Section 1, Section 4-41a-204 is amended to read:4-41a-204. Operating plan.(1)A person applying for a cannabis production establishment license or license renewal shall submit to the department for the department's review a proposed operating plan that complies with this section and that includes:(a)a description of the physical characteristics of the proposed facility or, for a cannabis cultivation facility, no more than two facility locations, including a floor plan and an architectural elevation;(b)a description of the credentials and experience of:(i)each officer, director, and owner of the proposed cannabis production establishment; and(ii)any highly skilled or experienced prospective employee;(c)the cannabis production establishment's employee training standards;(d)a security plan;(e)a description of the cannabis production establishment's inventory control system, including a description of how the inventory control system is compatible with the state electronic verification system described in Section 26B-4-202;(f)storage protocols, both short- and long-term, to ensure that cannabis is stored in a manner that is sanitary and preserves the integrity of the cannabis;(g)for a cannabis cultivation facility, the information described in Subsection (2);(h)for a cannabis processing facility, the information described in Subsection (3); and(i)for an independent cannabis testing laboratory, the information described in Subsection (4).; and(j)for a cannabis production establishment located in an industrial zone, a plan to reduce odor created by the cannabis production establishment that:(i)meets local ordinance nuisance laws; and(ii)identifies:(A)operations and materials that generate odors; and(B)equipment, operations, or materials the cannabis production establishment will use to mitigate odor emissions, including plans to maintain equipment.(2)(a)A cannabis cultivation facility shall ensure that the facility's operating plan includes the facility's intended:(i)cannabis cultivation practices, including the facility's intended pesticide use and fertilizer use; and(ii)subject to Subsection (2)(b), acreage or square footage under cultivation and anticipated cannabis yield.(b)Except as provided in Subsection (2)(c)(i) or (c)(ii), a cannabis cultivation facility may not:(i)for a facility that cultivates cannabis only indoors, use more than 100,000 total square feet of cultivation space;(ii)for a facility that cultivates cannabis only outdoors, use more than four acres for cultivation; and(iii)for a facility that cultivates cannabis through a combination of indoor and outdoor cultivation, use more combined indoor square footage and outdoor acreage than allowed under the department's formula described in Subsection (2)(e).(c)(i)Each licensee may apply to the department for:(A)a one-time, permanent increase of up to 20% of the limitation on the cannabis cultivation facility's cultivation space; or(B)a short-term increase, not to exceed 12 months, of up to 40% of the limitation on the cannabis cultivation facility's cultivation space.(ii)After conducting a review equivalent to the review described in Subsection 4-41a-205(2)(a), if the department determines that additional cultivation is needed, the department may:(A)grant the one-time, permanent increase described in Subsection (2)(c)(i)(A); or(B)grant the short-term increase described in Subsection (2)(c)(i)(B).(d)If a licensee describes an intended acreage or square footage under cultivation under Subsection (2)(a)(ii) that is less than the limitation described in Subsection (2)(b), the licensee may not cultivate more than the licensee's identified intended acreage or square footage under cultivation.(e)The department shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establish a formula for combined usage of indoor and outdoor cultivation that:(i)does not exceed, in estimated cultivation yield, the aggregate limitations described in Subsection (2)(b)(i) or (ii); and(ii)allows a cannabis cultivation facility to operate both indoors and outdoors.(f)(i)The department may authorize a cannabis cultivation facility to operate at no more than two separate locations.(ii)If the department authorizes multiple locations under Subsection (2)(f)(i), the two cannabis cultivation facility locations combined may not exceed the cultivation limitations described in this Subsection (2).(3)A cannabis processing facility's operating plan shall include the facility's intended cannabis processing practices, including the cannabis processing facility's intended:(a)offered variety of cannabis product;(b)cannabinoid extraction method;(c)cannabinoid extraction equipment;(d)processing equipment;(e)processing techniques; and(f)sanitation and manufacturing safety procedures for items for human consumption.(4)An independent cannabis testing laboratory's operating plan shall include the laboratory's intended:(a)cannabis and cannabis product testing capability;(b)cannabis and cannabis product testing equipment; and(c)testing methods, standards, practices, and procedures for testing cannabis and cannabis products.(5)Notwithstanding an applicant's proposed operating plan, a cannabis production establishment is subject to land use regulations, as defined in Sections 10-9a-103 and 17-27a-103, regarding the availability of outdoor cultivation in an industrial zone.(6)(a)Unless otherwise permitted by local ordinance, an indoor cannabis production establishment:(i)shall be located in a stand-alone building; and(ii)may not be located in a stand-alone building that has other tenants located in the building unless the other tenant is a cannabis production establishment or a cannabinoid processor as that term is defined in Section 4-41-102.(b)Subsection (6)(a) does not apply to a cannabis production establishment that:(i)as of May 7, 2025, is located in a building with other tenants;(ii)continuously remains in the same building described in Subsection (6)(b)(i); and(iii)has not entered into a lease agreement to become the sole tenant of the building described in Subsection (6)(b)(i).

Section 2, Section 4-41a-204.1 is enacted to read:4-41a-204.1. Odor control recommendations.(1)As used in this section, "objectionable odor" means pollution of the ambient air beyond the property line of a facility consisting of an odor that, considering the odor's characteristics, intensity, frequency, and duration:(a)is, or can reasonably be expected to be, injurious to public health or welfare; or(b)unreasonably interferes with the enjoyment of life or the use of a person's property that is exposed to the odor.(2)(a)Before January 1, 2026, the department shall provide a report with recommendations to the Medical Cannabis Governance Structure Working Group created in Section 36-12-8.2 regarding objectionable odor control standards for cannabis production establishments.(b)The department shall work with a cannabis production establishment to monitor odor emitted by the cannabis production establishment.(c)A cannabis production establishment shall provide information related to the cannabis production establishment's odor emissions to the department upon request.(d)The report shall include an analysis regarding:(i)potential standards for measurement of objectionable odors related to cannabis production and distinct levels of odor tolerability;(ii)the feasibility of setting a universal odor control standard;(iii)the feasibility of enforcing odor control standards;(iv)cost incurred by a cannabis production establishment to comply with potential odor control standards;(v)interests of other businesses and community members affected by objectionable odor; and(vi)other information the department deems relevant.(3)The department shall examine odor control regulation from other locales.(4)The department may collaborate with other state agencies when creating the recommendations.

Section 3, Section 4-41a-406 is amended to read:4-41a-406. Local control.(1)As used in this section:(a)"Cannabis production establishment" means the same as that term is defined in Section 4-41a-102 and includes a closed-door medical cannabis pharmacy.(b)"Land use application" means the same as that term is defined in Sections 10-9a-103 and 17-27a-103.(b)(c)"Land use decision" means the same as that term is defined in Sections 10-9a-103 and 17-27a-103.(c)(d)"Land use permit" means the same as that term is defined in Sections 10-9a-103 and 17-27a-103.(d)(e)"Land use regulation" means the same as that term is defined in Sections 10-9a-103 and 17-27a-103.(2)(a)If a municipality's or county's zoning ordinances provide for an industrial zone, the operation of a cannabis production establishment shall be a permitted industrial use in any industrial zone unless the municipality or county has designated by ordinance, before an individual submits a land use permit application for a cannabis production establishment, at least one industrial zone in which the operation of a cannabis production establishment is a permitted use.(b)If a municipality's or county's zoning ordinances provide for an agricultural zone, the operation of a cannabis production establishment shall be a permitted agricultural use in any agricultural zone unless the municipality or county has designated by ordinance, before an individual submits a land use permit application for a cannabis production establishment, at least one agricultural zone in which the operation of a cannabis production establishment is a permitted use.(c)The operation of a cannabis production establishment shall be a permitted use on land that the municipality or county has not zoned.(3)A municipality or county may not:(a)on the sole basis that the applicant, or cannabis production establishment violates federal law regarding the legal status of cannabis, deny or revoke:(i)a land use permit to operate a cannabis production facility; or(ii)a business license to operate a cannabis production facility; or(b)require a certain distance between a cannabis production establishment and:(i)another cannabis production establishment;(ii)a medical cannabis pharmacy;(iii)a retail tobacco specialty business, as that term is defined in Section 26B-7-501; or(iv)an outlet, as that term is defined in Section 32B-1-202; or.(c)in accordance with Subsections 10-9a-509(1) and 17-27a-508(1), enforce a land use regulation against a cannabis production establishment that was not in effect on the day on which the cannabis production establishment submitted a complete land use application.(4)(a)Subject to the provisions of this section, when evaluating and approving a land use application for a cannabis production establishment:(i)a municipality shall comply with Section 10-9a-509; and(ii)a county shall comply with Section 17-27a-508.(b)An applicant for a land use permit to operate a cannabis production establishment shall comply with the land use requirements and application process described in:(a)(i)Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act, including Section 10-9a-528; and(b)(ii)Title 17, Chapter 27a, County Land Use, Development, and Management Act, including Section 17-27a-525.

Section 4, Section 26B-1-310 is amended to read:26B-1-310. Qualified Patient Enterprise Fund -- Creation -- Revenue neutrality -- Uniform fee.(1)There is created an enterprise fund known as the "Qualified Patient Enterprise Fund."(2)The fund created in this section is funded from:(a)money the department deposits into the fund under Chapter 4, Part 2, Cannabinoid Research and Medical Cannabis;(b)appropriations the Legislature makes to the fund; and(c)the interest described in Subsection (3).(3)Interest earned on the fund shall be deposited into the fund.(4)Money deposited into the fund may only be used by:(a)the department to accomplish the department's responsibilities described in Chapter 4, Part 2, Cannabinoid Research and Medical Cannabis; and(b)the Center for Medical Cannabis Research created in Section 53B-17-1402 to accomplish the Center for Medical Cannabis Research's responsibilities.; and(c)the Department of Agriculture and Food for the one time purchase of equipment to meet the requirements described in Section 4-41a-204.1.(5)The department shall set fees authorized under Chapter 4, Part 2, Cannabinoid Research and Medical Cannabis, in amounts that the department anticipates are necessary, in total, to cover the department's cost to implement Chapter 4, Part 2, Cannabinoid Research and Medical Cannabis.(6)The department may impose a uniform fee on each medical cannabis transaction in a medical cannabis pharmacy in an amount that, subject to Subsection (5), the department sets in accordance with Section 63J-1-504.

Section 5. Effective Date.This bill takes effect on May 7, 2025.