Enrolled Copy H.B. 343
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Cannabis Production Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Paul A. Cutler
Senate Sponsor: Evan J. Vickers
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LONG TITLE
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General Description:
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This bill amends provisions related to medical cannabis production.
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Highlighted Provisions:
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This bill:
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▸ requires cannabis production establishments to include in their operating plan methods to
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reduce odor;
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▸ requires the Department of Agriculture and Food to create recommendations for odor
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control; and
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▸ amends provisions related to land use for medical cannabis production establishments.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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4-41a-204, as last amended by Laws of Utah 2023, Chapter 327
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4-41a-406, as last amended by Laws of Utah 2024, Chapter 238
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26B-1-310, as last amended by Laws of Utah 2023, Chapters 273, 281 and renumbered
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and amended by Laws of Utah 2023, Chapter 305 and last amended by Coordination Clause,
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Laws of Utah 2023, Chapter 305
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ENACTS:
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4-41a-204.1, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 4-41a-204 is amended to read: H.B. 343 Enrolled Copy
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4-41a-204 . Operating plan.
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(1) A person applying for a cannabis production establishment license or license renewal
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shall submit to the department for the department's review a proposed operating plan
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that complies with this section and that includes:
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(a) a description of the physical characteristics of the proposed facility or, for a cannabis
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cultivation facility, no more than two facility locations, including a floor plan and an
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architectural elevation;
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(b) a description of the credentials and experience of:
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(i) each officer, director, and owner of the proposed cannabis production
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establishment; and
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(ii) any highly skilled or experienced prospective employee;
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(c) the cannabis production establishment's employee training standards;
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(d) a security plan;
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(e) a description of the cannabis production establishment's inventory control system,
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including a description of how the inventory control system is compatible with the
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state electronic verification system described in Section 26B-4-202;
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(f) storage protocols, both short- and long-term, to ensure that cannabis is stored in a
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manner that is sanitary and preserves the integrity of the cannabis;
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(g) for a cannabis cultivation facility, the information described in Subsection (2);
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(h) for a cannabis processing facility, the information described in Subsection (3); [and]
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(i) for an independent cannabis testing laboratory, the information described in
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Subsection (4)[.] ; and
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(j) for a cannabis production establishment located in an industrial zone, a plan to reduce
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odor created by the cannabis production establishment that:
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(i) meets local ordinance nuisance laws; and
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(ii) identifies:
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(A) operations and materials that generate odors; and
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(B) equipment, operations, or materials the cannabis production establishment will
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use to mitigate odor emissions, including plans to maintain equipment.
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(2)(a) A cannabis cultivation facility shall ensure that the facility's operating plan
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includes the facility's intended:
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(i) cannabis cultivation practices, including the facility's intended pesticide use and
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fertilizer use; and
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(ii) subject to Subsection (2)(b), acreage or square footage under cultivation and
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anticipated cannabis yield.
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(b) Except as provided in Subsection (2)(c)(i) or (c)(ii), a cannabis cultivation facility
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may not:
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(i) for a facility that cultivates cannabis only indoors, use more than 100,000 total
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square feet of cultivation space;
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(ii) for a facility that cultivates cannabis only outdoors, use more than four acres for
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cultivation; and
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(iii) for a facility that cultivates cannabis through a combination of indoor and
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outdoor cultivation, use more combined indoor square footage and outdoor
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acreage than allowed under the department's formula described in Subsection
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(2)(e).
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(c)(i) Each licensee may apply to the department for:
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(A) a one-time, permanent increase of up to 20% of the limitation on the cannabis
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cultivation facility's cultivation space; or
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(B) a short-term increase, not to exceed 12 months, of up to 40% of the limitation
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on the cannabis cultivation facility's cultivation space.
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(ii) After conducting a review equivalent to the review described in Subsection
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4-41a-205(2)(a), if the department determines that additional cultivation is
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needed, the department may:
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(A) grant the one-time, permanent increase described in Subsection (2)(c)(i)(A); or
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(B) grant the short-term increase described in Subsection (2)(c)(i)(B).
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(d) If a licensee describes an intended acreage or square footage under cultivation under
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Subsection (2)(a)(ii) that is less than the limitation described in Subsection (2)(b), the
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licensee may not cultivate more than the licensee's identified intended acreage or
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square footage under cultivation.
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(e) The department shall, in accordance with Title 63G, Chapter 3, Utah Administrative
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Rulemaking Act, establish a formula for combined usage of indoor and outdoor
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cultivation that:
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(i) does not exceed, in estimated cultivation yield, the aggregate limitations described
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in Subsection (2)(b)(i) or (ii); and
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(ii) allows a cannabis cultivation facility to operate both indoors and outdoors.
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(f)(i) The department may authorize a cannabis cultivation facility to operate at no
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more than two separate locations.
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(ii) If the department authorizes multiple locations under Subsection (2)(f)(i), the two
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cannabis cultivation facility locations combined may not exceed the cultivation
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limitations described in this Subsection (2).
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(3) A cannabis processing facility's operating plan shall include the facility's intended
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cannabis processing practices, including the cannabis processing facility's intended:
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(a) offered variety of cannabis product;
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(b) cannabinoid extraction method;
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(c) cannabinoid extraction equipment;
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(d) processing equipment;
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(e) processing techniques; and
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(f) sanitation and manufacturing safety procedures for items for human consumption.
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(4) An independent cannabis testing laboratory's operating plan shall include the
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laboratory's intended:
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(a) cannabis and cannabis product testing capability;
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(b) cannabis and cannabis product testing equipment; and
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(c) testing methods, standards, practices, and procedures for testing cannabis and
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cannabis products.
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(5) Notwithstanding an applicant's proposed operating plan, a cannabis production
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establishment is subject to land use regulations, as defined in Sections 10-9a-103 and
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17-27a-103, regarding the availability of outdoor cultivation in an industrial zone.
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Section 2. Section 4-41a-204.1 is enacted to read:
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4-41a-204.1 . Odor control recommendations.
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(1) As used in this section, "objectionable odor" means pollution of the ambient air beyond
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the property line of a facility consisting of an odor that, considering the odor's
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characteristics, intensity, frequency, and duration:
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(a) is, or can reasonably be expected to be, injurious to public health or welfare; or
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(b) unreasonably interferes with the enjoyment of life or the use of a person's property
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that is exposed to the odor.
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(2)(a) Before January 1, 2026, the department shall provide a report with
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recommendations to the Medical Cannabis Governance Structure Working Group
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created in Section 36-12-8.2 regarding objectionable odor control standards for
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cannabis production establishments.
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(b) The department shall:
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(i) work with a cannabis production establishment to monitor odor emitted by the
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cannabis production establishment; and
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(ii) consult with each county and municipality that currently has a cannabis
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production establishment sited within the county or municipality's boundaries
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regarding potential standards for the maximum amounts of objectionable odors
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emitted by a cannabis production establishment.
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(c) A cannabis production establishment shall provide information related to the
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cannabis production establishment's odor emissions to the department upon request.
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(d) The report shall include an analysis regarding:
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(i) potential standards for measurement of objectionable odors related to cannabis
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production and distinct levels of odor tolerability;
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(ii) the feasibility of setting a universal odor control standard;
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(iii) the feasibility of enforcing odor control standards;
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(iv) cost incurred by a cannabis production establishment to comply with potential
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odor control standards;
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(v) interests of other businesses and community members affected by objectionable
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odor; and
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(vi) other information the department deems relevant.
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(3) The department shall examine odor control regulation from other locales.
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(4) The department may collaborate with other state agencies when creating the
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recommendations.
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Section 3. Section 4-41a-406 is amended to read:
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4-41a-406 . Local control.
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(1) As used in this section:
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(a) "Cannabis production establishment" means the same as that term is defined in
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Section 4-41a-102 and includes a closed-door medical cannabis pharmacy.
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(b) "Land use application" means the same as that term is defined in Sections 10-9a-103
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and 17-27a-103.
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[(b)] (c) "Land use decision" means the same as that term is defined in Sections
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10-9a-103 and 17-27a-103.
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[(c)] (d) "Land use permit" means the same as that term is defined in Sections 10-9a-103
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and 17-27a-103.
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[(d)] (e) "Land use regulation" means the same as that term is defined in Sections
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10-9a-103 and 17-27a-103.
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(2)(a) If a municipality's or county's zoning ordinances provide for an industrial zone,
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the operation of a cannabis production establishment shall be a permitted industrial
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use in any industrial zone unless the municipality or county has designated by
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ordinance, before an individual submits a land use permit application for a cannabis
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production establishment, at least one industrial zone in which the operation of a
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cannabis production establishment is a permitted use.
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(b) If a municipality's or county's zoning ordinances provide for an agricultural zone, the
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operation of a cannabis production establishment shall be a permitted agricultural use
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in any agricultural zone unless the municipality or county has designated by
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ordinance, before an individual submits a land use permit application for a cannabis
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production establishment, at least one agricultural zone in which the operation of a
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cannabis production establishment is a permitted use.
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(c) The operation of a cannabis production establishment shall be a permitted use on
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land that the municipality or county has not zoned.
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(3) A municipality or county may not:
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(a) on the sole basis that the applicant, or cannabis production establishment violates
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federal law regarding the legal status of cannabis, deny or revoke:
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(i) a land use permit to operate a cannabis production facility; or
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(ii) a business license to operate a cannabis production facility; or
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(b) require a certain distance between a cannabis production establishment and:
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(i) another cannabis production establishment;
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(ii) a medical cannabis pharmacy;
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(iii) a retail tobacco specialty business, as that term is defined in Section 26B-7-501;
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or
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(iv) an outlet, as that term is defined in Section 32B-1-202[; or] .
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[(c) in accordance with Subsections 10-9a-509(1) and 17-27a-508(1), enforce a land use
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regulation against a cannabis production establishment that was not in effect on the
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day on which the cannabis production establishment submitted a complete land use
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application.]
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(4)(a) Subject to the provisions of this section, when evaluating and approving a land
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use application for a cannabis production establishment:
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(i) a municipality shall comply with Section 10-9a-509; and
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(ii) a county shall comply with Section 17-27a-508.
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(b) An applicant for a land use permit to operate a cannabis production establishment
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shall comply with the land use requirements and application process described in:
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[(a)] (i) Title 10, Chapter 9a, Municipal Land Use, Development, and Management
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Act[, including Section 10-9a-528]; and
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[(b)] (ii) Title 17, Chapter 27a, County Land Use, Development, and Management Act[
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, including Section 17-27a-525].
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Section 4. Section 26B-1-310 is amended to read:
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26B-1-310 . Qualified Patient Enterprise Fund -- Creation -- Revenue neutrality
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-- Uniform fee.
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(1) There is created an enterprise fund known as the "Qualified Patient Enterprise Fund."
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(2) The fund created in this section is funded from:
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(a) money the department deposits into the fund under Chapter 4, Part 2, Cannabinoid
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Research and Medical Cannabis;
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(b) appropriations the Legislature makes to the fund; and
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(c) the interest described in Subsection (3).
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(3) Interest earned on the fund shall be deposited into the fund.
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(4) Money deposited into the fund may only be used by:
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(a) the department to accomplish the department's responsibilities described in Chapter
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4, Part 2, Cannabinoid Research and Medical Cannabis; [and]
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(b) the Center for Medical Cannabis Research created in Section 53B-17-1402 to
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accomplish the Center for Medical Cannabis Research's responsibilities[.] ; and
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(c) the Department of Agriculture and Food for the one time purchase of equipment to
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meet the requirements described in Section 4-41a-204.1.
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(5) The department shall set fees authorized under Chapter 4, Part 2, Cannabinoid Research
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and Medical Cannabis, in amounts that the department anticipates are necessary, in total,
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to cover the department's cost to implement Chapter 4, Part 2, Cannabinoid Research
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and Medical Cannabis.
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(6) The department may impose a uniform fee on each medical cannabis transaction in a
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medical cannabis pharmacy in an amount that, subject to Subsection (5), the department
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sets in accordance with Section 63J-1-504.
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Section 5. Effective Date.
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This bill takes effect on May 7, 2025.
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