This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Feb 19, 2016 at 7:37 PM by lpoole.
Senator Mark B. Madsen proposes the following substitute bill:


1     
MEDICAL CANNABIS ACT

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Mark B. Madsen

5     
House Sponsor: Gage Froerer

6     

7     LONG TITLE
8     General Description:
9          This bill modifies and enacts 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     Health to possess and use, under certain circumstances, Ŝ→ [
cannabis,] ←Ŝ a cannabis
14     product Ŝ→ [
,] ←Ŝ or a medical cannabis device;
15          ▸     directs the Department of Health, the Department of Agriculture and Food, the
16     Department of Public Safety, and the Department of Technology Services to:
17               •     determine the function and operation of a state electronic verification system;
18     and
19               •     select a third party provider to develop and maintain the state electronic
20     verification system;
21          ▸     directs the Department of Health to issue:
22               •     a license to operate a cannabis dispensary to a person who meets certain
23     qualifications; and
24               •     to an individual who meets certain qualifications, a registration card to act as an
25     agent of a cannabis dispensary;

26          ▸     directs the Department of Agriculture and Food to issue, to a person who meets
27     certain qualifications, a license to operate a cannabis production establishment,
28     including:
29               •     a cannabis cultivation facility;
30               •     a cannabis processing facility; or
31               •     an independent cannabis testing laboratory;
32          ▸     directs the Department of Agriculture and Food to issue, to an individual who meets
33     certain qualifications, a registration card to act as an agent of a cannabis production
34     establishment;
35          ▸     directs the Department of Health to issue a medical cannabis card to an individual
36     who meets the requirements of:
37               •     a qualified patient;
38               •     a parent or guardian of a minor who is a qualified patient; or
39               •     a designated caregiver of a qualified patient;
40          ▸     allows a licensed cannabis dispensary to possess Ŝ→ [
cannabis,] ←Ŝ a cannabis
40a          product Ŝ→ [
,] ←Ŝ or a
41     medical cannabis device, and to sell the Ŝ→ [
cannabis,] ←Ŝ cannabis product Ŝ→ [,] ←Ŝ or
41a     medical
42     cannabis device to an individual with a medical cannabis card;
43          ▸     allows a licensed cannabis cultivation facility to grow cannabis, possess cannabis,
44     and sell the cannabis to a licensed cannabis processing facility Ŝ→ [
or a licensed
45     cannabis dispensary
] ←Ŝ
;
46          ▸     allows a licensed cannabis processing facility to possess cannabis, process cannabis
47     into a cannabis product, and sell the cannabis product to a licensed cannabis
48     dispensary;
49          ▸     allows a licensed independent cannabis testing laboratory to possess cannabis or a
50     cannabis product for the purpose of testing the cannabis or cannabis product for
51     content and safety;
52     Ŝ→ [
     ▸     preempts an ordinance enacted by a political subdivision regarding a medical
53     cannabis establishment;
54          ▸     provides that a licensed cannabis dispensary or licensed cannabis production
55     establishment may operate in a political subdivision as:
56               •     a permitted use in an industrial, manufacturing, agriculture, or similar zone; and


57               •     as a conditional use in a commercial or similar zone;
58     :     ▸     provides that a licensed cannabis production establishment may operate in a
59     political subdivision:
60               •     as a permitted use in an industrial, manufacturing, agriculture, or similar zone;
] ←Ŝ

61          ▸     allows an individual driving with a measurable metabolite of cannabis to assert, as
62     an affirmative defense, that the individual used the cannabis pursuant to Utah law or
63     the law of another state;
64          ▸     prohibits a court from discriminating against a parent in a child custody case based
65     on the parent's lawful possession or use of Ŝ→ [
medical cannabis] a cannabis product ←Ŝ ;
66          ▸     prohibits a peace officer or child welfare worker from removing a child from an
67     individual's home on the basis of the individual's lawful possession or use of Ŝ→ a ←Ŝ
68     cannabis Ŝ→ product ←Ŝ ;
69     Ŝ→ [
     ▸     prohibits a state or political subdivision employer from discriminating against a
70     public employee because of the employee's lawful possession of or use of cannabis,
71     a cannabis product, or a medical cannabis device.
] ←Ŝ

72          ▸     imposes a tax on the sale of Ŝ→ [
cannabis,] ←Ŝ a cannabis product Ŝ→ [,] ←Ŝ or a
72a     medical cannabis
73     device at a cannabis dispensary;
74          ▸     exempts from sales and use tax the sale of Ŝ→ [
cannabis,] ←Ŝ a cannabis product
74a          Ŝ→ [
,] ←Ŝ or a
75     medical cannabis device by a cannabis dispensary;
76          ▸     creates the Medical Cannabis Restricted Account, consisting of:
77               •     proceeds of the medical cannabis tax;
78               •     medical cannabis card application fees;
79               •     cannabis dispensary application and licensing fees;
80               •     cannabis production establishment application and licensing fees; and
81               •     fines collected for violations of state medical cannabis law; and
82          ▸     repeals and replaces, after state medical cannabis regulation is implemented, the
83     Hemp Extract Regulation Act.
84     Money Appropriated in this Bill:
85          None
86     Other Special Clauses:
87          This bill provides a special effective date.

88     Utah Code Sections Affected:
89     AMENDS:
90     Ŝ→ [
     10-9a-104, as last amended by Laws of Utah 2013, Chapter 309
91          17-27a-104, as last amended by Laws of Utah 2013, Chapter 309
] ←Ŝ

92          30-3-10, as last amended by Laws of Utah 2014, Chapter 409
93          41-6a-517, as last amended by Laws of Utah 2013, Chapter 333
94          62A-4a-202.1, as last amended by Laws of Utah 2012, Chapters 221 and 293
95          63I-1-226, as last amended by Laws of Utah 2015, Chapters 16, 31, and 258
96          63I-1-258, as last amended by Laws of Utah 2015, Chapters 40, 186, 187, 320, 367,
97     and 432
98          78A-6-508, as last amended by Laws of Utah 2014, Chapter 409
99     ENACTS:
100          4-42-101, Utah Code Annotated 1953
101          4-42-102, Utah Code Annotated 1953
102          4-42-103, Utah Code Annotated 1953
103     Ŝ→ [
     4-42-104, Utah Code Annotated 1953] ←Ŝ
104          4-42-201, Utah Code Annotated 1953
105          4-42-202, Utah Code Annotated 1953
106          4-42-203, Utah Code Annotated 1953
107          4-42-301, Utah Code Annotated 1953
108          4-42-302, Utah Code Annotated 1953
109          4-42-303, Utah Code Annotated 1953
110          4-42-401, Utah Code Annotated 1953
111          4-42-402, Utah Code Annotated 1953
112          4-42-403, Utah Code Annotated 1953
113          4-42-404, Utah Code Annotated 1953
114     Ŝ→ [
     4-42-405, Utah Code Annotated 1953] ←Ŝ
115          4-42-501, Utah Code Annotated 1953
116          4-42-601, Utah Code Annotated 1953
117          4-42-602, Utah Code Annotated 1953
118          4-42-603, Utah Code Annotated 1953

119          4-42-701, Utah Code Annotated 1953
120          4-42-702, Utah Code Annotated 1953
121          4-42-801, Utah Code Annotated 1953
122          26-58-101, Utah Code Annotated 1953
123          26-58-102, Utah Code Annotated 1953
124     Ŝ→ [
     26-58-103, Utah Code Annotated 1953] ←Ŝ
125          26-58-104, Utah Code Annotated 1953
126          26-58-105, Utah Code Annotated 1953
127          26-58-106, Utah Code Annotated 1953
128          26-58-107, Utah Code Annotated 1953
129          26-58-108, Utah Code Annotated 1953
130          26-58-109, Utah Code Annotated 1953
131     Ŝ→ [
     26-58-110, Utah Code Annotated 1953] ←Ŝ
132          26-58-201, Utah Code Annotated 1953
133          26-58-202, Utah Code Annotated 1953
134          26-58-203, Utah Code Annotated 1953
135          26-58-204, Utah Code Annotated 1953
136          26-58-301, Utah Code Annotated 1953
137          26-58-302, Utah Code Annotated 1953
138          26-58-303, Utah Code Annotated 1953
139          26-58-304, Utah Code Annotated 1953
140          26-58-401, Utah Code Annotated 1953
141          26-58-402, Utah Code Annotated 1953
142          26-58-403, Utah Code Annotated 1953
143          26-58-501, Utah Code Annotated 1953
144          26-58-502, Utah Code Annotated 1953
145          26-58-503, Utah Code Annotated 1953
146          26-58-504, Utah Code Annotated 1953
147          26-58-505, Utah Code Annotated 1953
148     Ŝ→ [
     26-58-506, Utah Code Annotated 1953] ←Ŝ
149          26-58-601, Utah Code Annotated 1953

150          53-1-106.5, Utah Code Annotated 1953
151          58-37-3.6, Utah Code Annotated 1953
152          58-37-3.7, Utah Code Annotated 1953
153          59-12-104.7, Utah Code Annotated 1953
154          59-28-101, Utah Code Annotated 1953
155          59-28-102, Utah Code Annotated 1953
156          59-28-103, Utah Code Annotated 1953
157          59-28-104, Utah Code Annotated 1953
158          59-28-105, Utah Code Annotated 1953
159          59-28-106, Utah Code Annotated 1953
160          59-28-107, Utah Code Annotated 1953
161          59-28-108, Utah Code Annotated 1953
162     

163     Be it enacted by the Legislature of the state of Utah:
164          Section 1. Section 4-42-101 is enacted to read:
165     
CHAPTER 42. CANNABIS PRODUCTION ESTABLISHMENTS

166     
Part 1. General Provisions

167          4-42-101. Title.
168          (1) This chapter is known as "Cannabis Production Establishments."
169          Section 2. Section 4-42-102 is enacted to read:
170          4-42-102. Definitions.
171          As used in this chapter:
172          (1) "Cannabinoid profile" means the percentage of cannabis or a cannabis product, by
173     weight, that is composed of the cannabinoids:
174          (a) Tetrahydrocannabinol or THC;
175          (b) Tetrahyrdocannabinolic acid or THCa;
176          (c) Cannabidiol or CBD;
177          (d) Cannabinol or CBN; and
178          (e) Cannabigerol or CBG.
179          (2) "Cannabis" means the same as that term is defined in Section 58-37-3.6.
180          (3) "Cannabis cultivation facility" means a person that:

181          (a) grows cannabis; or
182          (b) possesses cannabis with the intent to grow cannabis.
183          (4) "Cannabis cultivation facility agent" means an individual who is an owner, officer,
184     director, board member, employee, or volunteer of a cannabis cultivation facility.
185          (5) "Cannabis dispensary" means the same as that term is defined in Section
186     26-58-102.
187          (6) "Cannabis dispensary agent" means the same as that term is defined in Section
188     26-58-102.
189          (7) "Cannabis processing facility" means a person that:
190          (a) manufactures a cannabis product from unprocessed cannabis;
191          (b) purchases or possesses cannabis with the intent to manufacture a cannabis product;
192     or
193          (c) sells or intends to sell a cannabis product to a cannabis dispensary.
194          (8) "Cannabis processing facility agent" means an individual who is an owner, officer,
195     director, board member, employee, or volunteer of a cannabis processing facility.
196          (9) "Cannabis product" means the same as that term is defined in Section 58-37-3.6.
197          (10) "Cannabis production establishment" means:
198          (a) a cannabis cultivation facility;
199          (b) a cannabis processing facility; or
200          (c) an independent cannabis testing laboratory;
201          (11) "Cannabis production establishment agent" means:
202          (a) a cannabis cultivation facility agent;
203          (b) a cannabis processing facility agent; or
204          (c) an independent cannabis testing laboratory agent.
205          (12) "Cannabis production establishment agent registration card" means a registration
206     card, issued by the department, that:
207          (a) authorizes an individual to act as a cannabis production establishment agent; and
208          (b) designates the type of cannabis production establishment for which an individual is
209     authorized to act as an agent.
210          (13) "Independent cannabis testing laboratory" means a person that:
211          (a) conducts a chemical or other analysis of cannabis or a cannabis product; or

212          (b) possesses cannabis or a cannabis product with the intent to conduct a chemical or
213     other analysis of the cannabis or cannabis product.
214          (14) "Independent cannabis testing laboratory agent" means an individual who is an
215     owner, officer, director, board member, employee, or volunteer of an independent cannabis
216     testing laboratory.
217          (15) "Inventory control system" means the system described in Section 4-42-103.
218          (16) "Medical cannabis card" means the same as that term is defined in Section
219     26-58-102.
220          (17) "Medical Cannabis Restricted Account" means the account created in Section
221     26-58-109.
222          (18) "Physician" means the same as that term is defined in Section 26-58-201.
223          (19) "State electronic verification system" means the system described in Section
224     26-58-104.
225          Section 3. Section 4-42-103 is enacted to read:
226          4-42-103. Inventory control system.
227          (1) A cannabis production establishment and a cannabis dispensary shall maintain an
228     inventory control system that meets the requirements of this section.
229          (2) An inventory control system shall track cannabis, using a unique identifier, in real
230     time, from the point that a cannabis plant is eight inches tall, and has a root ball, until the
231     cannabis is sold, in the form of Ŝ→ [
unprocessed cannabis or] ←Ŝ a cannabis product, to an
231a     individual
232     with a medical cannabis card.
233          (3) An inventory control system shall store in real time a record of the amount of
234     cannabis and cannabis products in the cannabis production establishment's or cannabis
235     dispensary's possession.
236          (4) An inventory control system shall include a video recording system that:
237          (a) tracks all handling and processing of cannabis or a cannabis product in the cannabis
238     production establishment or cannabis dispensary;
239          (b) is tamper proof;
240          (c) is capable of storing a video record for 45 days.
241          (5) An inventory control system installed in a cannabis production establishment or
242     cannabis dispensary shall maintain compatibility with the state electronic verification system.

243          (6) A cannabis production establishment or cannabis dispensary shall allow the
244     department or The Department of Health access to the cannabis production establishment's or
245     cannabis dispensary's inventory control system during an inspection.
246          (7) The department may establish compatibility standards for an inventory control
247     system by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
248     Rulemaking Act.
249          Ŝ→ [
Section 4. Section 4-42-104 is enacted to read:
250          4-42-104. Preemption.
251          This chapter preempts any ordinance enacted by a political subdivision of the state
252     regarding a cannabis production establishment.
] ←Ŝ
253          Ŝ→ [
Section 5.] Section 4. ←Ŝ Section 4-42-201 is enacted to read:
254     
Part 2. Cannabis Production Establishment

255          4-42-201. Cannabis production establishment -- License.
256          (1) In order to operate a cannabis production establishment, a person shall obtain a
257     license issued by the department under this chapter.
258          (2) Subject to Subsections (6) and (7), the department shall, within 30 days after
259     receiving a complete application, issue a license to operate a cannabis production establishment
260     to a person who submits to the department:
261          (a) a proposed name, address, and physical location where the person will operate the
262     cannabis production establishment;
263          (b) an operating plan that complies with Section 4-42-203;
264          (c) evidence that the person possesses or controls a minimum of $250,000 in liquid
265     assets for each license for which the person applies;
266          (d) for each location of a cannabis production establishment for which the person
267     applies, a complete application for a local business license;
268          (e) an application fee:
269          (i) before January 1, 2017, of $2,500; and
270          (ii) after January 1, 2017, in an amount established by the department in accordance
271     with Section 63J-1-504, that is necessary to cover the department's cost to implement this
272     chapter; and
273          (f) the result of a criminal background check for each proposed cannabis production

274     establishment agent for the cannabis production establishment.
275          (3) If the department determines that a cannabis production establishment is eligible for
276     a license under this section, the department shall:
277          (a) before January 1, 2017, charge the cannabis production establishment an initial
278     license fee of $50,000; and
279          (b) on or after January 1, 2017, charge the cannabis establishment an initial license fee
280     in an amount determined by the department in accordance with Section 63J-1-504.
281          (4) The department shall require a separate application license and a separate license
282     application fee under Subsection (3) for each type of cannabis production establishment and
283     each location of a cannabis production establishment.
284          (5) The department may issue any combination of a cannabis cultivation facility
285     license, a cannabis processing facility license, and a cannabis dispensary license to a person to
286     operate:
287          (a) at the same physical location; or
288          (b) at separate physical locations.
289          (6) The department may not issue a license to operate an independent cannabis testing
290     laboratory to a person:
291          (a) that holds a license or has an ownership interest in a cannabis dispensary, a
292     cannabis processing facility, or a cannabis cultivation facility in the state;
293          (b) that has an owner, officer, director, or employee whose immediate family member
294     holds a license or has an ownership interest in a cannabis dispensary, a cannabis processing
295     facility, or a cannabis cultivation facility; or
296          (c) proposes to operate the independent cannabis testing laboratory at the same physical
297     location as a cannabis dispensary, a cannabis processing facility, or a cannabis cultivation
298     facility.
299          Section 6. Section 4-42-202 is enacted to read:
300          4-42-202. Renewal.
301          (1) The department shall renew a person's license issued under Section 4-42-201 every
302     two years, if, at the time of renewal, the person meets the requirements of Section 4-42-201.
303          (2) The department shall charge a cannabis production establishment that the
304     department determines is eligible for license renewal a license renewal fee in an amount

305     determined by the department in accordance with Section 63J-1-504.
306          Section 7. Section 4-42-203 is enacted to read:
307          4-42-203. Operating plan.
308          (1) A person applying for a license to operate a cannabis production facility shall
309     submit to the department, with the person's application, a proposed operation plan that
310     includes:
311          (a) drawings of the physical characteristics of the proposed facility, including a site
312     plan, floor plan and architectural elevations which indicate compliance with the requirements
313     of this chapter;
314          (b) a description of the credentials and experience of:
315          (i) each officer, director, or owner of the proposed cannabis production establishment;
316     and
317          (ii) any highly skilled or experienced prospective employee;
318          (c) the cannabis production establishment's employee training standards;
319          (d) a security plan;
320          (e) a banking and financial services plan;
321          (f) a description of the cannabis production establishment's inventory control system,
322     including a plan to make the inventory control system compatible with the state electronic
323     verification system;
324          (g) for a cannabis cultivation facility, the information described in Subsection (2);
325          (h) for a cannabis processing facility, the information described in Subsection (3); and
326          (i) for an independent cannabis testing laboratory, the information described in
327     Subsection (4).
328          (2) A cannabis cultivation facility's operating plan shall include:
329          (a) evidence that the cannabis cultivation facility has entered into a preliminary
330     agreement with a cannabis processing facility or a cannabis dispensary in the state to purchase
331     the cannabis cultivation facility's output; and
332          (b) the cannabis cultivation facility's intended cannabis cultivation practices, including
333     the cannabis cultivation facility's intended:
334          (i) pesticide use;
335          (ii) fertilizer use;

336          (iii) square footage under cultivation; and
337          (iv) anticipated cannabis yield.
338          (3) A cannabis processing facility's operating plan shall include:
339          (a) evidence that the cannabis processing facility has entered into a preliminary
340     agreement:
341          (i) with a cannabis cultivation facility in the state to purchase unprocessed cannabis
342     input; and
343          (ii) with a cannabis dispensary in the state to purchase the cannabis processing facility's
344     output;
345          (b) the cannabis processing facility's intended cannabis processing practices, including
346     the cannabis processing facility's intended:
347          (i) offered variety of cannabis product;
348          (ii) cannabinoid extraction method;
349          (iii) cannabinoid extraction equipment;
350          (iv) processing equipment;
351          (v) processing techniques; and
352          (vi) sanitation and food safety procedures;
353          (4) An independent cannabis testing laboratory's operating plan shall include:
354          (a) evidence that the independent cannabis testing laboratory agreement with a
355     cannabis production establishment to provide testing services; and
356          (b) the independent cannabis testing laboratory's intended:
357          (i) cannabis and cannabis product testing capability; and
358          (ii) cannabis and cannabis product testing equipment.
359          Section 8. Section 4-42-301 is enacted to read:
360     
Part 3. Cannabis Production Establishment Agents

361          4-42-301. Cannabis production establishment agent -- Registration.
362          (1) In order to act as a cannabis production establishment agent, an individual shall
363     register with the department as a cannabis production establishment agent.
364          (2) A physician may not serve as a cannabis production establishment agent.
365          (3) An independent cannabis testing laboratory agent may not act as an agent for a
366     cannabis dispensary, a cannabis processing facility, or a cannabis cultivation facility.

367          (4) The department shall, within 30 business days after receiving a complete
368     application, register and issue a cannabis production establishment agent registration card to an
369     individual who:
370          (a) has not been convicted of an offense that is a felony under either state or federal
371     law;
372          (b) provides to the department:
373          (i) the individual's name and address; and
374          (ii) the name and location of a licensed cannabis production establishment where the
375     individual seeks to act as the cannabis production establishment's agent;
376          (c) pays the department a fee:
377          (i) before January 1, 2017, of $250; and
378          (ii) on or after January 1, 2017, in an amount determined by the department in
379     accordance with Section 63J-1-504, that is necessary to cover the department's cost to
380     implement this part; and
381          (d) complies with the requirement for and passes a criminal background check
382     described in Section 4-42-302.
383          (5) The department shall designate, on an individual's cannabis production
384     establishment agent registration card the name and type of any cannabis production
385     establishment where the individual is registered as an agent.
386          (6) A cannabis production establishment agent shall comply with a certification
387     standard developed by the department or with a third party certification standard approved by
388     the department.
389          (7) The certification standard described in Subsection (6) shall address:
390          (a) Utah medical cannabis law;
391          (b) for a cannabis cultivation facility agent, cannabis cultivation best practices;
392          (c) for a cannabis processing facility agent, cannabis processing, food safety, and
393     sanitation best practices; and
394          (d) for an independent cannabis testing laboratory agent, cannabis testing best
395     practices.
396          (8) The department may revoke or refuse to issue a cannabis production establishment
397     agent registration card of an individual who:

398          (a) violates the requirements of this chapter; or
399          (b) is convicted of an offense, that is a felony under state or federal law, that involves a
400     drug or violent crime.
401          Section 9. Section 4-42-302 is enacted to read:
402          4-42-302. Cannabis production establishment agent -- Criminal background
403     checks.
404          (1) An individual that applies for registration as a cannabis production establishment
405     agent under Section 4-42-301 shall:
406          (a) submit, at the time of application, a fingerprint card in a form acceptable to the
407     department; and
408          (b) consent to a fingerprint background check by:
409          (i) the Utah Bureau of Criminal Identification; and
410          (ii) the Federal Bureau of Investigation.
411          (2) The department shall request that the Department of Public Safety complete a
412     Federal Bureau of Investigation criminal background check for the individual described in
413     Subsection (1).
414          Section 10. Section 4-42-303 is enacted to read:
415          4-42-303. Cannabis production establishment agent registration card --
416     Rebuttable presumption.
417          (1) A cannabis production establishment agent who is registered with the department
418     under Section 4-42-301 shall carry the individual's cannabis production establishment agent
419     registration card with the individual at all times when:
420          (a) the individual is on the premises of the cannabis production establishment where
421     the individual is a cannabis production establishment agent; and
422          (b) the individual is transporting cannabis, a cannabis product, or a medical cannabis
423     device between two cannabis production establishments or between a cannabis production
424     establishment and a cannabis dispensary.
425          (2) If an individual handling cannabis, a cannabis product, or a medical cannabis
426     device at a cannabis production establishment, or transporting cannabis, a cannabis product, or
427     a medical cannabis device, possesses the cannabis, cannabis product, or medical cannabis
428     device in compliance with Subsection (1):

429          (a) there is a rebuttable presumption that the individual possesses the cannabis,
430     cannabis product, or medical cannabis device legally; and
431          (b) a law enforcement officer does not have probable cause, based solely on the
432     individual's possession of the cannabis, cannabis product, or medical cannabis device in
433     compliance with Subsection (1), to believe that the individual is engaging in illegal activity.
434          (3) A cannabis production establishment agent registered with the department is guilty
435     of an infraction if the registered cannabis production establishment agent:
436          (a) (i) is on the premises of a cannabis production establishment where the individual is
437     registered as an agent; or
438          (ii) transports cannabis, a cannabis product, or a medical cannabis device; and
439          (b) does not possess, on the registered cannabis production establishment agent's
440     person, a valid cannabis production establishment agent registration card.
441          (4) A registered cannabis production establishment agent who is guilty of an infraction
442     under Subsection (3) is subject to a fine of no more than $100.
443          Section 11. Section 4-42-401 is enacted to read:
444     
Part 4. General Cannabis Production Establishment Operating Requirements

445          4-42-401. Cannabis production establishment -- General operating requirements.
446          (1) (a) A cannabis production establishment shall operate in accordance with the
447     operating plan provided to the department under Section 4-42-203.
448          (b) A cannabis production establishment shall notify the department no longer than 30
449     days after a change in the cannabis production establishment's operating plan.
450          (2) A cannabis production establishment shall operate:
451          (a) except as provided in Subsection (3), in a facility with a controlled entrance that is
452     accessible only by an individual with a valid cannabis production establishment agent
453     registration card issued under Section 4-42-301; and
454          (b) at the physical address provided to the department under Section 4-42-201.
455          (3) A cannabis production establishment may allow an individual who is a visitor, a
456     contractor, or a member of the press to access the cannabis production establishment if the
457     cannabis production establishment:
458          (a) ensures that the individual is accompanied by a cannabis production establishment
459     agent at all times while the individual is at the cannabis production establishment; and

460          (b) maintains a record of the individual's access.
461          (4) A cannabis production establishment shall operate in a facility that has:
462          (a) no exterior signage that indicates the type of business;
463          (b) a single, secure public entrance;
464          (c) a security system with a backup power source that:
465          (i) detects and records entry into the cannabis production establishment during business
466     hours; and
467          (ii) provides notice of an unauthorized entry to law enforcement when the cannabis
468     production establishment is closed; and
469          (d) a locked and reinforced area where the cannabis production establishment stores
470     cannabis or a cannabis product.
470a     Ŝ→      (5)     A cannabis production establishment may not operate:
470b          (a)     within 600 feet of a community location, as defined in Section 32B-1-102, that is
470c     not a public or private school; or
470d          (b)     within 1000 feet of a public or private school. ←Ŝ
471          Section 12. Section 4-42-402 is enacted to read:
472          4-42-402. Inspections.
473          (1) Subject to Subsection (2), the department shall inspect the records and facility of a
474     cannabis production establishment in order to determine if the cannabis production
475     establishment complies with the licensing requirements of this chapter.
476          (2) The department may inspect the records and facility of a cannabis production
477     establishment Ŝ→ [
:
478          (a) up to three scheduled times per year;
479          (b) up to as one unscheduled time per year; and
480          (c) if the department has reason to believe that the cannabis production establishment
481     has violated the law,
] ←Ŝ
at any time, scheduled or unscheduled.
482          Section 13. Section 4-42-403 is enacted to read:
483          4-42-403. Advertising.
484          (1) A cannabis production establishment may not advertise to the general public in any
485     medium.
486          (2) Notwithstanding Subsection (1), a cannabis production establishment may advertise
487     employment opportunities at the cannabis production facility.
488          Section 14. Section 4-42-404 is enacted to read:
489          4-42-404. Cannabis, cannabis product, or medical cannabis device transportation.
490          (1) Except for an individual or a designated caregiver with a medical cannabis card

491     who possesses cannabis or a cannabis product in accordance with Section 26-58-204, an
492     individual may only transport cannabis, a cannabis product, or a cannabis device between
493     cannabis production establishments or between a cannabis production establishment and a
494     cannabis dispensary if the individual is:
495          (a) a registered cannabis production establishment agent; or
496          (b) a registered cannabis dispensary agent.
497          (2) An individual transporting cannabis, a cannabis product, or a medical cannabis
498     device shall possess a transportation manifest that:
499          (a) includes a unique identifier that links the cannabis, cannabis product, or medical
500     cannabis device to a related inventory control system;
501          (b) includes origin and destination information for any cannabis, cannabis product, or
502     medical cannabis device the individual is transporting; and
503          (c) indicates the departure and arrival times and locations of the individual transporting
504     the cannabis, cannabis product, or medical cannabis device.
505          (3) In addition to the requirements in Subsections (1) and (2), the department may
506     establish, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
507     Rulemaking Act, requirements for transporting cannabis, a cannabis product, or a medical
508     cannabis device that are related to safety for human consumption of cannabis or cannabis
509     products.
510          (4) A cannabis production establishment agent registered with the department is guilty
511     of an infraction if the registered cannabis production establishment agent:
512          (a) transports cannabis, a cannabis product, or a medical cannabis device; and
513          (b) does not possess, on the registered cannabis production establishment agent's
514     person or in the transport vehicle, a manifest that complies with Subsection (3).
515          (5) A registered cannabis production establishment agent who is guilty of an infraction
516     under Subsection (3) is subject to a $100 fine.
517          Ŝ→ [
Section 15. Section 4-42-405 is enacted to read:
518          4-42-405. Zoning.
519          (1) A municipality or local government may not enact a zoning ordinance that prohibits
520     a cannabis production establishment from operating in a location within the municipality's or
521     local government's jurisdiction, on the sole basis that the cannabis production establishment is


522     a cannabis production establishment.
523          (2) A municipality or local government shall allow a cannabis production
524     establishment to operate as a permitted use in an agricultural, an industrial, or a manufacturing
525     zone, or in a zone that allows for similar uses.
] ←Ŝ
526          Ŝ→ [
Section 16.] Section 15. ←Ŝ Section 4-42-501 is enacted to read:
527     
Part 5. Cannabis Cultivation Facility Operating Requirements

528          4-42-501. Cannabis cultivation facility -- Operating requirements.
529          (1) A cannabis cultivation facility shall ensure that any cannabis growing at the
530     cannabis cultivation facility is screened from view at the cannabis cultivation facility perimeter.
531          (2) A cannabis cultivation facility shall use a unique identifier that is connected to the
532     cannabis cultivation facility's inventory control system for:
533          (a) beginning at the time a cannabis plant is 8 inches tall and has a root ball, each
534     cannabis plant;
535          (b) each unique harvest of cannabis plants; and
536          (c) each batch of cannabis transferred to a cannabis dispensary, a cannabis processing
537     facility, or an independent cannabis testing laboratory.
538          (4) The department shall review a cannabis cultivation facility's operating plan
539     submitted under Section 4-42-203 for the purpose of ensuring that the cannabis that a
540     cultivation facility cultivates is safe for human use.
541          Ŝ→ [
Section 17.] Section 16. ←Ŝ Section 4-42-601 is enacted to read:
542     
Part 6. Cannabis Processing Facility Operating Requirements

543          4-42-601. Cannabis processing facility -- Operating requirements -- General.
544          (1) A cannabis processing facility shall ensure that a cannabis product that the cannabis
545     processing facility sells or provides to a cannabis dispensary complies with the requirements of
546     this part.
547          (2) If a cannabis processing facility extracts cannabinoids from cannabis using a
548     hydrocarbon process, the cannabis processing facility shall extract the cannabinoids under a
549     blast hood.
550          (3) The department shall review a cannabis processing facility's operating plan
551     submitted under Section 4-42-203 for the purpose of ensuring that a cannabis product that the
552     cannabis processing facility produces is safe for human consumption.

553          Section 18. Section 4-42-602 is enacted to read:
554          4-42-602. Cannabis product -- Labeling and packaging.
555          (1) A cannabis product shall have a label that:
556          (a) clearly and unambiguously states that the cannabis product contains cannabis;
557          (b) clearly displays:
558          (i) the total amount of cannabinoids by weight in the cannabis product; Ŝ→ [
and] ←Ŝ
559          (ii) the cannabinoid profile of the cannabis product; Ŝ→ and
559a          
(iii)     the number of doses, and the milligrams in each dose, in the cannabis product; ←Ŝ
560          (c) has a unique batch identifier that is connected to the cannabis processing facility's
561     inventory control system.
562          (d) identifies the cannabinoid extraction method that the cannabis precessing facility
563     used to create the cannabis product;
564          (e) if the cannabis processing facility used a hydrocarbon extraction process to create
565     the cannabis product, a certification that the product contains a level of residual solvents that is
566     safe for human consumption;
567          (f) does not display images, words, or phrases that are:
568          (i) intended to appeal to children; or
569          (ii) similar to words or phrases used on candy labels; and
570          (g) certifies that the cannabis product is free from microbiological contaminants.
571          (2) A cannabis processing facility shall package a cannabis product in a container that:
572          (a) is tamper evident;
573          (b) is not appealing to children or similar to a candy container;
574          (c) is opaque; and
575          (d) complies with the industry child-resistant effectiveness standard known as F4.
576          Section 19. Section 4-42-603 is enacted to read:
577          4-42-603. Cannabis product -- Product quality.
578          (1) A cannabis processing facility may not produce a cannabis product in a physical
579     form that:
580          (a) is intended to appeal to children; or
581          (b) is designed to mimic or be mistaken for an existing candy product.
582          (2) A cannabis processing facility may not manufacture a cannabis product by applying
583     a cannabis agent only to the surface of a pre-manufactured food product that is not produced by

584     the cannabis processing facility.
585          (3) A cannabis product may vary in the cannabis product's labeled cannabis profile by
586     up to 15% of the indicated amount of a given cannabinoid, by weight.
587          (4) The department shall adopt, by rule made in accordance with Title 63G, Chapter 3,
588     Utah Administrative Rulemaking Act, human consumption safety standards for a cannabis
589     product that are consistent, to the extent possible, with standards adopted by the United States
590     Food and Drug Administration for products that are similarly applied or ingested.
591          Section 20. Section 4-42-701 is enacted to read:
592     
Part 7. Independent Cannabis Testing Laboratories

593          4-42-701. Cannabis and cannabis product testing.
594          (1) An independent cannabis testing laboratory shall, before Ŝ→ [
cannabis or] ←Ŝ a
594a     cannabis
595
     product is offered for sale at a cannabis dispensary, accurately test and certify the Ŝ→ [cannabis or] ←Ŝ 596     cannabis product as provided in this section.
597          (2) An independent cannabis testing laboratory shall determine the cannabinoid profile
598     of Ŝ→ [
cannabis or] ←Ŝ a cannabis product.
599          (3) An independent cannabis testing laboratory shall determine if Ŝ→ [
cannabis or] ←Ŝ a
600     cannabis product contains, in an amount that is harmful to human health:
601          (a) mold;
602          (b) fungus;
603          (c) pesticides; or
604          (d) microbial contaminants.
605          (4) For a cannabis product that is manufactured using a process that involves extraction
606     using hydrocarbons, an independent cannabis testing laboratory shall test the cannabis product
607     for an unhealthy level of a residual solvent.
608          (5) The department may determine, by rule made in accordance with Title 63G,
609     Chapter 3, Utah Administrative Rulemaking Act, the amount that is safe for human
610     consumption of:
611          (a) a substance described in Subsection (3); and
612          (b) a residual solvent.
613          Section 21. Section 4-42-702 is enacted to read:
614          4-42-702. Reporting -- Inspections -- Seizure by the department.

615          (1) If an independent cannabis testing laboratory determines that the results of a lab test
616     indicate that a Ŝ→ [
cannabis or] ←Ŝ cannabis product batch may be unsafe for human
616a     consumption:
617          (a) the independent cannabis testing laboratory shall report the results and the Ŝ→ [
cannabis
618     or
] ←Ŝ
cannabis product batch simultaneously to:
619          (i) the department; and
620          (ii) the cannabis production establishment that prepared the Ŝ→ [
cannabis or] ←Ŝ cannabis
621     product batch;
622          (b) retain possession of the Ŝ→ [
cannabis or] ←Ŝ cannabis product batch for one week in
622a     order to
623     investigate the cause of the defective batch and to make a determination; and
624          (c) allow the cannabis production establishment that prepared the Ŝ→ [
cannabis or] ←Ŝ
624a      cannabis
625     product batch to appeal the determination described in Subsection (1)(b), and, if necessary
626     following the appeal, allow the independent cannabis testing laboratory to retest the Ŝ→ [
cannabis
626a     or
] ←Ŝ
627     cannabis product batch.
628          (2) If, under Subsection (1)(b), the department determines, following an appeal, that a
629     Ŝ→ [
cannabis or] ←Ŝ cannabis product prepared by a cannabis production establishment is unsafe
629a     for
630     human consumption, the department may seize, embargo, or destroy a Ŝ→ [
cannabis or] ←Ŝ
630a      cannabis
631     product batch.
632          Section 22. Section 4-42-801 is enacted to read:
633     
Part 8. Enforcement

634          4-42-801. Enforcement -- Fine -- Citation.
635          (1) For a violation of the licensing provisions of this chapter by a person that is a
636     cannabis production establishment or a cannabis production establishment agent:
637          (a) revoke the person's cannabis production establishment license or cannabis
638     production establishment agent registration card;
639          (b) refuse to renew the person's license or registration; or
640          (c) assess the person an administrative penalty.
641          (2) The department shall deposit an administrative penalty imposed under this section
642     in the Medical Cannabis Restricted Account.
643          (3) (a) The department may take an action described in Subsection (3)(b) if the
644     department concludes, upon inspection or investigation, that, for a person that is a cannabis
645     production establishment or a cannabis production establishment agent:
646          (i) the person has violated the provisions of this chapter, a rule made under this
647     chapter, or an order issued under this chapter; or
648          (ii) the person produced Ŝ→ [
cannabis or] ←Ŝ a cannabis product batch that a test shows
648a     contains
649     a contaminant described in Section 4-42-701.
650          (b) If the department makes the determination about a person described in Subsection
651     (3)(a)(i), the department shall:
652          (i) issue the person a written citation;
653          (ii) attempt to negotiate a stipulated settlement; or
654          (iii) direct the person to appear before an adjudicative proceeding conducted under
655     Title 63G, Chapter 4, Administrative Procedures Act.
656          (c) If the department makes the determination about a person described in Subsection
657     (3)(a)(ii), the department may:
658          (i) seize, embargo, or destroy the cannabis or cannabis product batch as described in
659     Subsection 4-42-702(2); and
660          (ii) direct the person to appear before an adjudicative proceeding conducted under Title
661     63G, Chapter 4, Administrative Procedures Act.
662          (4) The department may, for a person subject to an uncontested citation, a stipulated
663     settlement, or a finding of a violation in an adjudicative proceeding under this section:
664          (a) assess the person a fine, established in accordance with Section 63J-1-504, of up to
665     $5,000 per violation, in accordance with a fine schedule established by rule made in accordance
666     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
667          (b) order the person to cease and desist from, and cure, the action that creates a
668     violation.
669          (5) The department may not revoke a cannabis production establishment's license via a
670     citation.
671          (6) If within 20 calendar days after the day on which a department serves a citation for
672     a violation of this chapter, the person that is the subject of the citation fails to request a hearing
673     to contest the citation, the department shall use the citation as the basis for the department's
674     final order.
675          (7) The department may, for a person who fails to cure the violation that the basis is for
676     the citation under this section:

677          (a) refuse to issue or renew the person's license or cannabis production establishment
678     agent registration card; or
679          (b) suspend, revoke, or place on probation the person's license or cannabis production
680     establishment registration card.
681          Section 23. Section 10-9a-104 is amended to read:
682          10-9a-104. Stricter requirements.
683          (1) Except as provided in Subsection (2), a municipality may enact an ordinance
684     imposing stricter requirements or higher standards than are required by this chapter.
685          (2) A municipality may not impose stricter requirements or higher standards than are
686     required by:
687          Ŝ→ [
(a) Section 4-42-405;
688          [
]
(a) [] (b)] ←Ŝ Section 10-9a-305; Ŝ→ [[] and []
689          [
]
(b) [] (c)] ←Ŝ Section 10-9a-514 Ŝ→ [[] .[]; and
690          (d) Section 26-58-506.
] ←Ŝ

691          Section 24. Section 17-27a-104 is amended to read:
692          17-27a-104. Stricter requirements.
693          (1) Except as provided in Subsection (2), a county may enact an ordinance imposing
694     stricter requirements or higher standards than are required by this chapter.
695          (2) A county may not impose stricter requirements or higher standards than are
696     required by:
697          Ŝ→ [
(a) Section 4-42-405;
698          [
]
(a) [] (b)] ←Ŝ Section 17-27a-305; Ŝ→ [[] and []
699          [
]
(b) [] (c)] ←Ŝ Section 17-27a-513 Ŝ→ [[] . []; and
700          (d) Section 26-58-506.
] ←Ŝ

701          Section 25. Section 26-58-101 is enacted to read:
702     
CHAPTER 58. MEDICAL CANNABIS ACT

703     
Part 1. General Provisions

704          26-58-101. Title.
705          This chapter is known as "Medical Cannabis Act."
706          Section 26. Section 26-58-102 is enacted to read:
707          26-58-102. Definitions.

708          As used in this chapter:
709          (1) "Cannabinoid profile" means the percentage of cannabis or a cannabis product, by
710     weight, that is composed of the cannabinoids:
711          (a) Tetrahydrocannabinol or THC;
712          (b) Tetrahyrdocannabinolic acid or THCa;
713          (c) Cannabidiol or CBD;
714          (d) Cannabinol or CBN; and
715          (e) Cannabigerol or CBG.
716          (2) "Cannabis" means the same as that term is defined in Section 58-37-3.6.
717          (3) "Cannabis cultivation facility" means the same as that term is defined in Section
718     4-42-102.
719          (4) "Cannabis dispensary" means a person that:
720          (a) sells cannabis, a cannabis product, or a medical cannabis device; or
721          (b) purchases or possesses cannabis, a cannabis product, or a medical cannabis device,
722     with the intent to sell the cannabis, cannabis product, or medical cannabis device.
723          (5) "Cannabis dispensary agent" means an owner, officer, director, board member, or
724     employee of, or a volunteer at, a cannabis dispensary.
725          (6) "Cannabis dispensary agent registration card" means a registration card, issued by
726     the department, that identifies an individual as a cannabis dispensary agent.
727          (7) "Cannabis processing facility" means the same as that term is defined in Section
728     4-42-102.
729          (8) "Cannabis product" means the same as that term is defined in Section 58-37-3.6.
730          (9) "Cannabis production establishment agent" means the same as that term is defined
731     in Section 4-42-102.
732          (10) "Cannabis production establishment agent registration card" means the same as
733     that term is defined in Section 4-42-102.
734          (11) "Designated caregiver" means an individual:
735          (a) whom a patient with a medical cannabis card designates as the patient's caregiver;
736     and
737          (b) registers with the department under Section 26-58-202.
738          (12) "Independent cannabis testing laboratory" means the same as that term is defined

739     in Section 4-42-102.
740          (13) "Inventory control system" means the system described in Section 4-42-103.
741          (14) "Medical cannabis card" means an official, tamper proof document or card, issued
742     by the department to an individual with a qualifying illness or the individual's designated
743     caregiver under this chapter, that is connected to the electronic verification system.
744          (15) "Medical cannabis device" means the same as that term is defined in Section
745     58-37-3.6(1)(b).
746          (16) "Medical Cannabis Restricted Account" means the account created in Section
747     26-58-109.
748          (17) "Participating entity" means:
749          (a) the Department of Agriculture and Food;
750          (b) the Department of Health; and
751          (c) the Department of Technology Services.
752          (18) "Physician" means an individual who is qualified to recommend cannabis under
753     Section 26-58-207.
754          (19) "Qualifying illness" means a condition described in Section 26-58-105.
755          (20) "State electronic verification system" means the system described in Section
756     26-58-104.
757          Ŝ→ [
Section 27. Section 26-58-103 is enacted to read:
758          26-58-103. Preemption.
759          This chapter preempts any ordinance enacted by a political subdivision of the state that
760     regulates a cannabis dispensary.
] ←Ŝ
761          Ŝ→ [
Section 28.] Section 27. ←Ŝ Section 26-58-104 is enacted to read:
762          26-58-104. Electronic verification system.
763          (1) The Department of Agriculture and Food, the Department of Health, the
764     Department of Public Safety, and the Department of Technology Services shall:
765          (a) enter into a memorandum of understanding in order to determine the function and
766     operation of an electronic verification system;
767          (b) coordinate with the Division of Purchasing under Title 63G, Chapter 6a, Utah
768     Procurement Code, to develop a request for proposals for a third party provider to develop and
769     maintain an electronic verification system in coordination with the Department of Technology

770     Services; and
771          (c) select a third party provided described in Subsection (1)(b).
772          (2) The electronic verification system described in Subsection (1) shall:
773          (a) allow an individual, with the individual's physician in the physician's office, to
774     apply for a medical cannabis card;
775          (b) allow a physician to:
776     
     (i) electronically recommend, during a visit with a patient, treatment with Ŝ→ [cannabis or] ←Ŝ a
777     cannabis product for the patient; and
778          (ii) see, on a screen where the physician inputs a recommendation, simultaneously
779     while the physician inputs the recommendation, the patient's cannabis dispensing history;
780          (c) issue a medical cannabis card to an individual if the individual meets the
781     requirements described in Section 26-58-201;
782          (d) issue to a designated caregiver, if the designated caregiver meets the requirements
783     in Section 26-58-202, a medical cannabis card on behalf of a named patient;
784          (e) connect with an inventory control system used by each cannabis dispensary and
785
     cannabis production establishment to track, in real time, for the purchase of Ŝ→ [cannabis or] ←Ŝ a
786     cannabis product by a medical cannabis card holder:
787          (i) the time and date of the purchase;
788          (ii) the quantity and type of Ŝ→ [
cannabis or a] ←Ŝ cannabis product purchased; and
789          (iii) any cannabis production establishment or cannabis dispensary that cultivated,
790     processed, tested, or sold the Ŝ→ [
cannabis or] ←Ŝ cannabis product;
791          (f) provide access to the Department of Health and the Department of Agriculture and
792     Food to the extent necessary to carry out the Department of Health's and the Department of
793     Agriculture and Food's functions and responsibilities under:
794          (i) this chapter; and
795          (ii) Title 4, Chapter 42, Cannabis Production Establishment;
796          (g) provide access to state or local law enforcement:
797          (i) during a traffic stop for the purpose of determining if the individual subject to the
798     traffic stop is complying with state medical cannabis law; or
799          (ii) after obtaining a warrant;
800          (h) create a record each time a person accesses the database that identifies the person

801     who accesses the database and the individual whose records are accessed; and
802          (i) transmit an individual's Ŝ→ [
cannabis and] ←Ŝ cannabis product purchase history to the
803     controlled substance database created in Section 58-37f-203.
804          (3) The Department of Health may release de-identified data collected by the system
805     under Subsection (2) for the purpose of conducting medical research.
806          Section 29. Section 26-58-105 is enacted to read:
807          26-58-105. Qualifying illness.
808          (1) For the purposes of this chapter, the following conditions are considered a
809     qualifying illness:
810          (a) HIV, acquired immune deficiency syndrome or an autoimmune disorder;
811          (b) Alzheimer's disease;
812          (c) amyotrophic lateral sclerosis;
813          (d) cancer, cachexia, or such condition manifest by physical wasting, nausea, or
814     malnutrition associated with chronic disease;
815          (e) Crohn's disease or a similar gastrointestinal disorder;
816          (f) epilepsy or a similar condition that causes debilitating seizures;
817          (g) multiple sclerosis or a similar condition that causes persistent and debilitating
818     muscle spasms;
819          (h) post-traumatic stress disorder related to military service; and
820          (i) chronic pain in an individual, if:
821          (A) a physician determines that the individual is at greater risk of becoming addicted
822     to, chemically dependent on, or overdosing on, opiate-based pain medication; or
823          (B) a physician determines that the individual is allergic to opiates, or is otherwise
824     medically unable to use opiates.
825          (2) In addition to the conditions described in Subsection (1), a condition approved
826     under Section 26-58-106, in an individual, on a case-by-case basis, is considered a qualifying
827     illness for the purposes of this chapter.
828          Section 30. Section 26-58-106 is enacted to read:
829          26-58-106. Compassionate Use Board.
830          (1) The department shall establish a Compassionate Use Board consisting of:
831          (a) five physicians who are knowledgeable about the medical use of cannabis and

832     certified in one of the following specialties:
833          (i) neurology;
834          (ii) pain medicine and pain management;
835          (iii) medical oncology;
836          (iv) psychiatry;
837          (v) infectious disease;
838          (vi) internal medicine; and
839          (vii) pediatrics; Ŝ→ [
and] ←Ŝ
840          (b) the director of the Department of Health or the director's designee as a non-voting
841     member Ŝ→ [
.] ; and
841a          (c)     two medical research professionals with expertise in cannabinoids or a
841b     qualifying illness, including one medical research professional who is affiliated with a
841c     research-based higher education institution. ←Ŝ
842          (2) The department shall appoint at least one member of the board who has a specialty
843     in addiction medicine.
844          (3) (a) Ŝ→ [
Two] Four ←Ŝ of the members of the board first appointed shall serve for a
844a     term of three
845     years and Ŝ→ [
two] three ←Ŝ of the members of the board first appointed shall serve for a term of
845a     four years.
846          (b) After the first members' terms expire, members of the board shall serve for a term
847     of four years and shall be eligible for reappointment.
848          (c) Any member of the board may serve until a successor is appointed.
849          (d) The director of the Department of Health or the director's designee shall serve as
850     the nonvoting chair of the board.
851          (4) A quorum of the Compassionate Use Board shall consist of Ŝ→ [
three] five ←Ŝ
851a      members.
852          (5) A member of the board may not receive compensation or benefits for the member's
853     service, but may receive per diem and travel expenses in accordance with:
854          (a) Section 63A-3-106;
855          (b) Section 63A-3-107; and
856          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
857     63A-3-107.
858          (6) The Compassionate Use Board shall:
859          (a) review and recommend to the department approval for an individual who is not
860     otherwise qualified to receive a medical cannabis card to obtain a medical cannabis card for
861     compassionate use if:
862          (i) the individual and the individual's physician appear before the board and offer, in
863     the board's discretion, satisfactory evidence that the individual suffers from a condition:
864          (A) that substantially impairs the individual's quality of life;
865          (B) that is intractable;
866          (C) that is not responsive to other treatments; and
867          (D) for which it is reasonably likely the condition will respond to treatment with
868     cannabis.
869          (ii) the board determines it is in the best interest of the patient to allow the
870     compassionate use of medical cannabis;
871          (b) meet to receive or review compassionate use petitions:
872          (i) quarterly, unless no petitions are pending; or
873          (ii) as often as necessary if there are more petitions than the board can receive or
874     review during the board's regular schedule;
875          (c) report before November 1 of each year, to the Legislature's Health and Human
876     Services Interim Committee, the number of compassionate use approvals the board issued
877     during the past year and the types of conditions for which the board approved compassionate
878     use; and
879          (d) evaluate whether the number of cannabis dispensaries in a geographic area meets
880     the needs for a geographic area and recommend to the Legislature whether the number of
881     cannabis dispensaries should be increased in a geographic area;
882          (e) evaluate physician variances under Subsection 26-58-107(5).
883          (6) The department shall review any compassionate use recommended by the board
884     under this section to confirm if the board properly exercised the board's discretion under this
885     section.
886          (7) If the department determines the board properly approved an individual for a
887     compassionate use under this section, the department shall issue the individual a
887a     Ŝ→ provisional ←Ŝ medical
888     cannabis card in accordance with this chapter Ŝ→ [
.] that is valid for one year. ←Ŝ
889          (8) Any individually identifiable health information contained in a petition received
890     under this section shall be a protected record in accordance with Title 63G, Chapter 2,
891     Government Records Access and Management Act.
892          (9) The Compassionate Use Board shall, before November 1 of each year, recommend
893     to the Legislature:

894          (a) a condition to designate as a qualifying illness under Section 26-58-105; or
895          (b) a condition to remove as a qualifying illness under Section 26-58-105.
896          Section 31. Section 26-58-107 is enacted to read:
897          26-58-107. Physician qualification.
898          (1) For the purposes of this section, a physician means an individual who is licensed to
899     practice:
900          (a) medicine under Title 58, Chapter 67, Utah Medical Practice Act; or
901          (b) osteopathic medicine under Title 58, Chapter 68, Utah Osteopathic Medical
902     Practice Act.
903          (2) A physician may recommend cannabis if the physician:
904          (a) completes the training requirements described in Subsection (3); and
905          (b) except as described in Subsection (4), recommends cannabis to no more than 250 of
906     the physician's patients at any given time.
907          (3) (a) A physician shall complete, before recommending cannabis to a patient, a
908     training program in cannabis recommendation best practices that is approved by the
909     department, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
910     Rulemaking Act.
911          (b) The department shall issue an endorsement to a physician that completes the
912     training program described in Subsection (3)(a)
913          (c) The endorsement described in Subsection (3)(b) entitles a physician to use a
914     medical cannabis endorsement image developed by the department on the physician's website.
915          (4) A physician may recommend cannabis to greater than 20% of the physician's
916     patients if the physician:
917          (a) is certified in one of the following specialties:
918          (i) anesthesiology;
919          (ii) gastroenterology;
920          (iii) neurology;
921          (iv) oncology;
922          (v) pain and palliative care;
923          (vi) physiatry;
924          (vii) psychiatry; or

925          (viii) addiction medicine;
926          (b) appears before the Compassionate Use Board described in Section 26-58-106; and
927          (c) demonstrates, to the satisfaction of the board and with the department's approval,
928     that:
929          (i) the physician's practice has unique characteristics that warrant allowing the
930     physician to recommend cannabis to greater than 250 of the physician's patients; and
931          (ii) the physician has established expertise in medical cannabis.
932          (5) (a) Except as provided in Subsection (5)(b), a physician eligible to recommend
933     cannabis or a cannabis product under this section may not advertise that the physician
934     recommends cannabis or a cannabis product.
935          (b) A physician may advertise via a website that displays only:
936          (i) a green cross;
937          (ii) the physician's office's hours of operation;
938          (iii) the medical cannabis endorsement image described in Subsection (3)(c);
939          (iv) a qualifying illness that the physician treats;
940          (v) scientific studies regarding cannabis use; and
941          (vi) current studies on treatment with cannabis being conducted on patients.
942          Section 32. Section 26-58-108 is enacted to read:
943          26-58-108. Standard of care -- Medical practitioners not liable -- No private right
944     of action -- Insurance coverage.
945          (1) It is not a breach of the applicable standard of care for a physician to recommend
946     treatment with Ŝ→ [
cannabis or] ←Ŝ a cannabis product to an individual under this chapter.
947          (2) A physician who recommends treatment with Ŝ→ [
cannabis or] ←Ŝ a cannabis product
947a     to an
948     individual in accordance with this chapter may not, based solely on the reason that the
949     recommendation is for Ŝ→ [
cannabis or] ←Ŝ a cannabis product, be subject to:
950          (a) civil liability;
951          (b) criminal liability; or
952          (c) licensure sanctions under:
953          (i) Title 58, Chapter 67, Utah Medical Practice Act; or
954          (ii) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act.
955          (3) An insurance carrier, third-party administrator, or employer is not required to

956     provide reimbursement for Ŝ→ [
cannabis,] ←Ŝ a cannabis product Ŝ→ [,] ←Ŝ or a medical
956a     cannabis device, under
957     this chapter.
958          Section 33. Section 26-58-109 is enacted to read:
959          26-58-109. Medical Cannabis Restricted Account -- Creation.
960          (1) There is created in the General Fund a restricted account known as the "Medical
961     Cannabis Restricted Account."
962          (2) The account created in this section is funded from:
963          (a) money deposited by the State Tax Commission under Title 59, Chapter 28, Medical
964     Cannabis Tax;
965          (b) money deposited into the account by the Department of Agriculture and Food under
966     Section 4-42-801;
967          (c) money deposited into the account by the department under Section 26-58-601;
968          (d) appropriations made to the account by the Legislature; and
969          (e) the interest described in Subsection (3).
970          (3) Interest earned on the account is deposited in the account.
971          (4) The money in the account may only be used to fund, upon appropriation, the state
972     licensing and regulation cost of the state medical cannabis program established in:
973          (a) Title 26, Chapter 58, Medical Cannabis Act;
974          (b) Title 4, Chapter 42, Cannabis Production Establishments; and
975          (c) Title 59, Chapter 28, Medical Cannabis Tax Act.
976          Ŝ→ [
Section 34. Section 26-58-110 is enacted to read:
977          26-58-110. Equal treatment of a public employee recommended cannabis, a
978     cannabis product, or a medical cannabis device by a physician.
979          (1) As used in this section, "public employee" means an individual who is employed by
980     the state or a political subdivision of the state.
981          (2) An employer of a public employee may not, in matters of employment, treat an
982     individual who uses cannabis, a cannabis product, or a medical cannabis device in accordance
983     with this chapter differently than the employer would treat a similarly situated individual who
984     uses a doctor-prescribed medication that has a side effect that is similar to a cannabis or
985     cannabis product side effect.
] ←Ŝ
986          Section 35. Section 26-58-201 is enacted to read:

987     
Part 2. Medical Cannabis Card Registration

988          26-58-201. Medical cannabis card -- Application -- Fees -- Database.
989          (1) The department shall:
990          (a) begin issuing medical cannabis cards under this section no later than December 1,
991     2016; and
992          (b) issue a medical cannabis card, via the electronic verification system, to an
993     individual who complies with this section no later than 45 days after the day on which the
994     individual submits a complete application.
995          (2) An individual is eligible for a medical cannabis card if the individual:
996          (a) is at least 18 years old;
997          (b) is a Utah resident; and
998          (c) recommended by the individual's physician under Subsection (5).
999          (3) An individual who is the parent or legal guardian of a minor is eligible for a
1000     medical cannabis card if:
1001          (a) the individual is at least 18 years old;
1002          (b) the individual is a Utah resident; and
1003          (c) recommended by the minor's physician under Subsection (5).
1004          (4) An individual who is eligible for a medical cannabis card under Subsection (2) or
1005     (3) shall submit an application for a medical cannabis card to the department:
1006          (a) with the recommending physician, in the recommending physician's office;
1007          (b) via an electronic application connected to the electronic verification system;
1008          (c) that includes:
1009          (i) the individual's name, gender, age, address, and for the purpose of being notified
1010     about a recall or a research study, the individual's contact information; and
1011          (ii) a copy of the individual's valid photo identification;
1012          (5) A physician who recommends treatment with medical cannabis to an individual or
1013     minor shall:
1014          (a) input in the physician's diagnosis that the individual suffers from a qualifying
1015     illness:
1016          (i) the type of qualifying illness; and
1017          (ii) a recommendation that the individual try Ŝ→ [
cannabis or] ←Ŝ a cannabis product; and

1018          (b) look up the individual in the controlled substance database created in Section
1019     58-37f-201 to check for potential interactions or warning signs.
1020          (6) A medical cannabis card the department issues under this section is valid for the
1021     lesser of:
1022          (a) an amount of time determined by the physician who recommends treatment with
1023     Ŝ→ [
cannabis or] ←Ŝ a cannabis product Subsection (5); or
1024          (b) two years.
1025          (7) An individual may not ingest cannabis or a cannabis product:
1026          (a) in public view; or
1027          (b) while the individual operates a motor vehicle.
1028          (8) The department may revoke an individual's medical cannabis card if the individual
1029     violates this chapter.
1030          (9) The department may establish procedures, by rule in accordance with Title 63G,
1031     Chapter 3, Utah Administrative Rulemaking Act, to implement the medical cannabis card
1032     application and issuance provisions of this Section.
1033          (10) (a) A person may submit, to the department, a request to conduct a medical
1034     research study using medical cannabis cardholder data contained in the electronic verification
1035     system.
1036          (b) The department shall review a request submitted under Subsection (10)(a) to
1037     determine if the medical research study is valid.
1038          (c) If the department determines that a medical research study is valid under Subsection
1039     (10)(b), the department shall notify a relevant medical cannabis cardholder asking for the
1040     medical cannabis cardholder's participation in the study.
1041          (d) The department may release, for the purposes of a study, information about a
1042     medical cannabis cardholder who consents to participation under Subsection (10)(c).
1043          (e) The department may establish standards for a medical research study's validity, by
1044     rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1045          Section 36. Section 26-58-202 is enacted to read:
1046          26-58-202. Medical cannabis card --- Designated caregiver -- Registration --
1047     Renewal -- Revocation.
1048          (1) An individual may designate up to two individuals to serve as designated caregivers

1049     of the individual if:
1050          (a) the individual has a valid medical cannabis card under Section 26-58-201; and
1051          (b) a physician determines that, due to physical impossibility or undue hardship, the
1052     individual is unable to obtain Ŝ→ [
cannabis or] ←Ŝ a cannabis product from a cannabis dispensary.
1053          (2) An individual registered as a designated caregiver under this section may:
1054          (a) carry a valid medical cannabis card with the designated caregiver's name for the
1055     purpose of transporting cannabis or a cannabis product to a designating patient or assisting a
1056     designating patient in administering the Ŝ→ [
cannabis or] ←Ŝ cannabis product; and
1057          (b) purchase and possess, in accordance with this chapter Ŝ→ [
, cannabis] ←Ŝ , a cannabis
1058     product Ŝ→ [
,] ←Ŝ or a medical cannabis device on behalf of the designating patient.
1059          (3) The department shall register an individual designated as a caregiver under
1060     Subsection (1) if the individual:
1061          (a) is at least 18 years old;
1062          (b) is a Utah resident;
1063          (c) applies online, with the department, through the electronic verification system, for a
1064     medical cannabis card as a designated caregiver;
1065          (d) pays, to the department, a fee established by the department in accordance with
1066     Section 63J-1-504, plus the cost of a criminal background check;
1067          (e) complies with Section 26-58-205; and
1068          (f) completes a training program for designated caregivers established by the
1069     department that includes an endorsement that the individual understands state law for
1070     caregivers.
1071          (4) The department shall issue, to an individual who registers under this section, a
1072     medical cannabis card that:
1073          (a) is connected to the electronic verification system; and
1074          (b) includes the individual's name.
1075          (5) A medical cannabis card is renewable for a designated caregiver if, at the time of
1076     renewal:
1077          (a) an individual with a medical cannabis card described in Subsection (1) renews the
1078     caregiver's designation; and
1079          (b) the designated caregiver meets the requirements of Subsection (3).

1080          (6) A designated caregiver may charge an individual to act as the individual's
1081     designated caregiver.
1082          (7) The Department of Health may revoke an individual's medical cannabis card if the
1083     individual:
1084          (a) violates this chapter; or
1085          (b) is convicted of a felony that is:
1086          (i) a crime of involving the use of force or violence against another person; or
1087          (ii) a felony conviction of a state or federal law pertaining to controlled substances.
1088          Section 37. Section 26-58-203 is enacted to read:
1089          26-58-203. Designated caregiver -- Criminal background check.
1090          (1) An individual registered as a designated caregiver under Section 26-58-202 shall
1091     submit to a criminal background check in accordance with Subsection (2).
1092          (2) Each designated caregiver shall:
1093          (a) submit, to the department, a fingerprint card in a form acceptable to the department
1094     and the Department of Public Safety; and
1095          (b) consent to a fingerprint background check by:
1096          (i) the Utah Bureau of Criminal Identification; and
1097          (ii) the Federal Bureau of Investigation.
1098          (3) The Department of Public Safety shall complete a Federal Bureau of Investigation
1099     Criminal Background Check for each designated caregiver under Subsection (2) and report the
1100     results of the background check to the department.
1101          Section 38. Section 26-58-204 is enacted to read:
1102          26-58-204. Medical cannabis card -- Patient and designated caregiver
1103     requirements -- Rebuttable presumption.
1104     
     (1) An individual who has a medical cannabis card and who possesses Ŝ→ [cannabis or] ←Ŝ a
1105     cannabis product outside of the individual's residence shall:
1106          (a) carry, with the individual at all times, the individual's medical cannabis card; and
1107          (b) carry, with the Ŝ→ [
cannabis or] ←Ŝ cannabis product, a label that identifies that the
1107a     Ŝ→ [
cannabis
1108     or
] ←Ŝ
cannabis product was originally sold from a department licensed cannabis dispensary,
1109     including the bar code or identification number that links the cannabis or cannabis product to
1110     the dispensary's inventory control system.

1111          (2) If an individual possesses Ŝ→ [
cannabis or] ←Ŝ a cannabis product in compliance with
1112     Subsection (1), or a medical cannabis device that corresponds with the Ŝ→ [cannabis or] ←Ŝ
1112a      cannabis
1113     product:
1114          (a) there is a rebuttable presumption that the individual possesses the Ŝ→ [
cannabis,] ←Ŝ
1115     cannabis product Ŝ→ [
,] ←Ŝ or medical cannabis device legally; and
1116          (b) a law enforcement officer does not have probable cause, based solely on the
1117     individual's possession of the Ŝ→ [
cannabis,] ←Ŝ cannabis product Ŝ→ [,] ←Ŝ or medical
1117a     cannabis device, to
1118     believe that the individual is engaging in illegal activity.
1119     
     (3) (a) If a law enforcement officer stops an individual who possesses Ŝ→ [cannabis,] ←Ŝ a
1120     cannabis product Ŝ→ [
,] ←Ŝ or a medical cannabis device, and the individual represents to the law
1121     enforcement officer that the individual holds a valid medical cannabis card, but the individual
1122     does not have the medical cannabis card in the individual's possession at the time of the stop by
1123     the law enforcement officer, the law enforcement officer shall attempt to access the state
1124     electronic verification system to determine the individual's identity and whether the individual
1125     holds a valid medical cannabis card.
1126          (b) If the law enforcement officer is able to verify the identity of the individual
1127     described in Subsection (3)(a), and that the individual holds a valid medical cannabis card, the
1128     law enforcement officer:
1129          (i) may not arrest or take the individual into custody for the sole reason that the
1130     individual is in possession of Ŝ→ [
cannabis,] ←Ŝ a cannabis product Ŝ→ [,] ←Ŝ or a medical
1130a     cannabis device; and
1131          (ii) may not seize the Ŝ→ [
cannabis,] ←Ŝ cannabis product Ŝ→ [,] ←Ŝ or medical
1131a     cannabis device.
1132          (4) An individual who has a valid medical cannabis card is guilty of an infraction if the
1133     individual:
1134          (a) possesses Ŝ→ [
cannabis,] ←Ŝ a cannabis product Ŝ→ [,] ←Ŝ or a medical cannabis
1134a     device; and
1135          (b) (i) does not posses the individual's medical cannabis card on the individual's
1136     person; or
1137          (ii) does not possess a label that complies with Subsection (1)(b).
1138          (5) (a) Except as described in Subsection (5)(b), an individual who has a valid medical
1139     cannabis card is guilty of an infraction if the individual uses Ŝ→ [
cannabis,] ←Ŝ a cannabis product
1139a      Ŝ→ [
,] ←Ŝ or a
1140     medical cannabis device in public view.
1141          (b) An individual may use Ŝ→ [
cannabis,] ←Ŝ a cannabis product Ŝ→ [,] ←Ŝ or a medical
1141a     cannabis device

1142     in public view in the event of a medical emergency.
1143          (6) An individual who is guilty of an infraction under Subsection (4) or (5) is subject to
1144     a $100 fine.
1145          Section 39. Section 26-58-301 is enacted to read:
1146     
Part 3. Cannabis Dispensary License

1147          26-58-301. Cannabis dispensary -- License -- Eligibility.
1148          (1) In order to operate as a cannabis dispensary, a person shall obtain a license from the
1149     department issued under this part.
1150          (2) Subject to the requirements of this part, the department shall, within 30 business
1151     days after receiving a complete application, issue a license to operate a cannabis dispensary to a
1152     person who submits to the department:
1153          (a) a proposed name and address of the cannabis dispensary;
1154          (b) evidence that the person:
1155          (i) possesses or controls a minimum of $500,000 in liquid assets for each application
1156     submitted to the department; and
1157          (ii) can comply with the operating requirements for a cannabis dispensary described in
1158     this chapter;
1159          (c) a complete application for a local business license;
1160          (d) an application fee:
1161          (i) before January 1, 2017, of $2,500; and
1162          (ii) after January 1, 2017, in an amount determined by the department in accordance
1163     with Section 63J-1-504, that is necessary to cover the department's cost to implement this part;
1164          (e) an operating plan that complies with Section 26-58-303; and
1165          (f) the results of a criminal background check for each cannabis dispensary agent.
1166          (3) If the department determines that a cannabis dispensary is eligible for a license
1167     under this section, the department shall:
1168          (a) before January 1, 2017, charge the cannabis dispensary an initial license fee of
1169     $50,000; and
1170          (b) on or after January 1, 2017, charge the cannabis dispensary an initial license fee in
1171     an amount determined by the department in accordance with Section 63J-1-504.
1172          (4) The department shall require a separate license and a separate license fee under

1173     Subsection (3) for each location of a cannabis dispensary.
1174          (5) The department may revoke a license under this part if the cannabis dispensary is
1175     not operating within one year of the issuance of the initial license.
1176          (6) The department shall deposit the proceeds of a fee imposed by this section in the
1177     Medical Cannabis Restricted Account.
1178          Section 40. Section 26-58-302 is enacted to read:
1179          26-58-302. Renewal.
1180          (1) Except as provided in Subsection (3), the department shall renew a person's license
1181     under this part every two years if, at the time of renewal:
1182          (a) the person meets the requirements of Section 26-58-301; and
1183          (b) the person pays the department a license renewal fee in an amount determined by
1184     the department in accordance with Section 63J-1-504.
1185          (2) (a) The department may not renew a cannabis dispensary's license for a sixth
1186     consecutive time unless the department publishes a notice, in a newspaper of general
1187     circulation for the geographic area in which the cannabis dispensary is located, one year before
1188     the day on which the cannabis dispensary's license expires, that includes:
1189          (i) the name and location of the cannabis dispensary;
1190          (ii) the day on which the license for the cannabis dispensary will expire; and
1191          (iii) a solicitation for cannabis dispensary license applicants.
1192          (b) If, after the department publishes the notice described in Subsection (2)(a), the
1193     department receives an application for a cannabis dispensary from a new applicant and also
1194     receives an application for renewal from the existing cannabis dispensary, the department shall
1195     issue the license to the applicant that the department determines best meets the criteria
1196     established in Section 26-58-304.
1197          (3) (a) If a licensed cannabis dispensary abandons the cannabis dispensary's license or
1198     has the cannabis dispensary license revoked, the department shall publish notice of an available
1199     license in the same manner as described in Subsection (2)(a).
1200          (b) The department may establish criteria, in accordance with Title 63G, Chapter 3,
1201     Utah Administrative Rulemaking Act, for what actions by a cannabis dispensary constitute
1202     abandonment of a cannabis dispensary license.
1203          Section 41. Section 26-58-303 is enacted to read:

1204          26-58-303. Operating plan.
1205          (1) A person applying for a cannabis dispensary license shall submit to the department
1206     a proposed operation plan for the cannabis dispensary that complies with this section.
1207          (2) A cannabis dispensary's operating plan shall include:
1208          (a) a description of the physical characteristics of the proposed facility, including a
1209     floor plan and architectural elevations that indicate compliance with the requirements of this
1210     chapter;
1211          (b) a description of the credentials and experience of:
1212          (i) each officer, director, or owner of the proposed cannabis dispensary; and
1213          (ii) any highly skilled or experienced prospective employee;
1214          (c) the cannabis dispensary's employee training standards;
1215          (d) a security plan;
1216          (e) a banking plan;
1217          (f) a description of the cannabis dispensary's inventory control system, including a plan
1218     to make the inventory control system compatible with the state electronic verification system;
1219     and
1220          (g) that the cannabis processing facility has entered into a preliminary agreement to
1221     purchase with Ŝ→ [
a cannabis cultivation facility in the state or] ←Ŝ a cannabis processing facility
1221a     in the
1222     state to purchase the Ŝ→ [
cannabis or] ←Ŝ a cannabis product that the cannabis dispensary intends
1222a     to sell.
1223          Section 42. Section 26-58-304 is enacted to read:
1224          26-58-304. Maximum number of licenses.
1225          (1) The department may not issue more than the greater of, in each county in the state:
1226          (a) one cannabis dispensary license; or
1227          (b) an amount of cannabis dispensary licenses equal to the number of residents in the
1228     county divided by 200,000, rounded up to the nearest greater whole number.
1229          (2) If more than one applicant for a license in a geographic area meets the
1230     qualifications of this chapter for a cannabis dispensary, the department shall evaluate the
1231     applicants, and award the license to the applicant that best demonstrates:
1232          (a) experience with:
1233          (i) establishing and running a similar cannabis based business;
1234          (ii) operating a secure inventory control system;

1235          (iii) complying with a regulatory environment; and
1236          (iv) training, evaluating, and monitoring employees;
1237          (b) connections to the local community;
1238          (c) the extent to which the applicant can reduce the cost of Ŝ→ [
cannabis or] ←Ŝ cannabis
1239     products to a patient; and
1240          (d) the extent to which the applicant's business plan reflects cannabis industry best
1241     practices.
1242          (3) The department may conduct a face-to-face interview with an applicant for a
1243     license that the department evaluates under Subsection (2).
1244          Section 43. Section 26-58-401 is enacted to read:
1245     
Part 4. Cannabis Dispensary Agents

1246          26-58-401. Cannabis dispensary agent -- Registration card.
1247          (1) An individual may only act as a cannabis dispensary agent of a cannabis dispensary
1248     if the individual is registered by the department as a cannabis dispensary agent.
1249          (2) A physician may not act as a cannabis dispensary agent.
1250          (3) The department shall, within 30 days after receiving a complete application,
1251     register and issue a cannabis dispensary agent registration card to an individual who:
1252          (a) provides to the department:
1253          (i) the individual's name and address; and
1254          (ii) the name and location of the licensed cannabis dispensary where the individual
1255     seeks to act as the cannabis dispensary agent;
1256          (b) pays a fee to the department:
1257          (i) before January 1, 2017, of $250; and
1258          (ii) on or after January 1, 2017, in an amount determined by the department in
1259     accordance with Section 63J-1-504, that is necessary to cover the department's cost to
1260     implement this part; and
1261          (c) complies with Section 26-58-402.
1262          (4) A cannabis dispensary agent shall comply with a certification standard developed
1263     by the department, or a third party certification standard approved by the department.
1264          (5) The certification standard described in Subsection (4) shall address:
1265          (a) Utah medical cannabis law;

1266          (b) cannabis dispensary best practices; and
1267          (c) resources available to help patients.
1268          (6) The department may revoke or refuse to issue the cannabis dispensary agent
1269     registration card of an individual who:
1270          (a) violates the requirements of this chapter; or
1271          (b) is convicted of a felony under state or federal law that involves a drug or violent
1272     crime that is a felony under state or federal law.
1273          Section 44. Section 26-58-402 is enacted to read:
1274          26-58-402. Cannabis dispensary agents -- Criminal background checks.
1275          (1) An individual applying for a cannabis dispensary agent registration card under this
1276     chapter shall:
1277          (a) submit, at the time of application, a fingerprint card in a form acceptable to the
1278     department; and
1279          (b) consent to a fingerprint background check by:
1280          (i) the Utah Bureau of Criminal Identification; and
1281          (ii) the Federal Bureau of Investigation.
1282          (2) The department shall request that the Department of Public Safety complete a
1283     Federal Bureau of Investigation criminal background check for each cannabis dispensary agent
1284     registration card applicant.
1285          (3) The department may revoke or refuse to issue an individual's cannabis dispensary
1286     agent registration card if the individual has been convicted of an offense that is a felony under
1287     state or federal law that is related to drugs or a violent crime.
1288          Section 45. Section 26-58-403 is enacted to read:
1289          26-58-403. Cannabis dispensary agent registration card -- Rebuttable
1290     presumption.
1291          (1) An individual who has a cannabis dispensary agent registration card shall carry the
1292     individual's cannabis dispensary agent registration card with the individual at all times when:
1293          (a) the individual is on the premises of a cannabis dispensary; and
1294          (b) the individual is transporting cannabis, a cannabis product, or a medical cannabis
1295     device between two cannabis production establishments or between a cannabis production
1296     establishment and a cannabis dispensary.

1297          (2) If an individual handling cannabis, a cannabis product, or a medical cannabis
1298     device at a cannabis dispensary, or transporting cannabis, a cannabis product, or a medical
1299     cannabis device, possesses the cannabis, cannabis product, or medical cannabis device in
1300     compliance with Subsection (1):
1301          (a) there is a rebuttable presumption that the individual possesses the cannabis,
1302     cannabis product, or medical cannabis device legally; and
1303          (b) a law enforcement officer does not have probable cause to believe that the
1304     individual is engaging in illegal activity, based solely on the individual's possession of the
1305     cannabis, cannabis product, or medical cannabis device in compliance with Subsection (1).
1306          (3) A cannabis dispensary agent registered with the department is guilty of an
1307     infraction if the registered cannabis dispensary agent:
1308          (a) (i) is on the premises of a cannabis dispensary where the individual is registered as
1309     an agent; or
1310          (ii) transports cannabis, a cannabis product, or a medical cannabis device; and
1311          (b) does not possess, on the registered cannabis dispensary agent's person, a valid
1312     cannabis dispensary agent registration card.
1313          (4) A registered cannabis dispensary agent who is guilty of an infraction under
1314     Subsection (3) is subject to a fine of no more than $100.
1315          Section 46. Section 26-58-501 is enacted to read:
1316     
Part 5. Cannabis Dispensary Operation

1317          26-58-501. Operating requirements -- General.
1318          (1) (a) A cannabis dispensary shall operate in accordance with the operating plan
1319     provided to the department under Section 26-58-303.
1320          (b) A cannabis dispensary shall notify the department no longer than 30 days after a
1321     change in the cannabis dispensary's operating plan.
1322          (2) A cannabis dispensary shall operate:
1323          (a) except as provided in Subsection (3), in a facility that is accessible only by an
1324     individual with a valid cannabis dispensary agent registration card issued under Section
1325     26-58-401 or a medical cannabis card issued under Section 26-58-201; and
1326          (b) at the physical address provided to the department under Section 26-58-301.
1327          (3) A cannabis dispensary may allow an individual who is a visitor, a contractor, or a

1328     member of the press to access the cannabis dispensary if the cannabis dispensary:
1329          (a) tracks and monitors the individual at all times while the individual is at the
1330     cannabis dispensary; and
1331          (b) maintains a record of the individual's access.
1332          (4) A cannabis dispensary shall operate in a facility that has:
1333          (a) a single, secure public entrance with a checkpoint;
1334          (b) a security system with a backup power source that:
1335          (i) detects and records entry into the cannabis dispensary during business hours; and
1336          (ii) provides notice of an unauthorized entry to law enforcement when the cannabis
1337     dispensary is closed; and
1338          (c) a reinforced and locked area where the cannabis dispensary stores cannabis or a
1339     cannabis product.
1340          (5) A cannabis dispensary shall post, clearly and conspicuously in the cannabis
1341     dispensary, the limit on the purchase of cannabis described in Subsection 26-58-502(3),
1342          (6) A cannabis dispensary may not allow any individual to consume cannabis on the
1343     property or premises of the establishment.
1344          (7) A cannabis dispensary may not, on an interior or exterior space, display or offer
1345     anything that glorifies or trivializes cannabis or that promotes a recreational cannabis lifestyle.
1346          (8) A cannabis dispensary shall:
1347          (a) have a clinical, medical appearance; and
1348          (b) require any employee to wear a white lab coat.
1348a     Ŝ→      (9)     A cannabis dispensary may not operate:
1348b          (a)     within 600 feet of a community location, as defined in Section 32B-1-102, that is
1348c     not a public or private school; or
1348d          (b)     within 1000 feet of a public or private school. ←Ŝ
1349          Section 47. Section 26-58-502 is enacted to read:
1350          26-58-502. Dispensing -- Amount a cannabis dispensary may dispense --
1351     Reporting -- Form of cannabis or cannabis product.
1352          (1) A cannabis dispensary may only sell, subject to this chapter:
1353          Ŝ→ [
(a) cannabis;
1354          (b)
] (a) ←Ŝ
a cannabis product;
1355          Ŝ→ [
(c)] (b) ←Ŝ a medical cannabis device; or
1356          Ŝ→ [
(d)] (c) ←Ŝ educational materials related to the medical use of cannabis.
1357          (2) A cannabis dispensary may only sell Ŝ→ [
cannabis,] ←Ŝ a cannabis product Ŝ→ [,] ←Ŝ
1357a      or a medical
1358     cannabis device to an individual with a medical cannabis card issued by the department.

1359          (3) A cannabis dispensary may not dispense on behalf of any one individual with a
1360     medical cannabis card, in any one 30-day period Ŝ→ [
:
1361          (a) an amount of unprocessed cannabis flower that exceeds 60 grams by weight; or
1362          (b)
] ←Ŝ
an amount of cannabis products that contains, in total, greater than 10 grams of
1363     cannabinoids by weight.
1364          
(4) An individual with a medical cannabis card may not purchase more Ŝ→ [cannabis or] ←Ŝ
1365     cannabis products than the Ŝ→ [
amounts] amount ←Ŝ designated in Subsection (3).
1366          (5) A designated caregiver designated by any individual with a medical cannabis card
1367     may not purchase, for the individual, an amount of Ŝ→ [
cannabis or] ←Ŝ cannabis products that
1367a     exceeds
1368     the Ŝ→ [
amounts] amount ←Ŝ designated in Subsection (3).
1369          (6) A cannabis dispensary shall:
1370          (a) access the electronic verification system before dispensing Ŝ→ [
cannabis or] ←Ŝ a
1370a     cannabis
1371     product to an individual with a medical cannabis card in order to determine if the individual
1372     has already met the maximum amount of Ŝ→ [
cannabis or] ←Ŝ cannabis products described in
1373     Subsection (3); and
1374          (b) submit a record to the electronic verification system each time the cannabis
1375     dispensary dispenses Ŝ→ [
cannabis or] ←Ŝ a cannabis product to an individual with a medical
1375a     cannabis
1376     card.
1377          (7) (a) Except as provided in Subsection (7)(b), a cannabis dispensary may not sell a
1378     cannabis product that is intentionally designed or fabricated to resemble a cigarette, or made to
1379     resemble or be mistaken for a cigarette.
1380          (b) A cannabis dispensary may sell a cannabis product with a thin, cylindrical
1381     configuration that warms Ŝ→ [
cannabis or cannabis extract] a cannabis product ←Ŝ into a vapor
1381a     that is ingested into an
1382     individual's respiratory system.
1383          (8) A cannabis dispensary may not sell a medical cannabis device that produces a vapor
1384     with an odor or flavor.
1385          (9) A cannabis dispensary may give to an individual with a medical cannabis card, at
1386     no cost, a product that the cannabis dispensary may sell under Subsection (1).
1387          Section 48. Section 26-58-503 is enacted to read:
1388          26-58-503. Advertising and signage.
1389          (1) Except as provided in Subsections (2) and (3) a cannabis dispensary may not

1390     advertise in any medium.
1391          (2) A cannabis dispensary may display signage on the outside of the cannabis
1392     dispensary that includes only:
1393          (a) the cannabis dispensary's name and hours of operation; and
1394          (b) a green cross.
1395          (3) A cannabis dispensary may maintain a website that includes information about:
1396          (a) the location and hours of the cannabis dispensary;
1397          (b) the products and services available at the cannabis dispensary;
1398          (c) personnel affiliated with the cannabis dispensary;
1399          (d) best practices that the cannabis dispensary upholds;
1400          (e) educational materials related to the medical use of cannabis; and
1401          (f) employment opportunities with the cannabis dispensary.
1402          Section 49. Section 26-58-504 is enacted to read:
1403          26-58-504. Inspections.
1404          (1) The department shall inspect, in accordance with Subsection (2), a cannabis
1405     dispensary's facility and records in order to determine if the cannabis dispensary complies with
1406     the licensing requirements of this part.
1407          (2) The department may inspect the records and facility of a cannabis dispensary Ŝ→ [
:
1408          (a) as many as three scheduled times per year;
1409          (b) as many as one unscheduled time per year; and
1410          (c)
] ←Ŝ
at any time, scheduled or unscheduled Ŝ→ [, if the department has reason to believe
1410a     that
1411     the cannabis dispensary has violated the law.
] . ←Ŝ
1412          Section 50. Section 26-58-505 is enacted to read:
1413          26-58-505. Cannabis, cannabis product, or medical cannabis device
1414     transportation.
1415          (1) Except for an individual or designated caregiver with a medical cannabis card who
1416     possesses cannabis or a cannabis product in accordance with Section 26-58-204, an individual
1417     may only transport cannabis, a cannabis product, or a cannabis device between cannabis
1418     production establishments or between a cannabis production establishment and a cannabis
1419     dispensary if the individual is:
1420          (a) a registered cannabis production establishment agent; or

1421          (b) a registered cannabis dispensary agent.
1422          (2) An individual transporting cannabis, a cannabis product, or a medical cannabis
1423     device shall possess a transportation manifest that:
1424          (a) includes a unique identifier that links the cannabis, cannabis product, or medical
1425     cannabis device to a related inventory control system;
1426          (b) includes origin and destination information for any cannabis, cannabis product, or
1427     medical cannabis device the individual is transporting; and
1428          (c) indicates the departure and arrival times and locations of the individual transporting
1429     the cannabis, cannabis product, or medical cannabis device.
1430          (3) In addition to the requirements in Subsections (1) and (2), the department may
1431     establish, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1432     Rulemaking Act, requirements for transporting cannabis, a cannabis product, or a medical
1433     cannabis device that reflect best practices for cannabis or cannabis product transportation for
1434     safety for human cannabis or cannabis product consumption.
1435          (4) A cannabis dispensary agent registered with the department is guilty of an
1436     infraction if the registered cannabis dispensary agent:
1437          (a) transports cannabis, a cannabis product, or a medical cannabis device; and
1438          (b) does not possess, on the registered cannabis dispensary agent's person or in the
1439     transport vehicle, a manifest that complies with Subsection (3).
1440          (5) A registered cannabis dispensary agent who is guilty of an infraction under
1441     Subsection (3) is subject to a fine of no more than $100.
1442          Section 51. Section 26-58-506 is enacted to read:
1443          Ŝ→ [
26-58-506. Zoning.
1444          (1) A municipality or local government may not enact a zoning ordinance that prohibits
1445     a cannabis dispensary from operating in a location within the municipality's or local
1446     government's jurisdiction, on the sole basis that the cannabis dispensary is a cannabis
1447     dispensary.
1448          (2) A municipality or local government shall allow a cannabis dispensary to operate as:
1449          (a) a permitted use in an agricultural, industrial, or manufacturing zone, or in a zone
1450     that allows for a similar use; and
1451          (b) as a conditional use in a commercial zone or in a zone that allows for a similar use.
] ←Ŝ


1452          Section 52. Section 26-58-601 is enacted to read:
1453     
Part 6. Enforcement

1454          26-58-601. Enforcement -- Fine -- Citation.
1455          (1) The department may, for a violation of this chapter by a person who is a cannabis
1456     dispensary or cannabis dispensary agent:
1457          (a) revoke the person's cannabis dispensary license or cannabis dispensary agent
1458     registration card;
1459          (b) refuse to renew the person's license or registration; or
1460          (c) assess the person an administrative penalty.
1461          (2) The department shall deposit an administrative penalty imposed under this section
1462     into the Medical Cannabis Restricted Account.
1463          (3) The department may, for a person subject to an uncontested citation, a stipulated
1464     settlement, or a finding of a violation in an adjudicative proceeding under this section:
1465          (a) assess the person a fine, established in accordance with Section 63J-1-504, of up to
1466     $5,000 per violation, in accordance with a fine schedule established by rule made in accordance
1467     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
1468          (b) order the person to cease and desist from, and cure, the action that creates a
1469     violation.
1470          (4) The department may not revoke a cannabis dispensary's license via a citation.
1471          (5) If, within 20 calendar days after the day on which the department issues a citation
1472     for a violation of this chapter, the person that is the subject of the citation fails to request a
1473     hearing to contest the citation, the citation becomes the basis of the department's final order.
1474          (6) The department may, for a person who fails to cure the violation for which a
1475     citation under this section:
1476          (a) refuse to issue or renew the person's license or cannabis dispensary agent
1477     registration card; or
1478          (b) suspend, revoke, or place on probation the person's license or cannabis dispensary
1479     agent registration card.
1480          Section 53. Section 30-3-10 is amended to read:
1481          30-3-10. Custody of children in case of separation or divorce -- Custody
1482     consideration.

1483          (1) If a husband and wife having minor children are separated, or their marriage is
1484     declared void or dissolved, the court shall make an order for the future care and custody of the
1485     minor children as it considers appropriate.
1486          (a) In determining any form of custody, including a change in custody, the court shall
1487     consider the best interests of the child without preference for either the mother or father solely
1488     because of the biological sex of the parent and, among other factors the court finds relevant, the
1489     following:
1490          (i) the past conduct and demonstrated moral standards of each of the parties;
1491          (ii) which parent is most likely to act in the best interest of the child, including
1492     allowing the child frequent and continuing contact with the noncustodial parent;
1493          (iii) the extent of bonding between the parent and child, meaning the depth, quality,
1494     and nature of the relationship between a parent and child;
1495          (iv) whether the parent has intentionally exposed the child to pornography or material
1496     harmful to a minor, as defined in Section 76-10-1201; and
1497          (v) those factors outlined in Section 30-3-10.2.
1498          (b) There shall be a rebuttable presumption that joint legal custody, as defined in
1499     Section 30-3-10.1, is in the best interest of the child, except in cases where there is:
1500          (i) domestic violence in the home or in the presence of the child;
1501          (ii) special physical or mental needs of a parent or child, making joint legal custody
1502     unreasonable;
1503          (iii) physical distance between the residences of the parents, making joint decision
1504     making impractical in certain circumstances; or
1505          (iv) any other factor the court considers relevant including those listed in this section
1506     and Section 30-3-10.2.
1507          (c) The person who desires joint legal custody shall file a proposed parenting plan in
1508     accordance with Sections 30-3-10.8 and 30-3-10.9. A presumption for joint legal custody may
1509     be rebutted by a showing by a preponderance of the evidence that it is not in the best interest of
1510     the child.
1511          (d) The children may not be required by either party to testify unless the trier of fact
1512     determines that extenuating circumstances exist that would necessitate the testimony of the
1513     children be heard and there is no other reasonable method to present their testimony.

1514          (e) The court may inquire of the children and take into consideration the children's
1515     desires regarding future custody or parent-time schedules, but the expressed desires are not
1516     controlling and the court may determine the children's custody or parent-time otherwise. The
1517     desires of a child 14 years of age or older shall be given added weight, but is not the single
1518     controlling factor.
1519          (f) If interviews with the children are conducted by the court pursuant to Subsection
1520     (1)(e), they shall be conducted by the judge in camera. The prior consent of the parties may be
1521     obtained but is not necessary if the court finds that an interview with the children is the only
1522     method to ascertain the child's desires regarding custody.
1523          (2) In awarding custody, the court shall consider, among other factors the court finds
1524     relevant, which parent is most likely to act in the best interests of the child, including allowing
1525     the child frequent and continuing contact with the noncustodial parent as the court finds
1526     appropriate.
1527          (3) If the court finds that one parent does not desire custody of the child, the court shall
1528     take that evidence into consideration in determining whether to award custody to the other
1529     parent.
1530          (4) (a) Except as provided in Subsection (4)(b), a court may not discriminate against a
1531     parent due to a disability, as defined in Section 57-21-2, in awarding custody or determining
1532     whether a substantial change has occurred for the purpose of modifying an award of custody.
1533          (b) If a court takes a parent's disability into account in awarding custody or determining
1534     whether a substantial change has occurred for the purpose of modifying an award of custody,
1535     the parent with a disability may rebut any evidence, presumption, or inference arising from the
1536     disability by showing that:
1537          (i) the disability does not significantly or substantially inhibit the parent's ability to
1538     provide for the physical and emotional needs of the child at issue; or
1539          (ii) the parent with a disability has sufficient human, monetary, or other resources
1540     available to supplement the parent's ability to provide for the physical and emotional needs of
1541     the child at issue.
1542          (c) Nothing in this section may be construed to apply to adoption proceedings under
1543     Title 78B, Chapter 6, Part 1, Utah Adoption Act.
1544          (5) This section establishes neither a preference nor a presumption for or against joint

1545     physical custody or sole physical custody, but allows the court and the family the widest
1546     discretion to choose a parenting plan that is in the best interest of the child.
1547          (6) In considering the past conduct and demonstrated moral standards of each of the
1548     parties as described under Subsection (1)(a)(i), a court may not discriminate against a parent
1549     because of the parent's possession or consumption of Ŝ→ [
cannabis,] ←Ŝ a cannabis product
1549a     Ŝ→ [
,] ←Ŝ or a
1550     medical cannabis device, in accordance with Title 26, Chapter 58, Medical Cannabis Act.
1551          Section 54. Section 41-6a-517 is amended to read:
1552          41-6a-517. Definitions -- Driving with any measurable controlled substance in the
1553     body -- Penalties -- Arrest without warrant.
1554          (1) As used in this section:
1555          (a) "Controlled substance" has the same meaning as in Section 58-37-2.
1556          (b) "Practitioner" has the same meaning as in Section 58-37-2.
1557          (c) "Prescribe" has the same meaning as in Section 58-37-2.
1558          (d) "Prescription" has the same meaning as in Section 58-37-2.
1559          (2) In cases not amounting to a violation of Section 41-6a-502, a person may not
1560     operate or be in actual physical control of a motor vehicle within this state if the person has any
1561     measurable controlled substance or metabolite of a controlled substance in the person's body.
1562          (3) It is an affirmative defense to prosecution under this section that the controlled
1563     substance was:
1564          (a) involuntarily ingested by the accused;
1565          (b) prescribed by a practitioner for use by the accused; [or]
1566          (c) Ŝ→ [
cannabis or] ←Ŝ a cannabis product that was:
1567          (i) not causing impairment; and
1568          (ii) (A) recommended by a physician to the accused, if the accused holds a valid
1569     medical cannabis card under Title 26, Chapter 58, Medical Cannabis Act; or
1570          (B) ingested by the accused in another state in which the use of Ŝ→ [
cannabis or] ←Ŝ a
1570a     cannabis
1571     product is legal under state law; or
1572          [(c)] (d) otherwise legally ingested.
1573          (4) (a) A person convicted of a violation of Subsection (2) is guilty of a class B
1574     misdemeanor.
1575          (b) A person who violates this section is subject to conviction and sentencing under

1576     both this section and any applicable offense under Section 58-37-8.
1577          (5) A peace officer may, without a warrant, arrest a person for a violation of this
1578     section when the officer has probable cause to believe the violation has occurred, although not
1579     in the officer's presence, and if the officer has probable cause to believe that the violation was
1580     committed by the person.
1581          (6) The Driver License Division shall, if the person is 21 years of age or older on the
1582     date of arrest:
1583          (a) suspend, for a period of 120 days, the driver license of a person convicted under
1584     Subsection (2) of an offense committed on or after July 1, 2009; or
1585          (b) revoke, for a period of two years, the driver license of a person if:
1586          (i) the person has a prior conviction as defined under Subsection 41-6a-501(2); and
1587          (ii) the current violation under Subsection (2) is committed on or after July 1, 2009,
1588     and within a period of 10 years after the date of the prior violation.
1589          (7) The Driver License Division shall, if the person is 19 years of age or older but
1590     under 21 years of age on the date of arrest:
1591          (a) suspend, until the person is 21 years of age or for a period of one year, whichever is
1592     longer, the driver license of a person convicted under Subsection (2) of an offense committed
1593     on or after July 1, 2011; or
1594          (b) revoke, until the person is 21 years of age or for a period of two years, whichever is
1595     longer, the driver license of a person if:
1596          (i) the person has a prior conviction as defined under Subsection 41-6a-501(2); and
1597          (ii) the current violation under Subsection (2) is committed on or after July 1, 2009,
1598     and within a period of 10 years after the date of the prior violation.
1599          (8) The Driver License Division shall, if the person is under 19 years of age on the date
1600     of arrest:
1601          (a) suspend, until the person is 21 years of age, the driver license of a person convicted
1602     under Subsection (2) of an offense committed on or after July 1, 2009; or
1603          (b) revoke, until the person is 21 years of age, the driver license of a person if:
1604          (i) the person has a prior conviction as defined under Subsection 41-6a-501(2); and
1605          (ii) the current violation under Subsection (2) is committed on or after July 1, 2009,
1606     and within a period of 10 years after the date of the prior violation.

1607          (9) The Driver License Division shall subtract from any suspension or revocation
1608     period the number of days for which a license was previously suspended under Section
1609     53-3-223 or 53-3-231, if the previous suspension was based on the same occurrence upon
1610     which the record of conviction is based.
1611          (10) The Driver License Division shall:
1612          (a) deny, suspend, or revoke a person's license for the denial and suspension periods in
1613     effect prior to July 1, 2009, for a conviction of a violation under Subsection (2) that was
1614     committed prior to July 1, 2009; or
1615          (b) deny, suspend, or revoke the operator's license of a person for the denial,
1616     suspension, or revocation periods in effect from July 1, 2009, through June 30, 2011, if:
1617          (i) the person was 20 years of age or older but under 21 years of age at the time of
1618     arrest; and
1619          (ii) the conviction under Subsection (2) is for an offense that was committed on or after
1620     July 1, 2009, and prior to July 1, 2011.
1621          (11) A court that reported a conviction of a violation of this section for a violation that
1622     occurred on or after July 1, 2009, to the Driver License Division may shorten the suspension
1623     period imposed under Subsection (7)(a) or (8)(a) prior to completion of the suspension period
1624     if the person:
1625          (a) completes at least six months of the license suspension;
1626          (b) completes a screening;
1627          (c) completes an assessment, if it is found appropriate by a screening under Subsection
1628     (11)(b);
1629          (d) completes substance abuse treatment if it is found appropriate by the assessment
1630     under Subsection (11)(c);
1631          (e) completes an educational series if substance abuse treatment is not required by the
1632     assessment under Subsection (11)(c) or the court does not order substance abuse treatment;
1633          (f) has not been convicted of a violation of any motor vehicle law in which the person
1634     was involved as the operator of the vehicle during the suspension period imposed under
1635     Subsection (7)(a) or (8)(a);
1636          (g) has complied with all the terms of the person's probation or all orders of the court if
1637     not ordered to probation; and

1638          (h) (i) is 18 years of age or older and provides a sworn statement to the court that the
1639     person has not consumed a controlled substance not prescribed by a practitioner for use by the
1640     person or unlawfully consumed alcohol during the suspension period imposed under
1641     Subsection (7)(a) or (8)(a); or
1642          (ii) is under 18 years of age and has the person's parent or legal guardian provide an
1643     affidavit or other sworn statement to the court certifying that to the parent or legal guardian's
1644     knowledge the person has not consumed a controlled substance not prescribed by a practitioner
1645     for use by the person or unlawfully consumed alcohol during the suspension period imposed
1646     under Subsection (7)(a) or (8)(a).
1647          (12) If the court shortens a person's license suspension period in accordance with the
1648     requirements of Subsection (11), the court shall forward the order shortening the person's
1649     license suspension period prior to the completion of the suspension period imposed under
1650     Subsection (7)(a) or (8)(a) to the Driver License Division.
1651          (13) (a) The court shall notify the Driver License Division if a person fails to:
1652          (i) complete all court ordered screening and assessment, educational series, and
1653     substance abuse treatment; or
1654          (ii) pay all fines and fees, including fees for restitution and treatment costs.
1655          (b) Upon receiving the notification, the division shall suspend the person's driving
1656     privilege in accordance with Subsections 53-3-221(2) and (3).
1657          (14) The court shall order supervised probation in accordance with Section 41-6a-507
1658     for a person convicted under Subsection (2).
1659          Section 55. Section 53-1-106.5 is enacted to read:
1660          53-1-106.5. Medical Cannabis Act -- Department duties.
1661          (1) In addition to the duties described in Section 53-1-106, the department shall:
1662          (a) develop standards for training peace officers and law enforcement agencies in state
1663     medical cannabis law and the use of the state electronic verification system; and
1664          (b) collaborate with the Department of Health and the Department of Agriculture and
1665     Food to provide a curriculum for training peace officers and law enforcement agencies in
1666     medical cannabis.
1667          (2) The department may not allow a law enforcement official to access the electronic
1668     verification system unless the law enforcement official has completed the training described in

1669     Subsections (1)(b) and (1)(c).
1670          Section 56. Section 58-37-3.6 is enacted to read:
1671          58-37-3.6. Exemption for possession or use of cannabis to treat a qualifying
1672     illness.
1673          (1) As used in this section:
1674          (a) (i) "Cannabis" means the plant cannabis sativa.
1675          (ii) "Cannabis" includes marijuana.
1676          (b) "Cannabis dispensary" means the same as that term is defined in Section
1677     26-58-102.
1678          (c) "Cannabis product" means a product that:
1679          (i) is intended for human ingestion; Ŝ→ [
and] ←Ŝ
1680     
     (ii) contains cannabis or extracted cannabinoids, including tetrahydrocannabinol Ŝ→ [.] ;and
1680a          (iii)     is prepared in a medical dosage form. ←Ŝ
1681          (d) "Designated caregiver" means the same as that term is defined in Section
1682     26-58-102.
1683          (e) "Drug paraphernalia" means the same as that term is defined in Section 58-37a-3.
1684          (f) "Marijuana" means the same as that term is defined in Section 58-37-2.
1685          (g) "Medical cannabis card" means the same as that term is defined in Section
1686     26-58-102.
1687          (h) "Medical cannabis device" means a device that an individual uses to ingest lawfully
1688     sold cannabis or a lawfully sold cannabis product.
1689          (i) "Qualifying illness" means the same as that term is defined in Section 26-58-102.
1690          (j) "Tetrahydrocannabinol" means a substance derived from cannabis that meets the
1691     description in Subsection 58-37-4(2)(a)(iii)(AA).
1692          (2) Notwithstanding any other provision of this chapter:
1693          (a) an individual who grows, possesses, sells, or offers to sell cannabis is not subject to
1694     the penalties described in this title for the growth, possession, sale, or offer for sale of
1695     marijuana or tetrahydrocannabinol to the extent that the individual's growth, possession, sale,
1696     or offer for sale of the cannabis complies with:
1697          (i) Title 4, Chapter 42, Cannabis Production Establishment; and
1698          (ii) Title 26, Chapter 58, Medical Cannabis Act;
1699          (b) an individual who possesses, sells, or offers to sell Ŝ→ [
cannabis,] ←Ŝ a cannabis
1699a     product Ŝ→ [
,] ←Ŝ or

1700     a medical cannabis device is not subject to the penalties described in this title for the
1701     possession, sale, or offer for sale of marijuana or tetrahydrocannabinol to the extent that the
1702     individual's possession, sale, or offer for sale of the Ŝ→ [
cannabis,] ←Ŝ cannabis product
1702a      Ŝ→ [
,] ←Ŝ or medical
1703     cannabis device complies with:
1704          (i) Title 4, Chapter 42, Cannabis Production Establishment; and
1705          (ii) Title 26, Chapter 58, Medical Cannabis Act;
1706          (c) an individual who possesses, sells, or offers to sell a medical cannabis device is not
1707     subject to the penalties described in this title for the possession, sale, or offer for sale of
1708     marijuana or tetrahydrocannabinol drug paraphernalia to the extent that the individual's
1709     possession, sale, or offer for sale of the medical cannabis device complies with:
1710          (i) Title 4, Chapter 42, Cannabis Production Establishment; and
1711          (ii) Title 26, Chapter 58, Medical Cannabis Act.
1712          Ŝ→ [
(iii) Title 58, Chapter 86, Cannabis Dispensary License.] ←Ŝ
1713          (3) An individual with a medical cannabis card is guilty of an infraction if the
1714     individual Ŝ→ [
:
1715          (a) uses cannabis through a means involving combustion of cannabis flower at a
1716     temperature greater than 500 degrees Fahrenheit;
1717          (b) uses a device that is designed for cannabis combustion of cannabis flower at a
1718     temperature greater than 500 degrees Fahrenheit; or
1719          (c)
] ←Ŝ
uses or possesses drug paraphernalia that is not a medical cannabis device.
1720          (4) An individual who is guilty of an infraction under Subsection (3) is subject to a
1721     $100 fine.
1722          Section 57. Section 58-37-3.7 is enacted to read:
1723          58-37-3.7. Affirmative defense.
1724          (1) Before the day on which the Department of Health is issuing medical cannabis
1725     cards and a cannabis dispensary in the state is licensed and selling Ŝ→ [
cannabis or] ←Ŝ a cannabis
1726     product, it is an affirmative defense to criminal charges against an individual for the use or
1727     possession of marijuana, tetrahydrocannabinol, or marijuana or tetrahydrocannabinol drug
1728     paraphernalia under this chapter that the individual's conduct would have been lawful after the
1729     individual obtains a medical cannabis card under Title 26, Chapter 58, Medical Cannabis Act.
1730          (2) A court shall, for charges that the court dismisses under Subsection (1), dismiss the

1731     charges without prejudice.
1732          Section 58. Section 59-12-104.7 is enacted to read:
1733          59-12-104.7. Exemption from sales tax for medical cannabis.
1734          (1) As used in this section:
1735          (a) "Cannabis" means the same as that term is defined in Section 58-37-3.6.
1736          (b) "Cannabis dispensary" means the same as that term is defined in Section
1737     26-58-102.
1738          (c) "Cannabis product" means the same as that term is defined in Section 58-37-3.6.
1739          (d) "Medical cannabis device" means the same as that term is defined in Section
1740     58-37-3.6.
1741          (2) In addition to the exemptions described in Section 59-12-104, the sale, by a
1742     licensed cannabis dispensary, of Ŝ→ [
cannabis,] ←Ŝ a cannabis product Ŝ→ [,] ←Ŝ or a medical
1742a     cannabis device, is
1743     not subject to the taxes imposed by this chapter.
1744          Section 59. Section 59-28-101 is enacted to read:
1745     
CHAPTER 28. MEDICAL CANNABIS TAX ACT

1746          59-28-101. Title.
1747          This chapter is known as the "Medical Cannabis Tax Act."
1748          Section 60. Section 59-28-102 is enacted to read:
1749          59-28-102. Definitions.
1750          As used in this chapter:
1751          (1) "Cannabis" means the same as that term is defined in Section 58-37-3.6.
1752          (2) "Cannabis dispensary" means the same as that term is defined in Section
1753     26-58-102.
1754          (3) "Cannabis product" means the same as that term is defined in Section 58-37-3.6.
1755          (4) "Medical cannabis device" means the same as that term is defined in Section
1756     58-37-3.6.
1757          (5) "Medical Cannabis Restricted Account" means the account created in Section
1758     26-58-109.
1759          Section 61. Section 59-28-103 is enacted to read:
1760          59-28-103. Imposition of tax -- Rate.
1761     
     There is imposed a tax on the retail purchaser of Ŝ→ [cannabis,] ←Ŝ a cannabis product, or a

1762     medical cannabis device at a cannabis dispensary in the state, in an amount equal to 4.70% of
1763     amounts paid or charged for the Ŝ→ [
cannabis,] ←Ŝ cannabis product Ŝ→ [,] ←Ŝ or medical
1763a     cannabis device.
1764          Section 62. Section 59-28-104 is enacted to read:
1765          59-28-104. Collection of tax.
1766          A cannabis dispensary shall:
1767          (1) collect the tax imposed by Section 59-28-103 from a Ŝ→ [
cannabis,] ←Ŝ cannabis
1767a     product Ŝ→ [
,] ←Ŝ or
1768     medical cannabis device purchaser; and
1769          (2) pay the tax collected under Subsection (1):
1770          (a) to the commission quarterly on or before the last day of the month immediately
1771     following the last day of the previous quarter; and
1772          (b) using a form prescribed by the commission.
1773          Section 63. Section 59-28-105 is enacted to read:
1774          59-28-105. Deposit of tax revenue.
1775          The commission shall deposit revenues generated by the tax imposed by this chapter
1776     into the Medical Cannabis Restricted Account.
1777          Section 64. Section 59-28-106 is enacted to read:
1778          59-28-106. Records.
1779          (1) A cannabis dispensary shall maintain any record typically deemed necessary to
1780     determine the amount of tax that the cannabis dispensary is required to remit to the commission
1781     under this chapter.
1782          (2) The commission may require a cannabis dispensary to keep any record the
1783     commission reasonably considers necessary to constitute sufficient evidence of the amount of
1784     tax the cannabis dispensary is required to remit to the commission under this chapter:
1785          (a) by notice served upon the cannabis dispensary; or
1786          (b) by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1787     Rulemaking Act.
1788          (3) Upon notice by the commission, a cannabis dispensary shall open the cannabis
1789     dispensary's records for examination by the commission.
1790          Section 65. Section 59-28-107 is enacted to read:
1791          59-28-107. Rulemaking authority -- Enforcement not more strict than those
1792     applied to a similarly situated business.

1793          (1) Except as provided in Subsection (2), the commission may make rules in
1794     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to:
1795          (a) implement the tax imposed by this chapter; and
1796          (b) enforce payment of the tax imposed by this chapter.
1797          (2) The commission may not make a rule that applies to a cannabis dispensary that is
1798     more restrictive than would apply to a similarly situated business.
1799          (3) The commission may not enforce this chapter against a cannabis dispensary more
1800     strictly than the commission would for a similarly situated business.
1801          Section 66. Section 59-28-108 is enacted to read:
1802          59-28-108. Penalties and interest.
1803          A cannabis dispensary that fails to comply with any provision of this chapter is subject
1804     to penalties and interest as provided in Sections 59-1-401 and 59-1-402.
1805          Section 67. Section 62A-4a-202.1 is amended to read:
1806          62A-4a-202.1. Entering home of a child -- Taking a child into protective custody
1807     -- Caseworker accompanied by peace officer -- Preventive services -- Shelter facility or
1808     emergency placement.
1809          (1) A peace officer or child welfare worker may not:
1810          (a) enter the home of a child who is not under the jurisdiction of the court, remove a
1811     child from the child's home or school, or take a child into protective custody unless authorized
1812     under Subsection 78A-6-106(2); or
1813          (b) remove a child from the child's home or take a child into custody under this section
1814     solely on the basis of:
1815          (i) educational neglect, truancy, or failure to comply with a court order to attend
1816     school[.]; or
1817          (ii) the possession or use of Ŝ→ [
cannabis,] ←Ŝ a cannabis product Ŝ→ [,] ←Ŝ or a
1817a     medical cannabis device
1818     in the home, if the use and possession of the Ŝ→ [
cannabis,] ←Ŝ cannabis product Ŝ→ [,] ←Ŝ or
1818a     medical cannabis
1819     device is in compliance with Title 26, Chapter 58, Medical Cannabis Act.
1820          (2) A child welfare worker within the division may take action under Subsection (1)
1821     accompanied by a peace officer, or without a peace officer when a peace officer is not
1822     reasonably available.
1823          (3) (a) If possible, consistent with the child's safety and welfare, before taking a child

1824     into protective custody, the child welfare worker shall also determine whether there are
1825     services available that, if provided to a parent or guardian of the child, would eliminate the
1826     need to remove the child from the custody of the child's parent or guardian.
1827          (b) If the services described in Subsection (3)(a) are reasonably available, they shall be
1828     utilized.
1829          (c) In determining whether the services described in Subsection (3)(a) are reasonably
1830     available, and in making reasonable efforts to provide those services, the child's health, safety,
1831     and welfare shall be the child welfare worker's paramount concern.
1832          (4) (a) A child removed or taken into custody under this section may not be placed or
1833     kept in a secure detention facility pending court proceedings unless the child is detainable
1834     based on guidelines promulgated by the Division of Juvenile Justice Services.
1835          (b) A child removed from the custody of the child's parent or guardian but who does
1836     not require physical restriction shall be given temporary care in:
1837          (i) a shelter facility; or
1838          (ii) an emergency placement in accordance with Section 62A-4a-209.
1839          (c) When making a placement under Subsection (4)(b), the Division of Child and
1840     Family Services shall give priority to a placement with a noncustodial parent, relative, or
1841     friend, in accordance with Section 62A-4a-209.
1842          (d) If the child is not placed with a noncustodial parent, a relative, or a designated
1843     friend, the caseworker assigned to the child shall file a report with the caseworker's supervisor
1844     explaining why a different placement was in the child's best interest.
1845          (5) When a child is removed from the child's home or school or taken into protective
1846     custody, the caseworker shall give a parent of the child a pamphlet or flier explaining:
1847          (a) the parent's rights under this part, including the right to be present and participate in
1848     any court proceeding relating to the child's case;
1849          (b) that it may be in the parent's best interest to contact an attorney and that, if the
1850     parent cannot afford an attorney, the court will appoint one;
1851          (c) the name and contact information of a division employee the parent may contact
1852     with questions;
1853          (d) resources that are available to the parent, including:
1854          (i) mental health resources;

1855          (ii) substance abuse resources; and
1856          (iii) parenting classes; and
1857          (e) any other information considered relevant by the division.
1858          (6) The pamphlet or flier described in Subsection (5) shall be:
1859          (a) evaluated periodically for its effectiveness at conveying necessary information and
1860     revised accordingly;
1861          (b) written in simple, easy-to-understand language; and
1862          (c) available in English and other languages as the division determines to be
1863     appropriate and necessary.
1864          Section 68. Section 63I-1-226 is amended to read:
1865          63I-1-226. Repeal dates, Title 26.
1866          (1) Title 26, Chapter 9f, Utah Digital Health Service Commission Act, is repealed July
1867     1, 2025.
1868          (2) Section 26-10-11 is repealed July 1, 2020.
1869          (3) Section 26-21-23, Licensing of non-Medicaid nursing care facility beds, is repealed
1870     July 1, 2018.
1871          (4) Title 26, Chapter 33a, Utah Health Data Authority Act, is repealed July 1, 2024.
1872          (5) Title 26, Chapter 36a, Hospital Provider Assessment Act, is repealed July 1, 2016.
1873          (6) Section 26-38-2.5 is repealed July 1, 2017.
1874          (7) Section 26-38-2.6 is repealed July 1, 2017.
1875          (8) Title 26, Chapter 56, Hemp Extract Registration Act, is repealed [July 1, 2016]
1876     January 1, 2017.
1877          Section 69. Section 63I-1-258 is amended to read:
1878          63I-1-258. Repeal dates, Title 58.
1879          (1) Title 58, Chapter 13, Health Care Providers Immunity from Liability Act, is
1880     repealed July 1, 2026.
1881          (2) Title 58, Chapter 15, Health Facility Administrator Act, is repealed July 1, 2025.
1882          (3) Title 58, Chapter 20a, Environmental Health Scientist Act, is repealed July 1, 2018.
1883          (4) Section 58-37-4.3 is repealed [July 1, 2016] January 1, 2017.
1884          (5) Title 58, Chapter 40, Recreational Therapy Practice Act, is repealed July 1, 2023.
1885          (6) Title 58, Chapter 41, Speech-Language Pathology and Audiology Licensing Act, is

1886     repealed July 1, 2019.
1887          (7) Title 58, Chapter 42a, Occupational Therapy Practice Act, is repealed July 1, 2025.
1888          (8) Title 58, Chapter 46a, Hearing Instrument Specialist Licensing Act, is repealed July
1889     1, 2023.
1890          (9) Title 58, Chapter 47b, Massage Therapy Practice Act, is repealed July 1, 2024.
1891          (10) Title 58, Chapter 61, Part 7, Behavior Analyst Licensing Act, is repealed July 1,
1892     2026.
1893          (11) Title 58, Chapter 72, Acupuncture Licensing Act, is repealed July 1, 2017.
1894          Section 70. Section 78A-6-508 is amended to read:
1895          78A-6-508. Evidence of grounds for termination.
1896          (1) In determining whether a parent or parents have abandoned a child, it is prima facie
1897     evidence of abandonment that the parent or parents:
1898          (a) although having legal custody of the child, have surrendered physical custody of the
1899     child, and for a period of six months following the surrender have not manifested to the child
1900     or to the person having the physical custody of the child a firm intention to resume physical
1901     custody or to make arrangements for the care of the child;
1902          (b) have failed to communicate with the child by mail, telephone, or otherwise for six
1903     months;
1904          (c) failed to have shown the normal interest of a natural parent, without just cause; or
1905          (d) have abandoned an infant, as described in Subsection 78A-6-316(1).
1906          (2) In determining whether a parent or parents are unfit or have neglected a child the
1907     court shall consider, but is not limited to, the following circumstances, conduct, or conditions:
1908          (a) emotional illness, mental illness, or mental deficiency of the parent that renders the
1909     parent unable to care for the immediate and continuing physical or emotional needs of the child
1910     for extended periods of time;
1911          (b) conduct toward a child of a physically, emotionally, or sexually cruel or abusive
1912     nature;
1913          (c) habitual or excessive use of intoxicating liquors, controlled substances, or
1914     dangerous drugs that render the parent unable to care for the child;
1915          (d) repeated or continuous failure to provide the child with adequate food, clothing,
1916     shelter, education, or other care necessary for the child's physical, mental, and emotional health

1917     and development by a parent or parents who are capable of providing that care;
1918          (e) whether the parent is incarcerated as a result of conviction of a felony, and the
1919     sentence is of such length that the child will be deprived of a normal home for more than one
1920     year;
1921          (f) a history of violent behavior; or
1922          (g) whether the parent has intentionally exposed the child to pornography or material
1923     harmful to a minor, as defined in Section 76-10-1201.
1924          (3) Notwithstanding Subsection (2)(c), the court may not discriminate against a parent
1925     because of the parent's possession or consumption of Ŝ→ [
cannabis,] ←Ŝ a cannabis product
1925a     Ŝ→ [
,] ←Ŝ or a
1926     medical cannabis device, in accordance with Title 26, Chapter 58, Medical Cannabis Act.
1927          [(3)] (4) A parent who, legitimately practicing the parent's religious beliefs, does not
1928     provide specified medical treatment for a child is not, for that reason alone, a negligent or unfit
1929     parent.
1930          [(4)] (5) (a) Notwithstanding Subsection (2), a parent may not be considered neglectful
1931     or unfit because of a health care decision made for a child by the child's parent unless the state
1932     or other party to the proceeding shows, by clear and convincing evidence, that the health care
1933     decision is not reasonable and informed.
1934          (b) Nothing in Subsection [(4)] (5)(a) may prohibit a parent from exercising the right to
1935     obtain a second health care opinion.
1936          [(5)] (6) If a child has been placed in the custody of the division and the parent or
1937     parents fail to comply substantially with the terms and conditions of a plan within six months
1938     after the date on which the child was placed or the plan was commenced, whichever occurs
1939     later, that failure to comply is evidence of failure of parental adjustment.
1940          [(6)] (7) The following circumstances constitute prima facie evidence of unfitness:
1941          (a) sexual abuse, sexual exploitation, injury, or death of a sibling of the child, or of any
1942     child, due to known or substantiated abuse or neglect by the parent or parents;
1943          (b) conviction of a crime, if the facts surrounding the crime are of such a nature as to
1944     indicate the unfitness of the parent to provide adequate care to the extent necessary for the
1945     child's physical, mental, or emotional health and development;
1946          (c) a single incident of life-threatening or gravely disabling injury to or disfigurement
1947     of the child;

1948          (d) the parent has committed, aided, abetted, attempted, conspired, or solicited to
1949     commit murder or manslaughter of a child or child abuse homicide; or
1950          (e) the parent intentionally, knowingly, or recklessly causes the death of another parent
1951     of the child, without legal justification.
1952          Section 71. Effective date.
1953          This bill takes effect on July 1, 2016.