1492
3031+chapter;
3032+1493
3033+(ii) the medical cannabis pharmacy's willingness to offer a variety of brands and
3034+1494
3035+products;
3036+1495
3037+(iii) the ability of the operating plan to ensure the safety and security of the
3038+1496
3039+community;
3040+1497
3041+(iv) the suitability of the proposed location and the location's ability to serve the local
3042+1498
3043+community; and
3044+1499
3045+(v) any other relevant information determined through rule.
3046+1500
3047+(8) A closed-door medical cannabis pharmacy may not account for more than:
3048+1501
3049+(a) for an entity that holds a single medical cannabis pharmacy license, the greater of:
3050+1502
3051+(i) 35% of the medical cannabis pharmacy's total revenue; or
3052+1503
3053+(ii) $2,000,000 in total revenue; or
3054+1504
3055+(b) for an entity that holds more than one medical cannabis pharmacy license, the greater
3056+1505
3057+of:
3058+1506
3059+(i) 35% of the total revenue of the entity's medical cannabis pharmacy that generates
3060+1507
3061+the most revenue; or
3062+1508
3063+(ii) $2,000,000 in total revenue.
3064+1509
3065+(9) Notwithstanding any other provision of this section, the [department] licensing board
3066+1510
3067+may issue only [three] one closed-door medical cannabis pharmacy [licenses] license
3068+1511
3069+before July 1, 2027.
3070+1512
3071+(10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3072+1513
3073+department shall make rules to implement this section.
3074+1514
3075+Section 22. Section 26B-1-435 is amended to read:
3076+1515
3077+26B-1-435 . Medical Cannabis Policy Advisory Board creation -- Membership --
3078+1516
3079+Duties.
3080+1517
3081+(1) There is created within the department the Medical Cannabis Policy Advisory Board.
3082+1518
3083+(2)(a) The advisory board shall consist of the following members:
3084+1519
3085+(i) appointed by the executive director:
3086+1520
3087+(A) a qualified medical provider who has recommended medical cannabis to at
3088+1521
3089+least 100 patients before being appointed;
3090+1522
3091+[(B) a medical research professional;]
3092+1523
3093+[(C)] (B) a mental health specialist;
3094+1524
3095+[(D)] (C) an individual who represents an organization that advocates for medical
3096+- 45 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
3097+1525
3098+cannabis patients;
3099+1526
3100+[(E)] (D) [an individual] a member of the general public who holds a medical
3101+1527
3102+cannabis patient card; and
3103+1528
3104+[(F)] (E) a member of the general public who does not hold a medical cannabis
3105+1529
3106+card;[ and]
3107+1530
3108+(ii) appointed by the commissioner of the Department of Agriculture and Food:
3109+1531
3110+(A) an individual who owns or operates a licensed cannabis cultivation facility, as
3111+1532
3112+defined in Section 4-41a-102;
3113+1533
3114+(B) an individual who owns or operates a licensed medical cannabis pharmacy;
3115+1534
3116+and
3117+1535
3118+(C) a law enforcement officer[.] ; and
3119+1536
3120+(iii) a representative from the Center for Medical Cannabis Research created in
3121+1537
3122+Section 53B-14-1402, appointed by the Center for Medical Cannabis Research.
3123+1538
3124+(b) The commissioner of the Department of Agriculture and Food shall ensure that at
3125+1539
3126+least one individual appointed under Subsection (2)(a)(ii)(A) or (B) also owns or
3127+1540
3128+operates a licensed cannabis processing facility.
3129+1541
3130+(3)(a) Subject to Subsection (3)(b), a member of the advisory board shall serve for a four
3131+1542
3132+year term.
3133+1543
3134+(b) When appointing the initial membership of the advisory board, the executive director
3135+1544
3136+and the commissioner of the Department of Agriculture and Food shall coordinate to
3137+1545
3138+appoint four advisory board members to serve a term of two years to ensure that
3139+1546
3140+approximately half of the board is appointed every two years.
3141+1547
3142+(4)(a) If an advisory board member is no longer able to serve as a member, a new
3143+1548
3144+member shall be appointed in the same manner as the original appointment.
3145+1549
3146+(b) A member appointed in accordance with Subsection (4)(a) shall serve for the
3147+1550
3148+remainder of the unexpired term of the original appointment.
3149+1551
3150+(5)(a) A majority of the advisory board members constitutes a quorum.
3151+1552
3152+(b) The action of a majority of a quorum constitutes an action of the advisory board.
3153+1553
3154+(c) For a term lasting one year, the advisory board shall annually designate members of
3155+1554
3156+the advisory board to serve as chair and vice-chair.
3157+1555
3158+(d) When designating the chair and vice-chair, the advisory board shall ensure that at
3159+1556
3160+least one individual described Subsection (2)(a)(i) is appointed as chair or vice-chair.
3161+1557
3162+(6) An advisory board member may not receive compensation or benefits for the member's
3163+1558
3164+service on the advisory board but may receive per diem and reimbursement for travel
3165+- 46 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
3166+1559
3167+expenses incurred as an advisory board member in accordance with:
3168+1560
3169+(a) Sections 63A-3-106 and 63A-3-107; and
3170+1561
3171+(b) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
3172+1562
3173+63A-3-107.
3174+1563
3175+(7) The department shall:
3176+1564
3177+(a) provide staff support for the advisory board; and
3178+1565
3179+(b) assist the advisory board in conducting meetings.
3180+1566
3181+(8) The advisory board may recommend:
3182+1567
3183+(a) to the department or the Department of Agriculture and Food changes to current or
3184+1568
3185+proposed medical cannabis rules or statutes; and
3186+1569
3187+(b) to the appropriate legislative committee whether the advisory board supports a
3188+1570
3189+change to medical cannabis statutes.
3190+1571
3191+(9) The advisory board shall:
3192+1572
3193+(a) review any draft rule that is authorized under [this chapter] Chapter 4, Part 2,
3194+1573
3195+Cannabinoid Research and Medical Cannabis, or Title 4, Chapter 41a, Cannabis
3196+1574
3197+Production Establishments and Pharmacies;
3198+1575
3199+(b) consult with the Department of Agriculture and Food regarding the issuance of an
3200+1576
3201+additional:
3202+1577
3203+(i) cultivation facility license under Section 4-41a-205; or
3204+1578
3205+(ii) pharmacy license under Section 4-41a-1005;
3206+1579
3207+(c) consult with the department regarding cannabis patient education;
3208+1580
3209+(d) consult regarding the reasonableness of any fees set by the department or the
3210+1581
3211+Department of Agriculture and Food that pertain to the medical cannabis program;
3212+1582
3213+and
3214+1583
3215+(e) consult regarding any issue pertaining to medical cannabis when asked by the
3216+1584
3217+department or the Utah Department of Agriculture and Food.
3218+1585
3219+Section 23. Section 26B-4-201 is amended to read:
3220+1586
3221+26B-4-201 . Definitions.
3222+1587
3223+ As used in this part:
3224+1588
3225+(1) "Active tetrahydrocannabinol" means THC, any THC analog, and
3226+1589
3227+tetrahydrocannabinolic acid.
3228+1590
3229+(2) "Administration of criminal justice" means the performance of detection, apprehension,
3230+1591
3231+detention, pretrial release, post-trial release, prosecution, and adjudication.
3232+1592
3233+(3) "Advertise" means information provided by a person in any medium:
3234+- 47 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
3235+1593
3236+(a) to the public; and
3237+1594
3238+(b) that is not age restricted to an individual who is at least 21 years old.
3239+1595
3240+(4) "Advisory board" means the Medical Cannabis Policy Advisory Board created in
3241+1596
3242+Section 26B-1-435.
3243+1597
3244+(5) "Cannabis Research Review Board" means the Cannabis Research Review Board
3245+1598
3246+created in Section 26B-1-420.
3247+1599
3248+(6) "Cannabis" means marijuana.
3249+1600
3250+(7) "Cannabis processing facility" means the same as that term is defined in Section
3251+1601
3252+4-41a-102.
3253+1602
3254+(8) "Cannabis product" means a product that:
3255+1603
3256+(a) is intended for human use; and
3257+1604
3258+(b) contains cannabis or any tetrahydrocannabinol or THC analog in a total
3259+1605
3260+concentration of 0.3% or greater on a dry weight basis.
3261+1606
3262+(9) "Cannabis production establishment" means the same as that term is defined in Section
3263+1607
3264+4-41a-102.
3265+1608
3266+(10) "Cannabis production establishment agent" means the same as that term is defined in
3267+1609
3268+Section 4-41a-102.
3269+1610
3270+(11) "Cannabis production establishment agent registration card" means the same as that
3271+1611
3272+term is defined in Section 4-41a-102.
3273+1612
3274+(12) "Conditional medical cannabis card" means an electronic medical cannabis card that
3275+1613
3276+the department issues in accordance with Subsection 26B-4-213(1)(b) to allow an
3277+1614
3278+applicant for a medical cannabis card to access medical cannabis during the department's
3279+1615
3280+review of the application.
3281+1616
3282+(13) "Controlled substance database" means the controlled substance database created in
3283+1617
3284+Section 58-37f-201.
3285+1618
3286+(14) "Delivery address" means the same as that term is defined in Section 4-41a-102.
3287+1619
3288+(15) "Department" means the Department of Health and Human Services.
3289+1620
3290+(16) "Designated caregiver" means:
3291+1621
3292+(a) an individual:
3293+1622
3294+(i) whom an individual with a medical cannabis patient card or a medical cannabis
3295+1623
3296+guardian card designates as the patient's caregiver; and
3297+1624
3298+(ii) who registers with the department under Section 26B-4-214; or
3299+1625
3300+(b)(i) a facility that an individual designates as a designated caregiver in accordance
3301+1626
3302+with Subsection 26B-4-214(1)(b); or
3303+- 48 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
3304+1627
3305+(ii) an assigned employee of the facility described in Subsection 26B-4-214(1)(b)(ii).
3306+1628
3307+(17) "Directions of use" means recommended routes of administration for a medical
3308+1629
3309+cannabis treatment and suggested usage guidelines.
3310+1630
3311+(18) "Dosing guidelines" means a quantity range and frequency of administration for a
3312+1631
3313+recommended treatment of medical cannabis.
3314+1632
3315+(19) "Government issued photo identification" means any of the following forms of
3316+1633
3317+identification:
3318+1634
3319+(a) a valid state-issued driver license or identification card;
3320+1635
3321+(b) a valid United States federal-issued photo identification, including:
3322+1636
3323+(i) a United States passport;
3324+1637
3325+(ii) a United States passport card;
3326+1638
3327+(iii) a United States military identification card; or
3328+1639
3329+(iv) a permanent resident card or alien registration receipt card; or
3330+1640
3331+(c) a foreign passport.
3332+1641
3333+(20) "Home delivery medical cannabis pharmacy" means a medical cannabis pharmacy that
3334+1642
3335+the department authorizes, as part of the pharmacy's license, to deliver medical cannabis
3336+1643
3337+shipments to a delivery address to fulfill electronic orders[ that the state central patient
3338+1644
3339+portal facilitates].
3340+1645
3341+(21) "Inventory control system" means the system described in Section 4-41a-103.
3342+1646
3343+(22) "Legal dosage limit" means an amount that:
3344+1647
3345+(a) is sufficient to provide 30 days of treatment based on the dosing guidelines that the
3346+1648
3347+relevant recommending medical provider or [the state central patient portal or ]
3348+1649
3349+pharmacy medical provider, in accordance with Subsection 26B-4-230(5),
3350+1650
3351+recommends; and
3352+1651
3353+(b) may not exceed:
3354+1652
3355+(i) for unprocessed cannabis in a medicinal dosage form, 113 grams by weight; and
3356+1653
3357+(ii) for a cannabis product in a medicinal dosage form, a quantity that contains, in
3358+1654
3359+total, greater than 20 grams of active tetrahydrocannabinol.
3360+1655
3361+(23) "Legal use termination date" means a date on the label of a container of unprocessed
3362+1656
3363+cannabis flower:
3364+1657
3365+(a) that is 60 days after the date of purchase of the cannabis; and
3366+1658
3367+(b) after which, the cannabis is no longer in a medicinal dosage form outside of the
3368+1659
3369+primary residence of the relevant medical cannabis patient cardholder.
3370+1660
3371+(24) "Limited medical provider" means an individual who:
3372+- 49 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
3373+1661
3374+(a) meets the recommending qualifications; and
3375+1662
3376+(b) has no more than 15 patients with a valid medical cannabis patient card as a result of
3377+1663
3378+the individual's recommendation, in accordance with Subsection 26B-4-204(1)(b).
3379+1664
3380+(25) "Marijuana" means the same as that term is defined in Section 58-37-2.
3381+1665
3382+(26) "Medical cannabis" or "medical cannabis product" means cannabis in a medicinal
3383+1666
3384+dosage form or a cannabis product in a medicinal dosage form.
3385+1667
3386+(27) "Medical cannabis card" means a medical cannabis patient card, a medical cannabis
3387+1668
3388+guardian card, a medical cannabis caregiver card, or a conditional medical cannabis card.
3389+1669
3390+(28) "Medical cannabis cardholder" means:
3391+1670
3392+(a) a holder of a medical cannabis card; or
3393+1671
3394+(b) a facility or assigned employee, described in Subsection (16)(b), only:
3395+1672
3396+(i) within the scope of the facility's or assigned employee's performance of the role of
3397+1673
3398+a medical cannabis patient cardholder's caregiver designation under Subsection
3399+1674
3400+26B-4-214(1)(b); and
3401+1675
3402+(ii) while in possession of documentation that establishes:
3403+1676
3404+(A) a caregiver designation described in Subsection 26B-4-214(1)(b);
3405+1677
3406+(B) the identity of the individual presenting the documentation; and
3407+1678
3408+(C) the relation of the individual presenting the documentation to the caregiver
3409+1679
3410+designation.
3411+1680
3412+(29) "Medical cannabis caregiver card" means an electronic document that a cardholder
3413+1681
3414+may print or store on an electronic device or a physical card or document that:
3415+1682
3416+(a) the department issues to an individual whom a medical cannabis patient cardholder
3417+1683
3418+or a medical cannabis guardian cardholder designates as a designated caregiver; and
3419+1684
3420+(b) is connected to the electronic verification system.
3421+1685
3422+(30) "Medical cannabis courier" means the same as that term is defined in Section
3423+1686
3424+4-41a-102.
3425+1687
3426+(31)(a) "Medical cannabis device" means a device that an individual uses to ingest or
3427+1688
3428+inhale [cannabis in a medicinal dosage form or a cannabis product in a medicinal
3429+1689
3430+dosage form] medical cannabis.
3431+1690
3432+(b) "Medical cannabis device" does not include a device that:
3433+1691
3434+(i) facilitates cannabis combustion; or
3435+1692
3436+(ii) an individual uses to ingest substances other than cannabis.
3437+1693
3438+(32) "Medical cannabis guardian card" means an electronic document that a cardholder may
3439+1694
3440+print or store on an electronic device or a physical card or document that:
3441+- 50 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
3442+1695
3443+(a) the department issues to the parent or legal guardian of a minor with a qualifying
3444+1696
3445+condition; and
3446+1697
3447+(b) is connected to the electronic verification system.
3448+1698
3449+(33) "Medical cannabis patient card" means an electronic document that a cardholder may
3450+1699
3451+print or store on an electronic device or a physical card or document that:
3452+1700
3453+(a) the department issues to an individual with a qualifying condition; and
3454+1701
3455+(b) is connected to the electronic verification system.
3456+1702
3457+(34) "Medical cannabis pharmacy" means a person that:
3458+1703
3459+(a)(i) acquires or intends to acquire medical cannabis [or a cannabis product in a
3460+1704
3461+medicinal dosage form ]from a cannabis processing facility or another medical
3462+1705
3463+cannabis pharmacy or a medical cannabis device; or
3464+1706
3465+(ii) possesses medical cannabis or a medical cannabis device; and
3466+1707
3467+(b) sells or intends to sell medical cannabis or a medical cannabis device to a medical
3468+1708
3469+cannabis cardholder.
3470+1709
3471+(35) "Medical cannabis pharmacy agent" means an individual who holds a valid medical
3472+1710
3473+cannabis pharmacy agent registration card issued by the department.
3474+1711
3475+(36) "Medical cannabis pharmacy agent registration card" means a registration card issued
3476+1712
3477+by the department that authorizes an individual to act as a medical cannabis pharmacy
3478+1713
3479+agent.
3480+1714
3481+(37) "Medical cannabis shipment" means the same as that term is defined in Section
3482+1715
3483+4-41a-102.
3484+1716
3485+(38) "Medical cannabis treatment" means [cannabis in a medicinal dosage form, a cannabis
3486+1717
3487+product in a medicinal dosage form, or] medical cannabis or a medical cannabis device.
3488+1718
3489+(39)(a) "Medicinal dosage form" means:
3490+1719
3491+(i) for processed medical cannabis, the following with a specific and consistent
3492+1720
3493+cannabinoid content:
3494+1721
3495+(A) a tablet;
3496+1722
3497+(B) a capsule;
3498+1723
3499+(C) a concentrated liquid or viscous oil;
3500+1724
3501+(D) a liquid suspension that does not exceed 30 milliliters;
3502+1725
3503+(E) a topical preparation;
3504+1726
3505+(F) a transdermal preparation;
3506+1727
3507+(G) a sublingual preparation;
3508+1728
3509+(H) a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or
3510+- 51 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
3511+1729
3512+rectangular cuboid shape;
3513+1730
3514+(I) a resin or wax;
3515+1731
3516+(J) an aerosol;
3517+1732
3518+(K) a suppository preparation; or
3519+1733
3520+(L) a soft or hard confection that is a uniform rectangular cuboid or uniform
3521+1734
3522+spherical shape, is homogeneous in color and texture, and each piece is a single
3523+1735
3524+serving; or
3525+1736
3526+(ii) for unprocessed cannabis flower, a container described in Section 4-41a-602 that:
3527+1737
3528+(A) contains cannabis flower in a quantity that varies by no more than 10% from
3529+1738
3530+the stated weight at the time of packaging;
3531+1739
3532+(B) at any time the medical cannabis cardholder transports or possesses the
3533+1740
3534+container in public, is contained within an opaque bag or box that the medical
3535+1741
3536+cannabis pharmacy provides; and
3537+1742
3538+(C) is labeled with the container's content and weight, the date of purchase, the
3539+1743
3540+legal use termination date, and a barcode that provides information connected
3541+1744
3542+to an inventory control system.
3543+1745
3544+(b) "Medicinal dosage form" includes a portion of unprocessed cannabis flower that:
3545+1746
3546+(i) the medical cannabis cardholder has recently removed from the container
3547+1747
3548+described in Subsection (39)(a)(ii) for use; and
3549+1748
3550+(ii) does not exceed the quantity described in Subsection (39)(a)(ii).
3551+1749
3552+(c) "Medicinal dosage form" does not include:
3553+1750
3554+(i) any unprocessed cannabis flower outside of the container described in Subsection
3555+1751
3556+(39)(a)(ii), except as provided in Subsection (39)(b);
3557+1752
3558+(ii) any unprocessed cannabis flower in a container described in Subsection
3559+1753
3560+(39)(a)(ii) after the legal use termination date;
3561+1754
3562+(iii) a process of vaporizing and inhaling concentrated cannabis by placing the
3563+1755
3564+cannabis on a nail or other metal object that is heated by a flame, including a
3565+1756
3566+blowtorch;
3567+1757
3568+(iv) a liquid suspension that is branded as a beverage;
3569+1758
3570+(v) a substance described in Subsection (39)(a)(i) or (ii) if the substance is not
3571+1759
3572+measured in grams, milligrams, or milliliters; or
3573+1760
3574+(vi) a substance that contains or is covered to any degree with chocolate.
3575+1761
3576+(40) "Nonresident patient" means an individual who:
3577+1762
3578+(a) is not a resident of Utah or has been a resident of Utah for less than 45 days;
3579+- 52 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
3580+1763
3581+(b) has a currently valid medical cannabis card or the equivalent of a medical cannabis
3582+1764
3583+card under the laws of another state, district, territory, commonwealth, or insular
3584+1765
3585+possession of the United States; and
3586+1766
3587+(c) has been diagnosed with a qualifying condition as described in Section 26B-4-203.
3588+1767
3589+(41) "Pharmacy medical provider" means the medical provider required to be on site at a
3590+1768
3591+medical cannabis pharmacy under Section 26B-4-219.
3592+1769
3593+(42) "Provisional patient card" means a card that:
3594+1770
3595+(a) the department issues to a minor with a qualifying condition for whom:
3596+1771
3597+(i) a recommending medical provider has recommended a medical cannabis
3598+1772
3599+treatment; and
3600+1773
3601+(ii) the department issues a medical cannabis guardian card to the minor's parent or
3602+1774
3603+legal guardian; and
3604+1775
3605+(b) is connected to the electronic verification system.
3606+1776
3607+(43) "Qualified medical provider" means an individual:
3608+1777
3609+(a) who meets the recommending qualifications; and
3610+1778
3611+(b) whom the department registers to recommend treatment with cannabis in a medicinal
3612+1779
3613+dosage form under Section 26B-4-204.
3614+1780
3615+(44) "Qualified Patient Enterprise Fund" means the enterprise fund created in Section
3616+1781
3617+26B-1-310.
3618+1782
3619+(45) "Qualifying condition" means a condition described in Section 26B-4-203.
3620+1783
3621+(46) "Recommend" or "recommendation" means, for a recommending medical provider, the
3622+1784
3623+act of suggesting the use of medical cannabis treatment, which:
3624+1785
3625+(a) certifies the patient's eligibility for a medical cannabis card; and
3626+1786
3627+(b) may include, at the recommending medical provider's discretion, directions of use,
3628+1787
3629+with or without dosing guidelines.
3630+1788
3631+(47) "Recommending medical provider" means a qualified medical provider or a limited
3632+1789
3633+medical provider.
3634+1790
3635+(48) "Recommending qualifications" means that an individual:
3636+1791
3637+(a)(i) has the authority to write a prescription;
3638+1792
3639+(ii) is licensed to prescribe a controlled substance under Title 58, Chapter 37, Utah
3640+1793
3641+Controlled Substances Act; and
3642+1794
3643+(iii) possesses the authority, in accordance with the individual's scope of practice, to
3644+1795
3645+prescribe a Schedule II controlled substance; and
3646+1796
3647+(b) is licensed as:
3648+- 53 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
3649+1797
3650+(i) a podiatrist under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
3651+1798
3652+(ii) an advanced practice registered nurse under Title 58, Chapter 31b, Nurse Practice
3653+1799
3654+Act;
3655+1800
3656+(iii) a physician under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58,
3657+1801
3658+Chapter 68, Utah Osteopathic Medical Practice Act; or
3659+1802
3660+(iv) a physician assistant under Title 58, Chapter 70a, Utah Physician Assistant Act.
3661+1803
3662+[(49) "State central patient portal" means the website the department creates, in accordance
3663+1804
3664+with Section 26B-4-236, to facilitate patient safety, education, and an electronic medical
3665+1805
3666+cannabis order.]
3667+1806
3668+[(50)] (49) "State electronic verification system" means the system described in Section
3669+1807
3670+26B-4-202.
3671+1808
3672+[(51)] (50) "Targeted marketing" means the promotion by a qualified medical provider,
3673+1809
3674+medical clinic, or medical office that employs a qualified medical provider of a medical
3675+1810
3676+cannabis recommendation service using any of the following methods:
3677+1811
3678+(a) electronic communication to an individual who is at least 21 years old and has
3679+1812
3680+requested to receive promotional information;
3681+1813
3682+(b) an in-person marketing event that is held in an area where only an individual who is
3683+1814
3684+at least 21 years old may access the event;
3685+1815
3686+(c) other marketing material that is physically or digitally displayed in the office of the
3687+1816
3688+medical clinic or office that employs a qualified medical provider; or
3689+1817
3690+(d) a leaflet that a qualified medical provider, medical clinic, or medical office that
3691+1818
3692+employs a qualified medical provider shares with an individual who is at least 21
3693+1819
6393694 years old.
640-314
641-(b) A person may transport transportable industrial hemp concentrate if the person:
642-315
643-(i) complies with rules created by the department under Section 4-41-103.1 related to
644-316
645-transportable industrial hemp concentrate; and
646-317
647-(ii)(A) has [an industrial hemp producer registration] a cannabinoid processor
648-318
649-license; or
650-319
651-(B) the equivalent to [an industrial hemp producer registration] a cannabinoid
652-320
653-processor license from another state.
654-321
655-(3) The department may seize and destroy non-compliant material.
656-322
657-(4) Nothing in this chapter authorizes any person to violate federal law, regulation, or any
658-323
659-provision of this title.
660-324
661-Section 5. Section 4-41-404 is amended to read:
662-325
663-4-41-404 . Department duties.
664-326
665- The department [shall assess the fine described in Subsection 4-41-403(4) ] may take an
666-327
667-enforcement action in accordance with Section 4-41-106 against any person who offers an
668-328
669-unregistered cannabinoid product for sale in this state.
670-329
671-Section 6. Section 4-41-405 is enacted to read:
672-330
673-4-41-405 . Newly identified cannabinoid.
674-331
675-(1) For a newly identified cannabinoid, the department may:
676-332
677-(a) establish a maximum allowable concentration that a cannabinoid product may
678-333
679-contain of the newly identified cannabinoid;
680-- 10 - Enrolled Copy H.B. 54
681-334
682-(b) prohibit the newly identified cannabinoid from appearing in a cannabinoid product;
683-335
684-or
685-336
686-(c) modify the maximum allowable concentration described in Subsection (1)(a) as
687-337
688-necessary if it would not create a threat to public health.
689-338
690-(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
691-339
692-department shall make rules to implement Subsection (1).
693-340
694-Section 7. Section 4-41a-102 is amended to read:
695-341
696-4-41a-102 . Definitions.
697-342
698- As used in this chapter:
699-343
700-(1) "Adulterant" means any poisonous or deleterious substance in a quantity that may be
701-344
702-injurious to health, including:
703-345
704-(a) pesticides;
705-346
706-(b) heavy metals;
707-347
708-(c) solvents;
709-348
710-(d) microbial life;
711-349
712-(e) artificially derived cannabinoid;
713-350
714-(f) toxins; or
715-351
716-(g) foreign matter.
717-352
718-(2) "Advertise" or "advertising" means information provided by a person in any medium:
719-353
720-(a) to the public; and
721-354
722-(b) that is not age restricted to an individual who is at least 21 years old.
723-355
724-(3) "Advisory board" means the Medical Cannabis Policy Advisory Board created in
725-356
726-Section 26B-1-435.
727-357
728-(4)(a) "Anticompetitive business practice" means any practice that reduces the amount
729-358
730-of competition in the medical cannabis market that would be considered an attempt to
731-359
732-monopolize, as defined in Section 76-10-3103.
733-360
734-(b) "Anticompetitive business practice" may include:
735-361
736-(i) agreements that may be considered unreasonable when competitors interact to the
737-362
738-extent that they are:
739-363
740-(A) no longer acting independently; or
741-364
742-(B) when collaborating are able to wield market power together;
743-365
744-(ii) monopolizing or attempting to monopolize trade by:
745-366
746-(A) acting to maintain or acquire a dominant position in the market; or
747-367
748-(B) preventing new entry into the market; or
749-- 11 - H.B. 54 Enrolled Copy
750-368
751-(iii) other conduct outlined in rule.
752-369
753-(5)(a) "Artificially derived cannabinoid" means a chemical substance that is created by a
754-370
755-chemical reaction that changes the molecular structure of any chemical substance
756-371
757-derived from the cannabis plant.
758-372
759-(b) "Artificially derived cannabinoid" does not include:
760-373
761-(i) a naturally occurring chemical substance that is separated from the cannabis plant
762-374
763-by a chemical or mechanical extraction process; or
764-375
765-(ii) a cannabinoid that is produced by decarboxylation from a naturally occurring
766-376
767-cannabinoid acid without the use of a chemical catalyst.
768-377
769-(6) "Batch" means a quantity of:
770-378
771-(a) cannabis extract produced on a particular date and time and produced between
772-379
773-completion of equipment and facility sanitation protocols until the next required
774-380
775-sanitation cycle during which lots of cannabis are used;
776-381
777-(b) cannabis product produced on a particular date and time and produced between
778-382
779-completion of equipment and facility sanitation protocols until the next required
780-383
781-sanitation cycle during which cannabis extract is used; or
782-384
783-(c) cannabis flower packaged on a particular date and time and produced between
784-385
785-completion of equipment and facility sanitation protocols until the next required
786-386
787-sanitation cycle during which lots of cannabis are being used.
788-387
789-[(6)] (7) "Cannabis Research Review Board" means the Cannabis Research Review Board
790-388
791-created in Section 26B-1-420.
792-389
793-[(7)] (8) "Cannabis" means the same as that term is defined in Section 26B-4-201.
794-390
795-[(8)] (9) "Cannabis concentrate" means:
796-391
797-(a) the product of any chemical or physical process applied to naturally occurring
798-392
799-biomass that concentrates or isolates the cannabinoids contained in the biomass; and
800-393
801-(b) any amount of a natural cannabinoid or artificially derived cannabinoid in an
802-394
803-artificially derived cannabinoid's purified state.
804-395
805-[(9)] (10) "Cannabis cultivation byproduct" means any portion of a cannabis plant that is not
806-396
807-intended to be sold as a cannabis plant product.
808-397
809-[(10)] (11) "Cannabis cultivation facility" means a person that:
810-398
811-(a) possesses cannabis;
812-399
813-(b) grows or intends to grow cannabis; and
814-400
815-(c) sells or intends to sell cannabis to a cannabis cultivation facility, a cannabis
816-401
817-processing facility, or a medical cannabis research licensee.
818-- 12 - Enrolled Copy H.B. 54
819-402
820-[(11)] (12) "Cannabis cultivation facility agent" means an individual who
821-403
822- holds a valid cannabis production establishment agent registration card with a cannabis
823-404
824-cultivation facility designation.
825-405
826-[(12)] (13) "Cannabis derivative product" means a product made using cannabis concentrate.
827-406
828-[(13)] (14) "Cannabis plant product" means any portion of a cannabis plant intended to be
829-407
830-sold in a form that is recognizable as a portion of a cannabis plant.
831-408
832-[(14)] (15) "Cannabis processing facility" means a person that:
833-409
834-(a) acquires or intends to acquire cannabis from a cannabis production establishment;
835-410
836-(b) possesses cannabis with the intent to manufacture a cannabis product;
837-411
838-(c) manufactures or intends to manufacture a cannabis product from unprocessed
839-412
840-cannabis or a cannabis extract; and
841-413
842-(d) sells or intends to sell a cannabis product to a medical cannabis pharmacy or a
843-414
844-medical cannabis research licensee.
845-415 [(15)] (16) "Cannabis processing facility agent" means an individual who
846-416
847- holds a valid cannabis production establishment agent registration card with a cannabis
848-417
849-processing facility designation.
850-418
851-[(16)] (17) "Cannabis product" means the same as that term is defined in Section 26B-4-201.
852-419
853-[(17)] (18) "Cannabis production establishment" means a cannabis cultivation facility, a
854-420
855-cannabis processing facility, or an independent cannabis testing laboratory.
856-421
857-[(18)] (19) "Cannabis production establishment agent" means a cannabis cultivation facility
858-422
859-agent, a cannabis processing facility agent, or an independent cannabis testing laboratory
860-423
861-agent.
862-424
863-[(19)] (20) "Cannabis production establishment agent registration card" means a registration
864-425
865-card that the department issues that:
866-426
867-(a) authorizes an individual to act as a cannabis production establishment agent; and
868-427
869-(b) designates the type of cannabis production establishment for which an individual is
870-428
871-authorized to act as an agent.
872-429
873-[(20)] (21) "Closed-door medical cannabis pharmacy" means a facility operated by a home
874-430
875-delivery medical cannabis pharmacy for delivering [cannabis or a medical cannabis
876-431
877-product] medical cannabis.
878-432
879-[(21)] (22) "Community location" means a public or private elementary or secondary school,
880-433
881-a church, a public library, a public playground, or a public park.
882-434
883-[(22)] (23) "Cultivation space" means, quantified in square feet, the horizontal area in which
884-435
885-a cannabis cultivation facility cultivates cannabis, including each level of horizontal area
886-- 13 - H.B. 54 Enrolled Copy
887-436
888-if the cannabis cultivation facility hangs, suspends, stacks, or otherwise positions plants
889-437
890-above other plants in multiple levels.
891-438
892-[(23)] (24) "Delivery address" means:
893-439
894-(a) for a medical cannabis cardholder who is not a facility:
895-440
896-(i) the medical cannabis cardholder's home address; or
897-441
898-(ii) an address designated by the medical cannabis cardholder that:
899-442
900-(A) is the medical cannabis cardholder's workplace; and
901-443
902-(B) is not a community location; or
903-444
904-(b) for a medical cannabis cardholder that is a facility, the facility's address.
905-445
906-[(24)] (25) "Department" means the Department of Agriculture and Food.
907-446
908-[(25)] (26) "Family member" means a parent, step-parent, spouse, child, sibling,
909-447
910-step-sibling, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law,
911-448
912-brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent, or grandchild.
913-449
914-[(26)] (27) "Government issued photo identification" means the same as that term is defined
915-450
916-in Section 26B-4-201, including expired identification in accordance with Section
917-451
918-26B-4-244.
919-452
920-[(27)] (28) "Home delivery medical cannabis pharmacy" means a medical cannabis
921-453
922-pharmacy that the department authorizes, as part of the pharmacy's license, to deliver
923-454
924-medical cannabis shipments to a delivery address to fulfill electronic orders[ that the
925-455
926-state central patient portal facilitates].
927-456
928-[(28)] (29)(a) "Independent cannabis testing laboratory" means a person that:
929-457
930-(i) conducts a chemical or other analysis of cannabis or a cannabis product; or
931-458
932-(ii) acquires, possesses, and transports cannabis or a cannabis product with the intent
933-459
934-to conduct a chemical or other analysis of the cannabis or cannabis product.
935-460
936-(b) "Independent cannabis testing laboratory" includes a laboratory that the department
937-461
938-or a research university operates in accordance with Subsection 4-41a-201(14).
939-462 [(29)] (30) "Independent cannabis testing laboratory agent" means an individual who
940-463
941- holds a valid cannabis production establishment agent registration card with an
942-464
943-independent cannabis testing laboratory designation.
944-465
945-[(30)] (31) "Inventory control system" means a system described in Section 4-41a-103.
946-466
947-[(31)] (32) "Licensing board" or "board" means the Cannabis Production Establishment and
948-467
949-Pharmacy Licensing Advisory Board created in Section 4-41a-201.1.
950-468
951-[(32)] (33) "Medical cannabis" or "medical cannabis product" means the same as that term is
952-469
953-defined in Section 26B-4-201.
954-- 14 - Enrolled Copy H.B. 54
955-470
956-[(33)] (34) "Medical cannabis card" means the same as that term is defined in Section
957-471
958-26B-4-201.
959-472
960-[(34)] (35) "Medical cannabis courier" means a courier that:
961-473
962-(a) the department licenses in accordance with Section 4-41a-1201; and
963-474
964-(b) contracts with a home delivery medical cannabis pharmacy to deliver medical
965-475
966-cannabis shipments to fulfill electronic orders[ that the state central patient portal
967-476
968-facilitates].
969-477
970-[(35)] (36) "Medical cannabis courier agent" means an individual who:
971-478
972-(a) is an employee of a medical cannabis courier; and
973-479
974-(b) who holds a valid medical cannabis courier agent registration card.
975-480
976-[(36)] (37) "Medical cannabis pharmacy" means the same as that term is defined in Section
977-481
978-26B-4-201.
979-482
980-[(37)] (38) "Medical cannabis pharmacy agent" means the same as that term is defined in
981-483
982-Section 26B-4-201.
983-484
984-[(38)] (39) "Medical cannabis research license" means a license that the department issues to
985-485
986-a research university for the purpose of obtaining and possessing medical cannabis for
987-486
988-academic research.
989-487
990-[(39)] (40) "Medical cannabis research licensee" means a research university that the
991-488
992-department licenses to obtain and possess medical cannabis for academic research, in
993-489
994-accordance with Section 4-41a-901.
995-490
996-[(40)] (41) "Medical cannabis shipment" means a shipment of medical cannabis that a home
997-491
998-delivery medical cannabis pharmacy or a medical cannabis courier delivers to a delivery
999-492
1000-address to fulfill an electronic medical cannabis order[ that the state central patient portal
1001-493
1002-facilitates].
1003-494
1004-[(41)] (42) "Medical cannabis treatment" means the same as that term is defined in Section
1005-495
1006-26B-4-201.
1007-496
1008-[(42)] (43) "Medicinal dosage form" means the same as that term is defined in Section
1009-497
1010-26B-4-201.
1011-498
1012-[(43)] (44) "Pharmacy ownership limit" means an amount equal to 30% of the total number
1013-499
1014-of medical cannabis pharmacy licenses issued by the department rounded down to the
1015-500
1016-nearest whole number.
1017-501
1018-[(44)] (45) "Pharmacy medical provider" means the same as that term is defined in Section
1019-502
1020-26B-4-201.
1021-503
1022-[(45)] (46) "Qualified medical provider" means the same as that term is defined in Section
1023-- 15 - H.B. 54 Enrolled Copy
1024-504
1025-26B-4-201.
1026-505
1027-[(46)] (47) "Qualified Production Enterprise Fund" means the fund created in Section
1028-506
1029-4-41a-104.
1030-507
1031-[(47)] (48) "Recommending medical provider" means the same as that term is defined in
1032-508
1033-Section 26B-4-201.
1034-509
1035-[(48)] (49) "Research university" means the same as that term is defined in Section
1036-510
1037-53B-7-702 and a private, nonprofit college or university in the state that:
1038-511
1039-(a) is accredited by the Northwest Commission on Colleges and Universities;
1040-512
1041-(b) grants doctoral degrees; and
1042-513
1043-(c) has a laboratory containing or a program researching a schedule I controlled
1044-514
1045-substance described in Section 58-37-4.
1046-515
1047-[(49)] (50) "State electronic verification system" means the system described in Section
1048-516
1049-26B-4-202.
1050-517
1051-[(50)] (51) "Targeted marketing" means the promotion of [a cannabis product,] medical
1052-518
1053-cannabis, a medical cannabis brand, or a medical cannabis device using any of the
1054-519
1055-following methods:
1056-520
1057-(a) electronic communication to an individual who is at least 21 years old and has
1058-521
1059-requested to receive promotional information;
1060-522
1061-(b) an in-person marketing event that is:
1062-523
1063-(i) held inside a medical cannabis pharmacy; and
1064-524
1065-(ii) in an area where only a medical cannabis cardholder may access the event;
1066-525
1067-(c) other marketing material that is physically available or digitally displayed in a
1068-526
1069-medical cannabis pharmacy; or
1070-527
1071-(d) a leaflet a medical cannabis pharmacy places in the opaque package or box that is
1072-528
1073-provided to an individual when obtaining medical cannabis:
1074-529
1075-(i) in the medical cannabis pharmacy;
1076-530
1077-(ii) at the medical cannabis pharmacy's drive-through pick up window; or
1078-531
1079-(iii) in a medical cannabis shipment.
1080-532
1081-[(51)] (52) "Tetrahydrocannabinol" or "THC" means the same as that term is defined in
1082-533
1083-Section 4-41-102.
1084-534
1085-[(52)] (53) "THC analog" means the same as that term is defined in Section 4-41-102.
1086-535
1087-[(53)] (54) "Total composite tetrahydrocannabinol" means all detectable forms of
1088-536
1089-tetrahydrocannabinol.
1090-537
1091-[(54)] (55) "Total tetrahydrocannabinol" or "total THC" means the same as that term is
1092-- 16 - Enrolled Copy H.B. 54
1093-538
1094-defined in Section 4-41-102.
1095-539
1096-Section 8. Section 4-41a-403 is amended to read:
1097-540
1098-4-41a-403 . Advertising.
1099-541
1100-(1) Except as provided in this section and Section 4-41a-604, a cannabis production
1101-542
1102-establishment may not advertise to the general public in any medium.
1103-543
1104-(2) A cannabis production establishment may advertise an employment opportunity at the
1105-544
1106-cannabis production establishment.
1107-545
1108-(3)(a) A cannabis production establishment may maintain a website that:
1109-546
1110-[(a)] (i) contains information about the establishment and employees; and
1111-547
1112-[(b)] (ii) except as provided in Subsection (3)(b), does not advertise any medical
1113-548
1114-cannabis, cannabis products, or medical cannabis devices.
1115-549
1116-(b) A cannabis processing facility may:
1117-550
1118-(i) if the website has age verification mechanisms that effectively prevent access by
1119-551
1120-individuals under 21 years old, maintain a website that contains:
1121-552
1122-(A) educational information regarding medical cannabis produced by the cannabis
1123-553
1124-processing facility, including the certificate of analysis that is created by an
1125-554
1126-independent cannabis testing facility; and
1127-555
1128-(B) where medical cannabis produced by the cannabis processing facility may be
1129-556
1130-purchased in the state; and
1131-557
1132-(ii) engage in targeted marketing in accordance with Section 4-41a-604 for
1133-558
1134-advertising a particular medical cannabis product, medical cannabis device, or
1135-559
1136-medical cannabis brand.
1137-560
1138-(4)(a) Notwithstanding any municipal or county ordinance prohibiting signage, a
1139-561
1140-cannabis production establishment may use signage on the outside of the cannabis
1141-562
1142-production establishment that:
1143-563
1144-(i) includes only:
1145-564
1146-(A) in accordance with Subsection (4)(b), the cannabis production establishment's
1147-565
1148-name, logo, and hours of operation; and
1149-566
1150-(B) a green cross; and
1151-567
1152-(ii) complies with local ordinances regulating signage.
1153-568
1154-(b) The department shall define standards for a cannabis production establishment's
1155-569
1156-name and logo to ensure a medical rather than recreational disposition.
1157-570
1158-(5)(a) A cannabis production establishment may hold an educational event for the public
1159-571
1160-or medical providers in accordance with this Subsection (5) and the rules described in
1161-- 17 - H.B. 54 Enrolled Copy
1162-572
1163-Subsection (5)(c).
1164-573
1165-(b) A cannabis production establishment may not include in an educational event
1166-574
1167-described in Subsection (5)(a):
1168-575
1169-(i) any topic that conflicts with this chapter or Title 26B, Chapter 4, Part 2,
1170-576
1171-Cannabinoid Research and Medical Cannabis;
1172-577
1173-(ii) any gift items or merchandise other than educational materials, as those terms are
1174-578
1175-defined by the department;
1176-579
1177-(iii) any marketing for a specific product from the cannabis production establishment
1178-580
1179-or any other statement, claim, or information that would violate the federal Food,
1180-581
1181-Drug, and Cosmetic Act, 21 U.S.C. Sec. 301, et seq.; or
1182-582
1183-(iv) a presenter other than the following:
1184-583
1185-(A) a cannabis production establishment agent;
1186-584
1187-(B) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
1188-585
1189-(C) an advanced practice registered nurse licensed under Title 58, Chapter 31b,
1190-586
1191-Nurse Practice Act;
1192-587
1193-(D) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
1194-588
1195-Title 58, Chapter 68, Utah Osteopathic Medical Practice Act;
1196-589
1197-(E) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
1198-590
1199-Assistant Act; or
1200-591
1201-(F) a state employee.
1202-592
1203-(c) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
1204-593
1205-Administrative Rulemaking Act, to define the elements of and restrictions on the
1206-594
1207-educational event described in Subsection (5)(a), including a minimum age of 21
1208-595
1209-years old for attendees.
1210-596
1211-Section 9. Section 4-41a-501 is amended to read:
1212-597
1213-4-41a-501 . Cannabis cultivation facility -- Operating requirements.
1214-598
1215-(1) A cannabis cultivation facility shall ensure that any cannabis growing at the cannabis
1216-599
1217-cultivation facility is not visible from the ground level of the cannabis cultivation facility
1218-600
1219-perimeter.
1220-601
1221-(2) A cannabis cultivation facility shall use a unique identifier that is connected to the
1222-602
1223-facility's inventory control system to identify:
1224-603
1225-(a) beginning at the time a cannabis plant is eight inches tall and has a root ball, each
1226-604
1227-cannabis plant;
1228-605
1229-(b) each unique harvest of cannabis plants;
1230-- 18 - Enrolled Copy H.B. 54
1231-606
1232-(c) each batch of cannabis the facility transfers to a medical cannabis pharmacy, a
1233-607
1234-cannabis processing facility, or an independent cannabis testing laboratory; and
1235-608
1236-(d) any excess, contaminated, or deteriorated cannabis of which the cannabis cultivation
1237-609
1238-facility disposes.
1239-610
1240-(3) A cannabis cultivation facility shall identify cannabis biomass as cannabis byproduct or
1241-611
1242-cannabis plant product before transferring the cannabis biomass from the facility.
1243-612
1244-(4) A cannabis cultivation facility shall either:
1245-613
1246-(a) ensure that a cannabis processing facility chemically or physically processes
1247-614
1248-cannabis cultivation byproduct to produce a cannabis concentrate for incorporation
1249-615
1250-into cannabis derivative products; or
1251-616
1252-(b) destroy cannabis cultivation byproduct in accordance with Section 4-41a-405.
1253-617
1254-(5) A cannabis cultivation facility may utilize radiation-based methods and equipment for
1255-618
1256-quality assurance or remediation purposes.
1257-619
1258-(6) The department shall make rules establishing:
1259-620
1260-(a) the records a cannabis cultivation facility must keep regarding each batch, amount of
1261-621
1262-product treated, and the methods used; and
1263-622
1264-(b) disclosure requirements to a cannabis processor receiving the material subject to the
1265-623
1266-radiation including the methods and equipment used.
1267-624
1268-Section 10. Section 4-41a-701 is amended to read:
1269-625
1270-4-41a-701 . Cannabis and cannabis product testing.
1271-626
1272-(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1273-627
1274-department may make rules to:
1275-628
1276-(a) determine required adulterant tests for a cannabis plant product, cannabis
1277-629
1278-concentrate, or cannabis product;
1279-630
1280-(b) determine the amount of any adulterant that is safe for human consumption;
1281-631
1282-(c) immediately ban or limit the presence of any ingredient in a medical cannabis
1283-632
1284-product after receiving a recommendation to do so from a public health authority
1285-633
1286-under Section 26B-1-102;
1287-634
1288-(d) establish protocols for a recall of [cannabis or a cannabis product] medical cannabis
1289-635
1290-by a cannabis production establishment; or
1291-636
1292-(e) allow the propagation of testing results forward to derived product if the processing
1293-637
1294-steps the cannabis production establishment uses to produce the product are unlikely
1295-638
1296-to change the results of the test.
1297-639
1298-(2)(a) The department may require testing for a toxin if:
1299-- 19 - H.B. 54 Enrolled Copy
1300-640
1301-[(a)] (i) the department receives information indicating the potential presence of a
1302-641
1303-toxin; or
1304-642
1305-[(b)] (ii) the department's inspector has reason to believe a toxin may be present based
1306-643
1307-on the inspection of a facility.
1308-644
1309-(b) The department may not require a cannabis processor to test a cannabis batch or a
1310-645
1311-cannabis product batch a third time if the cannabis batch or cannabis product has
1312-646
1313-previously met all testing requirements after being tested by:
1314-647
1315-(i) an independent cannabis testing laboratory that is not the department; and
1316-648
1317-(ii) the department.
1318-649
1319-(3)(a) A cannabis production establishment may not:
1320-650
1321-(i) incorporate cannabis concentrate into a cannabis derivative product until an
1322-651
1323-independent cannabis testing laboratory tests the cannabis concentrate in
1324-652
1325-accordance with department rule; or
1326-653
1327-(ii) transfer cannabis or a cannabis product to a medical cannabis pharmacy until an
1328-654
1329-independent cannabis testing laboratory tests a representative sample of the
1330-655
1331-cannabis or cannabis product in accordance with department rule.
1332-656
1333-(b) A medical cannabis pharmacy may not offer any cannabis or cannabis product for
1334-657
1335-sale unless an independent cannabis testing laboratory has tested a representative
1336-658
1337-sample of the cannabis or cannabis product in accordance with department rule.
1338-659
1339-(4) Before the sale of a medical cannabis product, an independent cannabis testing
1340-660
1341-laboratory shall:
1342-661
1343-(a) identify and quantify any cannabinoid known to be present in [a] the medical
1344-662
1345-cannabis product; and
1346-663
1347-(b) test terpene profiles for the following products:
1348-664
1349-(i) raw cannabis; or
1350-665
1351-(ii) a cannabis product:
1352-666
1353-(A) contained in a vaporizer cartridge; or
1354-667
1355-(B) in concentrate form; and
1356-668
1357-(c) record the five highest terpene profiles tested under Subsection (4)(b).
1358-669
1359-(5) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah
1360-670
1361-Administrative Rulemaking Act, the standards, methods, practices, and procedures for
1362-671
1363-the testing of cannabis and cannabis products by independent cannabis testing
1364-672
1365-laboratories.
1366-673
1367-(6) The department may require an independent cannabis testing laboratory to participate in
1368-- 20 - Enrolled Copy H.B. 54
1369-674
1370-a proficiency evaluation that the department conducts or that an organization that the
1371-675
1372-department approves conducts.
1373-676
1374-Section 11. Section 4-41a-801 is amended to read:
1375-677
1376-4-41a-801 . Enforcement -- Fine -- Citation.
1377-678
1378-(1) If a person that is a cannabis production establishment or a cannabis production
1379-679
1380-establishment agent violates this chapter, the department may:
1381-680
1382-(a) revoke the person's license or cannabis production establishment agent registration
1383-681
1384-card;
1385-682
1386-(b) decline to renew the person's license or cannabis production establishment agent
1387-683
1388-registration card; or
1389-684
1390-(c) assess the person an administrative penalty that the department establishes by rule in
1391-685
1392-accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1393-686
1394-(2) The department shall deposit an administrative penalty imposed under this section into
1395-687
1396-the General Fund.
1397-688
1398-(3)(a) The department may take an action described in Subsection (3)(b) if the
1399-689
1400-department concludes, upon investigation, that, for a person that is a cannabis
1401-690
1402-production establishment or a cannabis production establishment agent:
1403-691
1404-(i) the person has violated the provisions of this chapter, a rule made under this
1405-692
1406-chapter, or an order issued under this chapter; or.
1407-693
1408-(ii) the person produced cannabis or a cannabis product batch that contains a
1409-694
1410-substance, other than cannabis, that poses a significant threat to human health.
1411-695
1412-(b) If the department makes the determination about a person described in Subsection
1413-696
1414-(3)(a), the department shall:
1415-697
1416-(i) issue the person a written administrative citation;
1417-698
1418-(ii) attempt to negotiate a stipulated settlement;
1419-699
1420-[(iii) seize, embargo, or destroy the cannabis or cannabis product batch;]
1421-700
1422-[(iv)] (iii) order the person to cease and desist from the action that creates a violation; [
1423-701
1424-and] or
1425-702
1426-[(v)] (iv) direct the person to appear before an adjudicative proceeding conducted
1427-703
1428-under Title 63G, Chapter 4, Administrative Procedures Act.
1429-704
1430-(c) If the department concludes, upon investigation, that a cannabis production
1431-705
1432-establishment or a cannabis production establishment agent has produced a cannabis
1433-706
1434-batch or a cannabis product batch that contains a substance that poses a significant
1435-707
1436-threat to human health, the department shall seize, embargo, or destroy the cannabis
1437-- 21 - H.B. 54 Enrolled Copy
1438-708
1439-batch or cannabis product batch.
1440-709
1441-(4) The department may, for a person subject to an uncontested citation, a stipulated
1442-710
1443-settlement, or a finding of a violation in an adjudicative proceeding under this section,
1444-711
1445-for a fine amount not already specified in law, assess the person, who is not an
1446-712
1447-individual, a fine of up to $5,000 per violation, in accordance with a fine schedule that
1448-713
1449-the department establishes by rule in accordance with Title 63G, Chapter 3, Utah
1450-714
1451-Administrative Rulemaking Act.
1452-715
1453-(5) The department may not revoke a [cannabis production establishment's ]license without
1454-716
1455-first directing the [cannabis production establishment] licensee to appear before an
1456-717
1457-adjudicative proceeding conducted under Title 63G, Chapter 4, Administrative
1458-718
1459-Procedures Act.
1460-719
1461-(6) If within [20] 30 calendar days after the day on which a department serves a citation for
1462-720
1463-a violation of this chapter, the person that is the subject of the citation fails to request a
1464-721
1465-hearing to contest the citation, the citation becomes the department's final order.
1466-722
1467-(7) The department may, for a person who fails to comply with a citation under this section:
1468-723
1469-(a) refuse to issue or renew the person's license or cannabis production establishment
1470-724
1471-agent registration card; or
1472-725
1473-(b) suspend, revoke, or place on probation the person's license or cannabis production
1474-726
1475-establishment registration card.
1476-727
1477-(8)(a) Except where a criminal penalty is expressly provided for a specific violation of
1478-728
1479-this chapter, if an individual:
1480-729
1481-(i) violates a provision of this chapter, the individual is:
1482-730
1483-(A) guilty of an infraction; and
1484-731
1485-(B) subject to a $100 fine; or
1486-732
1487-(ii) intentionally or knowingly violates a provision of this chapter or violates this
1488-733
1489-chapter three or more times, the individual is:
1490-734
1491-(A) guilty of a class B misdemeanor; and
1492-735
1493-(B) subject to a $1,000 fine.
1494-736
1495-(b) An individual who is guilty of a violation described in Subsection (8)(a) is not guilty
1496-737
1497-of a violation of Title 58, Chapter 37, Utah Controlled Substances Act, for the
1498-738
1499-conduct underlying the violation described in Subsection (8)(a).
1500-739
1501-(9) Nothing in this section prohibits the department from referring potential criminal
1502-740
1503-activity to law enforcement.
1504-741
1505-(10) An appeal of administrative action taken under this chapter shall be heard by an
1506-- 22 - Enrolled Copy H.B. 54
1507-742
1508-administrative law judge as an informal proceeding in accordance with Title 63G,
1509-743
1510-Chapter 4, Administrative Procedures Act.
1511-744
1512-Section 12. Section 4-41a-802 is amended to read:
1513-745
1514-4-41a-802 . Report.
1515-746
1516-(1) At or before the November interim meeting each year, the department shall report to the
1517-747
1518-Health and Human Services Interim Committee on:
1519-748
1520-(a) the number of applications and renewal applications that the department receives
1521-749
1522-under this chapter;
1523-750
1524-(b) the number of each type of cannabis production facility that the department licenses
1525-751
1526-in each county;
1527-752
1528-(c) the amount of cannabis that licensees grow;
1529-753
1530-(d) the amount of cannabis that licensees manufacture into cannabis products;
1531-754
1532-(e) the number of licenses the department revokes under this chapter;
1533-755
1534-(f) the department's operation of an independent cannabis testing laboratory under
1535-756
1536-Section 4-41a-201, including:
1537-757
1538-(i) the cannabis and cannabis products the department tested; and
1539-758
1540-(ii) the results of the tests the department performed;
1541-759
1542-(g) the expenses incurred and revenues generated under this chapter; and
1543-760
1544-(h) an analysis of product availability in medical cannabis pharmacies in consultation
1545-761
1546-with the Department of Health and Human Services.
1547-762
1548-(2) The department may not include personally identifying information in the report
1549-763
1550-described in this section.
1551-764
1552-(3) The department shall report to the working group described in Section 36-12-8.2 as
1553-765
1554-requested by the working group.
1555-766
1556-(4)(a) Before August 1, of each year, the department shall provide a report to the
1557-767
1558-working group described in Section 36-12-8.2 that provides the following for each
1559-768
1560-fine issued by the department under this chapter:
1561-769
1562-(i) the date of the fine;
1563-770
1564-(ii) the reference to the statute or rule that was violated for each fine issued; and
1565-771
1566-(iii) a short description explaining why the fine was issued.
1567-772
1568-(b) The report described in Subsection (4)(a) may not include identifying information of
1569-773
1570-the person that was subject to the fine.
1571-774
1572-Section 13. Section 4-41a-1001 is amended to read:
1573-775
1574-4-41a-1001 . Medical cannabis pharmacy -- License -- Eligibility.
1575-- 23 - H.B. 54 Enrolled Copy
1576-776
1577-(1) A person may not:
1578-777
1579-(a) operate as a medical cannabis pharmacy without a license that the department issues
1580-778
1581-under this part;
1582-779
1583-(b) obtain a medical cannabis pharmacy license if obtaining the license would cause the
1584-780
1585-person to exceed the pharmacy ownership limit;
1586-781
1587-(c) obtain a partial ownership share of a medical cannabis pharmacy if obtaining the
1588-782
1589-partial ownership share would cause the person to exceed the pharmacy ownership
1590-783
1591-limit; or
1592-784
1593-(d) enter into any contract or agreement that allows the person to directly or indirectly
1594-785
1595-control the operations of a medical cannabis pharmacy if the person's control of the
1596-786
1597-medical cannabis pharmacy would cause the person to effectively exceed the
1598-787
1599-pharmacy ownership limit.
1600-788
1601-(2)(a)(i) Subject to Subsections (4) and (5) and to Section 4-41a-1005, the department
1602-789
1603-shall issue a license to operate a medical cannabis pharmacy through the licensing
1604-790
1605-board created under Section 4-41a-201.1.
1606-791
1607-(ii) The department may not issue a license to operate a medical cannabis pharmacy
1608-792
1609-to an applicant who is not eligible for a license under this section.
1610-793
1611-(b) An applicant is eligible for a license under this section if the applicant submits to the
1612-794
1613-department:
1614-795
1615-(i) subject to Subsection (2)(c), a proposed name and address where the applicant will
1616-796
1617-operate the medical cannabis pharmacy;
1618-797
1619-(ii) the name and address of an individual who:
1620-798
1621-(A) for a publicly traded company, has a financial or voting interest of 10% or
1622-799
1623-greater in the proposed medical cannabis pharmacy;
1624-800
1625-(B) for a privately held company, a financial or voting interest in the proposed
1626-801
1627-medical cannabis pharmacy; or
1628-802
1629-(C) has the power to direct or cause the management or control of a proposed
1630-803
1631-medical cannabis pharmacy;
1632-804
1633-(iii) for each application that the applicant submits to the department, a statement
1634-805
1635-from the applicant that the applicant will obtain and maintain:
1636-806
1637-(A) a performance bond in the amount of $100,000 issued by a surety authorized
1638-807
1639-to transact surety business in the state; or
1640-808
1641-(B) a liquid cash account in the amount of $100,000 with a financial institution;
1642-809
1643-(iv) an operating plan that:
1644-- 24 - Enrolled Copy H.B. 54
1645-810
1646-(A) complies with Section 4-41a-1004;
1647-811
1648-(B) includes operating procedures to comply with the operating requirements for a
1649-812
1650-medical cannabis pharmacy described in this part and with a relevant municipal
1651-813
1652-or county law that is consistent with Section 4-41a-1106; and
1653-814
1654-(C) the department approves;
1655-815
1656-(v) an application fee in an amount that, subject to Subsection 4-41a-104(5), the
1657-816
1658-department sets in accordance with Section 63J-1-504; and
1659-817
1660-(vi) a description of any investigation or adverse action taken by any licensing
1661-818
1662-jurisdiction, government agency, law enforcement agency, or court in any state for
1663-819
1664-any violation or detrimental conduct in relation to any of the applicant's
1665-820
1666-cannabis-related operations or businesses.
1667-821
1668-(c)(i) A person may not locate a medical cannabis pharmacy:
1669-822
1670-(A) within 200 feet of a community location; or
1671-823
1672-(B) in or within 600 feet of a district that the relevant municipality or county has
1673-824
1674-zoned as primarily residential.
1675-825
1676-(ii) The proximity requirements described in Subsection (2)(c)(i) shall be measured
1677-826
1678-from the nearest entrance to the medical cannabis pharmacy establishment by
1679-827
1680-following the shortest route of ordinary pedestrian travel to the property boundary
1681-828
1682-of the community location or residential area.
1683-829
1684-(iii) The department may grant a waiver to reduce the proximity requirements in
1685-830
1686-Subsection (2)(c)(i) by up to 20% if the department determines that it is not
1687-831
1688-reasonably feasible for the applicant to cite the proposed medical cannabis
1689-832
1690-pharmacy without the waiver.
1691-833
1692-(iv) An applicant for a license under this section shall provide evidence of
1693-834
1694-compliance with the proximity requirements described in Subsection (2)(c)(i).
1695-835
1696-(d) The department may not issue a license to an eligible applicant that the department
1697-836
1698-has selected to receive a license until the selected eligible applicant complies with the
1699-837
1700-bond or liquid cash requirement described in Subsection (2)(b)(iii).
1701-838
1702-(e) If the department receives more than one application for a medical cannabis
1703-839
1704-pharmacy within the same city or town, the department shall consult with the local
1705-840
1706-land use authority before approving any of the applications pertaining to that city or
1707-841
1708-town.
1709-842
1710-(f) In considering the issuance of a medical cannabis pharmacy license under this
1711-843
1712-section, the department may consider the extent to which the pharmacy can increase
1713-- 25 - H.B. 54 Enrolled Copy
1714-844
1715-efficiency and reduce cost to patients of medical cannabis.
1716-845
1717-[(3) If the department selects an applicant ]
1718-846
1719-(3)(a) After an entity has been selected for a medical cannabis pharmacy license under
1720-847
1721-this section, the department shall:
1722-848
1723-[(a)] (i) charge the applicant an initial license fee in an amount that, subject to
1724-849
1725-Subsection 4-41a-104(5), the department sets in accordance with Section
1726-850
1727-63J-1-504;
1728-851
1729-[(b)] (ii) notify the Department of Public Safety of the license approval and the names
1730-852
1731-of each individual described in Subsection (2)(b)(ii); and
1732-853
1733-[(c)] (iii) charge the licensee a fee in an amount that, subject to Subsection 4-41a-104
1734-854
1735-(5), the department sets in accordance with Section 63J-1-504, for any change in
1736-855
1737-location, ownership, or company structure.
1738-856
1739-(b) For a fee described in Subsection (3)(a)(i), a license fee for a medical cannabis
1740-857
1741-pharmacy located in a medically underserved area as determined by the federal
1742-858
1743-Health Resources and Services Administration shall be 50% less than what is charged
1744-859
1745-for other medical cannabis pharmacies.
1746-860
1747-(4) The department may not issue a license to operate a medical cannabis pharmacy to an
1748-861
1749-applicant if an individual described in Subsection (2)(b)(ii):
1750-862
1751-(a) has been convicted under state or federal law of:
1752-863
1753-(i) a felony in the preceding 10 years; or
1754-864
1755-(ii) after December 3, 2018, a misdemeanor for drug distribution;
1756-865
1757-(b) is younger than 21 years old; or
1758-866
1759-(c) after September 23, 2019, until January 1, 2023, is actively serving as a legislator.
1760-867
1761-(5)[(a)] If an applicant for a medical cannabis pharmacy license under this section holds
1762-868
1763-another license under this chapter, the department may not give preference to the
1764-869
1765-applicant based on the applicant's status as a holder of the license.
1766-870
1767-[(b) If an applicant for a medical cannabis pharmacy license under this section holds a
1768-871
1769-license to operate a cannabis cultivation facility under this section, the department
1770-872
1771-may give consideration to the applicant's status as a holder of the license if:]
1772-873
1773-[(i) the applicant demonstrates that a decrease in costs to patients is more likely to
1774-874
1775-result from the applicant's vertical integration than from a more competitive
1776-875
1777-marketplace; and]
1778-876
1779-[(ii) the department finds multiple other factors, in addition to the existing license,
1780-877
1781-that support granting the new license.]
1782-- 26 - Enrolled Copy H.B. 54
1783-878
1784-(6) The licensing board may revoke a license under this part:
1785-879
1786-(a) if the medical cannabis pharmacy does not begin operations within one year after the
1787-880
1788-day on which the department issues an announcement of the department's intent to
1789-881
1790-award a license to the medical cannabis pharmacy;
1791-882
1792-(b) after the third the same violation of this chapter in any of the licensee's licensed
1793-883
1794-cannabis production establishments or medical cannabis pharmacies;
1795-884
1796-(c) if an individual described in Subsection (2)(b)(ii) is convicted, while the license is
1797-885
1798-active, under state or federal law of:
1799-886
1800-(i) a felony; or
1801-887
1802-(ii) after December 3, 2018, a misdemeanor for drug distribution;
1803-888
1804-(d) if the licensee fails to provide the information described in Subsection (2)(b)(vi) at
1805-889
1806-the time of application, or fails to supplement the information described in
1807-890
1808-Subsection (2)(b)(vi) with any investigation or adverse action that occurs after the
1809-891
1810-submission of the application within 14 calendar days after the licensee receives
1811-892
1812-notice of the investigation or adverse action;
1813-893
1814-(e) if the medical cannabis pharmacy demonstrates a willful or reckless disregard for the
1815-894
1816-requirements of this chapter or the rules the department makes in accordance with
1817-895
1818-this chapter;
1819-896
1820-(f) if, after a change of ownership described in Subsection (11)(c), the department
1821-897
1822-determines that the medical cannabis pharmacy no longer meets the minimum
1823-898
1824-standards for licensure and operation of the medical cannabis pharmacy described in
1825-899
1826-this chapter; or
1827-900
1828-(g) if through an investigation conducted under Subsection 4-41a-201.1(11) and in
1829-901
1830-accordance with Title 63G, Chapter 4, Administrative Procedures Act, the board
1831-902
1832-finds that the licensee has participated in anticompetitive business practices.
1833-903
1834-(7)(a) A person who receives a medical cannabis pharmacy license under this chapter, if
1835-904
1836-the municipality or county where the licensed medical cannabis pharmacy will be
1837-905
1838-located requires a local land use permit, shall submit to the department a copy of the
1839-906
1840-licensee's approved application for the land use permit within 120 days after the day
1841-907
1842-on which the department issues the license.
1843-908
1844-(b) If a licensee fails to submit to the department a copy the licensee's approved land use
1845-909
1846-permit application in accordance with Subsection (7)(a), the department may revoke
1847-910
1848-the licensee's license.
1849-911
1850-(8) The department shall deposit the proceeds of a fee imposed by this section into the
1851-- 27 - H.B. 54 Enrolled Copy
1852-912
1853-Qualified Production Enterprise Fund.
1854-913
1855-(9) The department shall begin accepting applications under this part on or before March 1,
1856-914
1857-2020.
1858-915
1859-(10)(a) The department's authority to issue a license under this section is plenary and is
1860-916
1861-not subject to review.
1862-917
1863-(b) Notwithstanding Subsection (2), the decision of the department to award a license to
1864-918
1865-an applicant is not subject to:
1866-919
1867-(i) Title 63G, Chapter 6a, Part 16, Protests; or
1868-920
1869-(ii) Title 63G, Chapter 6a, Part 17, Procurement Appeals Board.
1870-921
1871-(11)(a) A medical cannabis pharmacy license is not transferrable or assignable.
1872-922
1873-(b) A medical cannabis pharmacy shall report in writing to the department no later than
1874-923
1875-10 business days before the date of any change of ownership of the medical cannabis
1876-924
1877-pharmacy.
1878-925
1879-(c) If the ownership of a medical cannabis pharmacy changes by 50% or more:
1880-926
1881-(i) concurrent with the report described in Subsection (11)(b), the medical cannabis
1882-927
1883-pharmacy shall submit a new application described in Subsection (2)(b), subject to
1884-928
1885-Subsection (2)(c);
1886-929
1887-(ii) within 30 days of the submission of the application, the department shall:
1888-930
1889-(A) conduct an application review; and
1890-931
1891-(B) award a license to the medical cannabis pharmacy for the remainder of the
1892-932
1893-term of the medical cannabis pharmacy's license before the ownership change
1894-933
1895-if the medical cannabis pharmacy meets the minimum standards for licensure
1896-934
1897-and operation of the medical cannabis pharmacy described in this chapter; and
1898-935
1899-(iii) if the department approves the license application, notwithstanding Subsection
1900-936
1901-(3), the medical cannabis pharmacy shall pay a license fee that the department sets
1902-937
1903-in accordance with Section 63J-1-504 in an amount that covers the department's
1904-938
1905-cost of conducting the application review.
1906-939
1907-Section 14. Section 4-41a-1003 is amended to read:
1908-940
1909-4-41a-1003 . Renewal -- Notice of available license.
1910-941
1911-(1)(a) The department shall renew a license [under Sections 4-41a-1001 through
1912-942
1913-4-41a-1005] issued under this part every year if, at the time of renewal:
1914-943
1915-[(a)] (i) the licensee meets the requirements of Section 4-41a-1001;
1916-944
1917-[(b)] (ii) the licensee pays the department a license renewal fee in an amount that,
1918-945
1919-subject to Subsection 4-41a-1004(5), the department sets in accordance with
1920-- 28 - Enrolled Copy H.B. 54
1921-946
1922-Section 63J-1-504; and
1923-947
1924-[(c)] (iii) if the medical cannabis pharmacy changes the operating plan described in
1925-948
1926-Section 4-41a-1004 that the department approved under Subsection
1927-949
1928-4-41a-1001(2)(b)(iv), the department approves the new operating plan.
1929-950
1930-(b) A license fee for a medical cannabis pharmacy located in a county of the third,
1931-951
1932-fourth, fifth, or sixth class shall be 50% less than what is charged for other medical
1933-952
1934-cannabis pharmacies.
1935-953
1936-(2)(a) If a licensed medical cannabis pharmacy abandons the medical cannabis
1937-954
1938-pharmacy's license, the department shall publish notice of an available license[ ], for
1939-955
1940-the geographic area in which the medical cannabis pharmacy license is available, as a
1941-956
1942-class A notice under Section 63G-30-102, for at least seven days.
1943-957
1944-(b) The department may establish criteria, in collaboration with the Division of
1945-958
1946-Professional Licensing and the Board of Pharmacy and in accordance with Title 63G,
1947-959
1948-Chapter 3, Utah Administrative Rulemaking Act, to identify the medical cannabis
1949-960
1950-pharmacy actions that constitute abandonment of a medical cannabis pharmacy
1951-961
1952-license.
1953-962
1954-(3) If the department has not completed the necessary processes to make a determination on
1955-963
1956-a license renewal under Subsections (1)(a) and (c) before the expiration of a license, the
1957-964
1958-department may issue a conditional medical cannabis pharmacy license to a licensed
1959-965
1960-medical cannabis pharmacy that has applied for license renewal under this section and
1961-966
1962-paid the fee described in Subsection (1)(b).
1963-967
1964-Section 15. Section 4-41a-1005 is amended to read:
1965-968
1966-4-41a-1005 . Maximum number of licenses.
1967-969
1968-(1)[(a) Except as provided in Subsection (1)(b) or (d), if a sufficient number of
1969-970
1970-applicants apply, the department] The licensing board shall issue up to [15] 17 medical
1971-971
1972-cannabis pharmacy licenses in accordance with this section including the two medical
1973-972
1974-cannabis pharmacy licenses in accordance with Section 4-41a-1006.
1975-973
1976-[(b) If an insufficient number of qualified applicants apply for the available number of
1977-974
1978-medical cannabis pharmacy licenses, the department shall issue a medical cannabis
1979-975
1980-pharmacy license to each qualified applicant.]
1981-976
1982-[(c) The department may issue the licenses described in Subsection (1)(a) in accordance
1983-977
1984-with this Subsection (1)(c).]
1985-978
1986-[(i) Using one procurement process, the department may issue eight licenses to an
1987-979
1988-initial group of medical cannabis pharmacies and six licenses to a second group of
1989-- 29 - H.B. 54 Enrolled Copy
1990-980
1991-medical cannabis pharmacies.]
1992-981
1993-[(ii) The department shall:]
1994-982
1995-[(A) divide the state into no less than four geographic regions, set by the
1996-983
1997-department in rule;]
1998-984
1999-[(B) issue at least one license in each geographic region during each phase of
2000-985
2001-issuing licenses; and]
2002-986
2003-[(C) complete the process of issuing medical cannabis pharmacy licenses no later
2004-987
2005-than July 1, 2020.]
2006-988
2007-[(iii) In issuing a 15th license under Subsection (1), the department shall ensure that
2008-989
2009-the license recipient will locate the medical cannabis pharmacy within Dagget,
2010-990
2011-Duchesne, Uintah, Carbon, Sevier, Emery, Grand, or San Juan County.]
2012-991
2013-[(d)(i) The department may issue licenses to operate a medical cannabis pharmacy in
2014-992
2015-addition to the licenses described in Subsection (1)(a) if the department
2016-993
2017-determines, in consultation with the Department of Health and Human Services
2018-994
2019-and after an annual or more frequent analysis of the current and anticipated market
2020-995
2021-for medical cannabis, that each additional license is necessary to provide an
2022-996
2023-adequate supply, quality, or variety of medical cannabis to medical cannabis
2024-997
2025-cardholders.]
2026-998
2027-[(ii) The department shall:]
2028-999
2029-[(A) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
2030-1000
2031-Act, make rules to establish criteria and processes for the consultation,
2032-1001
2033-analysis, and application for a license described in Subsection (1)(d)(i); and]
2034-1002
2035-[(B) report to the Executive Appropriations Committee of the Legislature before
2036-1003
2037-each time the department issues an additional license under Subsection
2038-1004
2039-(1)(d)(i) regarding the results of the consultation and analysis described in
2040-1005
2041-Subsection (1)(d)(i) and the application of the criteria described in Subsection
2042-1006
2043-(1)(d)(ii)(A).]
2044-1007
2045-(2)(a) [If there are more qualified applicants than there are available licenses for medical
2046-1008
2047-cannabis pharmacies, the department] The licensing board shall:
2048-1009
2049-(i) evaluate each applicant and award the license to the applicant that best
2050-1010
2051-demonstrates:
2052-1011
2053-(A) experience with establishing and successfully operating a business that
2054-1012
2055-involves complying with a regulatory environment, tracking inventory, and
2056-1013
2057-training, evaluating, and monitoring employees;
2058-- 30 - Enrolled Copy H.B. 54
2059-1014
2060-(B) an operating plan that will best ensure the safety and security of patrons and
2061-1015
2062-the community;
2063-1016
2064-(C) positive connections to the local community;
2065-1017
2066-(D) the suitability of the proposed location and the location's accessibility for
2067-1018
2068-qualifying patients;
2069-1019
2070-(E) the extent to which the applicant can increase efficiency and reduce the cost of
2071-1020
2072-medical cannabis for patients; and
2073-1021
2074-(F) a strategic plan described in Subsection 4-41a-1004(7) that has a
2075-1022
2076-comparatively high likelihood of success; and
2077-1023
2078-(ii) ensure a geographic dispersal among licensees that is sufficient to reasonably
2079-1024
2080-maximize access to the largest number of medical cannabis cardholders.
2081-1025
2082-(b) In making the evaluation described in Subsection (2)(a), the licensing board may
2083-1026
2084-give increased consideration to applicants who indicate a willingness to:
2085-1027
2086-(i) site a medical cannabis pharmacy in an area or population center designated as a
2087-1028
2088-medically underserved area or population as determined by the federal Health
2089-1029
2090-Resources and Services Administration; and
2091-1030
2092-(ii) operate as a home delivery medical cannabis pharmacy that accepts electronic
2093-1031
2094-medical cannabis orders.
2095-1032
2096-[(b) In making the evaluation described in Subsection (2)(a), the department may give
2097-1033
2098-increased consideration to applicants who indicate a willingness to:]
2099-1034
2100-[(i) operate as a home delivery medical cannabis pharmacy that accepts electronic
2101-1035
2102-medical cannabis orders that the state central patient portal facilitates; and]
2103-1036
2104-[(ii) accept payments through:]
2105-1037
2106-[(A) a payment provider that the Division of Finance approves, in consultation
2107-1038
2108-with the state treasurer, in accordance with Section 4-41a-108; or]
2109-1039
2110-[(B) a financial institution in accordance with Subsection 4-41a-108(4).]
2111-1040
2112-(3) The [department] licensing board may conduct a face-to-face interview with an applicant
2113-1041
2114-for a license that the [department] licensing board evaluates under Subsection (2).
2115-1042
2116-Section 16. Section 4-41a-1006 is enacted to read:
2117-1043
2118-4-41a-1006 . Independent medical cannabis licenses.
2119-1044
2120-(1)(a) Subject to the requirements of Subsection (3) and the criteria established for
2121-1045
2122-obtaining a medical cannabis pharmacy license under this chapter, the licensing
2123-1046
2124-board shall:
2125-1047
2126-(i) before January 1, 2026, select one entity to receive a medical cannabis pharmacy
2127-- 31 - H.B. 54 Enrolled Copy
2128-1048
2129-license; and
2130-1049
2131-(ii) before January 1, 2027, but not before January 1, 2026, select one entity to
2132-1050
2133-receive a medical cannabis pharmacy license.
2134-1051
2135-(b) When selecting entities under this section, if there is a conflict between the criteria
2136-1052
2137-established for obtaining a medical cannabis pharmacy license under the other
2138-1053
2139-sections of this chapter and this section, this section controls.
2140-1054
2141-(2) For the license described in Subsection (1)(a)(ii), the licensing board may not select an
2142-1055
2143-entity:
2144-1056
2145-(a) that owns any interest in or operates a medical cannabis production establishment; or
2146-1057
2147-(b) that is owned, partially or entirely, or operated by a medical cannabis production
2148-1058
2149-establishment.
2150-1059
2151-(3) The licensing board:
2152-1060
2153-(a) may not select an entity to receive a license under this section if the entity owns a
2154-1061
2155-financial interest in a medical cannabis pharmacy or is owned by an entity that owns
2156-1062
2157-a financial interest in a medical cannabis pharmacy; and
2158-1063
2159-(b) shall select an entity that will site a medical cannabis pharmacy license issued under
2160-1064
2161-this section in an area:
2162-1065
2163-(i) designated as a medically underserved area as determined by the federal Health
2164-1066
2165-Resources and Services Administration; and
2166-1067
2167-(ii) located in a county of the third, fourth, fifth, or sixth class.
2168-1068
2169-(4) A license described in this section may not be transferred to another entity unless that
2170-1069
2171-entity meets the requirements of Subsections (2) and (3) that the transferring entity met
2172-1070
2173-when obtaining the license.
2174-1071
2175-(5) Notwithstanding Subsection (4), for a license described in Subsection (1)(a)(i), an
2176-1072
2177-applicant shall commit to not alienating or otherwise transferring control of the license
2178-1073
2179-or of the entity that holds the license to another person for at least 15 years from the day
2180-1074
2181-the license is issued under this chapter.
2182-1075
2183-(6) The department shall provide regular updates to the Medical Cannabis Governance
2184-1076
2185-Structure Working Group created in Section 36-12-8.2 regarding the application and
2186-1077
2187-selection process for licenses issued under this section.
2188-1078
2189-Section 17. Section 4-41a-1101 is amended to read:
2190-1079
2191-4-41a-1101 . Operating requirements -- General.
2192-1080
2193-(1)(a) A medical cannabis pharmacy shall operate:
2194-1081
2195-(i) at the physical address provided to the department under Section 4-41a-1001; and
2196-- 32 - Enrolled Copy H.B. 54
2197-1082
2198-(ii) in accordance with the operating plan provided to the department under Section
2199-1083
2200-4-41a-1001 and, if applicable, Section 4-41a-1004.
2201-1084
2202-(b) A medical cannabis pharmacy shall notify the department before a change in the
2203-1085
2204-medical cannabis pharmacy's physical address or operating plan.
2205-1086
2206-(2) An individual may not enter a medical cannabis pharmacy unless the individual:
2207-1087
2208-(a) is at least 18 years old or is an emancipated minor under Section 80-7-105; and
2209-1088
2210-(b) except as provided in Subsection (4):
2211-1089
2212-(i) possesses a valid:
2213-1090
2214-(A) medical cannabis pharmacy agent registration card;
2215-1091
2216-(B) pharmacy medical provider registration card; or
2217-1092
2218-(C) medical cannabis card;
2219-1093
2220-(ii) is an employee of the department performing an inspection under Section
2221-1094
2222-4-41a-1103; or
2223-1095
2224-(iii) is another individual as the department provides.
2225-1096
2226-(3) A medical cannabis pharmacy may not employ an individual who is younger than 21
2227-1097
2228-years old.
2229-1098
2230-(4) Notwithstanding Subsection (2)(a), a medical cannabis pharmacy may authorize an
2231-1099
2232-individual who is not a medical cannabis pharmacy agent or pharmacy medical provider
2233-1100
2234-to access the medical cannabis pharmacy if the medical cannabis pharmacy tracks and
2235-1101
2236-monitors the individual at all times while the individual is at the medical cannabis
2237-1102
2238-pharmacy and maintains a record of the individual's access.
2239-1103
2240-(5) A medical cannabis pharmacy shall operate in a facility that has:
2241-1104
2242-(a) a single, secure public entrance;
2243-1105
2244-(b) a security system with a backup power source that:
2245-1106
2246-(i) detects and records entry into the medical cannabis pharmacy; and
2247-1107
2248-(ii) provides notice of an unauthorized entry to law enforcement when the medical
2249-1108
2250-cannabis pharmacy is closed; and
2251-1109
2252-(c) a lock on each area where the medical cannabis pharmacy stores [cannabis or a
2253-1110
2254-cannabis product] medical cannabis.
2255-1111
2256-(6) A medical cannabis pharmacy shall post, both clearly and conspicuously in the medical
2257-1112
2258-cannabis pharmacy, the limit on the purchase of cannabis described in Subsection
2259-1113
2260-4-41a-1102(2).
2261-1114
2262-(7) Except for an emergency situation described in Subsection 26B-4-213(3)(c), a medical
2263-1115
2264-cannabis pharmacy may not allow any individual to consume cannabis on the property
2265-- 33 - H.B. 54 Enrolled Copy
2266-1116
2267-or premises of the medical cannabis pharmacy.
2268-1117
2269-(8) A medical cannabis pharmacy may not sell [cannabis or a cannabis product] medical
2270-1118
2271-cannabis without first indicating on the [cannabis or cannabis product] medical cannabis
2272-1119
2273-label the name of the medical cannabis pharmacy.
2274-1120
2275-(9)(a) Each medical cannabis pharmacy shall retain in the pharmacy's records the
2276-1121
2277-following information regarding each recommendation underlying a transaction:
2278-1122
2279-(i) the recommending medical provider's name, address, and telephone number;
2280-1123
2281-(ii) the patient's name and address;
2282-1124
2283-(iii) the date of issuance;
2284-1125
2285-(iv) directions of use and dosing guidelines or an indication that the recommending
2286-1126
2287-medical provider did not recommend specific directions of use or dosing
2288-1127
2289-guidelines; and
2290-1128
2291-(v) if the patient did not complete the transaction, the name of the medical cannabis
2292-1129
2293-cardholder who completed the transaction.
2294-1130
2295-(b)(i) Except as provided in Subsection (9)(b)(iii), a medical cannabis pharmacy may
2296-1131
2297-not sell medical cannabis unless the medical cannabis has a label securely affixed
2298-1132
2299-to the container indicating the following minimum information:
2300-1133
2301-(A) the name, address, and telephone number of the medical cannabis pharmacy;
2302-1134
2303-(B) the unique identification number that the medical cannabis pharmacy assigns;
2304-1135
2305-(C) the date of the sale;
2306-1136
2307-(D) the name of the patient;
2308-1137
2309-(E) the name of the recommending medical provider who recommended the
2310-1138
2311-medical cannabis treatment;
2312-1139
2313-(F) directions for use and cautionary statements, if any;
2314-1140
2315-(G) the amount dispensed and the cannabinoid content;
2316-1141
2317-(H) the suggested use date;
2318-1142
2319-(I) for unprocessed cannabis flower, the legal use termination date; and
2320-1143
2321-(J) any other requirements that the department determines, in consultation with the
2322-1144
2323-Division of Professional Licensing and the Board of Pharmacy.
2324-1145
2325-(ii) A medical cannabis pharmacy is exempt from the requirement to provide the
2326-1146
2327-following information under Subsection (9)(b)(i) if the information is already
2328-1147
2329-provided on the product label that a cannabis production establishment affixes:
2330-1148
2331-(A) a unique identification number;
2332-1149
2333-(B) directions for use and cautionary statements;
2334-- 34 - Enrolled Copy H.B. 54
2335-1150
2336-(C) amount and cannabinoid content; and
2337-1151
2338-(D) a suggested use date.
2339-1152
2340-(iii) If the size of a medical cannabis container does not allow sufficient space to
2341-1153
2342-include the labeling requirements described in Subsection (9)(b)(i), the medical
2343-1154
2344-cannabis pharmacy may provide the following information described in
2345-1155
2346-Subsection (9)(b)(i) on a supplemental label attached to the container or an
2347-1156
2348-informational enclosure that accompanies the container:
2349-1157
2350-(A) the cannabinoid content;
2351-1158
2352-(B) the suggested use date; and
2353-1159
2354-(C) any other requirements that the department determines.
2355-1160
2356-(iv) A medical cannabis pharmacy may sell medical cannabis to another medical
2357-1161
2358-cannabis pharmacy without a label described in Subsection (9)(b)(i).
2359-1162
2360-(10) A pharmacy medical provider or medical cannabis pharmacy agent shall:
2361-1163
2362-(a) upon receipt of an order from a limited medical provider in accordance with
2363-1164
2364-Subsections 26B-4-204(1)(b) through (d):
2365-1165
2366-(i) for a written order or an electronic order under circumstances that the department
2367-1166
2368-determines, contact the limited medical provider or the limited medical provider's
2369-1167
2370-office to verify the validity of the recommendation; and
2371-1168
2372-(ii) for an order that the pharmacy medical provider or medical cannabis pharmacy
2373-1169
2374-agent verifies under Subsection (10)(a)(i) or an electronic order that is not subject
2375-1170
2376-to verification under Subsection (10)(a)(i), enter the limited medical provider's
2377-1171
2378-recommendation or renewal, including any associated directions of use, dosing
2379-1172
2380-guidelines, or caregiver indication, in the state electronic verification system;
2381-1173
2382-(b) in processing an order for a holder of a conditional medical cannabis card described
2383-1174
2384-in Subsection 26B-4-213(1)(b) that appears irregular or suspicious in the judgment of
2385-1175
2386-the pharmacy medical provider or medical cannabis pharmacy agent, contact the
2387-1176
2388-recommending medical provider or the recommending medical provider's office to
2389-1177
2390-verify the validity of the recommendation before processing the cardholder's order;
2391-1178
2392-(c) unless the medical cannabis cardholder has had a consultation under Subsection
2393-1179
2394-26B-4-231(5), verbally offer to a medical cannabis cardholder at the time of a
2395-1180
2396-purchase of [cannabis, a cannabis product,] medical cannabis or a medical cannabis
2397-1181
2398-device, personal counseling with the pharmacy medical provider; and
2399-1182
2400-(d) provide a telephone number or website by which the cardholder may contact a
2401-1183
2402-pharmacy medical provider for counseling.
2403-- 35 - H.B. 54 Enrolled Copy
2404-1184
2405-(11)(a) A medical cannabis pharmacy may create a medical cannabis disposal program
2406-1185
2407-that allows an individual to deposit unused or excess medical cannabis or cannabis
2408-1186
2409-residue from a medical cannabis device in a locked box or other secure receptacle
2410-1187
2411-within the medical cannabis pharmacy.
2412-1188
2413-(b) A medical cannabis pharmacy with a disposal program described in Subsection
2414-1189
2415-(11)(a) shall ensure that only a medical cannabis pharmacy agent or pharmacy
2416-1190
2417-medical provider can access deposited medical cannabis.
2418-1191
2419-(c) A medical cannabis pharmacy shall dispose of any deposited medical cannabis by:
2420-1192
2421-(i) rendering the deposited medical cannabis unusable and unrecognizable before
2422-1193
2423-transporting deposited medical cannabis from the medical cannabis pharmacy; and
2424-1194
2425-(ii) disposing of the deposited medical cannabis in accordance with:
2426-1195
2427-(A) federal and state law, rules, and regulations related to hazardous waste;
2428-1196
2429-(B) the Resource Conservation and Recovery Act, 42 U.S.C. Sec. 6991 et seq.;
2430-1197
2431-(C) Title 19, Chapter 6, Part 5, Solid Waste Management Act; and
2432-1198
2433-(D) other regulations that the department makes in accordance with Title 63G,
2434-1199
2435-Chapter 3, Utah Administrative Rulemaking Act.
2436-1200
2437-(12) A medical cannabis pharmacy:
2438-1201
2439-(a) shall employ a pharmacist who is licensed under Title 58, Chapter 17b, Pharmacy
2440-1202
2441-Practice Act, as a pharmacy medical provider;
2442-1203
2443-(b) may employ a physician who has the authority to write a prescription and is licensed
2444-1204
2445-under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah
2446-1205
2447-Osteopathic Medical Practice Act, as a pharmacy medical provider;
2448-1206
2449-(c) shall ensure that a pharmacy medical provider described in Subsection (12)(a) works
2450-1207
2451-onsite during all business hours;
2452-1208
2453-(d) shall designate one pharmacy medical provider described in Subsection (12)(a) as the
2454-1209
2455-pharmacist-in-charge to oversee the operation of and generally supervise the medical
2456-1210
2457-cannabis pharmacy;[ and]
2458-1211
2459-(e) shall allow the pharmacist-in-charge to determine which [cannabis and cannabis
2460-1212
2461-products] medical cannabis products the medical cannabis pharmacy maintains in the
2462-1213
2463-medical cannabis pharmacy's inventory[.] ; and
2464-1214
2465-(f) for each medical cannabis product sold by the medical cannabis pharmacy, shall:
2466-1215
2467-(i) allow a medical cannabis cardholder located in the pharmacy to view the back
2468-1216
2469-panel of the product when requested; and
2470-1217
2471-(ii) beginning July 1, 2025, include a picture of the back panel of the product on the
2472-- 36 - Enrolled Copy H.B. 54
2473-1218
2474-medical cannabis pharmacy's website.
2475-1219
2476-(13) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah
2477-1220
2478-Administrative Rulemaking Act, protocols for a recall of cannabis and cannabis products
2479-1221
2480-by a medical cannabis pharmacy.
2481-1222
2482-Section 18. Section 4-41a-1201 is amended to read:
2483-1223
2484-4-41a-1201 . Medical cannabis home delivery designation.
2485-1224
2486-(1) The department may designate a medical cannabis pharmacy as a home delivery
2487-1225
2488-medical cannabis pharmacy if the department determines that the medical cannabis
2489-1226
2490-pharmacy's operating plan demonstrates the functional and technical ability to:
2491-1227
2492-(a) safely conduct transactions for medical cannabis shipments;
2493-1228
2494-(b) accept electronic medical cannabis orders[ that the state central patient portal
2495-1229
2496-facilitates]; and
2497-1230
2498-(c) accept payments through:
2499-1231
2500-(i) a payment provider that the Division of Finance approves, in consultation with the
2501-1232
2502-state treasurer, in accordance with Section 26-61a-603; or
2503-1233
2504-(ii) a financial institution in accordance with Subsection 26-61a-603(4).
2505-1234
2506-(2) An applicant seeking a designation as a home delivery medical cannabis pharmacy shall
2507-1235
2508-identify in the applicant's operating plan any information relevant to the department's
2509-1236
2510-evaluation described in Subsection (1), including:
2511-1237
2512-(a) the name and contact information of the payment provider;
2513-1238
2514-(b) the nature of the relationship between the prospective licensee and the payment
2515-1239
2516-provider;
2517-1240
2518-(c) the processes of the following to safely and reliably conduct transactions for medical
2519-1241
2520-cannabis shipments:
2521-1242
2522-(i) the prospective licensee; and
2523-1243
2524-(ii) the electronic payment provider or the financial institution described in
2525-1244
2526-Subsection (1)(c); and
2527-1245
2528-(d) the ability of the licensee to comply with the department's rules regarding the secure
2529-1246
2530-transportation and delivery of medical cannabis [or medical cannabis product ]to a
2531-1247
2532-medical cannabis cardholder.
2533-1248
2534-(3) Notwithstanding any county or municipal ordinance, a medical cannabis pharmacy that
2535-1249
2536-the department designates as a home delivery medical cannabis pharmacy may deliver
2537-1250
2538-medical cannabis shipments in accordance with this part.
2539-1251
2540-Section 19. Section 4-41a-1202 is amended to read:
2541-- 37 - H.B. 54 Enrolled Copy
2542-1252
2543-4-41a-1202 . Home delivery of medical cannabis shipments -- Medical cannabis
2544-1253
2545-couriers -- License.
2546-1254
2547-(1) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
2548-1255
2549-Administrative Rulemaking Act, to ensure the safety, security, and efficiency of a home
2550-1256
2551-delivery medical cannabis pharmacy's fulfillment of electronic medical cannabis orders[
2552-1257
2553-that the state central patient portal facilitates], including rules regarding the safe and
2554-1258
2555-controlled delivery of medical cannabis shipments.
2556-1259
2557-(2) A person may not operate as a medical cannabis courier without a license that the
2558-1260
2559-department issues under this section.
2560-1261
2561-(3)(a) Subject to Subsections (5) and (6), the department shall issue a license to operate
2562-1262
2563-as a medical cannabis courier to an applicant who is eligible for a license under this
2564-1263
2565-section.
2566-1264
2567-(b) An applicant is eligible for a license under this section if the applicant submits to the
2568-1265
2569-department:
2570-1266
2571-(i) the name and address of an individual who:
2572-1267
2573-(A) has a financial or voting interest of 10% or greater in the proposed medical
2574-1268
2575-cannabis courier; or
2576-1269
2577-(B) has the power to direct or cause the management or control of a proposed
2578-1270
2579-cannabis production establishment;
2580-1271
2581-(ii) an operating plan that includes operating procedures to comply with the operating
2582-1272
2583-requirements for a medical cannabis courier described in this chapter; and
2584-1273
2585-(iii) an application fee in an amount that, subject to Subsection 4-41a-104(5), the
2586-1274
2587-department sets in accordance with Section 63J-1-504.
2588-1275
2589-(4) If the department determines that an applicant is eligible for a license under this section,
2590-1276
2591-the department shall:
2592-1277
2593-(a) charge the applicant an initial license fee in an amount that, subject to Subsection
2594-1278
2595-4-41a-104(5), the department sets in accordance with Section 63J-1-504; and
2596-1279
2597-(b) notify the Department of Public Safety of the license approval and the names of each
2598-1280
2599-individual described in Subsection (3)(b)(i).
2600-1281
2601-(5) The department may not issue a license to operate as a medical cannabis courier to an
2602-1282
2603-applicant if an individual described in Subsection (3)(b)(i):
2604-1283
2605-(a) has been convicted under state or federal law of:
2606-1284
2607-(i) a felony in the preceding 10 years; or
2608-1285
2609-(ii) after September 23, 2019, a misdemeanor for drug distribution; or
2610-- 38 - Enrolled Copy H.B. 54
2611-1286
2612-(b) is younger than 21 years old.
2613-1287
2614-(6) The department may revoke a license under this part if:
2615-1288
2616-(a) the medical cannabis courier does not begin operations within one year after the day
2617-1289
2618-on which the department issues the initial license;
2619-1290
2620-(b) the medical cannabis courier makes the same violation of this chapter three times;
2621-1291
2622-(c) an individual described in Subsection (3)(b)(i) is convicted, while the license is
2623-1292
2624-active, under state or federal law of:
2625-1293
2626-(i) a felony; or
2627-1294
2628-(ii) after September 23, 2019, a misdemeanor for drug distribution; or
2629-1295
2630-(d) after a change of ownership described in Subsection (14)(c), the department
2631-1296
2632-determines that the medical cannabis courier no longer meets the minimum standards
2633-1297
2634-for licensure and operation of the medical cannabis courier described in this chapter.
2635-1298
2636-(7) The department shall deposit the proceeds of a fee imposed by this section in the
2637-1299
2638-Qualified Production Enterprise Fund.
2639-1300
2640-(8) The department's authority to issue a license under this section is plenary and is not
2641-1301
2642-subject to review.
2643-1302
2644-(9) Each applicant for a license as a medical cannabis courier shall submit, at the time of
2645-1303
2646-application, from each individual who has a financial or voting interest of 10% or
2647-1304
2648-greater in the applicant or who has the power to direct or cause the management or
2649-1305
2650-control of the applicant:
2651-1306
2652-(a) a fingerprint card in a form acceptable to the Department of Public Safety;
2653-1307
2654-(b) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
2655-1308
2656-registration of the individual's fingerprints in the Federal Bureau of Investigation
2657-1309
2658-Next Generation Identification System's Rap Back Service; and
2659-1310
2660-(c) consent to a fingerprint background check by:
2661-1311
2662-(i) the Bureau of Criminal Identification; and
2663-1312
2664-(ii) the Federal Bureau of Investigation.
2665-1313
2666-(10) The Bureau of Criminal Identification shall:
2667-1314
2668-(a) check the fingerprints the applicant submits under Subsection (9) against the
2669-1315
2670-applicable state, regional, and national criminal records databases, including the
2671-1316
2672-Federal Bureau of Investigation Next Generation Identification System;
2673-1317
2674-(b) report the results of the background check to the department;
2675-1318
2676-(c) maintain a separate file of fingerprints that applicants submit under Subsection (9)
2677-1319
2678-for search by future submissions to the local and regional criminal records databases,
2679-- 39 - H.B. 54 Enrolled Copy
2680-1320
2681-including latent prints;
2682-1321
2683-(d) request that the fingerprints be retained in the Federal Bureau of Investigation Next
2684-1322
2685-Generation Identification System's Rap Back Service for search by future
2686-1323
2687-submissions to national criminal records databases, including the Next Generation
2688-1324
2689-Identification System and latent prints; and
2690-1325
2691-(e) establish a privacy risk mitigation strategy to ensure that the department only
2692-1326
2693-receives notifications for an individual with whom the department maintains an
2694-1327
2695-authorizing relationship.
2696-1328
2697-(11) The department shall:
2698-1329
2699-(a) assess an individual who submits fingerprints under Subsection (9) a fee in an
2700-1330
2701-amount that the department sets in accordance with Section 63J-1-504 for the
2702-1331
2703-services that the Bureau of Criminal Identification or another authorized agency
2704-1332
2705-provides under this section; and
2706-1333
2707-(b) remit the fee described in Subsection (11)(a) to the Bureau of Criminal Identification.
2708-1334
2709-(12) The department shall renew a license under this section every year if, at the time of
2710-1335
2711-renewal:
2712-1336
2713-(a) the licensee meets the requirements of this section; and
2714-1337
2715-(b) the licensee pays the department a license renewal fee in an amount that, subject to
2716-1338
2717-Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504.
2718-1339
2719-(13) A person applying for a medical cannabis courier license shall submit to the
2720-1340
2721-department a proposed operating plan that complies with this section and that includes:
2722-1341
2723-(a) a description of the physical characteristics of any proposed facilities, including a
2724-1342
2725-floor plan and an architectural elevation, and delivery vehicles;
2726-1343
2727-(b) a description of the credentials and experience of each officer, director, or owner of
2728-1344
2729-the proposed medical cannabis courier;
2730-1345
2731-(c) the medical cannabis courier's employee training standards;
2732-1346
2733-(d) a security plan; and
2734-1347
2735-(e) storage and delivery protocols, both short and long term, to ensure that medical
2736-1348
2737-cannabis shipments are stored and delivered in a manner that is sanitary and
2738-1349
2739-preserves the integrity of the cannabis.
2740-1350
2741-(14)(a) A medical cannabis courier license is not transferable or assignable.
2742-1351
2743-(b) A medical cannabis courier shall report in writing to the department no later than 10
2744-1352
2745-business days before the date of any change of ownership of the medical cannabis
2746-1353
2747-courier.
2748-- 40 - Enrolled Copy H.B. 54
2749-1354
2750-(c) If the ownership of a medical cannabis courier changes by 50% or more:
2751-1355
2752-(i) concurrent with the report described in Subsection (14)(b), the medical cannabis
2753-1356
2754-courier shall submit a new application described in Subsection (3)(b);
2755-1357
2756-(ii) within 30 days of the submission of the application, the department shall:
2757-1358
2758-(A) conduct an application review; and
2759-1359
2760-(B) award a license to the medical cannabis courier for the remainder of the term
2761-1360
2762-of the medical cannabis courier's license before the ownership change if the
2763-1361
2764-medical cannabis courier meets the minimum standards for licensure and
2765-1362
2766-operation of the medical cannabis courier described in this chapter; and
2767-1363
2768-(iii) if the department approves the license application, notwithstanding Subsection
2769-1364
2770-(4), the medical cannabis courier shall pay a license fee that the department sets in
2771-1365
2772-accordance with Section 63J-1-504 in an amount that covers the board's cost of
2773-1366
2774-conducting the application review.
2775-1367
2776-(15)(a) Except as provided in Subsection(15)(b), a person may not advertise regarding
2777-1368
2778-the transportation of medical cannabis.
2779-1369
2780-(b) Notwithstanding Subsection (14)(a) and subject to Section 4-41a-109, a licensed
2781-1370
2782-home delivery medical cannabis pharmacy or a licensed medical cannabis courier
2783-1371
2784-may advertise:
2785-1372
2786-(i) a green cross;
2787-1373
2788-(ii) the pharmacy's or courier's name and logo; and
2789-1374
2790-(iii) that the pharmacy or courier is licensed to transport medical cannabis shipments.
2791-1375
2792-Section 20. Section 4-41a-1203 is amended to read:
2793-1376
2794-4-41a-1203 . Medical cannabis shipment transportation.
2795-1377
2796-(1) The department shall ensure that each home delivery medical cannabis pharmacy is
2797-1378
2798-capable of delivering, directly or through a medical cannabis courier, medical cannabis
2799-1379
2800-shipments in a secure manner.
2801-1380
2802-(2)(a) A home delivery medical cannabis pharmacy may contract with a licensed
2803-1381
2804-medical cannabis courier to deliver medical cannabis shipments to fulfill electronic
2805-1382
2806-medical cannabis orders[ that the state central patient portal facilitates].
2807-1383
2808-(b) If a home delivery medical cannabis pharmacy enters into a contract described in
2809-1384
2810-Subsection (2)(a), the pharmacy shall:
2811-1385
2812-(i) impose security and personnel requirements on the medical cannabis courier
2813-1386
2814-sufficient to ensure the security and safety of medical cannabis shipments; and
2815-1387
2816-(ii) provide regular oversight of the medical cannabis courier.
2817-- 41 - H.B. 54 Enrolled Copy
2818-1388
2819-(3) Notwithstanding Subsection 4-41a-404(1), an individual may transport a medical
2820-1389
2821-cannabis shipment if the individual is:
2822-1390
2823-(a) a registered pharmacy medical provider;
2824-1391
2825-(b) a registered medical cannabis pharmacy agent; or
2826-1392
2827-(c) a registered agent of the medical cannabis courier described in Subsection (2).
2828-1393
2829-(4) An individual transporting a medical cannabis shipment under Subsection (3) shall
2830-1394
2831-comply with the requirements of Subsection 4-41a-404(3).
2832-1395
2833-(5) In addition to the requirements in Subsections (3) and (4), the department may establish
2834-1396
2835-by rule, in collaboration with the Division of Professional Licensing and the Board of
2836-1397
2837-Pharmacy and in accordance with Title 63G, Chapter 3, Utah Administrative
2838-1398
2839-Rulemaking Act, requirements for transporting medical cannabis shipments that are
2840-1399
2841-related to safety for human consumption of [cannabis or a cannabis product] medical
2842-1400
2843-cannabis.
2844-1401
2845-(6)(a) It is unlawful for an individual to transport a medical cannabis shipment with a
2846-1402
2847-manifest that does not meet the requirements of Subsection (4).
2848-1403
2849-(b) Except as provided in Subsection (6)(d), an individual who violates Subsection (6)(a)
2850-1404
2851-is:
2852-1405
2853-(i) guilty of an infraction; and
2854-1406
2855-(ii) subject to a $100 fine.
2856-1407
2857-(c) An individual who is guilty of a violation described in Subsection (6)(b) is not guilty
2858-1408
2859-of a violation of Title 58, Chapter 37, Utah Controlled Substances Act, for the
2860-1409
2861-conduct underlying the violation described in Subsection (6)(b).
2862-1410
2863-(d) If the individual described in Subsection (6)(a) is transporting more cannabis,
2864-1411
2865-cannabis product, or medical cannabis devices than the manifest identifies, except for
2866-1412
2867-a de minimis administrative error:
2868-1413
2869-(i) this chapter does not apply; and
2870-1414
2871-(ii) the individual is subject to penalties under Title 58, Chapter 37, Utah Controlled
2872-1415
2873-Substances Act.
2874-1416
2875-Section 21. Section 4-41a-1206 is amended to read:
2876-1417
2877-4-41a-1206 . Closed-door medical cannabis pharmacy.
2878-1418
2879-(1)(a) Subject to Subsections (1)(b) and (c), a home delivery medical cannabis pharmacy
2880-1419
2881-may open a single closed-door medical cannabis pharmacy.
2882-1420
2883-(b) A home delivery medical cannabis pharmacy may not open a closed-door medical
2884-1421
2885-cannabis pharmacy unless the home delivery medical cannabis pharmacy:
2886-- 42 - Enrolled Copy H.B. 54
2887-1422
2888-(i) has an operating plan that includes a closed-door medical cannabis pharmacy; and
2889-1423
2890-(ii) obtains a license issued by the department for a closed-door medical cannabis
2891-1424
2892-pharmacy.
2893-1425
2894-(c) An entity that owns multiple home delivery medical cannabis pharmacies may open
2895-1426
2896-only one closed-door medical cannabis pharmacy.
2897-1427
2898-(d) The department may institute a fee in accordance with Section 63J-1-504 to
2899-1428
2900-administer this section.
2901-1429
2902-(2) A home delivery medical cannabis pharmacy that opens a closed-door medical cannabis
2903-1430
2904-pharmacy under Subsection (1) shall ensure:
2905-1431
2906-(a) that a pharmacy medical provider who is a licensed pharmacist:
2907-1432
2908-(i) is directly supervising the packaging of an order; and
2909-1433
2910-(ii) is present in the closed-door medical cannabis pharmacy when an order is
2911-1434
2912-packaged for delivery; and
2913-1435
2914-(b) all record keeping requirements, labeling requirements, and patient counseling
2915-1436
2916-requirements described in this chapter and Title 26B, Chapter 4, Part 2, Cannabinoid
2917-1437
2918-Research and Medical Cannabis, are satisfied before sending out an order.
2919-1438
2920-(3) An individual who prepares an order at a closed-door medical cannabis pharmacy under
2921-1439
2922-this section shall be registered as:
2923-1440
2924-(a) a pharmacy medical provider; or
2925-1441
2926-(b) a medical cannabis pharmacy agent.
2927-1442
2928-(4)(a) A closed-door medical cannabis pharmacy shall operate:
2929-1443
2930-(i) except as provided in Subsection (4)(b), in a facility that is accessible only by an
2931-1444
2932-individual who is a pharmacy medical provider or a medical cannabis pharmacy
2933-1445
2934-agent; and
2935-1446
2936-(ii) at a physical address in accordance with Subsection (6).
2937-1447
2938-(b) A closed-door medical cannabis pharmacy may authorize an individual who is at
2939-1448
2940-least 18 years old and is not a pharmacy medical provider or a cannabis pharmacy
2941-1449
2942-agent to access the closed-door medical cannabis pharmacy if the closed-door
2943-1450
2944-medical cannabis pharmacy:
2945-1451
2946-(i) tracks and monitors the individual at all times while the individual is at the
2947-1452
2948-closed-door medical cannabis pharmacy; and
2949-1453
2950-(ii) maintains a record of the individual's access, including arrival and departure.
2951-1454
2952-(c) A closed-door medical cannabis pharmacy shall operate in a facility that has:
2953-1455
2954-(i) a single, secure public entrance; and
2955-- 43 - H.B. 54 Enrolled Copy
2956-1456
2957-(ii) a security system with a backup power source that:
2958-1457
2959-(A) detects and records entry into the closed-door medical cannabis pharmacy;
2960-1458
2961-(B) provides notice of an unauthorized entry to law enforcement when the
2962-1459
2963-closed-door medical cannabis pharmacy is closed; and
2964-1460
2965-(C) a lock or equivalent restrictive security feature on any area where the
2966-1461
2967-closed-door medical cannabis pharmacy stores a cannabis product.
2968-1462
2969-(d) A closed-door medical cannabis pharmacy shall ensure that any cannabis or cannabis
2970-1463
2971-products in the closed-door medical cannabis pharmacy that are intended for home
2972-1464
2973-delivery are separated in a manner that is readily distinguishable from any other
2974-1465
2975-cannabis or cannabis product in the facility.
2976-1466
2977-(5) A closed-door medical cannabis pharmacy may only provide cannabis or a cannabis
2978-1467
2979-product to an individual through a delivery that complies with this part.
2980-1468
2981-(6)(a) A person may not locate a closed-door medical cannabis pharmacy:
2982-1469
2983-(i) within 1,000 feet of a community location; or
2984-1470
2985-(ii) in or within 600 feet of a district that the relevant municipality or county has
2986-1471
2987-zoned as primarily residential.
2988-1472
2989-(b) The proximity requirements described in Subsection (6)(a) shall be measured from
2990-1473
2991-the nearest entrance to the closed-door medical cannabis pharmacy by following the
2992-1474
2993-shortest route of ordinary pedestrian travel to the property boundary of the
2994-1475
2995-community location or residential area.
2996-1476
2997-(c) The licensing board may grant a waiver to reduce the proximity requirements in
2998-1477
2999-Subsection (6)(a) by up to 20% if the licensing board determines that it is not
3000-1478
3001-reasonably feasible for the applicant to site the proposed closed-door medical
3002-1479
3003-cannabis pharmacy without the waiver.
3004-1480
3005-(d) An applicant for a license under this section shall provide evidence of compliance
3006-1481
3007-with the proximity requirements described in Subsection (6)(a).
3008-1482
3009-(7) When determining where a closed-door medical cannabis pharmacy may open, the
3010-1483
3011-licensing board:
3012-1484
3013-(a) shall utilize geographic regions created by the department through rule;
3014-1485
3015-(b) shall prioritize allowing entities that do not have a medical cannabis pharmacy in a
3016-1486
3017-region to open a closed-door medical cannabis pharmacy in the region;
3018-1487
3019-(c) of the total amount of closed-door medical cannabis pharmacies, may allow only
3020-1488
3021-three closed-door medical cannabis pharmacies to operate in counties of the first and
3022-1489
3023-second class as described in Section 17-50-501; and
3024-- 44 - Enrolled Copy H.B. 54
3025-1490
3026-(d) for determining the three closed-door medical cannabis pharmacies described in
3027-1491
3028-Subsection (7)(c), consider the following:
3029-1492
3030-(i) the history of compliance with state law and rules for all licenses issued under this
3031-1493
3032-chapter;
3033-1494
3034-(ii) the medical cannabis pharmacy's willingness to offer a variety of brands and
3035-1495
3036-products;
3037-1496
3038-(iii) the ability of the operating plan to ensure the safety and security of the
3039-1497
3040-community;
3041-1498
3042-(iv) the suitability of the proposed location and the location's ability to serve the local
3043-1499
3044-community; and
3045-1500
3046-(v) any other relevant information determined through rule.
3047-1501
3048-(8) A closed-door medical cannabis pharmacy may not account for more than:
3049-1502
3050-(a) for an entity that holds a single medical cannabis pharmacy license, the greater of:
3051-1503
3052-(i) 35% of the medical cannabis pharmacy's total revenue; or
3053-1504
3054-(ii) $2,000,000 in total revenue; or
3055-1505
3056-(b) for an entity that holds more than one medical cannabis pharmacy license, the greater
3057-1506
3058-of:
3059-1507
3060-(i) 35% of the total revenue of the entity's medical cannabis pharmacy that generates
3061-1508
3062-the most revenue; or
3063-1509
3064-(ii) $2,000,000 in total revenue.
3065-1510
3066-(9) Notwithstanding any other provision of this section, the [department] licensing board
3067-1511
3068-may issue only [three] one closed-door medical cannabis pharmacy [licenses] license
3069-1512
3070-before July 1, 2027.
3071-1513
3072-(10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3073-1514
3074-department shall make rules to implement this section.
3075-1515
3076-Section 22. Section 26B-1-435 is amended to read:
3077-1516
3078-26B-1-435 . Medical Cannabis Policy Advisory Board creation -- Membership --
3079-1517
3080-Duties.
3081-1518
3082-(1) There is created within the department the Medical Cannabis Policy Advisory Board.
3083-1519
3084-(2)(a) The advisory board shall consist of the following members:
3085-1520
3086-(i) appointed by the executive director:
3087-1521
3088-(A) a qualified medical provider who has recommended medical cannabis to at
3089-1522
3090-least 100 patients before being appointed;
3091-1523
3092-[(B) a medical research professional;]
3093-- 45 - H.B. 54 Enrolled Copy
3094-1524
3095-[(C)] (B) a mental health specialist;
3096-1525
3097-[(D)] (C) an individual who represents an organization that advocates for medical
3098-1526
3099-cannabis patients;
3100-1527
3101-[(E)] (D) [an individual] a member of the general public who holds a medical
3102-1528
3103-cannabis patient card; and
3104-1529
3105-[(F)] (E) a member of the general public who does not hold a medical cannabis
3106-1530
3107-card;[ and]
3108-1531
3109-(ii) appointed by the commissioner of the Department of Agriculture and Food:
3110-1532
3111-(A) an individual who owns or operates a licensed cannabis cultivation facility, as
3112-1533
3113-defined in Section 4-41a-102;
3114-1534
3115-(B) an individual who owns or operates a licensed medical cannabis pharmacy;
3116-1535
3117-and
3118-1536
3119-(C) a law enforcement officer[.] ; and
3120-1537
3121-(iii) a representative from the Center for Medical Cannabis Research created in
3122-1538
3123-Section 53B-14-1402, appointed by the Center for Medical Cannabis Research.
3124-1539
3125-(b) The commissioner of the Department of Agriculture and Food shall ensure that at
3126-1540
3127-least one individual appointed under Subsection (2)(a)(ii)(A) or (B) also owns or
3128-1541
3129-operates a licensed cannabis processing facility.
3130-1542
3131-(3)(a) Subject to Subsection (3)(b), a member of the advisory board shall serve for a four
3132-1543
3133-year term.
3134-1544
3135-(b) When appointing the initial membership of the advisory board, the executive director
3136-1545
3137-and the commissioner of the Department of Agriculture and Food shall coordinate to
3138-1546
3139-appoint four advisory board members to serve a term of two years to ensure that
3140-1547
3141-approximately half of the board is appointed every two years.
3142-1548
3143-(4)(a) If an advisory board member is no longer able to serve as a member, a new
3144-1549
3145-member shall be appointed in the same manner as the original appointment.
3146-1550
3147-(b) A member appointed in accordance with Subsection (4)(a) shall serve for the
3148-1551
3149-remainder of the unexpired term of the original appointment.
3150-1552
3151-(5)(a) A majority of the advisory board members constitutes a quorum.
3152-1553
3153-(b) The action of a majority of a quorum constitutes an action of the advisory board.
3154-1554
3155-(c) For a term lasting one year, the advisory board shall annually designate members of
3156-1555
3157-the advisory board to serve as chair and vice-chair.
3158-1556
3159-(d) When designating the chair and vice-chair, the advisory board shall ensure that at
3160-1557
3161-least one individual described Subsection (2)(a)(i) is appointed as chair or vice-chair.
3162-- 46 - Enrolled Copy H.B. 54
3163-1558
3164-(6) An advisory board member may not receive compensation or benefits for the member's
3165-1559
3166-service on the advisory board but may receive per diem and reimbursement for travel
3167-1560
3168-expenses incurred as an advisory board member in accordance with:
3169-1561
3170-(a) Sections 63A-3-106 and 63A-3-107; and
3171-1562
3172-(b) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
3173-1563
3174-63A-3-107.
3175-1564
3176-(7) The department shall:
3177-1565
3178-(a) provide staff support for the advisory board; and
3179-1566
3180-(b) assist the advisory board in conducting meetings.
3181-1567
3182-(8) The advisory board may recommend:
3183-1568
3184-(a) to the department or the Department of Agriculture and Food changes to current or
3185-1569
3186-proposed medical cannabis rules or statutes; and
3187-1570
3188-(b) to the appropriate legislative committee whether the advisory board supports a
3189-1571
3190-change to medical cannabis statutes.
3191-1572
3192-(9) The advisory board shall:
3193-1573
3194-(a) review any draft rule that is authorized under [this chapter] Chapter 4, Part 2,
3195-1574
3196-Cannabinoid Research and Medical Cannabis, or Title 4, Chapter 41a, Cannabis
3197-1575
3198-Production Establishments and Pharmacies;
3199-1576
3200-(b) consult with the Department of Agriculture and Food regarding the issuance of an
3201-1577
3202-additional:
3203-1578
3204-(i) cultivation facility license under Section 4-41a-205; or
3205-1579
3206-(ii) pharmacy license under Section 4-41a-1005;
3207-1580
3208-(c) consult with the department regarding cannabis patient education;
3209-1581
3210-(d) consult regarding the reasonableness of any fees set by the department or the
3211-1582
3212-Department of Agriculture and Food that pertain to the medical cannabis program;
3213-1583
3214-and
3215-1584
3216-(e) consult regarding any issue pertaining to medical cannabis when asked by the
3217-1585
3218-department or the Utah Department of Agriculture and Food.
3219-1586
3220-Section 23. Section 26B-4-201 is amended to read:
3221-1587
3222-26B-4-201 . Definitions.
3223-1588
3224- As used in this part:
3225-1589
3226-(1) "Active tetrahydrocannabinol" means THC, any THC analog, and
3227-1590
3228-tetrahydrocannabinolic acid.
3229-1591
3230-(2) "Administration of criminal justice" means the performance of detection, apprehension,
3231-- 47 - H.B. 54 Enrolled Copy
3232-1592
3233-detention, pretrial release, post-trial release, prosecution, and adjudication.
3234-1593
3235-(3) "Advertise" means information provided by a person in any medium:
3236-1594
3237-(a) to the public; and
3238-1595
3239-(b) that is not age restricted to an individual who is at least 21 years old.
3240-1596
3241-(4) "Advisory board" means the Medical Cannabis Policy Advisory Board created in
3242-1597
3243-Section 26B-1-435.
3244-1598
3245-(5) "Cannabis Research Review Board" means the Cannabis Research Review Board
3246-1599
3247-created in Section 26B-1-420.
3248-1600
3249-(6) "Cannabis" means marijuana.
3250-1601
3251-(7) "Cannabis processing facility" means the same as that term is defined in Section
3252-1602
3253-4-41a-102.
3254-1603
3255-(8) "Cannabis product" means a product that:
3256-1604
3257-(a) is intended for human use; and
3258-1605
3259-(b) contains cannabis or any tetrahydrocannabinol or THC analog in a total
3260-1606
3261-concentration of 0.3% or greater on a dry weight basis.
3262-1607
3263-(9) "Cannabis production establishment" means the same as that term is defined in Section
3264-1608
3265-4-41a-102.
3266-1609
3267-(10) "Cannabis production establishment agent" means the same as that term is defined in
3268-1610
3269-Section 4-41a-102.
3270-1611
3271-(11) "Cannabis production establishment agent registration card" means the same as that
3272-1612
3273-term is defined in Section 4-41a-102.
3274-1613
3275-(12) "Conditional medical cannabis card" means an electronic medical cannabis card that
3276-1614
3277-the department issues in accordance with Subsection 26B-4-213(1)(b) to allow an
3278-1615
3279-applicant for a medical cannabis card to access medical cannabis during the department's
3280-1616
3281-review of the application.
3282-1617
3283-(13) "Controlled substance database" means the controlled substance database created in
3284-1618
3285-Section 58-37f-201.
3286-1619
3287-(14) "Delivery address" means the same as that term is defined in Section 4-41a-102.
3288-1620
3289-(15) "Department" means the Department of Health and Human Services.
3290-1621
3291-(16) "Designated caregiver" means:
3292-1622
3293-(a) an individual:
3294-1623
3295-(i) whom an individual with a medical cannabis patient card or a medical cannabis
3296-1624
3297-guardian card designates as the patient's caregiver; and
3298-1625
3299-(ii) who registers with the department under Section 26B-4-214; or
3300-- 48 - Enrolled Copy H.B. 54
3301-1626
3302-(b)(i) a facility that an individual designates as a designated caregiver in accordance
3303-1627
3304-with Subsection 26B-4-214(1)(b); or
3305-1628
3306-(ii) an assigned employee of the facility described in Subsection 26B-4-214(1)(b)(ii).
3307-1629
3308-(17) "Directions of use" means recommended routes of administration for a medical
3309-1630
3310-cannabis treatment and suggested usage guidelines.
3311-1631
3312-(18) "Dosing guidelines" means a quantity range and frequency of administration for a
3313-1632
3314-recommended treatment of medical cannabis.
3315-1633
3316-(19) "Government issued photo identification" means any of the following forms of
3317-1634
3318-identification:
3319-1635
3320-(a) a valid state-issued driver license or identification card;
3321-1636
3322-(b) a valid United States federal-issued photo identification, including:
3323-1637
3324-(i) a United States passport;
3325-1638
3326-(ii) a United States passport card;
3327-1639
3328-(iii) a United States military identification card; or
3329-1640
3330-(iv) a permanent resident card or alien registration receipt card; or
3331-1641
3332-(c) a foreign passport.
3333-1642
3334-(20) "Home delivery medical cannabis pharmacy" means a medical cannabis pharmacy that
3335-1643
3336-the department authorizes, as part of the pharmacy's license, to deliver medical cannabis
3337-1644
3338-shipments to a delivery address to fulfill electronic orders[ that the state central patient
3339-1645
3340-portal facilitates].
3341-1646
3342-(21) "Inventory control system" means the system described in Section 4-41a-103.
3343-1647
3344-(22) "Legal dosage limit" means an amount that:
3345-1648
3346-(a) is sufficient to provide 30 days of treatment based on the dosing guidelines that the
3347-1649
3348-relevant recommending medical provider or [the state central patient portal or ]
3349-1650
3350-pharmacy medical provider, in accordance with Subsection [26B-4-230(5)]
3351-1651
3352-26B-4-231(5), recommends; and
3353-1652
3354-(b) may not exceed:
3355-1653
3356-(i) for unprocessed cannabis in a medicinal dosage form, 113 grams by weight; and
3357-1654
3358-(ii) for a cannabis product in a medicinal dosage form, a quantity that contains, in
3359-1655
3360-total, greater than 20 grams of active tetrahydrocannabinol.
3361-1656
3362-(23) "Legal use termination date" means a date on the label of a container of unprocessed
3363-1657
3364-cannabis flower:
3365-1658
3366-(a) that is 60 days after the date of purchase of the cannabis; and
3367-1659
3368-(b) after which, the cannabis is no longer in a medicinal dosage form outside of the
3369-- 49 - H.B. 54 Enrolled Copy
3370-1660
3371-primary residence of the relevant medical cannabis patient cardholder.
3372-1661
3373-(24) "Limited medical provider" means an individual who:
3374-1662
3375-(a) meets the recommending qualifications; and
3376-1663
3377-(b) has no more than 15 patients with a valid medical cannabis patient card as a result of
3378-1664
3379-the individual's recommendation, in accordance with Subsection 26B-4-204(1)(b).
3380-1665
3381-(25) "Marijuana" means the same as that term is defined in Section 58-37-2.
3382-1666
3383-(26) "Medical cannabis" or "medical cannabis product" means cannabis in a medicinal
3384-1667
3385-dosage form or a cannabis product in a medicinal dosage form.
3386-1668
3387-(27) "Medical cannabis card" means a medical cannabis patient card, a medical cannabis
3388-1669
3389-guardian card, a medical cannabis caregiver card, or a conditional medical cannabis card.
3390-1670
3391-(28) "Medical cannabis cardholder" means:
3392-1671
3393-(a) a holder of a medical cannabis card; or
3394-1672
3395-(b) a facility or assigned employee, described in Subsection (16)(b), only:
3396-1673
3397-(i) within the scope of the facility's or assigned employee's performance of the role of
3398-1674
3399-a medical cannabis patient cardholder's caregiver designation under Subsection
3400-1675
3401-26B-4-214(1)(b); and
3402-1676
3403-(ii) while in possession of documentation that establishes:
3404-1677
3405-(A) a caregiver designation described in Subsection 26B-4-214(1)(b);
3406-1678
3407-(B) the identity of the individual presenting the documentation; and
3408-1679
3409-(C) the relation of the individual presenting the documentation to the caregiver
3410-1680
3411-designation.
3412-1681
3413-(29) "Medical cannabis caregiver card" means an electronic document that a cardholder
3414-1682
3415-may print or store on an electronic device or a physical card or document that:
3416-1683
3417-(a) the department issues to an individual whom a medical cannabis patient cardholder
3418-1684
3419-or a medical cannabis guardian cardholder designates as a designated caregiver; and
3420-1685
3421-(b) is connected to the electronic verification system.
3422-1686
3423-(30) "Medical cannabis courier" means the same as that term is defined in Section
3424-1687
3425-4-41a-102.
3426-1688
3427-(31)(a) "Medical cannabis device" means a device that an individual uses to ingest or
3428-1689
3429-inhale [cannabis in a medicinal dosage form or a cannabis product in a medicinal
3430-1690
3431-dosage form] medical cannabis.
3432-1691
3433-(b) "Medical cannabis device" does not include a device that:
3434-1692
3435-(i) facilitates cannabis combustion; or
3436-1693
3437-(ii) an individual uses to ingest substances other than cannabis.
3438-- 50 - Enrolled Copy H.B. 54
3439-1694
3440-(32) "Medical cannabis guardian card" means an electronic document that a cardholder may
3441-1695
3442-print or store on an electronic device or a physical card or document that:
3443-1696
3444-(a) the department issues to the parent or legal guardian of a minor with a qualifying
3445-1697
3446-condition; and
3447-1698
3448-(b) is connected to the electronic verification system.
3449-1699
3450-(33) "Medical cannabis patient card" means an electronic document that a cardholder may
3451-1700
3452-print or store on an electronic device or a physical card or document that:
3453-1701
3454-(a) the department issues to an individual with a qualifying condition; and
3455-1702
3456-(b) is connected to the electronic verification system.
3457-1703
3458-(34) "Medical cannabis pharmacy" means a person that:
3459-1704
3460-(a)(i) acquires or intends to acquire medical cannabis [or a cannabis product in a
3461-1705
3462-medicinal dosage form ]from a cannabis processing facility or another medical
3463-1706
3464-cannabis pharmacy or a medical cannabis device; or
3465-1707
3466-(ii) possesses medical cannabis or a medical cannabis device; and
3467-1708
3468-(b) sells or intends to sell medical cannabis or a medical cannabis device to a medical
3469-1709
3470-cannabis cardholder.
3471-1710
3472-(35) "Medical cannabis pharmacy agent" means an individual who holds a valid medical
3473-1711
3474-cannabis pharmacy agent registration card issued by the department.
3475-1712
3476-(36) "Medical cannabis pharmacy agent registration card" means a registration card issued
3477-1713
3478-by the department that authorizes an individual to act as a medical cannabis pharmacy
3479-1714
3480-agent.
3481-1715
3482-(37) "Medical cannabis shipment" means the same as that term is defined in Section
3483-1716
3484-4-41a-102.
3485-1717
3486-(38) "Medical cannabis treatment" means [cannabis in a medicinal dosage form, a cannabis
3487-1718
3488-product in a medicinal dosage form, or] medical cannabis or a medical cannabis device.
3489-1719
3490-(39)(a) "Medicinal dosage form" means:
3491-1720
3492-(i) for processed medical cannabis, the following with a specific and consistent
3493-1721
3494-cannabinoid content:
3495-1722
3496-(A) a tablet;
3497-1723
3498-(B) a capsule;
3499-1724
3500-(C) a concentrated liquid or viscous oil;
3501-1725
3502-(D) a liquid suspension that does not exceed 30 milliliters;
3503-1726
3504-(E) a topical preparation;
3505-1727
3506-(F) a transdermal preparation;
3507-- 51 - H.B. 54 Enrolled Copy
3508-1728
3509-(G) a sublingual preparation;
3510-1729
3511-(H) a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or
3512-1730
3513-rectangular cuboid shape;
3514-1731
3515-(I) a resin or wax;
3516-1732
3517-(J) an aerosol;
3518-1733
3519-(K) a suppository preparation; or
3520-1734
3521-(L) a soft or hard confection that is a uniform rectangular cuboid or uniform
3522-1735
3523-spherical shape, is homogeneous in color and texture, and each piece is a single
3524-1736
3525-serving; or
3526-1737
3527-(ii) for unprocessed cannabis flower, a container described in Section 4-41a-602 that:
3528-1738
3529-(A) contains cannabis flower in a quantity that varies by no more than 10% from
3530-1739
3531-the stated weight at the time of packaging;
3532-1740
3533-(B) at any time the medical cannabis cardholder transports or possesses the
3534-1741
3535-container in public, is contained within an opaque bag or box that the medical
3536-1742
3537-cannabis pharmacy provides; and
3538-1743
3539-(C) is labeled with the container's content and weight, the date of purchase, the
3540-1744
3541-legal use termination date, and a barcode that provides information connected
3542-1745
3543-to an inventory control system.
3544-1746
3545-(b) "Medicinal dosage form" includes a portion of unprocessed cannabis flower that:
3546-1747
3547-(i) the medical cannabis cardholder has recently removed from the container
3548-1748
3549-described in Subsection (39)(a)(ii) for use; and
3550-1749
3551-(ii) does not exceed the quantity described in Subsection (39)(a)(ii).
3552-1750
3553-(c) "Medicinal dosage form" does not include:
3554-1751
3555-(i) any unprocessed cannabis flower outside of the container described in Subsection
3556-1752
3557-(39)(a)(ii), except as provided in Subsection (39)(b);
3558-1753
3559-(ii) any unprocessed cannabis flower in a container described in Subsection (39)(a)(ii)
3560-1754
3561-after the legal use termination date;
3562-1755
3563-(iii) a process of vaporizing and inhaling concentrated cannabis by placing the
3564-1756
3565-cannabis on a nail or other metal object that is heated by a flame, including a
3566-1757
3567-blowtorch;
3568-1758
3569-(iv) a liquid suspension that is branded as a beverage;
3570-1759
3571-(v) a substance described in Subsection (39)(a)(i) or (ii) if the substance is not
3572-1760
3573-measured in grams, milligrams, or milliliters; or
3574-1761
3575-(vi) a substance that contains or is covered to any degree with chocolate.
3576-- 52 - Enrolled Copy H.B. 54
3577-1762
3578-(40) "Nonresident patient" means an individual who:
3579-1763
3580-(a) is not a resident of Utah or has been a resident of Utah for less than 45 days;
3581-1764
3582-(b) has a currently valid medical cannabis card or the equivalent of a medical cannabis
3583-1765
3584-card under the laws of another state, district, territory, commonwealth, or insular
3585-1766
3586-possession of the United States; and
3587-1767
3588-(c) has been diagnosed with a qualifying condition as described in Section 26B-4-203.
3589-1768
3590-(41) "Pharmacy medical provider" means the medical provider required to be on site at a
3591-1769
3592-medical cannabis pharmacy under Section 26B-4-219.
3593-1770
3594-(42) "Provisional patient card" means a card that:
3595-1771
3596-(a) the department issues to a minor with a qualifying condition for whom:
3597-1772
3598-(i) a recommending medical provider has recommended a medical cannabis
3599-1773
3600-treatment; and
3601-1774
3602-(ii) the department issues a medical cannabis guardian card to the minor's parent or
3603-1775
3604-legal guardian; and
3605-1776
3606-(b) is connected to the electronic verification system.
3607-1777
3608-(43) "Qualified medical provider" means an individual:
3609-1778
3610-(a) who meets the recommending qualifications; and
3611-1779
3612-(b) whom the department registers to recommend treatment with cannabis in a medicinal
3613-1780
3614-dosage form under Section 26B-4-204.
3615-1781
3616-(44) "Qualified Patient Enterprise Fund" means the enterprise fund created in Section
3617-1782
3618-26B-1-310.
3619-1783
3620-(45) "Qualifying condition" means a condition described in Section 26B-4-203.
3621-1784
3622-(46) "Recommend" or "recommendation" means, for a recommending medical provider, the
3623-1785
3624-act of suggesting the use of medical cannabis treatment, which:
3625-1786
3626-(a) certifies the patient's eligibility for a medical cannabis card; and
3627-1787
3628-(b) may include, at the recommending medical provider's discretion, directions of use,
3629-1788
3630-with or without dosing guidelines.
3631-1789
3632-(47) "Recommending medical provider" means a qualified medical provider or a limited
3633-1790
3634-medical provider.
3635-1791
3636-(48) "Recommending qualifications" means that an individual:
3637-1792
3638-(a)(i) has the authority to write a prescription;
3639-1793
3640-(ii) is licensed to prescribe a controlled substance under Title 58, Chapter 37, Utah
3641-1794
3642-Controlled Substances Act; and
3643-1795
3644-(iii) possesses the authority, in accordance with the individual's scope of practice, to
3645-- 53 - H.B. 54 Enrolled Copy
3646-1796
3647-prescribe a Schedule II controlled substance; and
3648-1797
3649-(b) is licensed as:
3650-1798
3651-(i) a podiatrist under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
3652-1799
3653-(ii) an advanced practice registered nurse under Title 58, Chapter 31b, Nurse Practice
3654-1800
3655-Act;
3656-1801
3657-(iii) a physician under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58,
3658-1802
3659-Chapter 68, Utah Osteopathic Medical Practice Act; or
3660-1803
3661-(iv) a physician assistant under Title 58, Chapter 70a, Utah Physician Assistant Act.
3662-1804
3663-[(49) "State central patient portal" means the website the department creates, in accordance
3664-1805
3665-with Section 26B-4-236, to facilitate patient safety, education, and an electronic medical
3666-1806
3667-cannabis order.]
3668-1807
3669-[(50)] (49) "State electronic verification system" means the system described in Section
3670-1808
3671-26B-4-202.
3672-1809
3673-[(51)] (50) "Targeted marketing" means the promotion by a qualified medical provider,
3674-1810
3675-medical clinic, or medical office that employs a qualified medical provider of a medical
3676-1811
3677-cannabis recommendation service using any of the following methods:
3678-1812
3679-(a) electronic communication to an individual who is at least 21 years old and has
3680-1813
3681-requested to receive promotional information;
3682-1814
3683-(b) an in-person marketing event that is held in an area where only an individual who is
3684-1815
3685-at least 21 years old may access the event;
3686-1816
3687-(c) other marketing material that is physically or digitally displayed in the office of the
3688-1817
3689-medical clinic or office that employs a qualified medical provider; or
3690-1818
3691-(d) a leaflet that a qualified medical provider, medical clinic, or medical office that
3692-1819
3693-employs a qualified medical provider shares with an individual who is at least 21
36943695 1820
3695-years old.
3696+[(52)] (51) "Tetrahydrocannabinol" or "THC" means a substance derived from cannabis or a
36963697 1821
3697-[(52)] (51) "Tetrahydrocannabinol" or "THC" means a substance derived from cannabis or a
3698+synthetic equivalent as described in Subsection 58-37-4(2)(a)(iii)(AA).
36983699 1822
3699-synthetic equivalent as described in Subsection 58-37-4(2)(a)(iii)(AA).
3700+[(53)] (52) "THC analog" means the same as that term is defined in Section 4-41-102.
37003701 1823
3701-[(53)] (52) "THC analog" means the same as that term is defined in Section 4-41-102.
3702+Section 24. Section 26B-4-202 is amended to read:
37023703 1824
3703-Section 24. Section 26B-4-202 is amended to read:
3704+26B-4-202 . Electronic verification system.
37043705 1825
3705-26B-4-202 . Electronic verification system.
3706+(1) The Department of Agriculture and Food, the department, the Department of Public
37063707 1826
3707-(1) The Department of Agriculture and Food, the department, the Department of Public
3708+Safety, and the Division of Technology Services shall:
37083709 1827
3709-Safety, and the Division of Technology Services shall:
3710+(a) enter into a memorandum of understanding in order to determine the function and
37103711 1828
3711-(a) enter into a memorandum of understanding in order to determine the function and
3712+operation of the state electronic verification system in accordance with Subsection
37123713 1829
3713-operation of the state electronic verification system in accordance with Subsection (2);
3714-- 54 - Enrolled Copy H.B. 54
3714+(2);
37153715 1830
37163716 (b) coordinate with the Division of Purchasing, under Title 63G, Chapter 6a, Utah
3717+- 54 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
37173718 1831
37183719 Procurement Code, to develop a request for proposals for a third-party provider to
37193720 1832
37203721 develop and maintain the state electronic verification system in coordination with the
37213722 1833
37223723 Division of Technology Services; and
37233724 1834
37243725 (c) select a third-party provider who:
37253726 1835
37263727 (i) meets the requirements contained in the request for proposals issued under
37273728 1836
37283729 Subsection (1)(b); and
37293730 1837
37303731 (ii) may not have any commercial or ownership interest in a cannabis production
37313732 1838
37323733 establishment or a medical cannabis pharmacy.
37333734 1839
37343735 (2) The Department of Agriculture and Food, the department, the Department of Public
37353736 1840
37363737 Safety, and the Division of Technology Services shall ensure that the state electronic
37373738 1841
37383739 verification system described in Subsection (1):
37393740 1842
37403741 (a) allows an individual to apply for a medical cannabis patient card or, if applicable, a
37413742 1843
37423743 medical cannabis guardian card, provided that the card may not become active until:
37433744 1844
37443745 (i) the relevant qualified medical provider completes the associated medical cannabis
37453746 1845
37463747 recommendation; or
37473748 1846
37483749 (ii) for a medical cannabis card related to a limited medical provider's
37493750 1847
37503751 recommendation, the medical cannabis pharmacy completes the recording
37513752 1848
37523753 described in Subsection (2)(d);
37533754 1849
37543755 (b) allows an individual to apply to renew a medical cannabis patient card or a medical
37553756 1850
37563757 cannabis guardian card in accordance with Section 26B-4-213;
37573758 1851
37583759 (c) allows a qualified medical provider, or an employee described in Subsection (3)
37593760 1852
37603761 acting on behalf of the qualified medical provider, to:
37613762 1853
37623763 (i) access dispensing and card status information regarding a patient:
37633764 1854
37643765 (A) with whom the qualified medical provider has a provider-patient relationship;
37653766 1855
37663767 and
37673768 1856
37683769 (B) for whom the qualified medical provider has recommended or is considering
37693770 1857
37703771 recommending a medical cannabis card;
37713772 1858
37723773 (ii) electronically recommend treatment with [cannabis in a medicinal dosage form or
37733774 1859
37743775 a cannabis product in a medicinal dosage form] medical cannabis and optionally
37753776 1860
37763777 recommend dosing guidelines;
37773778 1861
37783779 (iii) electronically renew a recommendation to a medical cannabis patient cardholder
37793780 1862
37803781 or medical cannabis guardian cardholder:
37813782 1863
37823783 (A) using telehealth services, for the qualified medical provider who originally
3783-- 55 - H.B. 54 Enrolled Copy
37843784 1864
37853785 recommended a medical cannabis treatment during a face-to-face visit with the
3786+- 55 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
37863787 1865
37873788 patient; or
37883789 1866
37893790 (B) during a face-to-face visit with the patient, for a qualified medical provider
37903791 1867
37913792 who did not originally recommend the medical cannabis treatment during a
37923793 1868
37933794 face-to-face visit; and
37943795 1869
37953796 (iv) submit an initial application, renewal application, or application payment on
37963797 1870
37973798 behalf of an individual applying for any of the following:
37983799 1871
37993800 (A) a medical cannabis patient card;
38003801 1872
38013802 (B) a medical cannabis guardian card; or
38023803 1873
38033804 (C) a medical cannabis caregiver card;
38043805 1874
38053806 (d) allows a medical cannabis pharmacy medical provider or medical cannabis pharmacy
38063807 1875
38073808 agent, in accordance with Subsection 4-41a-1101(10)(a), to:
38083809 1876
38093810 (i) access the electronic verification system to review the history within the system of
38103811 1877
38113812 a patient with whom the provider or agent is interacting, limited to read-only
38123813 1878
38133814 access for medical cannabis pharmacy agents unless the medical cannabis
38143815 1879
38153816 pharmacy's pharmacist in charge authorizes add and edit access;
38163817 1880
38173818 (ii) record a patient's recommendation from a limited medical provider, including any
38183819 1881
38193820 directions of use, dosing guidelines, or caregiver indications from the limited
38203821 1882
38213822 medical provider;
38223823 1883
38233824 (iii) record a limited medical provider's renewal of the provider's previous
38243825 1884
38253826 recommendation; and
38263827 1885
38273828 (iv) submit an initial application, renewal application, or application payment on
38283829 1886
38293830 behalf of an individual applying for any of the following:
38303831 1887
38313832 (A) a medical cannabis patient card;
38323833 1888
38333834 (B) a medical cannabis guardian card; or
38343835 1889
38353836 (C) a medical cannabis caregiver card;
38363837 1890
38373838 (e) connects with:
38383839 1891
38393840 (i) an inventory control system that a medical cannabis pharmacy uses to track in real
38403841 1892
38413842 time and archive purchases of any [cannabis in a medicinal dosage form, cannabis
38423843 1893
38433844 product in a medicinal dosage form,] medical cannabis or a medical cannabis
38443845 1894
38453846 device, including:
38463847 1895
38473848 (A) the time and date of each purchase;
38483849 1896
38493850 (B) the quantity and type of [cannabis, cannabis product,] medical cannabis or
38503851 1897
38513852 medical cannabis device purchased;
3852-- 56 - Enrolled Copy H.B. 54
38533853 1898
38543854 (C) any cannabis production establishment, any medical cannabis pharmacy, or
3855+- 56 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
38553856 1899
38563857 any medical cannabis courier associated with the [cannabis, cannabis product,]
38573858 1900
38583859 medical cannabis or medical cannabis device; and
38593860 1901
38603861 (D) the personally identifiable information of the medical cannabis cardholder
38613862 1902
38623863 who made the purchase; and
38633864 1903
38643865 (ii) any commercially available inventory control system that a cannabis production
38653866 1904
38663867 establishment utilizes in accordance with Section 4-41a-103 to use data that the
38673868 1905
38683869 Department of Agriculture and Food requires by rule, in accordance with Title
38693870 1906
38703871 63G, Chapter 3, Utah Administrative Rulemaking Act, from the inventory
38713872 1907
38723873 tracking system that a licensee uses to track and confirm compliance;
38733874 1908
38743875 (f) provides access to:
38753876 1909
38763877 (i) the department to the extent necessary to carry out the department's functions and
38773878 1910
38783879 responsibilities under this part;
38793880 1911
38803881 (ii) the Department of Agriculture and Food to the extent necessary to carry out the
38813882 1912
38823883 functions and responsibilities of the Department of Agriculture and Food under
38833884 1913
38843885 Title 4, Chapter 41a, Cannabis Production Establishments and Pharmacies; and
38853886 1914
38863887 (iii) the Division of Professional Licensing to the extent necessary to carry out the
38873888 1915
38883889 functions and responsibilities related to the participation of the following in the
38893890 1916
38903891 recommendation and dispensing of medical cannabis:
38913892 1917
38923893 (A) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing
38933894 1918
38943895 Act;
38953896 1919
38963897 (B) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
38973898 1920
38983899 (C) an advanced practice registered nurse licensed under Title 58, Chapter 31b,
38993900 1921
39003901 Nurse Practice Act;
39013902 1922
39023903 (D) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
39033904 1923
39043905 Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or
39053906 1924
39063907 (E) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
39073908 1925
39083909 Assistant Act;
39093910 1926
39103911 [(g) provides access to and interaction with the state central patient portal;]
39113912 1927
39123913 [(h)] (g) communicates dispensing information from a record that a medical cannabis
39133914 1928
39143915 pharmacy submits to the state electronic verification system under Subsection
39153916 1929
39163917 4-41a-1102(3)(a)(ii) to the controlled substance database;
39173918 1930
39183919 [(i)] (h) provides access to state or local law enforcement only to verify the validity of an
39193920 1931
39203921 individual's medical cannabis card for the administration of criminal justice and
3921-- 57 - H.B. 54 Enrolled Copy
39223922 1932
39233923 through a database used by law enforcement; and
3924+- 57 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
39243925 1933
39253926 [(j)] (i) creates a record each time a person accesses the system that identifies the person
39263927 1934
39273928 who accesses the system and the individual whose records the person accesses.
39283929 1935
39293930 (3)(a) An employee of a qualified medical provider may access the electronic
39303931 1936
39313932 verification system for a purpose described in Subsection (2)(c) on behalf of the
39323933 1937
39333934 qualified medical provider if:
39343935 1938
39353936 (i) the qualified medical provider has designated the employee as an individual
39363937 1939
39373938 authorized to access the electronic verification system on behalf of the qualified
39383939 1940
39393940 medical provider;
39403941 1941
39413942 (ii) the qualified medical provider provides written notice to the department of the
39423943 1942
39433944 employee's identity and the designation described in Subsection (3)(a)(i); and
39443945 1943
39453946 (iii) the department grants to the employee access to the electronic verification
39463947 1944
39473948 system.
39483949 1945
39493950 (b) An employee of a business that employs a qualified medical provider may access the
39503951 1946
39513952 electronic verification system for a purpose described in Subsection (2)(c) on behalf
39523953 1947
39533954 of the qualified medical provider if:
39543955 1948
39553956 (i) the qualified medical provider has designated the employee as an individual
39563957 1949
39573958 authorized to access the electronic verification system on behalf of the qualified
39583959 1950
39593960 medical provider;
39603961 1951
39613962 (ii) the qualified medical provider and the employing business jointly provide written
39623963 1952
39633964 notice to the department of the employee's identity and the designation described
39643965 1953
39653966 in Subsection (3)(b)(i); and
39663967 1954
39673968 (iii) the department grants to the employee access to the electronic verification
39683969 1955
39693970 system.
39703971 1956
39713972 (4)(a) As used in this Subsection (4), "prescribing provider" means:
39723973 1957
39733974 (i) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
39743975 1958
39753976 (ii) an advanced practice registered nurse licensed under Title 58, Chapter 31b, Nurse
39763977 1959
39773978 Practice Act;
39783979 1960
39793980 (iii) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
39803981 1961
39813982 Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or
39823983 1962
39833984 (iv) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
39843985 1963
39853986 Assistant Act.
39863987 1964
39873988 (b) A prescribing provider may access information in the electronic verification system
39883989 1965
39893990 regarding a patient the prescribing provider treats.
3990-- 58 - Enrolled Copy H.B. 54
39913991 1966
39923992 (5) The department may release limited data that the system collects for the purpose of:
3993+- 58 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
39933994 1967
39943995 (a) conducting medical and other department approved research;
39953996 1968
39963997 (b) providing the report required by Section 26B-4-222; and
39973998 1969
39983999 (c) other official department purposes.
39994000 1970
40004001 (6) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
40014002 1971
40024003 Administrative Rulemaking Act, to establish:
40034004 1972
40044005 (a) the limitations on access to the data in the state electronic verification system as
40054006 1973
40064007 described in this section; and
40074008 1974
40084009 (b) standards and procedures to ensure accurate identification of an individual requesting
40094010 1975
40104011 information or receiving information in this section.
40114012 1976
40124013 (7) Any person who negligently or recklessly releases any information in the state
40134014 1977
40144015 electronic verification system in violation of this section is guilty of a class C
40154016 1978
40164017 misdemeanor.
40174018 1979
40184019 (8) Any person who obtains or attempts to obtain information from the state electronic
40194020 1980
40204021 verification system by misrepresentation or fraud is guilty of a third degree felony.
40214022 1981
40224023 (9)(a) Except as provided in Subsections (9)(c) and (9)(e), a person may not knowingly
40234024 1982
40244025 and intentionally use, release, publish, or otherwise make available to any other
40254026 1983
40264027 person information obtained from the state electronic verification system for any
40274028 1984
40284029 purpose other than a purpose specified in this section.
40294030 1985
40304031 (b) Each separate violation of this Subsection (9) is:
40314032 1986
40324033 (i) a third degree felony; and
40334034 1987
40344035 (ii) subject to a civil penalty not to exceed $5,000.
40354036 1988
40364037 (c) A law enforcement officer who uses the database used by law enforcement to access
40374038 1989
40384039 information in the electronic verification system for a reason that is not the
40394040 1990
40404041 administration of criminal justice is guilty of a class B misdemeanor.
40414042 1991
40424043 (d) The department shall determine a civil violation of this Subsection (9) in accordance
40434044 1992
40444045 with Title 63G, Chapter 4, Administrative Procedures Act.
40454046 1993
40464047 (e) Civil penalties assessed under this Subsection (9) shall be deposited into the General
40474048 1994
40484049 Fund.
40494050 1995
40504051 (f) This Subsection (9) does not prohibit a person who obtains information from the state
40514052 1996
40524053 electronic verification system under Subsection (2)(a), (c), or (f) from:
40534054 1997
40544055 (i) including the information in the person's medical chart or file for access by a
40554056 1998
40564057 person authorized to review the medical chart or file;
40574058 1999
40584059 (ii) providing the information to a person in accordance with the requirements of the
4059-- 59 - H.B. 54 Enrolled Copy
40604060 2000
40614061 Health Insurance Portability and Accountability Act of 1996; or
4062+- 59 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
40624063 2001
40634064 (iii) discussing or sharing that information about the patient with the patient.
40644065 2002
40654066 Section 25. Section 26B-4-214 is amended to read:
40664067 2003
40674068 26B-4-214 . Medical cannabis caregiver card -- Registration -- Renewal --
40684069 2004
40694070 Revocation.
40704071 2005
40714072 (1)(a) A cardholder described in Section 26B-4-213 may designate[, through the state
40724073 2006
40734074 central patient portal,] up to two individuals, or an individual and a facility in
40744075 2007
40754076 accordance with Subsection (1)(b), to serve as a designated caregiver for the
40764077 2008
40774078 cardholder.
40784079 2009
40794080 (b)(i) A cardholder described in Section 26B-4-213 may designate one of the
40804081 2010
40814082 following types of facilities as one of the caregivers described in Subsection (1)(a):
40824083 2011
40834084 (A) for a patient or resident, an assisted living facility, as that term is defined in
40844085 2012
40854086 Section 26B-2-201;
40864087 2013
40874088 (B) for a patient or resident, a nursing care facility, as that term is defined in
40884089 2014
40894090 Section 26B-2-201; or
40904091 2015
40914092 (C) for a patient, a general acute hospital, as that term is defined in Section
40924093 2016
40934094 26B-2-201.
40944095 2017
40954096 (ii) A facility may:
40964097 2018
40974098 (A) assign one or more employees to assist patients with medical cannabis
40984099 2019
40994100 treatment under the caregiver designation described in this Subsection (1)(b);
41004101 2020
41014102 and
41024103 2021
41034104 (B) receive a medical cannabis shipment from a medical cannabis pharmacy or a
41044105 2022
41054106 medical cannabis courier on behalf of the medical cannabis cardholder within
41064107 2023
41074108 the facility who designated the facility as a caregiver.
41084109 2024
41094110 (iii) The department shall make rules to regulate the practice of facilities and facility
41104111 2025
41114112 employees serving as designated caregivers under this Subsection (1)(b).
41124113 2026
41134114 (c) A parent or legal guardian described in Subsection 26B-4-213(2)(d), in consultation
41144115 2027
41154116 with the minor and the minor's qualified medical provider, may designate[, through
41164117 2028
41174118 the state central patient portal,] up to two individuals to serve as a designated
41184119 2029
41194120 caregiver for the minor, if the department determines that the parent or legal guardian
41204121 2030
41214122 is not eligible for a medical cannabis guardian card under Section 26B-4-213.
41224123 2031
41234124 (d)(i) Upon the entry of a caregiver designation under Subsection (1) by a patient
41244125 2032
41254126 with a terminal illness described in Section 26B-4-203, the department shall issue
41264127 2033
41274128 to the designated caregiver an electronic conditional medical cannabis caregiver
4128-- 60 - Enrolled Copy H.B. 54
41294129 2034
41304130 card, in accordance with this Subsection (1)(d).
4131+- 60 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
41314132 2035
41324133 (ii) A conditional medical cannabis caregiver card is valid for the lesser of:
41334134 2036
41344135 (A) 60 days; or
41354136 2037
41364137 (B) the day on which the department completes the department's review and issues
41374138 2038
41384139 a medical cannabis caregiver card under Subsection (1)(a), denies the patient's
41394140 2039
41404141 medical cannabis caregiver card application, or revokes the conditional
41414142 2040
41424143 medical cannabis caregiver card under Section 26B-4-246.
41434144 2041
41444145 (iii) The department may issue a conditional medical cannabis card to an individual
41454146 2042
41464147 applying for a medical cannabis patient card for which approval of the
41474148 2043
41484149 Compassionate Use Board is not required.
41494150 2044
41504151 (iv) An individual described in Subsection (1)(b)(iii) has the rights, restrictions, and
41514152 2045
41524153 obligations under law applicable to a holder of the medical cannabis card for
41534154 2046
41544155 which the individual applies and for which the department issues the conditional
41554156 2047
41564157 medical cannabis card.
41574158 2048
41584159 (2) An individual that the department registers as a designated caregiver under this section
41594160 2049
41604161 and a facility described in Subsection (1)(b):
41614162 2050
41624163 (a) for an individual designated caregiver, may carry a valid medical cannabis caregiver
41634164 2051
41644165 card;
41654166 2052
41664167 (b) in accordance with this part, may purchase, possess, transport, or assist the patient in
41674168 2053
41684169 the use of [cannabis in a medicinal dosage form, a cannabis product in a medicinal
41694170 2054
41704171 dosage form,] medical cannabis or a medical cannabis device on behalf of the
41714172 2055
41724173 designating medical cannabis cardholder;
41734174 2056
41744175 (c) may not charge a fee to an individual to act as the individual's designated caregiver
41754176 2057
41764177 or for a service that the designated caregiver provides in relation to the role as a
41774178 2058
41784179 designated caregiver; and
41794180 2059
41804181 (d) may accept reimbursement from the designating medical cannabis cardholder for
41814182 2060
41824183 direct costs the designated caregiver incurs for assisting with the designating
41834184 2061
41844185 cardholder's medicinal use of cannabis.
41854186 2062
41864187 (3)(a) The department shall:
41874188 2063
41884189 (i) within 15 days after the day on which an individual submits an application in
41894190 2064
41904191 compliance with this section, issue a medical cannabis card to the applicant if the
41914192 2065
41924193 applicant:
41934194 2066
41944195 (A) is designated as a caregiver under Subsection (1);
41954196 2067
41964197 (B) is eligible for a medical cannabis caregiver card under Subsection (4); and
4197-- 61 - H.B. 54 Enrolled Copy
41984198 2068
41994199 (C) complies with this section; and
4200+- 61 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
42004201 2069
42014202 (ii) notify the Department of Public Safety of each individual that the department
42024203 2070
42034204 registers as a designated caregiver.
42044205 2071
42054206 (b) The department shall ensure that a medical cannabis caregiver card contains the
42064207 2072
42074208 information described in Subsections (5)(b) and (3)(c)(i).
42084209 2073
42094210 (c) If a cardholder described in Section 26B-4-213 designates an individual as a
42104211 2074
42114212 caregiver who already holds a medical cannabis caregiver card, the individual with
42124213 2075
42134214 the medical cannabis caregiver card:
42144215 2076
42154216 (i) shall report to the department the information required of applicants under
42164217 2077
42174218 Subsection (5)(b) regarding the new designation;
42184219 2078
42194220 (ii) if the individual makes the report described in Subsection (3)(c)(i), is not required
42204221 2079
42214222 to file an application for another medical cannabis caregiver card;
42224223 2080
42234224 (iii) may receive an additional medical cannabis caregiver card in relation to each
42244225 2081
42254226 additional medical cannabis patient who designates the caregiver; and
42264227 2082
42274228 (iv) is not subject to an additional background check.
42284229 2083
42294230 (4) An individual is eligible for a medical cannabis caregiver card if the individual:
42304231 2084
42314232 (a) is at least 21 years old;
42324233 2085
42334234 (b) is a Utah resident;
42344235 2086
42354236 (c) pays to the department a fee in an amount that, subject to Subsection 26B-1-310(5),
42364237 2087
42374238 the department sets in accordance with Section 63J-1-504, plus the cost of the
42384239 2088
42394240 criminal background check described in Section 26B-4-215; and
42404241 2089
42414242 (d) signs an acknowledgment stating that the applicant received the information
42424243 2090
42434244 described in Subsection 26B-4-213(9)[ ].
42444245 2091
42454246 (5) An eligible applicant for a medical cannabis caregiver card shall:
42464247 2092
42474248 (a) submit an application for a medical cannabis caregiver card to the department
42484249 2093
42494250 through an electronic application connected to the state electronic verification
42504251 2094
42514252 system; and
42524253 2095
42534254 (b) submit the following information in the application described in Subsection (5)(a):
42544255 2096
42554256 (i) the applicant's name, gender, age, and address;
42564257 2097
42574258 (ii) the name, gender, age, and address of the cardholder described in Section
42584259 2098
42594260 26B-4-213 who designated the applicant;
42604261 2099
42614262 (iii) if a medical cannabis guardian cardholder designated the caregiver, the name,
42624263 2100
42634264 gender, and age of the minor receiving a medical cannabis treatment in relation to
42644265 2101
42654266 the medical cannabis guardian cardholder; and
4266-- 62 - Enrolled Copy H.B. 54
42674267 2102
42684268 (iv) any additional information that the department requests to assist in matching the
4269+- 62 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
42694270 2103
42704271 application with the designating medical cannabis patient.
42714272 2104
42724273 (6) Except as provided in Subsection (6)(b), a medical cannabis caregiver card that the
42734274 2105
42744275 department issues under this section is valid for the lesser of:
42754276 2106
42764277 (a) an amount of time that the cardholder described in Section 26B-4-213 who
42774278 2107
42784279 designated the caregiver determines; or
42794280 2108
42804281 (b) the amount of time remaining before the card of the cardholder described in Section
42814282 2109
42824283 26B-4-213 expires.
42834284 2110
42844285 (7)(a) If a designated caregiver meets the requirements of Subsection (4), the designated
42854286 2111
42864287 caregiver's medical cannabis caregiver card renews automatically at the time the
42874288 2112
42884289 cardholder described in Section 26B-4-213 who designated the caregiver:
42894290 2113
42904291 (i) renews the cardholder's card; and
42914292 2114
42924293 (ii) renews the caregiver's designation, in accordance with Subsection (7)(b).
42934294 2115
42944295 (b) The department shall provide a method in the card renewal process to allow a
42954296 2116
42964297 cardholder described in Section 26B-4-213 who has designated a caregiver to:
42974298 2117
42984299 (i) signify that the cardholder renews the caregiver's designation;
42994300 2118
43004301 (ii) remove a caregiver's designation; or
43014302 2119
43024303 (iii) designate a new caregiver.
43034304 2120
43044305 (8) The department shall record the issuance or revocation of a medical cannabis card under
43054306 2121
43064307 this section in the controlled substance database.
43074308 2122
43084309 Section 26. Section 26B-4-222 is amended to read:
43094310 2123
43104311 26B-4-222 . Report.
43114312 2124
43124313 (1) By the November interim meeting each year, the department shall report to the Health
43134314 2125
43144315 and Human Services Interim Committee on:
43154316 2126
43164317 (a) the number of applications and renewal applications filed for medical cannabis cards;
43174318 2127
43184319 (b) the number of qualifying patients and designated caregivers;
43194320 2128
43204321 (c) the nature of the debilitating medical conditions of the qualifying patients;
43214322 2129
43224323 (d) the age and county of residence of cardholders;
43234324 2130
43244325 (e) the number of medical cannabis cards revoked;
43254326 2131
43264327 (f) the number of practitioners providing recommendations for qualifying patients;
43274328 2132
43284329 (g) the number of license applications and renewal license applications received;
43294330 2133
43304331 (h) the number of licenses the department has issued in each county;
43314332 2134
43324333 (i) the number of licenses the department has revoked;
43334334 2135
43344335 (j) the quantity of medical cannabis shipments[ that the state central patient portal
4335-- 63 - H.B. 54 Enrolled Copy
43364336 2136
43374337 facilitates];
4338+- 63 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
43384339 2137
43394340 (k) the number of overall purchases of medical cannabis [and medical cannabis products ]
43404341 2138
43414342 from each medical cannabis pharmacy;
43424343 2139
43434344 (l) the expenses incurred and revenues generated from the medical cannabis program;
43444345 2140
43454346 and
43464347 2141
43474348 (m) an analysis of product availability in medical cannabis pharmacies in consultation
43484349 2142
43494350 with the Department of Agriculture and Food.
43504351 2143
43514352 (2) The report shall include information provided by the Center for Medical Cannabis
43524353 2144
43534354 Research described in Section 53B-17-1402.
43544355 2145
43554356 (3) The department may not include personally identifying information in the report
43564357 2146
43574358 described in this section.
43584359 2147
43594360 (4) The department shall report to the working group described in Section 36-12-8.2 as
43604361 2148
43614362 requested by the working group.
43624363 2149
43634364 Section 27. Section 58-37-3.6 is amended to read:
43644365 2150
43654366 58-37-3.6 . Exemption for possession or distribution of a cannabinoid product,
43664367 2151
43674368 expanded cannabinoid product, or transportable industrial hemp concentrate.
43684369 2152
43694370 (1) As used in this section:
43704371 2153
43714372 (a) "Cannabinoid product" means a product intended for human ingestion that:
43724373 2154
43734374 (i) contains an extract or concentrate that is obtained from cannabis; and
43744375 2155
43754376 [(ii) is prepared in a medicinal dosage form; and]
43764377 2156
43774378 [(iii)] (ii) contains at least 10 units of cannabidiol for every one unit of
43784379 2157
43794380 tetrahydrocannabinol.
43804381 2158
43814382 (b) "Cannabis" means any part of the plant cannabis sativa, whether growing or not.
43824383 2159
43834384 [(c) "Drug paraphernalia" means the same as that term is defined in Section 58-37a-3.]
43844385 2160
43854386 [(d)] (c) "Expanded cannabinoid product" means a product intended for human ingestion
43864387 2161
43874388 that:
43884389 2162
43894390 (i) contains an extract or concentrate that is obtained from cannabis; and
43904391 2163
43914392 [(ii) is prepared in a medicinal dosage form; and]
43924393 2164
43934394 [(iii)] (ii) contains less than 10 units of cannabidiol for every one unit of
43944395 2165
43954396 tetrahydrocannabinol.
43964397 2166
43974398 [(e) "Hemp cannabinoid product" means a product that:]
43984399 2167
43994400 [(i) contains or is represented to contain one or more naturally occurring
44004401 2168
44014402 cannabinoids;]
44024403 2169
44034404 [(ii) contains less than the cannabinoid product THC level, by dry weight;]
4404-- 64 - Enrolled Copy H.B. 54
44054405 2170
44064406 [(iii) contains a combined amount of total THC and any THC analog that does not
4407+- 64 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
44074408 2171
44084409 exceed 10% of the total cannabinoid content;]
44094410 2172
44104411 [(iv) does not exceed a total of THC and any THC analog that is greater than five
44114412 2173
44124413 milligrams per serving and 150 milligrams per package; and]
44134414 2174
44144415 [(v) unless the product is in an oil based suspension, has a serving size that is an
44154416 2175
44164417 integer.]
44174418 2176
44184419 [(f)] (d) "Transportable industrial hemp concentrate" means any amount of a natural
44194420 2177
44204421 cannabinoid in a purified state that:
44214422 2178
44224423 (i) is the product of any chemical or physical process applied to naturally occurring
44234424 2179
44244425 biomass that concentrates or isolates the cannabinoids contained in the biomass;
44254426 2180
44264427 (ii) is derived from a cannabis plant that, based on sampling that was collected no
44274428 2181
44284429 more than 30 days before the day on which the cannabis plant was harvested,
44294430 2182
44304431 contains a combined concentration of total THC and any THC analog of less than
44314432 2183
44324433 0.3% on a dry weight basis; and
44334434 2184
44344435 (iii) has a THC and THC analog concentration total less than 20% when concentrated
44354436 2185
44364437 from the cannabis plant to the purified state.
44374438 2186
44384439 [(g) "Medicinal dosage form" means:]
44394440 2187
44404441 [(i) a tablet;]
44414442 2188
44424443 [(ii) a capsule;]
44434444 2189
44444445 [(iii) a concentrated oil;]
44454446 2190
44464447 [(iv) a liquid suspension;]
44474448 2191
44484449 [(v) a transdermal preparation; or]
44494450 2192
44504451 [(vi) a sublingual preparation.]
44514452 2193
44524453 [(h)] (e) "Tetrahydrocannabinol" means a substance derived from cannabis that meets the
44534454 2194
44544455 description in Subsection 58-37-4(2)(a)(iii)(AA).
44554456 2195
44564457 (2) Notwithstanding any other provision of this chapter an individual who possesses or
44574458 2196
44584459 distributes a cannabinoid product or an expanded cannabinoid product is not subject to
44594460 2197
44604461 the penalties described in this title for the possession or distribution of marijuana or
44614462 2198
44624463 tetrahydrocannabinol to the extent that the individual's possession or distribution of the
44634464 2199
44644465 cannabinoid product or expanded cannabinoid product complies with [Title 26B,
44654466 2200
44664467 Chapter 4, Part 2, Cannabinoid Research and Medical Cannabis] Section 26B-4-212.
44674468 2201
44684469 (3) Notwithstanding any other provision of this chapter, a person who possesses and
44694470 2202
44704471 distributes transportable industrial hemp concentrate is not subject to the penalties
44714472 2203
44724473 described in this chapter for the possession or distribution of transportable industrial
4473-- 65 - H.B. 54 Enrolled Copy
44744474 2204
44754475 hemp concentrate if the transportable industrial hemp concentrate is handled in
4476+- 65 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
44764477 2205
44774478 accordance with the rules established under Subsection 4-41-103.1(1)(e) or is destroyed.
44784479 2206
44794480 Section 28. Section 58-85-102 is amended to read:
44804481 2207
44814482 58-85-102 . Definitions.
44824483 2208
44834484 As used in this chapter:
44844485 2209
44854486 (1) "Eligible patient" means an individual who has been diagnosed with a terminal illness
44864487 2210
44874488 by a physician.
44884489 2211
44894490 (2) "Insurer" means the same as that term is defined in Section 31A-1-301.
44904491 2212
44914492 (3) "Investigational device" means a device that:
44924493 2213
44934494 (a) meets the definition of "investigational device" in 21 C.F.R. Sec. 812.3; and
44944495 2214
44954496 (b) has successfully completed the United States Food and Drug Administration Phase 1
44964497 2215
44974498 testing for an investigational device described in 21 C.F.R. Part 812.
44984499 2216
44994500 (4) "Investigational drug" means a drug that:
45004501 2217
45014502 (a) meets the definition of "investigational new drug" in 21 C.F.R. Sec. 312.3; and
45024503 2218
45034504 (b) has successfully completed the United States Food and Drug Administration Phase 1
45044505 2219
45054506 testing for an investigational new drug described in 21 C.F.R. Part 312.
45064507 2220
45074508 (5) "Medicinal dosage form" [means the same as that term is defined in Section 58-37-3.6.]
45084509 2221
45094510 means:
45104511 2222
45114512 (a) a tablet;
45124513 2223
45134514 (b) a capsule;
45144515 2224
45154516 (c) a concentrated oil;
45164517 2225
45174518 (d) a liquid suspension;
45184519 2226
45194520 (e) a transdermal preparation; or
45204521 2227
45214522 (f) a sublingual preparation.
45224523 2228
45234524 (6) "Physician" means an individual who is licensed under:
45244525 2229
45254526 (a) Title 58, Chapter 67, Utah Medical Practice Act; or
45264527 2230
45274528 (b) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act.
45284529 2231
45294530 (7) "Terminal illness" means a condition of a patient that:
45304531 2232
45314532 (a) as determined by a physician:
45324533 2233
45334534 (i) is likely to pose a greater risk to the patient than the risk posed to the patient by
45344535 2234
45354536 treatment with an investigational drug or investigational device; and
45364537 2235
45374538 (ii) will inevitably lead to the patient's death; and
45384539 2236
45394540 (b) presents the patient, after the patient has explored conventional therapy options, with
45404541 2237
45414542 no treatment option that is satisfactory or comparable to treatment with an
4542-- 66 - Enrolled Copy H.B. 54
45434543 2238
45444544 investigational drug or device.
4545+- 66 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
45454546 2239
45464547 Section 29. Section 63N-3-1301 is amended to read:
45474548 2240
45484549 63N-3-1301 . Definitions.
45494550 2241
45504551 As used in this part:
45514552 2242
45524553 (1) "Cannabinoid processor license" means the same as that term is defined in Section
45534554 2243
45544555 4-41-102.
45554556 2244
45564557 (2) "Cannabinoid product" means the same as that term is defined in Section 4-41-102.
45574558 2245
45584559 (3) "Industrial hemp product" means the same as that term is defined in Section 4-41-102.
45594560 2246
45604561 (4) "Industrial hemp producer registration" means the same as that term is defined in
45614562 2247
45624563 Section 4-41-102.
45634564 2248
45644565 Section 30. Section 77-39-101 is amended to read:
45654566 2249
45664567 77-39-101 . Investigation of sales of alcohol, tobacco products, electronic
45674568 2250
45684569 cigarette products, nicotine products, and cannabinoid products to underage individuals.
45694570 2251
45704571 (1) As used in this section:
45714572 2252
45724573 (a) "Cannabinoid product" means the same as that term is defined in Section 4-41-102.
45734574 2253
45744575 (b) "Electronic cigarette product" means the same as that term is defined in Section
45754576 2254
45764577 76-10-101.
45774578 2255
45784579 (c) "Nicotine product" means the same as that term is defined in Section 76-10-101.
45794580 2256
45804581 (d) "Peace officer" means the same as the term is described in Section 53-13-109.
45814582 2257
45824583 (e) "Tobacco product" means the same as that term is defined in Section 76-10-101.
45834584 2258
45844585 (2)(a) A peace officer may investigate the possible violation of:
45854586 2259
45864587 (i) Section 32B-4-403 by requesting an individual under 21 years old to enter into
45874588 2260
45884589 and attempt to purchase or make a purchase of alcohol from a retail establishment;
45894590 2261
45904591 (ii) Section 76-10-114 by requesting an individual under 21 years old to enter into
45914592 2262
45924593 and attempt to purchase or make a purchase from a retail establishment of:
45934594 2263
45944595 (A) a tobacco product;
45954596 2264
45964597 (B) an electronic cigarette product; or
45974598 2265
45984599 (C) a nicotine product; or
45994600 2266
46004601 (iii) Subsection [4-41-105(2)(d)] 4-41-105(2)(a)(iv) by requesting an individual under
46014602 2267
46024603 21 years old to enter into and attempt to purchase or make a purchase of a
46034604 2268
46044605 cannabinoid product that contains THC or a THC analog from a retail
46054606 2269
46064607 establishment.
46074608 2270
46084609 (b) A peace officer who is present at the site of a proposed purchase shall direct,
46094610 2271
46104611 supervise, and monitor the individual requested to make the purchase.
4611-- 67 - H.B. 54 Enrolled Copy
46124612 2272
46134613 (c) Immediately following a purchase or attempted purchase or as soon as practical the
4614+- 67 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
46144615 2273
46154616 supervising peace officer shall inform the cashier and the proprietor or manager of
46164617 2274
46174618 the retail establishment that the attempted purchaser was under the legal age to
46184619 2275
46194620 purchase:
46204621 2276
46214622 (i) alcohol;
46224623 2277
46234624 (ii)(A) a tobacco product;
46244625 2278
46254626 (B) an electronic cigarette product; or
46264627 2279
46274628 (C) a nicotine product; or
46284629 2280
46294630 (iii) a cannabinoid product that contains THC or a THC analog.
46304631 2281
46314632 (d) If a citation or information is issued, the citation or information shall be issued
46324633 2282
46334634 within seven days after the day on which the purchase occurs.
46344635 2283
46354636 (3)(a) If an individual under 18 years old is requested to attempt a purchase, a written
46364637 2284
46374638 consent of that individual's parent or guardian shall be obtained before the individual
46384639 2285
46394640 participates in any attempted purchase.
46404641 2286
46414642 (b) An individual requested by the peace officer to attempt a purchase may:
46424643 2287
46434644 (i) be a trained volunteer; or
46444645 2288
46454646 (ii) receive payment, but may not be paid based on the number of successful
46464647 2289
46474648 purchases of alcohol, tobacco products, electronic cigarette products, nicotine
46484649 2290
46494650 products, or cannabinoid products that contain THC or a THC analog.
46504651 2291
46514652 (4) The individual requested by the peace officer to attempt a purchase and anyone
46524653 2292
46534654 accompanying the individual attempting a purchase may use false identification in
46544655 2293
46554656 attempting the purchase if:
46564657 2294
46574658 (a) the Department of Public Safety created in Section 53-1-103 provides the false
46584659 2295
46594660 identification;
46604661 2296
46614662 (b) the false identification:
46624663 2297
46634664 (i) accurately represents the individual's age; and
46644665 2298
46654666 (ii) displays a current photo of the individual; and
46664667 2299
46674668 (c) the peace officer maintains possession of the false identification at all times outside
46684669 2300
46694670 the attempt to purchase.
46704671 2301
46714672 (5) An individual requested to attempt to purchase or make a purchase pursuant to this
46724673 2302
46734674 section is immune from prosecution, suit, or civil liability for the purchase of, attempted
46744675 2303
46754676 purchase of, or possession of alcohol, a tobacco product, an electronic cigarette product,
46764677 2304
46774678 a nicotine product, or a cannabinoid product that contains THC or a THC analog if a
46784679 2305
46794680 peace officer directs, supervises, and monitors the individual.
4680-- 68 - Enrolled Copy H.B. 54
46814681 2306
46824682 (6)(a) Except as provided in Subsection (6)(b), a purchase attempted under this section
4683+- 68 - 03-07 10:17 2nd Sub. (Gray) H.B. 54
46834684 2307
46844685 shall be conducted within a 12-month period:
46854686 2308
46864687 (i) on a random basis at any one retail establishment location, not more often than
46874688 2309
46884689 four times for the attempted purchase of alcohol;
46894690 2310
46904691 (ii) a minimum of two times at a retail establishment that sells tobacco products,
46914692 2311
46924693 electronic cigarette products, or nicotine products for the attempted purchase of a
46934694 2312
46944695 tobacco product, an electronic cigarette product, or a nicotine product; and
46954696 2313
46964697 (iii) a minimum of one time at a retail establishment that sells a cannabinoid product
46974698 2314
46984699 that contains THC or a THC analog.
46994700 2315
47004701 (b) This section does not prohibit an investigation or an attempt to purchase alcohol, a
47014702 2316
47024703 tobacco product, an electronic cigarette product, or a nicotine product under this
47034704 2317
47044705 section if:
47054706 2318
47064707 (i) there is reasonable suspicion to believe the retail establishment has sold alcohol, a
47074708 2319
47084709 tobacco product, an electronic cigarette product, a nicotine product, or a
47094710 2320
47104711 cannabinoid product that contains THC or a THC analog to an individual under
47114712 2321
47124713 the age established by Section 32B-4-403, Section76-10-114, or Subsection
47134714 2322
47144715 4-41-105(2)(d); and
47154716 2323
47164717 (ii) the supervising peace officer makes a written record of the grounds for the
47174718 2324
47184719 reasonable suspicion.
47194720 2325
47204721 (7)(a) The peace officer exercising direction, supervision, and monitoring of the
47214722 2326
47224723 attempted purchase shall make a report of the attempted purchase, whether or not a
47234724 2327
47244725 purchase was made.
47254726 2328
47264727 (b) The report required by this Subsection (7) shall include:
47274728 2329
47284729 (i) the name of the supervising peace officer;
47294730 2330
47304731 (ii) the name of the individual attempting the purchase;
47314732 2331
47324733 (iii) a photograph of the individual attempting the purchase showing how that
47334734 2332
47344735 individual appeared at the time of the attempted purchase;
47354736 2333
47364737 (iv) the name and description of the cashier or proprietor from whom the individual
47374738 2334
47384739 attempted the purchase;
47394740 2335
47404741 (v) the name and address of the retail establishment; and
47414742 2336
47424743 (vi) the date and time of the attempted purchase.
47434744 2337
47444745 Section 31. Repealer.
47454746 2338
47464747 This bill repeals:
47474748 2339
47484749 Section 26B-4-236, State central patient portal -- Department duties.
4749-- 69 - H.B. 54 Enrolled Copy
47504750 2340
47514751 Section 32. Effective Date.
4752+- 69 - 2nd Sub. (Gray) H.B. 54 03-07 10:17
47524753 2341
47534754 This bill takes effect on May 7, 2025.
47544755 - 70 -