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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to medical cannabis.
10 Highlighted Provisions:
11 This bill:
12 ▸ allows an individual with a qualifying illness who registers with the Department of
13 Public Safety to possess and use, under certain circumstances, cannabis, cannabis
14 products, and devices designed for ingesting cannabis;
15 ▸ directs the Division of Occupational and Professional Licensing to issue a license to
16 operate a medical cannabis establishment to a person who meets certain
17 requirements;
18 ▸ allows a licensed person to grow, process, possess, and sell cannabis for the medical
19 use of a patient, under certain circumstances; and
20 ▸ directs the Division of Occupational and Professional Licensing to register an
21 individual to act as an agent of a medical cannabis establishment under certain
22 circumstances.
23 Money Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:
28 ENACTS:
29 53-17-101, Utah Code Annotated 1953
30 53-17-102, Utah Code Annotated 1953
31 53-17-103, Utah Code Annotated 1953
32 53-17-104, Utah Code Annotated 1953
33 53-17-105, Utah Code Annotated 1953
34 58-37-3.6, Utah Code Annotated 1953
35 58-85-101, Utah Code Annotated 1953
36 58-85-102, Utah Code Annotated 1953
37 58-85-103, Utah Code Annotated 1953
38 58-85-104, Utah Code Annotated 1953
39 58-85-105, Utah Code Annotated 1953
40 58-85-106, Utah Code Annotated 1953
41 58-85-107, Utah Code Annotated 1953
42 58-85-108, Utah Code Annotated 1953
43 58-85-201, Utah Code Annotated 1953
44 58-85-202, Utah Code Annotated 1953
45 REPEALS:
46 26-56-101, as enacted by Laws of Utah 2014, Chapter 25
47 26-56-102, as enacted by Laws of Utah 2014, Chapter 25
48 26-56-103, as enacted by Laws of Utah 2014, Chapter 25
49 58-37-4.3, as enacted by Laws of Utah 2014, Chapter 25
50
51 Be it enacted by the Legislature of the state of Utah:
52 Section 1. Section 53-17-101 is enacted to read:
53
54 53-17-101. Title.
55 This chapter is known as "Medical Cannabis Registration Act."
56 Section 2. Section 53-17-102 is enacted to read:
57 53-17-102. Definitions.
58 As used in this chapter:
59 (1) "Cannabis" means marijuana.
60 (2) "Cannabis device" means a device, except for a device that facilitates cannabis
61 combustion, that is used to aid an individual in ingesting cannabis or a cannabis product.
62 (3) "Cannabis product" means a product that:
63 (a) is intended for human ingestion; and
64 (b) contains cannabis or tetrahydrocannabinol.
65 (4) "Designated caregiver" means an individual who a patient with a medical cannabis
66 patient card designates as the patient's caregiver under Section 53-17-103.
67 (5) "Drug paraphernalia" means the same as that term is defined in Section 58-37a-3.
68 (6) "Electronic verification system" means the system described in Section 53-17-104.
69 (7) "Marijuana" means the same as that term is defined in Section 58-37-2.
70 (8) "Medical cannabis establishment" means the same as that term is defined in Section
71 58-85-102.
72 (9) "Medical cannabis establishment agent registration card" means a registration card
73 issued under Section 58-85-203.
74 (10) "Medical cannabis patient card" means an official document or card, issued by the
75 department under Section 53-17-103, that is connected to the electronic verification system
76 described in Section 53-17-104.
77 (11) "Physician" means an individual who:
78 (a) is licensed to practice:
79 (i) medicine, under Title 58, Chapter 67, Utah Medical Practice Act; or
80 (ii) osteopathic medicine, under Title 58, Chapter 68, Utah Osteopathic Medical
81 Practice Act; and
82 (b) has completed a residency or fellowship in:
83 (i) anesthesiology;
84 (ii) gastroenterology;
85 (iii) neurology
86 (iv) oncology;
87 (v) ophthalmology;
88 (vi) physiatry; or
89 (vi) psychiatry.
90 (12) "Qualifying illness" means:
91 (a) acquired immune deficiency syndrome;
92 (b) Alzheimer's disease;
93 (c) amyotrophic lateral sclerosis;
94 (d) an autoimmune disorder;
95 (e) cachexia or physical wasting, nausea, and malnutrition associated with chronic
96 disease;
97 (f) cancer;
98 (g) Crohn's disease;
99 (h) epilepsy, or a condition that causes debilitating seizures;
100 (i) glaucoma;
101 (j) multiple sclerosis or a similar condition that causes persistent and debilitating
102 muscle spasms;
103 (k) post-traumatic stress disorder; or
104 (l) severe, chronic pain:
105 (i) that is not responsive to conventional treatment; and
106 (ii) for which a physician determines the individual with the severe, chronic pain is at
107 risk of abusing, becoming chemically dependent on, or overdosing on pain medication.
108 (13) "Tetrahydrocannabinol" means a substance derived from cannabis that meets the
109 description in Subsection 58-37-4(2)(a)(iii)(AA).
110 Section 3. Section 53-17-103 is enacted to read:
111 53-17-103. Medical cannabis patient card -- Application -- Fees -- Database.
112 (1) The department shall issue a medical cannabis patient card, via the electronic
113 verification system described in Section 53-17-104, to an individual if the individual:
114 (a) is at least 18 years of age;
115 (b) is a Utah resident;
116 (c) provides the department with a statement signed by a physician that indicates that
117 the individual:
118 (i) suffers from a qualifying illness; and
119 (ii) may benefit from treatment with cannabis or a cannabis product;
120 (d) pays the department a $25 fee; and
121 (e) submits an application to the department, using the electronic verification system
122 described in Section 53-17-104, that contains:
123 (i) the individual's name and address; and
124 (ii) a copy of the individual's valid photo identification.
125 (2) The department shall issue a medical cannabis patient card, via the electronic
126 verification system described in Section 53-17-104, to an individual who is the parent or legal
127 guardian of a minor if the individual:
128 (a) is at least 18 years of age;
129 (b) is a Utah resident;
130 (c) provides the department with a statement signed by the physician that indicates that
131 the minor:
132 (i) suffers from a qualifying illness; and
133 (ii) may benefit from treatment with cannabis or a cannabis product;
134 (d) pays the department a $25 fee; and
135 (e) submits an application to the department, using the electronic verification system
136 described in Section 53-17-104, that contains:
137 (i) the parent's or legal guardian's name and address;
138 (ii) the minor's name; and
139 (iii) a copy of the parent's or legal guardian's valid photo identification.
140 (3) An individual who applies for a medical cannabis patient card under Subsection (1)
141 or (2) shall fill out and submit the application described in Subsection (1) or (2):
142 (a) online, in connection with the electronic verification system described in Section
143 53-17-104; and
144 (b) with a physician, during an office visit with the physician.
145 (4) An individual who holds a valid medical cannabis patient card under Subsection (1)
146 who a physician determines is unable to obtain cannabis or a cannabis product from a cannabis
147 dispensary may register with the department up to two individuals to serve as designated
148 caregivers of the individual.
149 (5) A designated caregiver registered with the department under Subsection (3) may
150 carry an individual's valid medical cannabis patient card and purchase and possess, in
151 accordance with this chapter, cannabis, a cannabis product, or a cannabis device on behalf of
152 the individual.
153 (6) A medical cannabis patient card the department issues under Subsection (1) or (2)
154 is:
155 (a) valid for the lesser of:
156 (i) an amount of time determined by the physician who recommends treatment with
157 cannabis or a cannabis product under Subsection (1) or (2); and
158 (ii) two years; and
159 (b) renewable, if, at the time of renewal, the individual with the medical cannabis
160 patient card meets the requirements of either Subsection (1) or (2).
161 Section 4. Section 53-17-104 is enacted to read:
162 53-17-104. Electronic verification system.
163 (1) The department shall contract, in accordance with Title 63G, Chapter 3, Utah
164 Administrative Rulemaking Act, with a private person to implement and maintain an electronic
165 verification system that:
166 (a) allows an individual, under Subsection 53-17-103(1), or an individual who is the
167 parent or legal guardian of a minor under Subsection 53-17-103(2), to apply, in the presence of
168 a physician, to the department for a medical cannabis patient card;
169 (b) allows a physician to electronically recommend, during a visit with a patient,
170 treatment with cannabis or a cannabis product for the patient;
171 (c) issues to an individual, if the individual meets the requirements in Section
172 53-17-103, a medical cannabis patient card;
173 (d) accepts and holds funds from an individual with a medical cannabis patient card;
174 (e) allows an individual with a medical cannabis patient card to use the funds described
175 in Subsection (1)(e) to purchase cannabis, a cannabis product, or a cannabis device from a
176 cannabis dispensary;
177 (f) transmits the funds described in Subsection (1)(e) to a cannabis dispensary for the
178 purchase of cannabis, a cannabis product, or a cannabis device;
179 (g) remits to the State Tax Commission the state sales tax due for a purchase of
180 cannabis, a cannabis product, or a cannabis device;
181 (h) connects with an inventory control system used by a cannabis dispensary, described
182 in Section 58-85-104, to track, in real time, for the purchase of cannabis or a cannabis product
183 by a medical cannabis patient card holder:
184 (i) the time and date of the purchase;
185 (ii) the quantity and type of cannabis or a cannabis product purchased;
186 (iii) the amount of money the medical cannabis patient card holder spent; and
187 (iv) any medical cannabis establishment associated with the cannabis or cannabis
188 product;
189 (i) is accessible by the department; and
190 (j) is accessible by state or local law enforcement during a traffic stop.
191 (2) An individual with a medical cannabis patient card may only purchase cannabis, a
192 cannabis product, or a cannabis device using funds transmitted in advance to the individual's
193 account with the provider of the electronic verification system described in Subsection (1).
194 (3) The department may release, in a format such that it is impossible to determine the
195 identity of an individual medical cannabis patient card holder, the data collected by the system
196 under Subsection (1) for the purpose of conducting medical research.
197 Section 5. Section 53-17-105 is enacted to read:
198 53-17-105. Standard of care -- Medical practitioners not liable -- No private right
199 of action.
200 (1) It is not a breach of the applicable standard of care for a physician, other licensed to
201 recommend treatment with cannabis or a cannabis product to an individual under this chapter.
202 (2) A physician that recommends treatment with cannabis or a cannabis product to an
203 individual under this chapter may not, solely based on the cannabis or cannabis product
204 recommendation, be subject to:
205 (a) civil liability;
206 (b) criminal liability; or
207 (c) licensure sanctions under:
208 (i) Title 58, Chapter 67, Utah Medical Practice Act; or
209 (ii) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act.
210 Section 6. Section 58-37-3.6 is enacted to read:
211 58-37-3.6. Exemption for possession or use of cannabis to treat a qualifying
212 illness.
213 (1) As used in this section:
214 (a) "Cannabis" means marijuana.
215 (b) "Cannabis device" means a device, except for a device that facilitates cannabis
216 combustion, that is used to aid an individual in ingesting cannabis or a cannabis product.
217 (c) "Cannabis product" means a product that:
218 (i) is intended for human ingestion; and
219 (ii) contains cannabis or tetrahydrocannabinol.
220 (d) "Designated caregiver" means an individual who a patient with a medical cannabis
221 patient card designates, with the Department of Public Safety, as the patient's caregiver under
222 Section 53-17-103.
223 (e) "Drug paraphernalia" means the same as that term is defined in Section 58-37a-3.
224 (f) "Marijuana" means the same as that term is defined in Section 58-37-2.
225 (g) "Medical cannabis establishment" means the same as that term is defined in Section
226 58-85-102.
227 (h) "Medical cannabis patient card" means an official document or card, issued by the
228 Department of Public Safety under Section 53-17-103, that is connected to the electronic
229 verification system described in Section 53-17-104.
230 (i) "Qualifying illness" means:
231 (i) acquired immune deficiency syndrome;
232 (ii) Alzheimer's disease;
233 (iii) amyotrophic lateral sclerosis;
234 (iv) an autoimmune disorder;
235 (v) cachexia or physical wasting, nausea, and malnutrition associated with chronic
236 disease;
237 (vi) cancer;
238 (vii) Crohn's disease;
239 (viii) epilepsy, or a condition that causes debilitating seizures;
240 (ix) glaucoma;
241 (x) multiple sclerosis or a similar condition that causes persistent and debilitating
242 muscle spasms;
243 (xi) post-traumatic stress disorder; or
244 (xii) severe, chronic pain:
245 (A) that is not responsive to conventional treatment; and
246 (B) for which a physician determines the individual with the severe, chronic pain is at
247 risk of abusing, becoming chemically dependent on, or overdosing on pain medication.
248 (j) "Tetrahydrocannabinol" means a substance derived from cannabis that meets the
249 description in Subsection 58-37-4(2)(a)(iii)(AA).
250 (2) Notwithstanding any other provision of this chapter, except as described in
251 Subsection (7), an individual who possesses or uses cannabis, a cannabis product, or a cannabis
252 device is not subject to, for the possession or use of the cannabis, cannabis product, or cannabis
253 device, the penalties described in this title for possession or use of marijuana,
254 tetrahydrocannabinol, or drug paraphernalia, if the individual holds a valid medical cannabis
255 patient card.
256 (3) Notwithstanding any other provision of this chapter, except as described in
257 Subsection (7), an individual who possesses cannabis, a cannabis product, or a cannabis device,
258 or who distributes cannabis, a cannabis product, or a cannabis device to a patient is not subject
259 to, for the possession or distribution of the cannabis, cannabis product, or cannabis device, the
260 penalties described in this title for possession or distribution of marijuana,
261 tetrahydrocannabinol, or drug paraphernalia, if the individual:
262 (a) if the patient is a minor, is the patient's parent or guardian and holds a valid medical
263 cannabis patient card; or
264 (b) if the patient is 18 years of age or older and holds a medical cannabis patient card,
265 is the patient's designated caregiver.
266 (4) Notwithstanding any other provision of this chapter, except as described in
267 Subsection (7), a person who possesses, sells, or offers to sell cannabis, a cannabis product, or
268 a cannabis device is not subject to, for the possession, sale, or offer for sale of cannabis, the
269 cannabis product, or the cannabis device, the penalties described in this chapter for the
270 possession, sale, or offering for sale of marijuana, tetrahydrocannabinol, or drug paraphernalia
271 if the person:
272 (a) produces, sells, or offers to sell the cannabis, cannabis product, or cannabis device
273 for the end purpose of providing the cannabis, cannabis product, or cannabis device to a patient
274 with a qualifying illness;
275 (b) is licensed with the division under Title 58, Chapter 85, Medical Cannabis
276 Establishment Licensing Act; and
277 (c) complies with the operating requirements for a medical cannabis establishment
278 under Title 58, Chapter 85, Part 1, Medical Cannabis Establishments.
279 (5) Notwithstanding any other provision of this chapter, a person who grows, sells, or
280 offers to sell cannabis is not subject to, for the growth or sale of the cannabis, the penalties
281 described in this chapter for the growth or sale of marijuana, if the person:
282 (a) grows the cannabis only for the purpose of selling the cannabis to a licensed
283 medical cannabis establishment, for the end purpose of providing the cannabis to a patient with
284 a qualifying illness;
285 (b) is licensed with the division under Title 58, Chapter 85, Medical Cannabis
286 Establishment Licensing Act; and
287 (c) complies with the operating requirements for a cannabis cultivation facility under
288 Title 58, Chapter 85, Part 1, Medical Cannabis Establishments.
289 (6) Notwithstanding any other provision of this chapter, except as described in
290 Subsection (7), an individual who grows cannabis, or possesses, sells, or offers to sell cannabis,
291 a cannabis product, or a cannabis device is not subject to, for the growth of cannabis, or for the
292 possession, sale, or offer for sale of cannabis, the cannabis product, or the cannabis device, the
293 penalties described in this chapter for the growth, possession, sale, or offering for sale of
294 marijuana, tetrahydrocannabinol, or drug paraphernalia if the individual:
295 (a) grows, possesses, sells, or offers to sell the cannabis as an agent of a medical
296 cannabis establishment that is licensed with the division under Title 58, Chapter 85, Medical
297 Cannabis Establishment Licensing Act;
298 (b) is a valid medical cannabis establishment agent registration card holder; and
299 (c) complies with the employment requirements for a medical cannabis establishment
300 agent under Title 58, Chapter 85, Part 2, Medical Cannabis Establishment Agents.
301 (7) An individual is not exempt from the penalties described in Subsections (2) through
302 (6) if the individual:
303 (a) uses cannabis through a means involving cannabis combustion; or
304 (b) uses or possesses a cannabis device that facilitates the use of cannabis through
305 cannabis combustion.
306 Section 7. Section 58-85-101 is enacted to read:
307
308
309 58-85-101. Title.
310 (1) This chapter is known as "Medical Cannabis Establishment Licensing Act."
311 (2) This part is known as "Medical Cannabis Establishments."
312 Section 8. Section 58-85-102 is enacted to read:
313 58-85-102. Definitions.
314 As used in this chapter:
315 (1) "Cannabis" means the same as that term is defined in Section 58-37-2.
316 (2) "Cannabis cultivation facility" means a person that:
317 (a) is licensed by the division under Section 58-85-103; and
318 (b) possesses, grows, and sells cannabis to:
319 (i) a cannabis dispensary;
320 (ii) a cannabis processing facility; or
321 (iii) another cannabis cultivation facility.
322 (3) "Cannabis device" means a device, except for a device that facilitates cannabis
323 combustion, that is used to aid an individual in ingesting cannabis or a cannabis product.
324 (4) "Cannabis dispensary" means a business that:
325 (a) is licensed by the division to act as a cannabis dispensary under Section 58-85-103;
326 and
327 (b) purchases, possesses, or sells cannabis, a cannabis product, or a cannabis device.
328 (5) "Cannabis processing facility" means a person that:
329 (a) is licensed by the division to act as a cannabis processing facility under Section
330 58-85-103;
331 (b) purchases cannabis from a cannabis cultivation facility;
332 (c) possesses cannabis or a cannabis product; and
333 (d) manufactures a cannabis product for sale to a cannabis dispensary.
334 (6) "Cannabis product" means a product that:
335 (a) is intended for human ingestion; and
336 (b) contains cannabis or tetrahydrocannabinol.
337 (7) "Crime of violence" means any felony involving the use or threatened use of force
338 or violence against the person or property of another.
339 (8) "Electronic verification system" means the system described in Section 53-17-104.
340 (9) (a) "Excluded felony offense" means, for an individual:
341 (i) a crime of violence; or
342 (ii) a felony conviction of a state or federal law pertaining to controlled substances.
343 (b) "Excluded felony offense" does not include a criminal offense for which the
344 individual completed the individual's sentence, including any term of probation, incarceration,
345 or supervised release, more than 10 years before the day on which the individual applies for a
346 medical cannabis patient card or a medical cannabis establishment agent registration card.
347 (10) "Independent testing laboratory" means a facility that:
348 (a) is licensed by the division under Section 58-85-103; and
349 (b) meets the requirements of Section 58-85-108.
350 (11) "Inventory control system" means a connected electronic database and associated
351 tracking devices that monitor the chain of custody of cannabis from the point of the cannabis's
352 first cultivation to the point the cannabis is sold to a medical cannabis patient card holder.
353 (12) "Medical cannabis establishment" means:
354 (a) an independent testing laboratory;
355 (b) a cultivation facility;
356 (c) a cannabis processing facility; or
357 (d) a cannabis dispensary.
358 (13) "Medical cannabis establishment agent" means an owner, officer, board member,
359 employee, or volunteer of a medical cannabis establishment.
360 (14) "Medical cannabis establishment agent registration card" means a registration card
361 that is issued by the division under Section 58-28-203 that authorizes an individual to volunteer
362 or work at a medical cannabis establishment.
363 (15) "Medical cannabis patient card" means an official document or card, issued by the
364 Department of Public Safety under Section 53-17-103, that is connected to an electronic
365 verification system.
366 (16) "Physician" means an individual who:
367 (a) is licensed to practice:
368 (i) medicine, under Title 58, Chapter 67, Utah Medical Practice Act; or
369 (ii) osteopathic medicine, under Title 58, Chapter 68, Utah Osteopathic Medical
370 Practice Act; and
371 (b) has completed a residency or fellowship in:
372 (i) anesthesiology;
373 (ii) gastroenterology;
374 (iii) neurology
375 (iv) oncology;
376 (v) ophthalmology;
377 (vi) physiatry; or
378 (vi) psychiatry.
379 (17) "Tetrahydrocannabinol" means a substance that meets the description in
380 Subsection 58-37-4(2)(a)(iii)(AA).
381 Section 9. Section 58-85-103 is enacted to read:
382 58-85-103. Medical cannabis establishment -- License -- General operating
383 requirements.
384 (1) Subject to Subsection (2), the division shall issue a license to operate a medical
385 cannabis establishment to a person who submits to the division:
386 (a) a proposed name, address, and physical location where the person will operate the
387 medical cannabis establishment;
388 (b) evidence that the person possesses or controls a minimum of $750,000 in liquid
389 assets;
390 (c) a $5,000 application fee;
391 (d) evidence that the person meets the eligibility requirements for:
392 (i) a cannabis cultivation facility;
393 (ii) a cannabis processing facility;
394 (iii) a cannabis dispensary; or
395 (iv) an independent cannabis testing laboratory;
396 (e) a security plan for the medical cannabis establishment;
397 (f) evidence that the person will implement an inventory control system at the medical
398 cannabis establishment; and
399 (g) the results of a criminal background check for each owner, principal, or shareholder
400 of the person that will operate the medical cannabis establishment.
401 (2) The division shall, for a medical cannabis establishment to which the division
402 issues a license under Subsection (1), designate whether the license authorizes the medical
403 cannabis establishment to operate as:
404 (a) a cannabis cultivation facility;
405 (b) a cannabis processing facility;
406 (c) a cannabis dispensary; or
407 (d) an independent cannabis testing laboratory.
408 (3) The division may not issue more than the greater of, in each county in the state:
409 (a) one cannabis dispensary license; or
410 (b) one cannabis dispensary license per 200,000 county residents.
411 (4) A medical cannabis establishment licensed by the division under Subsection (1)
412 shall:
413 (a) operate in a facility that houses, for the medical cannabis establishment's business
414 address, only the medical cannabis establishment; and
415 (b) have a single, secure public entrance.
416 (5) A medical cannabis establishment may not allow any person to consume cannabis
417 on the property or premises of the establishment.
418 (6) The division may inspect the records of a medical cannabis establishment in order
419 to determine if the medical cannabis establishment complies with the licensing requirements of
420 this chapter.
421 (7) A medical cannabis establishment may only accept payment for cannabis, a
422 cannabis product, or a cannabis device, in a transaction facilitated by the inventory control
423 system described in Section 58-85-104 and the electronic verification system described in
424 Section 53-17-104.
425 (8) Except as provided in Subsection (9), a medical cannabis establishment may not
426 advertise in any medium.
427 (9) A medical cannabis establishment may have a sign on the outside of the medical
428 cannabis establishment that includes only:
429 (a) the medical cannabis establishment's name; and
430 (b) a green cross.
431 (10) A municipality or local government may not enact a zoning ordinance that
432 prohibits a medical cannabis establishment from operating in a location within the
433 municipality's or local government's jurisdiction, on the basis that the medical cannabis
434 establishment is a medical cannabis establishment.
435 (11) A municipality or local government shall allow a medical cannabis establishment
436 to operate in:
437 (a) if the medical cannabis establishment is a cannabis dispensary, as a permitted use,
438 in an agricultural, industrial, or commercial zone; and
439 (b) if the medical cannabis establishment is a cannabis cultivation facility, a cannabis
440 processing facility, or an independent testing laboratory:
441 (i) as a permitted use, in an agricultural or industrial zone; and
442 (ii) as a conditional use, in a commercial zone.
443 (12) A physician may not serve as an owner, principal, or shareholder of a medical
444 cannabis establishment.
445 (13) The division may revoke the license of a medical cannabis establishment under
446 this section if the medical cannabis establishment violates the requirements of this chapter.
447 Section 10. Section 58-85-104 is enacted to read:
448 58-85-104. Inventory control system.
449 Each medical cannabis establishment licensed under Section 58-85-103 shall maintain
450 an inventory control system that:
451 (1) is capable of tracking, in real time, cannabis from the first point the cannabis is
452 planted as a seed, a clone, or a cutting, until the cannabis is sold, in the form of unprocessed
453 cannabis or a cannabis product, to a medical cannabis patient card holder;
454 (2) stores, in real time, a record of the amount of cannabis or cannabis products in a
455 medical cannabis establishment's possession;
456 (3) keeps a record of the medical cannabis establishment's sales to medical cannabis
457 patient card holders and other medical cannabis establishments;
458 (4) is capable of interfacing with the electronic verification system maintained by the
459 Department of Public Safety under Section 53-17-104 in order for an individual with a medical
460 cannabis patient card who purchases cannabis, a cannabis product, or a cannabis device to:
461 (a) identify the origin of the cannabis or cannabis product the individual purchased;
462 and
463 (b) identify each medical cannabis establishment that had contact with the cannabis the
464 individual purchased;
465 (5) transmits, for each medical cannabis purchase by an individual with a medical
466 cannabis patient card, a 25 cents transaction fee to the Department of Public Safety;
467 (6) transfers funds used for cannabis or a cannabis product between medical cannabis
468 establishments;
469 (7) includes a video recording system that monitors all activity related to handling
470 cannabis or a cannabis product that is tamper proof and capable of storing a video record for a
471 minimum of 90 days; and
472 (8) is accessible by the Department of Public Safety.
473 Section 11. Section 58-85-105 is enacted to read:
474 58-85-105. Cannabis cultivation facility -- Operating requirements.
475 (1) A cannabis cultivation facility shall cultivate cannabis only:
476 (a) indoors, in an enclosed, locked facility that is accessible only by an individual with
477 a valid medical cannabis agent registration card under Section 58-85-202; and
478 (b) at the physical address provided to the division under Section 58-85-103.
479 (2) A cannabis cultivation facility shall ensure that any cannabis growing inside the
480 facility is not visible from outside the building.
481 (3) A cannabis cultivation facility shall use a unique batch identifier for each batch of
482 cannabis transferred to a cannabis dispensary or cannabis processing facility.
483 Section 12. Section 58-85-106 is enacted to read:
484 58-85-106. Cannabis processing facility -- Eligibility requirements -- Operating
485 requirements.
486 (1) A cannabis processing facility shall ensure that a cannabis product that the cannabis
487 processing facility sells or provides to a cannabis dispensary:
488 (a) has a label that:
489 (i) clearly and unambiguously states that the cannabis product contains cannabis;
490 (ii) clearly displays the full cannabinoid profile of the cannabis product; and
491 (iii) has a unique batch identifier;
492 (b) is sold in packaging that:
493 (i) is not appealing to children;
494 (ii) is opaque;
495 (iii) makes a physician's instructions easy to follow; and
496 (iv) allows the cannabis product to be tracked by an inventory control system; and
497 (c) is not configured or colored to resemble candy.
498 (2) A cannabis processing facility shall produce a cannabis product only:
499 (a) in an enclosed, locked facility that is accessible only by an individual with a valid
500 medical cannabis agent registration card under Section 58-85-202; and
501 (b) at the physical address provided to the division under Section 58-85-103.
502 Section 13. Section 58-85-107 is enacted to read:
503 58-85-107. Cannabis dispensary -- Eligibility requirements -- Operating
504 requirements.
505 (1) A cannabis dispensary shall ensure that:
506 (a) the cannabinoid profile in cannabis or a cannabis product that the dispensary sells
507 or offers for sale is clearly and accurately stated on the cannabis or cannabis product
508 packaging;
509 (b) the cannabis dispensary does not sell to an individual, in any one 14-day period:
510 (i) an amount of cannabis that exceeds two ounces by weight; or
511 (ii) an amount of cannabis products that exceeds the amount recommended by the
512 individual's physician; and
513 (c) the legal limit on the purchase of cannabis is posted clearly and conspicuously
514 within the public area of the cannabis dispensary.
515 (2) A cannabis dispensary may only sell cannabis or a cannabis product that has been
516 inspected by an independent testing laboratory to determine the concentration, in the cannabis
517 or cannabis product, of:
518 (a) cannabinoids;
519 (b) organic and non-organic substances in the cannabis or cannabis product;
520 (c) mold and fungus;
521 (d) pesticides and fertilizers; and
522 (e) nutrients.
523 (3) A cannabis dispensary may only sell:
524 (a) cannabis;
525 (b) a cannabis product; or
526 (c) a cannabis device.
527 (4) A cannabis dispensary may not sell a cannabis device that is constructed or
528 produced such that, when an individual uses the cannabis device, the use imitates smoking.
529 (5) A cannabis dispensary may only sell cannabis, a cannabis product, or a cannabis
530 device in a separate and defined area where only an individual with a medical cannabis patient
531 card, or a designated caregiver authorized to use a medical cannabis patient card, may enter.
532 Section 14. Section 58-85-108 is enacted to read:
533 58-85-108. Independent cannabis testing laboratory -- Eligibility requirements --
534 Operating requirements.
535 (1) In addition to the requirements described in Section 58-85-104, the division shall
536 license a private laboratory as an independent cannabis testing laboratory if the laboratory is
537 able to determine accurately, for cannabis or a cannabis product that a cannabis dispensary sells
538 or offers to sell:
539 (a) the concentration of cannabinoids in the cannabis or cannabis product;
540 (b) whether the cannabis or cannabis product is or contains organic or nonorganic
541 material;
542 (c) whether the cannabis or cannabis product contains mold or fungus;
543 (d) the concentration of pesticides and fertilizers in the cannabis or cannabis product;
544 and
545 (e) the concentration of nutrients in the cannabis or cannabis product.
546 (2) An independent cannabis testing laboratory may not have an owner, principal, or
547 shareholder who is an owner, principal, or shareholder, of another medical cannabis
548 establishment.
549 Section 15. Section 58-85-201 is enacted to read:
550
551 58-85-201. Title.
552 This part is known as "Medical Cannabis Establishment Agents."
553 Section 16. Section 58-85-202 is enacted to read:
554 58-85-202. Medical cannabis establishment agent -- Registration.
555 (1) An individual may not act as an owner, shareholder, employee, or agent of a
556 medical cannabis establishment unless the individual is registered by the division as a medical
557 cannabis establishment agent.
558 (2) The division shall register and issue a medical cannabis establishment agent
559 registration card to an individual who:
560 (a) has not been convicted of an excluded felony offense;
561 (b) provides to the division:
562 (i) the individual's name and address; and
563 (ii) the name and location of licensed medical cannabis establishments where the
564 individual seeks to act as the medical cannabis establishment's agent; and
565 (c) authorizes the division to conduct a criminal background check on the individual.
566 (3) The division shall designate, for a medical cannabis establishment agent
567 registration card the division issues under Subsection (2), whether the medical cannabis
568 establishment agent registration card holder is authorized to act as an agent for:
569 (a) a cannabis cultivation facility;
570 (b) a cannabis processing facility;
571 (c) a cannabis dispensary; or
572 (d) an independent cannabis testing laboratory.
573 (4) The division may revoke the medical cannabis agent registration card of an
574 individual who:
575 (a) violates the requirements of this chapter; or
576 (b) commits an excluded felony offense.
577 Section 17. Repealer.
578 This bill repeals:
579 Section 26-56-101, Title.
580 Section 26-56-102, Definitions.
581 Section 26-56-103, Hemp extract registration card -- Application -- Fees --
582 Database.
583 Section 58-37-4.3, Exemption for use or possession of hemp extract.
Legislative Review Note
as of 3-3-15 5:27 PM
The Utah Legislature's Joint Rule 4-2-402 requires legislative general counsel to place a
legislative review note on legislation. The Legislative Management Committee has further
directed legislative general counsel to include legal analysis in the legislative review note only
if legislative general counsel determines there is a high probability that a court would declare
the legislation to be unconstitutional under the Utah Constitution, the United States
Constitution, or both. As explained in the legal analysis below, legislative general counsel has
determined, based on applicable state and federal constitutional language and current
interpretations of that language in state and federal court case law, that this legislation has a
high probability of being declared unconstitutional by a court.
S.B. 259: (1) defines "cannabis" as marijuana, defines "cannabis product" as a product
containing tetrahydrocannabinol, and defines "cannabis device" as a device, except for a device
that facilitates cannabis combustion, that is used to aid an individual in ingesting cannabis or a
cannabis product; (2) gives the State Tax Commission the authority to issue a registration card
to an individual who, based on a statement from a physician, could benefit from treatment by
cannabis or a cannabis product, or to an individual caring for a minor who, based on a
statement from a physician, could benefit from treatment by cannabis; (3) allows a registered
individual, within certain limitations, to use or possess cannabis, a cannabis product, or a
cannabis device; (4) allows a person licensed with the Utah Division of Occupational and
Professional Licensing to grow cannabis, to possess and process cannabis and a cannabis
product, and to sell cannabis and a cannabis product to a registered individual or another
licensed person; and (5) directs the State Tax Commission to hold and transfer funds from
cannabis and cannabis product transactions for and between licensed persons and registered
individuals.
There is a high probability that a court will find S.B. 259 unconstitutional as preempted by
federal law.
The federal Controlled Substances Act defines "marihuana" as "all parts of the plant Cannabis
sativa L., whether growing or not," and only exempts a compound or other mixture made from
the "mature stalks" or sterilized seeds of the plant. 21 U.S.C. § 802(16) (2015). The act lists
marihuana as a controlled substance and makes it illegal to possess a controlled substance
without a prescription, or to possess a controlled substance with intent to distribute the
substance. Id. at §§ 841, 844. In addition to the federal Controlled Substances Act, other
federal laws regarding banking and racketeering prohibit commercial and banking activity
involving a controlled substance, including marihuana.
Under the Supremacy Clause in the U.S. Constitution, the U.S. Supreme Court has "long
recognized that state laws that conflict with federal law are without effect." Altira Group v.
Good, 555 U.S. 70 (2008). Federal law limits preemption under the federal Controlled
Substances Act to those cases where a "positive conflict" exists between the Act and a state
law, such that it is impossible for a party to comply with both state and federal requirements.
See 21 U.S.C. § 903; Sprietsma v. Mercury Marine, 537 U.S. 51, 64 (2002).
Substances that meet S.B. 259's definitions of cannabis and cannabis product need not be made
exclusively from the mature stalks or sterilized seeds of the cannabis plant, and therefore are
likely to be considered "marihuana" under the federal Controlled Substances Act. Any
substance that meets the federal Controlled Substances Act's definition of marihuana will
trigger the possession and distribution prohibitions contained in the Act. An individual
possessing or using cannabis or a cannabis product likely could not comply with the provisions
of S.B. 259 without also violating the possession prohibitions in federal law, creating a
positive conflict with the bill and federal law. Likewise, a person that possesses and sells
cannabis or a cannabis product likely could not comply with the provisions of S.B. 259 without
violating the possession and distribution provisions in federal law, creating a second positive
conflict.
In addition to the positive conflicts S.B. 259 creates with the federal Controlled Substances
Act, S.B. 259 likely creates additional positive conflicts with federal banking and racketeering
laws prohibiting commercial and banking activity involving a controlled substance. Those
laws are likely to conflict with the regulatory scheme established by S.B. 259 for the transfer of
funds related to the possession, sale, and distribution of cannabis and cannabis products.
Those positive conflicts result in a high probability that a court will hold that S.B. 259 is
preempted by federal law and unconstitutional under the Supremacy Clause.
Office of Legislative Research and General Counsel