Utah 2025 Regular Session

Utah House Bill HB0343 Compare Versions

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1-Enrolled Copy H.B. 343
1+02-14 11:14 H.B. 343
22 1
33 Cannabis Production Amendments
44 2025 GENERAL SESSION
55 STATE OF UTAH
66 Chief Sponsor: Paul A. Cutler
77 Senate Sponsor: Evan J. Vickers
88 2
99
1010 3
1111 LONG TITLE
1212 4
1313 General Description:
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1515 This bill amends provisions related to medical cannabis production.
1616 6
1717 Highlighted Provisions:
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1919 This bill:
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2121 ▸ requires cannabis production establishments to include in their operating plan methods to
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2323 reduce odor;
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25+▸ creates requirements regarding tenancy and certain cannabis production establishments;
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2527 ▸ requires the Department of Agriculture and Food to create recommendations for odor
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2729 control; and
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2931 ▸ amends provisions related to land use for medical cannabis production establishments.
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3133 Money Appropriated in this Bill:
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3335 None
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3537 Other Special Clauses:
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3739 None
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3941 Utah Code Sections Affected:
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4143 AMENDS:
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4345 4-41a-204, as last amended by Laws of Utah 2023, Chapter 327
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4547 4-41a-406, as last amended by Laws of Utah 2024, Chapter 238
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4749 26B-1-310, as last amended by Laws of Utah 2023, Chapters 273, 281 and renumbered
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4951 and amended by Laws of Utah 2023, Chapter 305 and last amended by Coordination Clause,
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5153 Laws of Utah 2023, Chapter 305
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5355 ENACTS:
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5557 4-41a-204.1, Utah Code Annotated 1953
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5759
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5961 Be it enacted by the Legislature of the state of Utah:
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61-Section 1. Section 4-41a-204 is amended to read: H.B. 343 Enrolled Copy
6262 29
63+Section 1. Section 4-41a-204 is amended to read:
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6365 4-41a-204 . Operating plan.
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66+ H.B. 343 H.B. 343 02-14 11:14
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6568 (1) A person applying for a cannabis production establishment license or license renewal
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6770 shall submit to the department for the department's review a proposed operating plan
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6972 that complies with this section and that includes:
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7174 (a) a description of the physical characteristics of the proposed facility or, for a cannabis
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7376 cultivation facility, no more than two facility locations, including a floor plan and an
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7578 architectural elevation;
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7780 (b) a description of the credentials and experience of:
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7982 (i) each officer, director, and owner of the proposed cannabis production
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8184 establishment; and
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8386 (ii) any highly skilled or experienced prospective employee;
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8588 (c) the cannabis production establishment's employee training standards;
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8790 (d) a security plan;
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8992 (e) a description of the cannabis production establishment's inventory control system,
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9194 including a description of how the inventory control system is compatible with the
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9396 state electronic verification system described in Section 26B-4-202;
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9598 (f) storage protocols, both short- and long-term, to ensure that cannabis is stored in a
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97100 manner that is sanitary and preserves the integrity of the cannabis;
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99102 (g) for a cannabis cultivation facility, the information described in Subsection (2);
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101104 (h) for a cannabis processing facility, the information described in Subsection (3); [and]
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103106 (i) for an independent cannabis testing laboratory, the information described in
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105108 Subsection (4)[.] ; and
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107110 (j) for a cannabis production establishment located in an industrial zone, a plan to reduce
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109112 odor created by the cannabis production establishment that:
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111114 (i) meets local ordinance nuisance laws; and
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113116 (ii) identifies:
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115118 (A) operations and materials that generate odors; and
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117120 (B) equipment, operations, or materials the cannabis production establishment will
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119122 use to mitigate odor emissions, including plans to maintain equipment.
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121124 (2)(a) A cannabis cultivation facility shall ensure that the facility's operating plan
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123126 includes the facility's intended:
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125128 (i) cannabis cultivation practices, including the facility's intended pesticide use and
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127130 fertilizer use; and
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129132 (ii) subject to Subsection (2)(b), acreage or square footage under cultivation and
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132134 anticipated cannabis yield.
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135+- 2 - 02-14 11:14 H.B. 343
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134137 (b) Except as provided in Subsection (2)(c)(i) or (c)(ii), a cannabis cultivation facility
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136139 may not:
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138141 (i) for a facility that cultivates cannabis only indoors, use more than 100,000 total
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140143 square feet of cultivation space;
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142145 (ii) for a facility that cultivates cannabis only outdoors, use more than four acres for
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144147 cultivation; and
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146149 (iii) for a facility that cultivates cannabis through a combination of indoor and
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148151 outdoor cultivation, use more combined indoor square footage and outdoor
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150153 acreage than allowed under the department's formula described in Subsection
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152155 (2)(e).
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154157 (c)(i) Each licensee may apply to the department for:
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156159 (A) a one-time, permanent increase of up to 20% of the limitation on the cannabis
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158161 cultivation facility's cultivation space; or
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160163 (B) a short-term increase, not to exceed 12 months, of up to 40% of the limitation
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162165 on the cannabis cultivation facility's cultivation space.
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164167 (ii) After conducting a review equivalent to the review described in Subsection
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166169 4-41a-205(2)(a), if the department determines that additional cultivation is
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168171 needed, the department may:
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170173 (A) grant the one-time, permanent increase described in Subsection (2)(c)(i)(A); or
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172175 (B) grant the short-term increase described in Subsection (2)(c)(i)(B).
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174177 (d) If a licensee describes an intended acreage or square footage under cultivation under
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176179 Subsection (2)(a)(ii) that is less than the limitation described in Subsection (2)(b), the
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178181 licensee may not cultivate more than the licensee's identified intended acreage or
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180183 square footage under cultivation.
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182185 (e) The department shall, in accordance with Title 63G, Chapter 3, Utah Administrative
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184187 Rulemaking Act, establish a formula for combined usage of indoor and outdoor
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186189 cultivation that:
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188191 (i) does not exceed, in estimated cultivation yield, the aggregate limitations described
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190193 in Subsection (2)(b)(i) or (ii); and
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192195 (ii) allows a cannabis cultivation facility to operate both indoors and outdoors.
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194197 (f)(i) The department may authorize a cannabis cultivation facility to operate at no
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196199 more than two separate locations.
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198201 (ii) If the department authorizes multiple locations under Subsection (2)(f)(i), the two
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201203 cannabis cultivation facility locations combined may not exceed the cultivation
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203206 limitations described in this Subsection (2).
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205208 (3) A cannabis processing facility's operating plan shall include the facility's intended
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207210 cannabis processing practices, including the cannabis processing facility's intended:
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209212 (a) offered variety of cannabis product;
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211214 (b) cannabinoid extraction method;
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213216 (c) cannabinoid extraction equipment;
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215218 (d) processing equipment;
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217220 (e) processing techniques; and
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219222 (f) sanitation and manufacturing safety procedures for items for human consumption.
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221224 (4) An independent cannabis testing laboratory's operating plan shall include the
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223226 laboratory's intended:
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225228 (a) cannabis and cannabis product testing capability;
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227230 (b) cannabis and cannabis product testing equipment; and
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229232 (c) testing methods, standards, practices, and procedures for testing cannabis and
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231234 cannabis products.
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233236 (5) Notwithstanding an applicant's proposed operating plan, a cannabis production
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235238 establishment is subject to land use regulations, as defined in Sections 10-9a-103 and
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237240 17-27a-103, regarding the availability of outdoor cultivation in an industrial zone.
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242+ Ĥ→ [(6)(a) Unless otherwise permitted by local ordinance, an indoor cannabis production
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244+establishment:]
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246+[(i) shall be located in a stand-alone building; and]
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248+[(ii) may not be located in a stand-alone building that has other tenants located in the
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250+building unless the other tenant is a cannabis production establishment or a
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252+cannabinoid processor as that term is defined in Section 4-41-102.]
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254+[(b) Subsection (6)(a) does not apply to a cannabis production establishment that:]
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256+[(i) as of May 7, 2025, is located in a building with other tenants;]
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258+[(ii) continuously remains in the same building described in Subsection (6)(b)(i); and]
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260+[(iii) has not entered into a lease agreement to become the sole tenant of the building
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262+described in Subsection (6)(b)(i).] ←Ĥ
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239264 Section 2. Section 4-41a-204.1 is enacted to read:
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241266 4-41a-204.1 . Odor control recommendations.
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243268 (1) As used in this section, "objectionable odor" means pollution of the ambient air beyond
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245270 the property line of a facility consisting of an odor that, considering the odor's
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247272 characteristics, intensity, frequency, and duration:
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249275 (a) is, or can reasonably be expected to be, injurious to public health or welfare; or
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251277 (b) unreasonably interferes with the enjoyment of life or the use of a person's property
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253279 that is exposed to the odor.
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255281 (2)(a) Before January 1, 2026, the department shall provide a report with
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257283 recommendations to the Medical Cannabis Governance Structure Working Group
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259285 created in Section 36-12-8.2 regarding objectionable odor control standards for
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261287 cannabis production establishments.
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263-(b) The department shall:
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265-(i) work with a cannabis production establishment to monitor odor emitted by the
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267-cannabis production establishment; and
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289+(b) The department shall Ĥ→ :
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291+(i) ←Ĥ work with a cannabis production establishment to monitor odor
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293+emitted by the cannabis production establishment Ĥ→ [.] ; and
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270295 (ii) consult with each county and municipality that currently has a cannabis
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272297 production establishment sited within the county or municipality's boundaries
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274299 regarding potential standards for the maximum amounts of objectionable odors
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276-emitted by a cannabis production establishment.
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301+emitted by a cannabis production establishment. ←Ĥ
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278303 (c) A cannabis production establishment shall provide information related to the
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280305 cannabis production establishment's odor emissions to the department upon request.
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282307 (d) The report shall include an analysis regarding:
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284309 (i) potential standards for measurement of objectionable odors related to cannabis
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286311 production and distinct levels of odor tolerability;
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288313 (ii) the feasibility of setting a universal odor control standard;
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290315 (iii) the feasibility of enforcing odor control standards;
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292317 (iv) cost incurred by a cannabis production establishment to comply with potential
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294319 odor control standards;
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296321 (v) interests of other businesses and community members affected by objectionable
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298323 odor; and
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300325 (vi) other information the department deems relevant.
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302327 (3) The department shall examine odor control regulation from other locales.
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304329 (4) The department may collaborate with other state agencies when creating the
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306331 recommendations.
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308333 Section 3. Section 4-41a-406 is amended to read:
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310335 4-41a-406 . Local control.
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312337 (1) As used in this section:
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314339 (a) "Cannabis production establishment" means the same as that term is defined in
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316341 Section 4-41a-102 and includes a closed-door medical cannabis pharmacy.
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318344 (b) "Land use application" means the same as that term is defined in Sections 10-9a-103
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320346 and 17-27a-103.
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322348 [(b)] (c) "Land use decision" means the same as that term is defined in Sections
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324350 10-9a-103 and 17-27a-103.
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326352 [(c)] (d) "Land use permit" means the same as that term is defined in Sections 10-9a-103
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328354 and 17-27a-103.
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330356 [(d)] (e) "Land use regulation" means the same as that term is defined in Sections
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332358 10-9a-103 and 17-27a-103.
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334360 (2)(a) If a municipality's or county's zoning ordinances provide for an industrial zone,
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336362 the operation of a cannabis production establishment shall be a permitted industrial
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339364 use in any industrial zone unless the municipality or county has designated by
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341-ordinance, before an individual submits a land use permit application for a cannabis
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343-production establishment, at least one industrial zone in which the operation of a
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366+ordinance Ĥ→ [[] ←Ĥ , before an individual submits a land use permit application for
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368+a cannabis
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370+production establishment, Ĥ→ []] ←Ĥ at least one industrial zone in which the operation of a
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345372 cannabis production establishment is a permitted use.
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347374 (b) If a municipality's or county's zoning ordinances provide for an agricultural zone, the
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349376 operation of a cannabis production establishment shall be a permitted agricultural use
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351378 in any agricultural zone unless the municipality or county has designated by
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353-ordinance, before an individual submits a land use permit application for a cannabis
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355-production establishment, at least one agricultural zone in which the operation of a
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357-cannabis production establishment is a permitted use.
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379+ordinance Ĥ→ [[] ←Ĥ
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381+, before an individual submits a land use permit application for a cannabis production
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383+establishment, Ĥ→ []] ←Ĥ at least one agricultural zone in which the operation of a cannabis
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385+production establishment is a permitted use.
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359387 (c) The operation of a cannabis production establishment shall be a permitted use on
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361389 land that the municipality or county has not zoned.
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363391 (3) A municipality or county may not:
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365393 (a) on the sole basis that the applicant, or cannabis production establishment violates
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367395 federal law regarding the legal status of cannabis, deny or revoke:
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369397 (i) a land use permit to operate a cannabis production facility; or
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371399 (ii) a business license to operate a cannabis production facility; or
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373401 (b) require a certain distance between a cannabis production establishment and:
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375403 (i) another cannabis production establishment;
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377405 (ii) a medical cannabis pharmacy;
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379407 (iii) a retail tobacco specialty business, as that term is defined in Section 26B-7-501;
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381409 or
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383412 (iv) an outlet, as that term is defined in Section 32B-1-202[; or] .
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385414 [(c) in accordance with Subsections 10-9a-509(1) and 17-27a-508(1), enforce a land use
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387416 regulation against a cannabis production establishment that was not in effect on the
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389418 day on which the cannabis production establishment submitted a complete land use
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391420 application.]
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393422 (4)(a) Subject to the provisions of this section, when evaluating and approving a land
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395424 use application for a cannabis production establishment:
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397426 (i) a municipality shall comply with Section 10-9a-509; and
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399428 (ii) a county shall comply with Section 17-27a-508.
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401430 (b) An applicant for a land use permit to operate a cannabis production establishment
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403432 shall comply with the land use requirements and application process described in:
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405434 [(a)] (i) Title 10, Chapter 9a, Municipal Land Use, Development, and Management
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408436 Act[, including Section 10-9a-528]; and
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410438 [(b)] (ii) Title 17, Chapter 27a, County Land Use, Development, and Management Act[
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412440 , including Section 17-27a-525].
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414442 Section 4. Section 26B-1-310 is amended to read:
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416444 26B-1-310 . Qualified Patient Enterprise Fund -- Creation -- Revenue neutrality
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418446 -- Uniform fee.
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420448 (1) There is created an enterprise fund known as the "Qualified Patient Enterprise Fund."
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422450 (2) The fund created in this section is funded from:
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424452 (a) money the department deposits into the fund under Chapter 4, Part 2, Cannabinoid
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426454 Research and Medical Cannabis;
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428456 (b) appropriations the Legislature makes to the fund; and
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430458 (c) the interest described in Subsection (3).
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432460 (3) Interest earned on the fund shall be deposited into the fund.
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434462 (4) Money deposited into the fund may only be used by:
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436464 (a) the department to accomplish the department's responsibilities described in Chapter
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438466 4, Part 2, Cannabinoid Research and Medical Cannabis; [and]
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440468 (b) the Center for Medical Cannabis Research created in Section 53B-17-1402 to
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442470 accomplish the Center for Medical Cannabis Research's responsibilities[.] ; and
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444472 (c) the Department of Agriculture and Food for the one time purchase of equipment to
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446474 meet the requirements described in Section 4-41a-204.1.
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448476 (5) The department shall set fees authorized under Chapter 4, Part 2, Cannabinoid Research
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450478 and Medical Cannabis, in amounts that the department anticipates are necessary, in total,
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452481 to cover the department's cost to implement Chapter 4, Part 2, Cannabinoid Research
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454483 and Medical Cannabis.
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456485 (6) The department may impose a uniform fee on each medical cannabis transaction in a
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458487 medical cannabis pharmacy in an amount that, subject to Subsection (5), the department
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460489 sets in accordance with Section 63J-1-504.
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462491 Section 5. Effective Date.
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464493 This bill takes effect on May 7, 2025.
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