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, a cannabis product or a
14     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 a cannabis product or a medical
41     cannabis device, and to sell the cannabis product or medical cannabis device to an
42     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;
45          ▸     allows a licensed cannabis processing facility to possess cannabis, process cannabis
46     into a cannabis product, and sell the cannabis product to a licensed cannabis
47     dispensary;
48          ▸     allows a licensed independent cannabis testing laboratory to possess cannabis or a
49     cannabis product for the purpose of testing the cannabis or cannabis product for
50     content and safety;
51          ▸     allows an individual driving with a measurable metabolite of cannabis to assert, as
52     an affirmative defense, that the individual used the cannabis pursuant to Utah law or
53     the law of another state;
54          ▸     prohibits a court from discriminating against a parent in a child custody case based
55     on the parent's lawful possession or use of a cannabis product;
56          ▸     prohibits a peace officer or child welfare worker from removing a child from an

57     individual's home on the basis of the individual's lawful possession or use of a cannabis
58     product;
59          ▸     imposes a tax on the sale of a cannabis product or a medical cannabis device at a
60     cannabis dispensary;
61          ▸     exempts from sales and use tax the sale of a cannabis product or a medical cannabis
62     device by a cannabis dispensary;
63          ▸     creates the Medical Cannabis Restricted Account, consisting of:
64               •     proceeds of the medical cannabis tax;
65               •     medical cannabis card application fees;
66               •     cannabis dispensary application and licensing fees;
67               •     cannabis production establishment application and licensing fees; and
68               •     fines collected for violations of state medical cannabis law; and
69          ▸     repeals and replaces, after state medical cannabis regulation is implemented, the
70     Hemp Extract Regulation Act.
71     Money Appropriated in this Bill:
72          None
73     Other Special Clauses:
74          This bill provides a special effective date.
75     Utah Code Sections Affected:
76     AMENDS:
77          30-3-10, as last amended by Laws of Utah 2014, Chapter 409
78          41-6a-517, as last amended by Laws of Utah 2013, Chapter 333
79          62A-4a-202.1, as last amended by Laws of Utah 2012, Chapters 221 and 293
80          63I-1-226, as last amended by Laws of Utah 2015, Chapters 16, 31, and 258
81          63I-1-258, as last amended by Laws of Utah 2015, Chapters 40, 186, 187, 320, 367,
82     and 432
83          78A-6-508, as last amended by Laws of Utah 2014, Chapter 409
84     ENACTS:
85          4-42-101, Utah Code Annotated 1953
86          4-42-102, Utah Code Annotated 1953
87          4-42-103, Utah Code Annotated 1953

88          4-42-201, Utah Code Annotated 1953
89          4-42-202, Utah Code Annotated 1953
90          4-42-203, Utah Code Annotated 1953
91          4-42-301, Utah Code Annotated 1953
92          4-42-302, Utah Code Annotated 1953
93          4-42-303, Utah Code Annotated 1953
94          4-42-401, Utah Code Annotated 1953
95          4-42-402, Utah Code Annotated 1953
96          4-42-403, Utah Code Annotated 1953
97          4-42-404, Utah Code Annotated 1953
98          4-42-501, Utah Code Annotated 1953
99          4-42-601, Utah Code Annotated 1953
100          4-42-602, Utah Code Annotated 1953
101          4-42-603, Utah Code Annotated 1953
102          4-42-701, Utah Code Annotated 1953
103          4-42-702, Utah Code Annotated 1953
104          4-42-801, Utah Code Annotated 1953
105          26-58-101, Utah Code Annotated 1953
106          26-58-102, Utah Code Annotated 1953
107          26-58-103, Utah Code Annotated 1953
108          26-58-104, Utah Code Annotated 1953
109          26-58-105, Utah Code Annotated 1953
110          26-58-106, Utah Code Annotated 1953
111          26-58-107, Utah Code Annotated 1953
112          26-58-108, Utah Code Annotated 1953
113          26-58-201, Utah Code Annotated 1953
114          26-58-202, Utah Code Annotated 1953
115          26-58-203, Utah Code Annotated 1953
116          26-58-204, Utah Code Annotated 1953
117          26-58-301, Utah Code Annotated 1953
118          26-58-302, Utah Code Annotated 1953

119          26-58-303, Utah Code Annotated 1953
120          26-58-304, Utah Code Annotated 1953
121          26-58-401, Utah Code Annotated 1953
122          26-58-402, Utah Code Annotated 1953
123          26-58-403, Utah Code Annotated 1953
124          26-58-501, Utah Code Annotated 1953
125          26-58-502, Utah Code Annotated 1953
126          26-58-503, Utah Code Annotated 1953
127          26-58-504, Utah Code Annotated 1953
128          26-58-505, Utah Code Annotated 1953
129          26-58-601, Utah Code Annotated 1953
130          53-1-106.5, Utah Code Annotated 1953
131          58-37-3.6, Utah Code Annotated 1953
132          58-37-3.7, Utah Code Annotated 1953
133          59-12-104.7, Utah Code Annotated 1953
134          59-28-101, Utah Code Annotated 1953
135          59-28-102, Utah Code Annotated 1953
136          59-28-103, Utah Code Annotated 1953
137          59-28-104, Utah Code Annotated 1953
138          59-28-105, Utah Code Annotated 1953
139          59-28-106, Utah Code Annotated 1953
140          59-28-107, Utah Code Annotated 1953
141          59-28-108, Utah Code Annotated 1953
142     

143     Be it enacted by the Legislature of the state of Utah:
144          Section 1. Section 4-42-101 is enacted to read:
145     
CHAPTER 42. CANNABIS PRODUCTION ESTABLISHMENTS

146     
Part 1. General Provisions

147          4-42-101. Title.
148          (1) This chapter is known as "Cannabis Production Establishments."
149          Section 2. Section 4-42-102 is enacted to read:

150          4-42-102. Definitions.
151          As used in this chapter:
152          (1) "Cannabinoid profile" means the percentage of cannabis or a cannabis product, by
153     weight, that is composed of the cannabinoids:
154          (a) Tetrahydrocannabinol or THC;
155          (b) Tetrahyrdocannabinolic acid or THCa;
156          (c) Cannabidiol or CBD;
157          (d) Cannabinol or CBN; and
158          (e) Cannabigerol or CBG.
159          (2) "Cannabis" means the same as that term is defined in Section 58-37-3.6.
160          (3) "Cannabis cultivation facility" means a person that:
161          (a) grows cannabis; or
162          (b) possesses cannabis with the intent to grow cannabis.
163          (4) "Cannabis cultivation facility agent" means an individual who is an owner, officer,
164     director, board member, employee, or volunteer of a cannabis cultivation facility.
165          (5) "Cannabis dispensary" means the same as that term is defined in Section
166     26-58-102.
167          (6) "Cannabis dispensary agent" means the same as that term is defined in Section
168     26-58-102.
169          (7) "Cannabis processing facility" means a person that:
170          (a) manufactures a cannabis product from unprocessed cannabis;
171          (b) purchases or possesses cannabis with the intent to manufacture a cannabis product;
172     or
173          (c) sells or intends to sell a cannabis product to a cannabis dispensary.
174          (8) "Cannabis processing facility agent" means an individual who is an owner, officer,
175     director, board member, employee, or volunteer of a cannabis processing facility.
176          (9) "Cannabis product" means the same as that term is defined in Section 58-37-3.6.
177          (10) "Cannabis production establishment" means:
178          (a) a cannabis cultivation facility;
179          (b) a cannabis processing facility; or
180          (c) an independent cannabis testing laboratory;

181          (11) "Cannabis production establishment agent" means:
182          (a) a cannabis cultivation facility agent;
183          (b) a cannabis processing facility agent; or
184          (c) an independent cannabis testing laboratory agent.
185          (12) "Cannabis production establishment agent registration card" means a registration
186     card, issued by the department, that:
187          (a) authorizes an individual to act as a cannabis production establishment agent; and
188          (b) designates the type of cannabis production establishment for which an individual is
189     authorized to act as an agent.
190          (13) "Independent cannabis testing laboratory" means a person that:
191          (a) conducts a chemical or other analysis of cannabis or a cannabis product; or
192          (b) possesses cannabis or a cannabis product with the intent to conduct a chemical or
193     other analysis of the cannabis or cannabis product.
194          (14) "Independent cannabis testing laboratory agent" means an individual who is an
195     owner, officer, director, board member, employee, or volunteer of an independent cannabis
196     testing laboratory.
197          (15) "Inventory control system" means the system described in Section 4-42-103.
198          (16) "Medical cannabis card" means the same as that term is defined in Section
199     26-58-102.
200          (17) "Medical Cannabis Restricted Account" means the account created in Section
201     26-58-108.
202          (18) "Physician" means the same as that term is defined in Section 26-58-201.
203          (19) "State electronic verification system" means the system described in Section
204     26-58-103.
205          Section 3. Section 4-42-103 is enacted to read:
206          4-42-103. Inventory control system.
207          (1) A cannabis production establishment and a cannabis dispensary shall maintain an
208     inventory control system that meets the requirements of this section.
209          (2) An inventory control system shall track cannabis, using a unique identifier, in real
210     time, from the point that a cannabis plant is eight inches tall, and has a root ball, until the
211     cannabis is sold, in the form of a cannabis product, to an individual with a medical cannabis

212     card.
213          (3) An inventory control system shall store in real time a record of the amount of
214     cannabis and cannabis products in the cannabis production establishment's or cannabis
215     dispensary's possession.
216          (4) An inventory control system shall include a video recording system that:
217          (a) tracks all handling and processing of cannabis or a cannabis product in the cannabis
218     production establishment or cannabis dispensary;
219          (b) is tamper proof;
220          (c) is capable of storing a video record for 45 days.
221          (5) An inventory control system installed in a cannabis production establishment or
222     cannabis dispensary shall maintain compatibility with the state electronic verification system.
223          (6) A cannabis production establishment or cannabis dispensary shall allow the
224     department or The Department of Health access to the cannabis production establishment's or
225     cannabis dispensary's inventory control system during an inspection.
226          (7) The department may establish compatibility standards for an inventory control
227     system by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
228     Rulemaking Act.
229          Section 4. Section 4-42-201 is enacted to read:
230     
Part 2. Cannabis Production Establishment

231          4-42-201. Cannabis production establishment -- License.
232          (1) In order to operate a cannabis production establishment, a person shall obtain a
233     license issued by the department under this chapter.
234          (2) Subject to Subsections (6) and (7), the department shall, within 30 days after
235     receiving a complete application, issue a license to operate a cannabis production establishment
236     to a person who submits to the department:
237          (a) a proposed name, address, and physical location where the person will operate the
238     cannabis production establishment;
239          (b) an operating plan that complies with Section 4-42-203;
240          (c) evidence that the person possesses or controls a minimum of $250,000 in liquid
241     assets for each license for which the person applies;
242          (d) for each location of a cannabis production establishment for which the person

243     applies, a complete application for a local business license;
244          (e) an application fee:
245          (i) before January 1, 2017, of $5,000; and
246          (ii) after January 1, 2017, in an amount established by the department in accordance
247     with Section 63J-1-504, that is necessary to cover the department's cost to implement this
248     chapter; and
249          (f) the result of a criminal background check for each proposed cannabis production
250     establishment agent for the cannabis production establishment.
251          (3) If the department determines that a cannabis production establishment is eligible for
252     a license under this section, the department shall:
253          (a) before January 1, 2017, charge the cannabis production establishment an initial
254     license fee of $65,000; and
255          (b) on or after January 1, 2017, charge the cannabis establishment an initial license fee
256     in an amount determined by the department in accordance with Section 63J-1-504.
257          (4) The department shall require a separate application license and a separate license
258     application fee under Subsection (3) for each type of cannabis production establishment and
259     each location of a cannabis production establishment.
260          (5) The department may issue any combination of a cannabis cultivation facility
261     license, a cannabis processing facility license, and a cannabis dispensary license to a person to
262     operate:
263          (a) at the same physical location; or
264          (b) at separate physical locations.
265          (6) The department may not issue a license to operate an independent cannabis testing
266     laboratory to a person:
267          (a) that holds a license or has an ownership interest in a cannabis dispensary, a
268     cannabis processing facility, or a cannabis cultivation facility in the state;
269          (b) that has an owner, officer, director, or employee whose immediate family member
270     holds a license or has an ownership interest in a cannabis dispensary, a cannabis processing
271     facility, or a cannabis cultivation facility; or
272          (c) proposes to operate the independent cannabis testing laboratory at the same physical
273     location as a cannabis dispensary, a cannabis processing facility, or a cannabis cultivation

274     facility.
275          Section 5. Section 4-42-202 is enacted to read:
276          4-42-202. Renewal.
277          (1) The department shall renew a person's license issued under Section 4-42-201 every
278     two years, if, at the time of renewal, the person meets the requirements of Section 4-42-201.
279          (2) The department shall charge a cannabis production establishment that the
280     department determines is eligible for license renewal a license renewal fee in an amount
281     determined by the department in accordance with Section 63J-1-504.
282          Section 6. Section 4-42-203 is enacted to read:
283          4-42-203. Operating plan.
284          (1) A person applying for a license to operate a cannabis production facility shall
285     submit to the department, with the person's application, a proposed operation plan that
286     includes:
287          (a) drawings of the physical characteristics of the proposed facility, including a site
288     plan, floor plan and architectural elevations which indicate compliance with the requirements
289     of this chapter;
290          (b) a description of the credentials and experience of:
291          (i) each officer, director, or owner of the proposed cannabis production establishment;
292     and
293          (ii) any highly skilled or experienced prospective employee;
294          (c) the cannabis production establishment's employee training standards;
295          (d) a security plan;
296          (e) a banking and financial services plan;
297          (f) a description of the cannabis production establishment's inventory control system,
298     including a plan to make the inventory control system compatible with the state electronic
299     verification system;
300          (g) for a cannabis cultivation facility, the information described in Subsection (2);
301          (h) for a cannabis processing facility, the information described in Subsection (3); and
302          (i) for an independent cannabis testing laboratory, the information described in
303     Subsection (4).
304          (2) A cannabis cultivation facility's operating plan shall include:

305          (a) evidence that the cannabis cultivation facility has entered into a preliminary
306     agreement with a cannabis processing facility or a cannabis dispensary in the state to purchase
307     the cannabis cultivation facility's output; and
308          (b) the cannabis cultivation facility's intended cannabis cultivation practices, including
309     the cannabis cultivation facility's intended:
310          (i) pesticide use;
311          (ii) fertilizer use;
312          (iii) square footage under cultivation; and
313          (iv) anticipated cannabis yield.
314          (3) A cannabis processing facility's operating plan shall include:
315          (a) evidence that the cannabis processing facility has entered into a preliminary
316     agreement:
317          (i) with a cannabis cultivation facility in the state to purchase unprocessed cannabis
318     input; and
319          (ii) with a cannabis dispensary in the state to purchase the cannabis processing facility's
320     output;
321          (b) the cannabis processing facility's intended cannabis processing practices, including
322     the cannabis processing facility's intended:
323          (i) offered variety of cannabis product;
324          (ii) cannabinoid extraction method;
325          (iii) cannabinoid extraction equipment;
326          (iv) processing equipment;
327          (v) processing techniques; and
328          (vi) sanitation and food safety procedures;
329          (4) An independent cannabis testing laboratory's operating plan shall include:
330          (a) evidence that the independent cannabis testing laboratory agreement with a
331     cannabis production establishment to provide testing services; and
332          (b) the independent cannabis testing laboratory's intended:
333          (i) cannabis and cannabis product testing capability; and
334          (ii) cannabis and cannabis product testing equipment.
335          Section 7. Section 4-42-301 is enacted to read:

336     
Part 3. Cannabis Production Establishment Agents

337          4-42-301. Cannabis production establishment agent -- Registration.
338          (1) In order to act as a cannabis production establishment agent, an individual shall
339     register with the department as a cannabis production establishment agent.
340          (2) A physician may not serve as a cannabis production establishment agent.
341          (3) An independent cannabis testing laboratory agent may not act as an agent for a
342     cannabis dispensary, a cannabis processing facility, or a cannabis cultivation facility.
343          (4) The department shall, within 30 business days after receiving a complete
344     application, register and issue a cannabis production establishment agent registration card to an
345     individual who:
346          (a) has not been convicted of an offense that is a felony under either state or federal
347     law;
348          (b) provides to the department:
349          (i) the individual's name and address; and
350          (ii) the name and location of a licensed cannabis production establishment where the
351     individual seeks to act as the cannabis production establishment's agent;
352          (c) pays the department a fee:
353          (i) before January 1, 2017, of $250; and
354          (ii) on or after January 1, 2017, in an amount determined by the department in
355     accordance with Section 63J-1-504, that is necessary to cover the department's cost to
356     implement this part; and
357          (d) complies with the requirement for and passes a criminal background check
358     described in Section 4-42-302.
359          (5) The department shall designate, on an individual's cannabis production
360     establishment agent registration card the name and type of any cannabis production
361     establishment where the individual is registered as an agent.
362          (6) A cannabis production establishment agent shall comply with a certification
363     standard developed by the department or with a third party certification standard approved by
364     the department.
365          (7) The certification standard described in Subsection (6) shall address:
366          (a) Utah medical cannabis law;

367          (b) for a cannabis cultivation facility agent, cannabis cultivation best practices;
368          (c) for a cannabis processing facility agent, cannabis processing, food safety, and
369     sanitation best practices; and
370          (d) for an independent cannabis testing laboratory agent, cannabis testing best
371     practices.
372          (8) The department may revoke or refuse to issue a cannabis production establishment
373     agent registration card of an individual who:
374          (a) violates the requirements of this chapter; or
375          (b) is convicted of an offense, that is a felony under state or federal law, that involves a
376     drug or violent crime.
377          Section 8. Section 4-42-302 is enacted to read:
378          4-42-302. Cannabis production establishment agent -- Criminal background
379     checks.
380          (1) An individual that applies for registration as a cannabis production establishment
381     agent under Section 4-42-301 shall:
382          (a) submit, at the time of application, a fingerprint card in a form acceptable to the
383     department; and
384          (b) consent to a fingerprint background check by:
385          (i) the Utah Bureau of Criminal Identification; and
386          (ii) the Federal Bureau of Investigation.
387          (2) The department shall request that the Department of Public Safety complete a
388     Federal Bureau of Investigation criminal background check for the individual described in
389     Subsection (1).
390          Section 9. Section 4-42-303 is enacted to read:
391          4-42-303. Cannabis production establishment agent registration card --
392     Rebuttable presumption.
393          (1) A cannabis production establishment agent who is registered with the department
394     under Section 4-42-301 shall carry the individual's cannabis production establishment agent
395     registration card with the individual at all times when:
396          (a) the individual is on the premises of the cannabis production establishment where
397     the individual is a cannabis production establishment agent; and

398          (b) the individual is transporting cannabis, a cannabis product, or a medical cannabis
399     device between two cannabis production establishments or between a cannabis production
400     establishment and a cannabis dispensary.
401          (2) If an individual handling cannabis, a cannabis product, or a medical cannabis
402     device at a cannabis production establishment, or transporting cannabis, a cannabis product, or
403     a medical cannabis device, possesses the cannabis, cannabis product, or medical cannabis
404     device in compliance with Subsection (1):
405          (a) there is a rebuttable presumption that the individual possesses the cannabis,
406     cannabis product, or medical cannabis device legally; and
407          (b) a law enforcement officer does not have probable cause, based solely on the
408     individual's possession of the cannabis, cannabis product, or medical cannabis device in
409     compliance with Subsection (1), to believe that the individual is engaging in illegal activity.
410          (3) A cannabis production establishment agent registered with the department is guilty
411     of an infraction if the registered cannabis production establishment agent:
412          (a) (i) is on the premises of a cannabis production establishment where the individual is
413     registered as an agent; or
414          (ii) transports cannabis, a cannabis product, or a medical cannabis device; and
415          (b) does not possess, on the registered cannabis production establishment agent's
416     person, a valid cannabis production establishment agent registration card.
417          (4) A registered cannabis production establishment agent who is guilty of an infraction
418     under Subsection (3) is subject to a fine of no more than $100.
419          Section 10. Section 4-42-401 is enacted to read:
420     
Part 4. General Cannabis Production Establishment Operating Requirements

421          4-42-401. Cannabis production establishment -- General operating requirements.
422          (1) (a) A cannabis production establishment shall operate in accordance with the
423     operating plan provided to the department under Section 4-42-203.
424          (b) A cannabis production establishment shall notify the department no longer than 30
425     days after a change in the cannabis production establishment's operating plan.
426          (2) A cannabis production establishment shall operate:
427          (a) except as provided in Subsection (3), in a facility with a controlled entrance that is
428     accessible only by an individual with a valid cannabis production establishment agent

429     registration card issued under Section 4-42-301; and
430          (b) at the physical address provided to the department under Section 4-42-201.
431          (3) A cannabis production establishment may allow an individual who is a visitor, a
432     contractor, or a member of the press to access the cannabis production establishment if the
433     cannabis production establishment:
434          (a) ensures that the individual is accompanied by a cannabis production establishment
435     agent at all times while the individual is at the cannabis production establishment; and
436          (b) maintains a record of the individual's access.
437          (4) A cannabis production establishment shall operate in a facility that has:
438          (a) no exterior signage that indicates the type of business;
439          (b) a single, secure public entrance;
440          (c) a security system with a backup power source that:
441          (i) detects and records entry into the cannabis production establishment during business
442     hours; and
443          (ii) provides notice of an unauthorized entry to law enforcement when the cannabis
444     production establishment is closed; and
445          (d) a locked and reinforced area where the cannabis production establishment stores
446     cannabis or a cannabis product.
447          (5) A cannabis production establishment may not operate:
448          (a) within 600 feet of a community location, as defined in Section 32B-1-102, that is
449     not a public or private school; or
450          (b) within 1000 feet of a public or private school.
451          Section 11. Section 4-42-402 is enacted to read:
452          4-42-402. Inspections.
453          (1) Subject to Subsection (2), the department shall inspect the records and facility of a
454     cannabis production establishment in order to determine if the cannabis production
455     establishment complies with the licensing requirements of this chapter.
456          (2) The department may inspect the records and facility of a cannabis production
457     establishment at any time, scheduled or unscheduled.
458          Section 12. Section 4-42-403 is enacted to read:
459          4-42-403. Advertising.

460          (1) A cannabis production establishment may not advertise to the general public in any
461     medium.
462          (2) Notwithstanding Subsection (1), a cannabis production establishment may advertise
463     employment opportunities at the cannabis production facility.
464          Section 13. Section 4-42-404 is enacted to read:
465          4-42-404. Cannabis, cannabis product, or medical cannabis device transportation.
466          (1) Except for an individual or a designated caregiver with a medical cannabis card
467     who possesses cannabis or a cannabis product in accordance with Section 26-58-204, an
468     individual may only transport cannabis, a cannabis product, or a cannabis device between
469     cannabis production establishments or between a cannabis production establishment and a
470     cannabis dispensary if the individual is:
471          (a) a registered cannabis production establishment agent; or
472          (b) a registered cannabis dispensary agent.
473          (2) An individual transporting cannabis, a cannabis product, or a medical cannabis
474     device shall possess a transportation manifest that:
475          (a) includes a unique identifier that links the cannabis, cannabis product, or medical
476     cannabis device to a related inventory control system;
477          (b) includes origin and destination information for any cannabis, cannabis product, or
478     medical cannabis device the individual is transporting; and
479          (c) indicates the departure and arrival times and locations of the individual transporting
480     the cannabis, cannabis product, or medical cannabis device.
481          (3) In addition to the requirements in Subsections (1) and (2), the department may
482     establish, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
483     Rulemaking Act, requirements for transporting cannabis, a cannabis product, or a medical
484     cannabis device that are related to safety for human consumption of cannabis or cannabis
485     products.
486          (4) A cannabis production establishment agent registered with the department is guilty
487     of an infraction if the registered cannabis production establishment agent:
488          (a) transports cannabis, a cannabis product, or a medical cannabis device; and
489          (b) does not possess, on the registered cannabis production establishment agent's
490     person or in the transport vehicle, a manifest that complies with Subsection (3).

491          (5) A registered cannabis production establishment agent who is guilty of an infraction
492     under Subsection (3) is subject to a $100 fine.
493          Section 14. Section 4-42-501 is enacted to read:
494     
Part 5. Cannabis Cultivation Facility Operating Requirements

495          4-42-501. Cannabis cultivation facility -- Operating requirements.
496          (1) A cannabis cultivation facility shall ensure that any cannabis growing at the
497     cannabis cultivation facility is screened from view at the cannabis cultivation facility perimeter.
498          (2) A cannabis cultivation facility shall use a unique identifier that is connected to the
499     cannabis cultivation facility's inventory control system for:
500          (a) beginning at the time a cannabis plant is 8 inches tall and has a root ball, each
501     cannabis plant;
502          (b) each unique harvest of cannabis plants; and
503          (c) each batch of cannabis transferred to a cannabis dispensary, a cannabis processing
504     facility, or an independent cannabis testing laboratory.
505          (4) The department shall review a cannabis cultivation facility's operating plan
506     submitted under Section 4-42-203 for the purpose of ensuring that the cannabis that a
507     cultivation facility cultivates is safe for human use.
508          Section 15. Section 4-42-601 is enacted to read:
509     
Part 6. Cannabis Processing Facility Operating Requirements

510          4-42-601. Cannabis processing facility -- Operating requirements -- General.
511          (1) A cannabis processing facility shall ensure that a cannabis product that the cannabis
512     processing facility sells or provides to a cannabis dispensary complies with the requirements of
513     this part.
514          (2) If a cannabis processing facility extracts cannabinoids from cannabis using a
515     hydrocarbon process, the cannabis processing facility shall extract the cannabinoids under a
516     blast hood.
517          (3) The department shall review a cannabis processing facility's operating plan
518     submitted under Section 4-42-203 for the purpose of ensuring that a cannabis product that the
519     cannabis processing facility produces is safe for human consumption.
520          Section 16. Section 4-42-602 is enacted to read:
521          4-42-602. Cannabis product -- Labeling and packaging.

522          (1) A cannabis product shall have a label that:
523          (a) clearly and unambiguously states that the cannabis product contains cannabis;
524          (b) clearly displays:
525          (i) the total amount of cannabinoids by weight in the cannabis product;
526          (ii) the cannabinoid profile of the cannabis product; and
527          (iii) the number of doses, and the milligrams in each dose, in the cannabis product;
528          (c) has a unique batch identifier that is connected to the cannabis processing facility's
529     inventory control system.
530          (d) identifies the cannabinoid extraction method that the cannabis precessing facility
531     used to create the cannabis product;
532          (e) if the cannabis processing facility used a hydrocarbon extraction process to create
533     the cannabis product, a certification that the product contains a level of residual solvents that is
534     safe for human consumption;
535          (f) does not display images, words, or phrases that are:
536          (i) intended to appeal to children; or
537          (ii) similar to words or phrases used on candy labels; and
538          (g) certifies that the cannabis product is free from microbiological contaminants.
539          (2) A cannabis processing facility shall package a cannabis product in a container that:
540          (a) is tamper evident;
541          (b) is not appealing to children or similar to a candy container;
542          (c) is opaque; and
543          (d) complies with child-resistant special packaging standards described in 16 C.F.R.
544     Sec. 1700.15 that apply to a controlled drug as described in 16 C.F.R. Sec. 1700.14.
545          Section 17. Section 4-42-603 is enacted to read:
546          4-42-603. Cannabis product -- Product quality.
547          (1) A cannabis processing facility may not produce a cannabis product in a physical
548     form that:
549          (a) is intended to appeal to children; or
550          (b) is designed to mimic or be mistaken for an existing candy product.
551          (2) A cannabis processing facility may not manufacture a cannabis product by applying
552     a cannabis agent only to the surface of a pre-manufactured food product that is not produced by

553     the cannabis processing facility.
554          (3) A cannabis product may vary in the cannabis product's labeled cannabis profile by
555     up to 15% of the indicated amount of a given cannabinoid, by weight.
556          (4) The department shall adopt, by rule made in accordance with Title 63G, Chapter 3,
557     Utah Administrative Rulemaking Act, human consumption safety standards for a cannabis
558     product that are consistent, to the extent possible, with standards adopted by the United States
559     Food and Drug Administration for products that are similarly applied or ingested.
560          Section 18. Section 4-42-701 is enacted to read:
561     
Part 7. Independent Cannabis Testing Laboratories

562          4-42-701. Cannabis and cannabis product testing.
563          (1) An independent cannabis testing laboratory shall, before a cannabis product is
564     offered for sale at a cannabis dispensary, accurately test and certify the cannabis product as
565     provided in this section.
566          (2) An independent cannabis testing laboratory shall determine the cannabinoid profile
567     of a cannabis product.
568          (3) An independent cannabis testing laboratory shall determine if a cannabis product
569     contains, in an amount that is harmful to human health:
570          (a) mold;
571          (b) fungus;
572          (c) pesticides; or
573          (d) microbial contaminants.
574          (4) For a cannabis product that is manufactured using a process that involves extraction
575     using hydrocarbons, an independent cannabis testing laboratory shall test the cannabis product
576     for an unhealthy level of a residual solvent.
577          (5) The department may determine, by rule made in accordance with Title 63G,
578     Chapter 3, Utah Administrative Rulemaking Act, the amount that is safe for human
579     consumption of:
580          (a) a substance described in Subsection (3); and
581          (b) a residual solvent.
582          Section 19. Section 4-42-702 is enacted to read:
583          4-42-702. Reporting -- Inspections -- Seizure by the department.

584          (1) If an independent cannabis testing laboratory determines that the results of a lab test
585     indicate that a cannabis product batch may be unsafe for human consumption:
586          (a) the independent cannabis testing laboratory shall report the results and the cannabis
587     product batch simultaneously to:
588          (i) the department; and
589          (ii) the cannabis production establishment that prepared the cannabis product batch;
590          (b) retain possession of the cannabis product batch for one week in order to investigate
591     the cause of the defective batch and to make a determination; and
592          (c) allow the cannabis production establishment that prepared the cannabis product
593     batch to appeal the determination described in Subsection (1)(b), and, if necessary following
594     the appeal, allow the independent cannabis testing laboratory to retest the cannabis product
595     batch.
596          (2) If, under Subsection (1)(b), the department determines, following an appeal, that a
597     cannabis product prepared by a cannabis production establishment is unsafe for human
598     consumption, the department may seize, embargo, or destroy a cannabis product batch.
599          Section 20. Section 4-42-801 is enacted to read:
600     
Part 8. Enforcement

601          4-42-801. Enforcement -- Fine -- Citation.
602          (1) For a violation of the licensing provisions of this chapter by a person that is a
603     cannabis production establishment or a cannabis production establishment agent:
604          (a) revoke the person's cannabis production establishment license or cannabis
605     production establishment agent registration card;
606          (b) refuse to renew the person's license or registration; or
607          (c) assess the person an administrative penalty.
608          (2) The department shall deposit an administrative penalty imposed under this section
609     in the Medical Cannabis Restricted Account.
610          (3) (a) The department may take an action described in Subsection (3)(b) if the
611     department concludes, upon inspection or investigation, that, for a person that is a cannabis
612     production establishment or a cannabis production establishment agent:
613          (i) the person has violated the provisions of this chapter, a rule made under this
614     chapter, or an order issued under this chapter; or

615          (ii) the person produced a cannabis product batch that a test shows contains a
616     contaminant described in Section 4-42-701.
617          (b) If the department makes the determination about a person described in Subsection
618     (3)(a)(i), the department shall:
619          (i) issue the person a written citation;
620          (ii) attempt to negotiate a stipulated settlement; or
621          (iii) direct the person to appear before an adjudicative proceeding conducted under
622     Title 63G, Chapter 4, Administrative Procedures Act.
623          (c) If the department makes the determination about a person described in Subsection
624     (3)(a)(ii), the department may:
625          (i) seize, embargo, or destroy the cannabis or cannabis product batch as described in
626     Subsection 4-42-702(2); and
627          (ii) direct the person to appear before an adjudicative proceeding conducted under Title
628     63G, Chapter 4, Administrative Procedures Act.
629          (4) The department may, for a person subject to an uncontested citation, a stipulated
630     settlement, or a finding of a violation in an adjudicative proceeding under this section:
631          (a) assess the person a fine, established in accordance with Section 63J-1-504, of up to
632     $5,000 per violation, in accordance with a fine schedule established by rule made in accordance
633     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
634          (b) order the person to cease and desist from, and cure, the action that creates a
635     violation.
636          (5) The department may not revoke a cannabis production establishment's license via a
637     citation.
638          (6) If within 20 calendar days after the day on which a department serves a citation for
639     a violation of this chapter, the person that is the subject of the citation fails to request a hearing
640     to contest the citation, the department shall use the citation as the basis for the department's
641     final order.
642          (7) The department may, for a person who fails to cure the violation that the basis is for
643     the citation under this section:
644          (a) refuse to issue or renew the person's license or cannabis production establishment
645     agent registration card; or

646          (b) suspend, revoke, or place on probation the person's license or cannabis production
647     establishment registration card.
648          Section 21. Section 26-58-101 is enacted to read:
649     
CHAPTER 58. MEDICAL CANNABIS ACT

650     
Part 1. General Provisions

651          26-58-101. Title.
652          This chapter is known as "Medical Cannabis Act."
653          Section 22. Section 26-58-102 is enacted to read:
654          26-58-102. Definitions.
655          As used in this chapter:
656          (1) "Cannabinoid profile" means the percentage of cannabis or a cannabis product, by
657     weight, that is composed of the cannabinoids:
658          (a) Tetrahydrocannabinol or THC;
659          (b) Tetrahyrdocannabinolic acid or THCa;
660          (c) Cannabidiol or CBD;
661          (d) Cannabinol or CBN; and
662          (e) Cannabigerol or CBG.
663          (2) "Cannabis" means the same as that term is defined in Section 58-37-3.6.
664          (3) "Cannabis cultivation facility" means the same as that term is defined in Section
665     4-42-102.
666          (4) "Cannabis dispensary" means a person that:
667          (a) sells cannabis, a cannabis product, or a medical cannabis device; or
668          (b) purchases or possesses cannabis, a cannabis product, or a medical cannabis device,
669     with the intent to sell the cannabis, cannabis product, or medical cannabis device.
670          (5) "Cannabis dispensary agent" means an owner, officer, director, board member, or
671     employee of, or a volunteer at, a cannabis dispensary.
672          (6) "Cannabis dispensary agent registration card" means a registration card, issued by
673     the department, that identifies an individual as a cannabis dispensary agent.
674          (7) "Cannabis processing facility" means the same as that term is defined in Section
675     4-42-102.
676          (8) "Cannabis product" means the same as that term is defined in Section 58-37-3.6.

677          (9) "Cannabis production establishment agent" means the same as that term is defined
678     in Section 4-42-102.
679          (10) "Cannabis production establishment agent registration card" means the same as
680     that term is defined in Section 4-42-102.
681          (11) "Designated caregiver" means an individual:
682          (a) whom a patient with a medical cannabis card designates as the patient's caregiver;
683     and
684          (b) registers with the department under Section 26-58-202.
685          (12) "Independent cannabis testing laboratory" means the same as that term is defined
686     in Section 4-42-102.
687          (13) "Inventory control system" means the system described in Section 4-42-103.
688          (14) "Medical cannabis card" means an official, tamper proof document or card, issued
689     by the department to an individual with a qualifying illness or the individual's designated
690     caregiver under this chapter, that is connected to the electronic verification system.
691          (15) "Medical cannabis device" means the same as that term is defined in Section
692     58-37-3.6(1)(b).
693          (16) "Medical Cannabis Restricted Account" means the account created in Section
694     26-58-108.
695          (17) "Participating entity" means:
696          (a) the Department of Agriculture and Food;
697          (b) the Department of Health; and
698          (c) the Department of Technology Services.
699          (18) "Physician" means an individual who is qualified to recommend cannabis under
700     Section 26-58-207.
701          (19) "Qualifying illness" means a condition described in Section 26-58-104.
702          (20) "State electronic verification system" means the system described in Section
703     26-58-103.
704          Section 23. Section 26-58-103 is enacted to read:
705          26-58-103. State electronic verification system.
706          (1) The Department of Agriculture and Food, the Department of Health, the
707     Department of Public Safety, and the Department of Technology Services shall:

708          (a) enter into a memorandum of understanding in order to determine the function and
709     operation of an electronic verification system;
710          (b) coordinate with the Division of Purchasing under Title 63G, Chapter 6a, Utah
711     Procurement Code, to develop a request for proposals for a third party provider to develop and
712     maintain an electronic verification system in coordination with the Department of Technology
713     Services;
714          (c) select a third party provided described in Subsection (1)(b); and
715          (d) take the actions described in Subsections (1)(a), (b), and (c) according to the
716     following schedule:
717          (i) no later than 75 days after the effective date of the bill, enter into the memorandum
718     of understanding described in Subsection (1)(a);
719          (ii) no later than 60 days after taking the action described in Subsection (1)(d)(i), issue
720     the request for proposals for a third party provider described in Subsection (1)(b);
721          (iii) 30 days after taking the action described in Subsection (1)(d)(ii), close bidding for
722     the request for proposals;
723          (iv) 90 days after taking the action described in Subsection (1)(d)(iii), select a third
724     party provider;
725          (v) 300 days after taking the action described in Subsection (1)(d)(iv), require the third
726     party provider to have a working prototype of a state electronic verification system and begin
727     training state employees on the state electronic verification system;
728          (vi) 90 days after taking the action described in Subsection (1)(d)(v), require the third
729     party provider to successfully integrate any cannabis production establishment or cannabis
730     dispensary licensee's inventory control system into the state electronic verification system; and
731          (vii) 30 days after taking the action described in Subsection (1)(d)(vi), require the state
732     electronic verification system and any associated system or process to be fully operational.
733          (2) The electronic verification system described in Subsection (1) shall:
734          (a) allow an individual, with the individual's physician in the physician's office, to
735     apply for a medical cannabis card;
736          (b) allow a physician to:
737          (i) electronically recommend, during a visit with a patient, treatment with a cannabis
738     product for the patient; and

739          (ii) see, on a screen where the physician inputs a recommendation, simultaneously
740     while the physician inputs the recommendation, the patient's cannabis dispensing history;
741          (c) issue a medical cannabis card to an individual if the individual meets the
742     requirements described in Section 26-58-201;
743          (d) issue to a designated caregiver, if the designated caregiver meets the requirements
744     in Section 26-58-202, a medical cannabis card on behalf of a named patient;
745          (e) connect with an inventory control system used by each cannabis dispensary and
746     cannabis production establishment to track, in real time, for the purchase of a cannabis product
747     by a medical cannabis card holder:
748          (i) the time and date of the purchase;
749          (ii) the quantity and type of a cannabis product purchased; and
750          (iii) any cannabis production establishment or cannabis dispensary that cultivated,
751     processed, tested, or sold the cannabis product;
752          (f) provide access to the Department of Health and the Department of Agriculture and
753     Food to the extent necessary to carry out the Department of Health's and the Department of
754     Agriculture and Food's functions and responsibilities under:
755          (i) this chapter; and
756          (ii) Title 4, Chapter 42, Cannabis Production Establishment;
757          (g) provide access to state or local law enforcement:
758          (i) during a traffic stop for the purpose of determining if the individual subject to the
759     traffic stop is complying with state medical cannabis law; or
760          (ii) after obtaining a warrant;
761          (h) create a record each time a person accesses the database that identifies the person
762     who accesses the database and the individual whose records are accessed; and
763          (i) transmit an individual's cannabis product purchase history to the controlled
764     substance database created in Section 58-37f-203.
765          (3) The Department of Health may release de-identified data collected by the system
766     under Subsection (2) for the purpose of conducting medical research.
767          Section 24. Section 26-58-104 is enacted to read:
768          26-58-104. Qualifying illness.
769          (1) For the purposes of this chapter, the following conditions are considered a

770     qualifying illness:
771          (a) HIV, acquired immune deficiency syndrome or an autoimmune disorder;
772          (b) Alzheimer's disease;
773          (c) amyotrophic lateral sclerosis;
774          (d) cancer, cachexia, or such condition manifest by physical wasting, nausea, or
775     malnutrition associated with chronic disease;
776          (e) Crohn's disease or a similar gastrointestinal disorder;
777          (f) epilepsy or a similar condition that causes debilitating seizures;
778          (g) multiple sclerosis or a similar condition that causes persistent and debilitating
779     muscle spasms;
780          (h) post-traumatic stress disorder related to military service; and
781          (i) chronic pain in an individual, if:
782          (A) a physician determines that the individual is at greater risk of becoming addicted
783     to, chemically dependent on, or overdosing on, opiate-based pain medication; or
784          (B) a physician determines that the individual is allergic to opiates, or is otherwise
785     medically unable to use opiates.
786          (2) In addition to the conditions described in Subsection (1), a condition approved
787     under Section 26-58-105, in an individual, on a case-by-case basis, is considered a qualifying
788     illness for the purposes of this chapter.
789          Section 25. Section 26-58-105 is enacted to read:
790          26-58-105. Compassionate Use Board.
791          (1) The department shall establish a Compassionate Use Board consisting of:
792          (a) five physicians who are knowledgeable about the medical use of cannabis and
793     certified in one of the following specialties:
794          (i) neurology;
795          (ii) pain medicine and pain management;
796          (iii) medical oncology;
797          (iv) psychiatry;
798          (v) infectious disease;
799          (vi) internal medicine; and
800          (vii) pediatrics;

801          (b) the director of the Department of Health or the director's designee as a non-voting
802     member; and
803          (c) two medical research professionals with expertise in cannabinoids or a qualifying
804     illness, including one medical research professional who is affiliated with a research-based
805     higher education institution.
806          (2) The department shall appoint at least one member of the board who has a specialty
807     in addiction medicine.
808          (3) (a) Four of the members of the board first appointed shall serve for a term of three
809     years and three of the members of the board first appointed shall serve for a term of four years.
810          (b) After the first members' terms expire, members of the board shall serve for a term
811     of four years and shall be eligible for reappointment.
812          (c) Any member of the board may serve until a successor is appointed.
813          (d) The director of the Department of Health or the director's designee shall serve as
814     the nonvoting chair of the board.
815          (4) A quorum of the Compassionate Use Board shall consist of five members.
816          (5) A member of the board may not receive compensation or benefits for the member's
817     service, but may receive per diem and travel expenses in accordance with:
818          (a) Section 63A-3-106;
819          (b) Section 63A-3-107; and
820          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
821     63A-3-107.
822          (6) The Compassionate Use Board shall:
823          (a) review and recommend to the department approval for an individual who is not
824     otherwise qualified to receive a medical cannabis card to obtain a medical cannabis card for
825     compassionate use if:
826          (i) the individual and the individual's physician appear before the board and offer, in
827     the board's discretion, satisfactory evidence that the individual suffers from a condition:
828          (A) that substantially impairs the individual's quality of life;
829          (B) that is intractable;
830          (C) that is not responsive to other treatments; and
831          (D) for which it is reasonably likely the condition will respond to treatment with

832     cannabis.
833          (ii) the board determines it is in the best interest of the patient to allow the
834     compassionate use of medical cannabis;
835          (b) meet to receive or review compassionate use petitions:
836          (i) quarterly, unless no petitions are pending; or
837          (ii) as often as necessary if there are more petitions than the board can receive or
838     review during the board's regular schedule;
839          (c) report before November 1 of each year, to the Legislature's Health and Human
840     Services Interim Committee, the number of compassionate use approvals the board issued
841     during the past year and the types of conditions for which the board approved compassionate
842     use; and
843          (d) evaluate whether the number of cannabis dispensaries in a geographic area meets
844     the needs for a geographic area and recommend to the Legislature whether the number of
845     cannabis dispensaries should be increased in a geographic area;
846          (e) evaluate physician variances under Subsection 26-58-106(5).
847          (7) The department shall review any compassionate use recommended by the board
848     under this section to confirm if the board properly exercised the board's discretion under this
849     section.
850          (8) If the department determines the board properly approved an individual for a
851     compassionate use under this section, the department shall issue the individual a provisional
852     medical cannabis card in accordance with this chapter that is valid for one year.
853          (9) Any individually identifiable health information contained in a petition received
854     under this section shall be a protected record in accordance with Title 63G, Chapter 2,
855     Government Records Access and Management Act.
856          (10) The Compassionate Use Board shall, before November 1 of each year,
857     recommend to the Legislature:
858          (a) a condition to designate as a qualifying illness under Section 26-58-104; or
859          (b) a condition to remove as a qualifying illness under Section 26-58-104.
860          Section 26. Section 26-58-106 is enacted to read:
861          26-58-106. Physician qualification.
862          (1) For the purposes of this section, a physician means an individual who is licensed to

863     practice:
864          (a) medicine under Title 58, Chapter 67, Utah Medical Practice Act; or
865          (b) osteopathic medicine under Title 58, Chapter 68, Utah Osteopathic Medical
866     Practice Act.
867          (2) A physician may recommend cannabis if the physician:
868          (a) completes the training requirements described in Subsection (3); and
869          (b) except as described in Subsection (4), recommends cannabis to no more than 250 of
870     the physician's patients at any given time.
871          (3) (a) A physician shall complete, before recommending cannabis to a patient, a
872     training program in cannabis recommendation best practices that is approved by the
873     department, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
874     Rulemaking Act.
875          (b) The department shall issue an endorsement to a physician that completes the
876     training program described in Subsection (3)(a)
877          (c) The endorsement described in Subsection (3)(b) entitles a physician to use a
878     medical cannabis endorsement image developed by the department on the physician's website.
879          (4) A physician may recommend cannabis to greater than 20% of the physician's
880     patients if the physician:
881          (a) is certified in one of the following specialties:
882          (i) anesthesiology;
883          (ii) gastroenterology;
884          (iii) neurology;
885          (iv) oncology;
886          (v) pain and palliative care;
887          (vi) physiatry;
888          (vii) psychiatry; or
889          (viii) addiction medicine;
890          (b) appears before the Compassionate Use Board described in Section 26-58-105; and
891          (c) demonstrates, to the satisfaction of the board and with the department's approval,
892     that:
893          (i) the physician's practice has unique characteristics that warrant allowing the

894     physician to recommend cannabis to greater than 250 of the physician's patients; and
895          (ii) the physician has established expertise in medical cannabis.
896          (5) (a) Except as provided in Subsection (5)(b), a physician eligible to recommend
897     cannabis or a cannabis product under this section may not advertise that the physician
898     recommends cannabis or a cannabis product.
899          (b) A physician may advertise via a website that displays only:
900          (i) a green cross;
901          (ii) the physician's office's hours of operation;
902          (iii) the medical cannabis endorsement image described in Subsection (3)(c);
903          (iv) a qualifying illness that the physician treats;
904          (v) scientific studies regarding cannabis use; and
905          (vi) current studies on treatment with cannabis being conducted on patients.
906          Section 27. Section 26-58-107 is enacted to read:
907          26-58-107. Standard of care -- Medical practitioners not liable -- No private right
908     of action -- Insurance coverage.
909          (1) It is not a breach of the applicable standard of care for a physician to recommend
910     treatment with a cannabis product to an individual under this chapter.
911          (2) A physician who recommends treatment with a cannabis product to an individual in
912     accordance with this chapter may not, based solely on the reason that the recommendation is
913     for a cannabis product, be subject to:
914          (a) civil liability;
915          (b) criminal liability; or
916          (c) licensure sanctions under:
917          (i) Title 58, Chapter 67, Utah Medical Practice Act; or
918          (ii) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act.
919          (3) An insurance carrier, third-party administrator, or employer is not required to
920     provide reimbursement for a cannabis product or a medical cannabis device, under this chapter.
921          Section 28. Section 26-58-108 is enacted to read:
922          26-58-108. Medical Cannabis Restricted Account -- Creation.
923          (1) There is created in the General Fund a restricted account known as the "Medical
924     Cannabis Restricted Account."

925          (2) The account created in this section is funded from:
926          (a) money deposited by the State Tax Commission under Title 59, Chapter 28, Medical
927     Cannabis Tax;
928          (b) money deposited into the account by the Department of Agriculture and Food under
929     Section 4-42-801;
930          (c) money deposited into the account by the department under Section 26-58-601;
931          (d) appropriations made to the account by the Legislature; and
932          (e) the interest described in Subsection (3).
933          (3) Interest earned on the account is deposited in the account.
934          (4) The money in the account may only be used to fund, upon appropriation:
935          (a) the state licensing and regulation cost of the state medical cannabis program
936     established in:
937          (i) Title 26, Chapter 58, Medical Cannabis Act;
938          (ii) Title 4, Chapter 42, Cannabis Production Establishments; and
939          (iii) Title 59, Chapter 28, Medical Cannabis Tax Act; and
940          (b) the cost to the attorney general for investigation and enforcement related to medical
941     cannabis.
942          (5) At the end of fiscal year 2018, the director of the Division of Finance shall transfer
943     into the General Fund from the Medical Cannabis Restricted Account an amount equal to the
944     General Fund appropriation in fiscal year 2016 and fiscal year 2017 to implement the
945     provisions of this bill.
946          Section 29. Section 26-58-201 is enacted to read:
947     
Part 2. Medical Cannabis Card Registration

948          26-58-201. Medical cannabis card -- Application -- Fees -- Database.
949          (1) The department shall:
950          (a) begin issuing medical cannabis cards under this section no later than December 1,
951     2016; and
952          (b) issue a medical cannabis card, via the electronic verification system, to an
953     individual who complies with this section no later than 45 days after the day on which the
954     individual submits a complete application.
955          (2) An individual is eligible for a medical cannabis card if the individual:

956          (a) is at least 18 years old;
957          (b) is a Utah resident; and
958          (c) recommended by the individual's physician under Subsection (5).
959          (3) An individual who is the parent or legal guardian of a minor is eligible for a
960     medical cannabis card if:
961          (a) the individual is at least 18 years old;
962          (b) the individual is a Utah resident; and
963          (c) recommended by the minor's physician under Subsection (5).
964          (4) An individual who is eligible for a medical cannabis card under Subsection (2) or
965     (3) shall submit an application for a medical cannabis card to the department:
966          (a) with the recommending physician, in the recommending physician's office;
967          (b) via an electronic application connected to the electronic verification system;
968          (c) that includes:
969          (i) the individual's name, gender, age, address, and for the purpose of being notified
970     about a recall or a research study, the individual's contact information; and
971          (ii) a copy of the individual's valid photo identification;
972          (5) A physician who recommends treatment with medical cannabis to an individual or
973     minor shall:
974          (a) input in the physician's diagnosis that the individual suffers from a qualifying
975     illness:
976          (i) the type of qualifying illness; and
977          (ii) a recommendation that the individual try a cannabis product; and
978          (b) look up the individual in the controlled substance database created in Section
979     58-37f-201 to check for potential interactions or warning signs.
980          (6) A medical cannabis card the department issues under this section is valid for the
981     lesser of:
982          (a) an amount of time determined by the physician who recommends treatment with a
983     cannabis product under Subsection (5); or
984          (b) two years.
985          (7) An individual may not ingest cannabis or a cannabis product:
986          (a) in public view; or

987          (b) while the individual operates a motor vehicle.
988          (8) The department may revoke an individual's medical cannabis card if the individual
989     violates this chapter.
990          (9) The department may establish procedures, by rule in accordance with Title 63G,
991     Chapter 3, Utah Administrative Rulemaking Act, to implement the medical cannabis card
992     application and issuance provisions of this Section.
993          (10) (a) A person may submit, to the department, a request to conduct a medical
994     research study using medical cannabis cardholder data contained in the electronic verification
995     system.
996          (b) The department shall review a request submitted under Subsection (10)(a) to
997     determine if the medical research study is valid.
998          (c) If the department determines that a medical research study is valid under Subsection
999     (10)(b), the department shall notify a relevant medical cannabis cardholder asking for the
1000     medical cannabis cardholder's participation in the study.
1001          (d) The department may release, for the purposes of a study, information about a
1002     medical cannabis cardholder who consents to participation under Subsection (10)(c).
1003          (e) The department may establish standards for a medical research study's validity, by
1004     rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1005          Section 30. Section 26-58-202 is enacted to read:
1006          26-58-202. Medical cannabis card --- Designated caregiver -- Registration --
1007     Renewal -- Revocation.
1008          (1) An individual may designate up to two individuals to serve as designated caregivers
1009     of the individual if:
1010          (a) the individual has a valid medical cannabis card under Section 26-58-201; and
1011          (b) a physician determines that, due to physical impossibility or undue hardship, the
1012     individual is unable to obtain a cannabis product from a cannabis dispensary.
1013          (2) An individual registered as a designated caregiver under this section may:
1014          (a) carry a valid medical cannabis card with the designated caregiver's name for the
1015     purpose of transporting cannabis or a cannabis product to a designating patient or assisting a
1016     designating patient in administering the cannabis product; and
1017          (b) purchase and possess, in accordance with this chapter, a cannabis product or a

1018     medical cannabis device on behalf of the designating patient.
1019          (3) The department shall register an individual designated as a caregiver under
1020     Subsection (1) if the individual:
1021          (a) is at least 18 years old;
1022          (b) is a Utah resident;
1023          (c) applies online, with the department, through the electronic verification system, for a
1024     medical cannabis card as a designated caregiver;
1025          (d) pays, to the department, a fee established by the department in accordance with
1026     Section 63J-1-504, plus the cost of a criminal background check;
1027          (e) complies with Section 26-58-205; and
1028          (f) completes a training program for designated caregivers established by the
1029     department that includes an endorsement that the individual understands state law for
1030     caregivers.
1031          (4) The department shall issue, to an individual who registers under this section, a
1032     medical cannabis card that:
1033          (a) is connected to the electronic verification system; and
1034          (b) includes the individual's name.
1035          (5) A medical cannabis card is renewable for a designated caregiver if, at the time of
1036     renewal:
1037          (a) an individual with a medical cannabis card described in Subsection (1) renews the
1038     caregiver's designation; and
1039          (b) the designated caregiver meets the requirements of Subsection (3).
1040          (6) A designated caregiver may charge an individual to act as the individual's
1041     designated caregiver.
1042          (7) The Department of Health may revoke an individual's medical cannabis card if the
1043     individual:
1044          (a) violates this chapter; or
1045          (b) is convicted of a felony that is:
1046          (i) a crime of involving the use of force or violence against another person; or
1047          (ii) a felony conviction of a state or federal law pertaining to controlled substances.
1048          Section 31. Section 26-58-203 is enacted to read:

1049          26-58-203. Designated caregiver -- Criminal background check.
1050          (1) An individual registered as a designated caregiver under Section 26-58-202 shall
1051     submit to a criminal background check in accordance with Subsection (2).
1052          (2) Each designated caregiver shall:
1053          (a) submit, to the department, a fingerprint card in a form acceptable to the department
1054     and the Department of Public Safety; and
1055          (b) consent to a fingerprint background check by:
1056          (i) the Utah Bureau of Criminal Identification; and
1057          (ii) the Federal Bureau of Investigation.
1058          (3) The Department of Public Safety shall complete a Federal Bureau of Investigation
1059     Criminal Background Check for each designated caregiver under Subsection (2) and report the
1060     results of the background check to the department.
1061          Section 32. Section 26-58-204 is enacted to read:
1062          26-58-204. Medical cannabis card -- Patient and designated caregiver
1063     requirements -- Rebuttable presumption.
1064          (1) An individual who has a medical cannabis card and who possesses a cannabis
1065     product outside of the individual's residence shall:
1066          (a) carry, with the individual at all times, the individual's medical cannabis card; and
1067          (b) carry, with the cannabis product, a label that identifies that the cannabis product
1068     was originally sold from a department licensed cannabis dispensary, including the bar code or
1069     identification number that links the cannabis or cannabis product to the dispensary's inventory
1070     control system.
1071          (2) If an individual possesses a cannabis product in compliance with Subsection (1), or
1072     a medical cannabis device that corresponds with the cannabis product:
1073          (a) there is a rebuttable presumption that the individual possesses the cannabis product
1074     or medical cannabis device legally; and
1075          (b) a law enforcement officer does not have probable cause, based solely on the
1076     individual's possession of the cannabis product or medical cannabis device, to believe that the
1077     individual is engaging in illegal activity.
1078          (3) (a) If a law enforcement officer stops an individual who possesses a cannabis
1079     product or a medical cannabis device, and the individual represents to the law enforcement

1080     officer that the individual holds a valid medical cannabis card, but the individual does not have
1081     the medical cannabis card in the individual's possession at the time of the stop by the law
1082     enforcement officer, the law enforcement officer shall attempt to access the state electronic
1083     verification system to determine the individual's identity and whether the individual holds a
1084     valid medical cannabis card.
1085          (b) If the law enforcement officer is able to verify the identity of the individual
1086     described in Subsection (3)(a), and that the individual holds a valid medical cannabis card, the
1087     law enforcement officer:
1088          (i) may not arrest or take the individual into custody for the sole reason that the
1089     individual is in possession of a cannabis product or a medical cannabis device; and
1090          (ii) may not seize the cannabis product or medical cannabis device.
1091          (4) An individual who has a valid medical cannabis card is guilty of an infraction if the
1092     individual:
1093          (a) possesses a cannabis product or a medical cannabis device; and
1094          (b) (i) does not posses the individual's medical cannabis card on the individual's
1095     person; or
1096          (ii) does not possess a label that complies with Subsection (1)(b).
1097          (5) (a) Except as described in Subsection (5)(b), an individual who has a valid medical
1098     cannabis card is guilty of an infraction if the individual uses a cannabis product or a medical
1099     cannabis device in public view.
1100          (b) An individual may use a cannabis product or a medical cannabis device in public
1101     view in the event of a medical emergency.
1102          (6) An individual who is guilty of an infraction under Subsection (4) or (5) is subject to
1103     a $100 fine.
1104          Section 33. Section 26-58-301 is enacted to read:
1105     
Part 3. Cannabis Dispensary License

1106          26-58-301. Cannabis dispensary -- License -- Eligibility.
1107          (1) In order to operate as a cannabis dispensary, a person shall obtain a license from the
1108     department issued under this part.
1109          (2) Subject to the requirements of this part, the department shall, within 30 business
1110     days after receiving a complete application, issue a license to operate a cannabis dispensary to a

1111     person who submits to the department:
1112          (a) a proposed name and address of the cannabis dispensary;
1113          (b) evidence that the person:
1114          (i) possesses or controls a minimum of $500,000 in liquid assets for each application
1115     submitted to the department; and
1116          (ii) can comply with the operating requirements for a cannabis dispensary described in
1117     this chapter;
1118          (c) a complete application for a local business license;
1119          (d) an application fee:
1120          (i) before January 1, 2017, of $5,000; and
1121          (ii) after January 1, 2017, in an amount determined by the department in accordance
1122     with Section 63J-1-504, that is necessary to cover the department's cost to implement this part;
1123          (e) an operating plan that complies with Section 26-58-303; and
1124          (f) the results of a criminal background check for each cannabis dispensary agent.
1125          (3) If the department determines that a cannabis dispensary is eligible for a license
1126     under this section, the department shall:
1127          (a) before January 1, 2017, charge the cannabis dispensary an initial license fee of
1128     $65,000; and
1129          (b) on or after January 1, 2017, charge the cannabis dispensary an initial license fee in
1130     an amount determined by the department in accordance with Section 63J-1-504.
1131          (4) The department shall require a separate license and a separate license fee under
1132     Subsection (3) for each location of a cannabis dispensary.
1133          (5) The department may revoke a license under this part if the cannabis dispensary is
1134     not operating within one year of the issuance of the initial license.
1135          (6) The department shall deposit the proceeds of a fee imposed by this section in the
1136     Medical Cannabis Restricted Account.
1137          Section 34. Section 26-58-302 is enacted to read:
1138          26-58-302. Renewal.
1139          (1) Except as provided in Subsection (3), the department shall renew a person's license
1140     under this part every two years if, at the time of renewal:
1141          (a) the person meets the requirements of Section 26-58-301; and

1142          (b) the person pays the department a license renewal fee in an amount determined by
1143     the department in accordance with Section 63J-1-504.
1144          (2) (a) The department may not renew a cannabis dispensary's license for a sixth
1145     consecutive time unless the department publishes a notice, in a newspaper of general
1146     circulation for the geographic area in which the cannabis dispensary is located, one year before
1147     the day on which the cannabis dispensary's license expires, that includes:
1148          (i) the name and location of the cannabis dispensary;
1149          (ii) the day on which the license for the cannabis dispensary will expire; and
1150          (iii) a solicitation for cannabis dispensary license applicants.
1151          (b) If, after the department publishes the notice described in Subsection (2)(a), the
1152     department receives an application for a cannabis dispensary from a new applicant and also
1153     receives an application for renewal from the existing cannabis dispensary, the department shall
1154     issue the license to the applicant that the department determines best meets the criteria
1155     established in Section 26-58-304.
1156          (3) (a) If a licensed cannabis dispensary abandons the cannabis dispensary's license or
1157     has the cannabis dispensary license revoked, the department shall publish notice of an available
1158     license in the same manner as described in Subsection (2)(a).
1159          (b) The department may establish criteria, in accordance with Title 63G, Chapter 3,
1160     Utah Administrative Rulemaking Act, for what actions by a cannabis dispensary constitute
1161     abandonment of a cannabis dispensary license.
1162          Section 35. Section 26-58-303 is enacted to read:
1163          26-58-303. Operating plan.
1164          (1) A person applying for a cannabis dispensary license shall submit to the department
1165     a proposed operation plan for the cannabis dispensary that complies with this section.
1166          (2) A cannabis dispensary's operating plan shall include:
1167          (a) a description of the physical characteristics of the proposed facility, including a
1168     floor plan and architectural elevations that indicate compliance with the requirements of this
1169     chapter;
1170          (b) a description of the credentials and experience of:
1171          (i) each officer, director, or owner of the proposed cannabis dispensary; and
1172          (ii) any highly skilled or experienced prospective employee;

1173          (c) the cannabis dispensary's employee training standards;
1174          (d) a security plan;
1175          (e) a banking plan;
1176          (f) a description of the cannabis dispensary's inventory control system, including a plan
1177     to make the inventory control system compatible with the state electronic verification system;
1178     and
1179          (g) that the cannabis processing facility has entered into a preliminary agreement with a
1180     cannabis processing facility in the state to purchase a cannabis product that the cannabis
1181     dispensary intends to sell.
1182          Section 36. Section 26-58-304 is enacted to read:
1183          26-58-304. Maximum number of licenses.
1184          (1) The department may not issue more than the greater of, in each county in the state:
1185          (a) one cannabis dispensary license; or
1186          (b) an amount of cannabis dispensary licenses equal to the number of residents in the
1187     county divided by 200,000, rounded up to the nearest greater whole number.
1188          (2) If more than one applicant for a license in a geographic area meets the
1189     qualifications of this chapter for a cannabis dispensary, the department shall evaluate the
1190     applicants, and award the license to the applicant that best demonstrates:
1191          (a) experience with:
1192          (i) establishing and running a similar cannabis based business;
1193          (ii) operating a secure inventory control system;
1194          (iii) complying with a regulatory environment; and
1195          (iv) training, evaluating, and monitoring employees;
1196          (b) connections to the local community;
1197          (c) the extent to which the applicant can reduce the cost of cannabis products to a
1198     patient; and
1199          (d) the extent to which the applicant's business plan reflects cannabis industry best
1200     practices.
1201          (3) The department may conduct a face-to-face interview with an applicant for a
1202     license that the department evaluates under Subsection (2).
1203          Section 37. Section 26-58-401 is enacted to read:

1204     
Part 4. Cannabis Dispensary Agents

1205          26-58-401. Cannabis dispensary agent -- Registration card.
1206          (1) An individual may only act as a cannabis dispensary agent of a cannabis dispensary
1207     if the individual is registered by the department as a cannabis dispensary agent.
1208          (2) A physician may not act as a cannabis dispensary agent.
1209          (3) The department shall, within 30 days after receiving a complete application,
1210     register and issue a cannabis dispensary agent registration card to an individual who:
1211          (a) provides to the department:
1212          (i) the individual's name and address; and
1213          (ii) the name and location of the licensed cannabis dispensary where the individual
1214     seeks to act as the cannabis dispensary agent;
1215          (b) pays a fee to the department:
1216          (i) before January 1, 2017, of $250; and
1217          (ii) on or after January 1, 2017, in an amount determined by the department in
1218     accordance with Section 63J-1-504, that is necessary to cover the department's cost to
1219     implement this part; and
1220          (c) complies with Section 26-58-402.
1221          (4) A cannabis dispensary agent shall comply with a certification standard developed
1222     by the department, or a third party certification standard approved by the department.
1223          (5) The certification standard described in Subsection (4) shall address:
1224          (a) Utah medical cannabis law;
1225          (b) cannabis dispensary best practices; and
1226          (c) resources available to help patients.
1227          (6) The department may revoke or refuse to issue the cannabis dispensary agent
1228     registration card of an individual who:
1229          (a) violates the requirements of this chapter; or
1230          (b) is convicted of a felony under state or federal law that involves a drug or violent
1231     crime that is a felony under state or federal law.
1232          Section 38. Section 26-58-402 is enacted to read:
1233          26-58-402. Cannabis dispensary agents -- Criminal background checks.
1234          (1) An individual applying for a cannabis dispensary agent registration card under this

1235     chapter shall:
1236          (a) submit, at the time of application, a fingerprint card in a form acceptable to the
1237     department; and
1238          (b) consent to a fingerprint background check by:
1239          (i) the Utah Bureau of Criminal Identification; and
1240          (ii) the Federal Bureau of Investigation.
1241          (2) The department shall request that the Department of Public Safety complete a
1242     Federal Bureau of Investigation criminal background check for each cannabis dispensary agent
1243     registration card applicant.
1244          (3) The department may revoke or refuse to issue an individual's cannabis dispensary
1245     agent registration card if the individual has been convicted of an offense that is a felony under
1246     state or federal law that is related to drugs or a violent crime.
1247          Section 39. Section 26-58-403 is enacted to read:
1248          26-58-403. Cannabis dispensary agent registration card -- Rebuttable
1249     presumption.
1250          (1) An individual who has a cannabis dispensary agent registration card shall carry the
1251     individual's cannabis dispensary agent registration card with the individual at all times when:
1252          (a) the individual is on the premises of a cannabis dispensary; and
1253          (b) the individual is transporting cannabis, a cannabis product, or a medical cannabis
1254     device between two cannabis production establishments or between a cannabis production
1255     establishment and a cannabis dispensary.
1256          (2) If an individual handling cannabis, a cannabis product, or a medical cannabis
1257     device at a cannabis dispensary, or transporting cannabis, a cannabis product, or a medical
1258     cannabis device, possesses the cannabis, cannabis product, or medical cannabis device in
1259     compliance with Subsection (1):
1260          (a) there is a rebuttable presumption that the individual possesses the cannabis,
1261     cannabis product, or medical cannabis device legally; and
1262          (b) a law enforcement officer does not have probable cause to believe that the
1263     individual is engaging in illegal activity, based solely on the individual's possession of the
1264     cannabis, cannabis product, or medical cannabis device in compliance with Subsection (1).
1265          (3) A cannabis dispensary agent registered with the department is guilty of an

1266     infraction if the registered cannabis dispensary agent:
1267          (a) (i) is on the premises of a cannabis dispensary where the individual is registered as
1268     an agent; or
1269          (ii) transports cannabis, a cannabis product, or a medical cannabis device; and
1270          (b) does not possess, on the registered cannabis dispensary agent's person, a valid
1271     cannabis dispensary agent registration card.
1272          (4) A registered cannabis dispensary agent who is guilty of an infraction under
1273     Subsection (3) is subject to a fine of no more than $100.
1274          Section 40. Section 26-58-501 is enacted to read:
1275     
Part 5. Cannabis Dispensary Operation

1276          26-58-501. Operating requirements -- General.
1277          (1) (a) A cannabis dispensary shall operate in accordance with the operating plan
1278     provided to the department under Section 26-58-303.
1279          (b) A cannabis dispensary shall notify the department no longer than 30 days after a
1280     change in the cannabis dispensary's operating plan.
1281          (2) A cannabis dispensary shall operate:
1282          (a) except as provided in Subsection (3), in a facility that is accessible only by an
1283     individual with a valid cannabis dispensary agent registration card issued under Section
1284     26-58-401 or a medical cannabis card issued under Section 26-58-201; and
1285          (b) at the physical address provided to the department under Section 26-58-301.
1286          (3) A cannabis dispensary may allow an individual who is a visitor, a contractor, or a
1287     member of the press to access the cannabis dispensary if the cannabis dispensary:
1288          (a) tracks and monitors the individual at all times while the individual is at the
1289     cannabis dispensary; and
1290          (b) maintains a record of the individual's access.
1291          (4) A cannabis dispensary shall operate in a facility that has:
1292          (a) a single, secure public entrance with a checkpoint;
1293          (b) a security system with a backup power source that:
1294          (i) detects and records entry into the cannabis dispensary during business hours; and
1295          (ii) provides notice of an unauthorized entry to law enforcement when the cannabis
1296     dispensary is closed; and

1297          (c) a reinforced and locked area where the cannabis dispensary stores cannabis or a
1298     cannabis product.
1299          (5) A cannabis dispensary shall post, clearly and conspicuously in the cannabis
1300     dispensary, the limit on the purchase of cannabis described in Subsection 26-58-502(3),
1301          (6) A cannabis dispensary may not allow any individual to consume cannabis on the
1302     property or premises of the establishment.
1303          (7) A cannabis dispensary may not, on an interior or exterior space, display or offer
1304     anything that glorifies or trivializes cannabis or that promotes a recreational cannabis lifestyle.
1305          (8) A cannabis dispensary shall:
1306          (a) have a clinical, medical appearance; and
1307          (b) require any employee to wear a white lab coat.
1308          (9) A cannabis dispensary may not operate:
1309          (a) within 600 feet of a community location, as defined in Section 32B-1-102, that is
1310     not a public or private school; or
1311          (b) within 1000 feet of a public or private school.
1312          Section 41. Section 26-58-502 is enacted to read:
1313          26-58-502. Dispensing -- Amount a cannabis dispensary may dispense --
1314     Reporting -- Form of cannabis or cannabis product.
1315          (1) A cannabis dispensary may only sell, subject to this chapter:
1316          (a) a cannabis product;
1317          (b) a medical cannabis device; or
1318          (c) educational materials related to the medical use of cannabis.
1319          (2) A cannabis dispensary may only sell a cannabis product or a medical cannabis
1320     device to an individual with a medical cannabis card issued by the department.
1321          (3) A cannabis dispensary may not dispense on behalf of any one individual with a
1322     medical cannabis card, in any one 30-day period an amount of cannabis products that contains,
1323     in total, greater than 10 grams of cannabinoids by weight.
1324          (4) An individual with a medical cannabis card may not purchase more cannabis
1325     products than the amount designated in Subsection (3).
1326          (5) A designated caregiver designated by any individual with a medical cannabis card
1327     may not purchase, for the individual, an amount of cannabis products that exceeds the amount

1328     designated in Subsection (3).
1329          (6) A cannabis dispensary shall:
1330          (a) access the electronic verification system before dispensing a cannabis product to an
1331     individual with a medical cannabis card in order to determine if the individual has already met
1332     the maximum amount of cannabis products described in Subsection (3); and
1333          (b) submit a record to the electronic verification system each time the cannabis
1334     dispensary dispenses a cannabis product to an individual with a medical cannabis card.
1335          (7) (a) Except as provided in Subsection (7)(b), a cannabis dispensary may not sell a
1336     cannabis product that is intentionally designed or fabricated to resemble a cigarette, or made to
1337     resemble or be mistaken for a cigarette.
1338          (b) A cannabis dispensary may sell a cannabis product with a thin, cylindrical
1339     configuration that warms a cannabis product into a vapor that is ingested into an individual's
1340     respiratory system.
1341          (8) A cannabis dispensary may not sell a medical cannabis device that produces a vapor
1342     with an odor or flavor.
1343          (9) A cannabis dispensary may give to an individual with a medical cannabis card, at
1344     no cost, a product that the cannabis dispensary may sell under Subsection (1).
1345          Section 42. Section 26-58-503 is enacted to read:
1346          26-58-503. Advertising and signage.
1347          (1) Except as provided in Subsections (2) and (3) a cannabis dispensary may not
1348     advertise in any medium.
1349          (2) A cannabis dispensary may display signage on the outside of the cannabis
1350     dispensary that includes only:
1351          (a) the cannabis dispensary's name and hours of operation; and
1352          (b) a green cross.
1353          (3) A cannabis dispensary may maintain a website that includes information about:
1354          (a) the location and hours of the cannabis dispensary;
1355          (b) the products and services available at the cannabis dispensary;
1356          (c) personnel affiliated with the cannabis dispensary;
1357          (d) best practices that the cannabis dispensary upholds;
1358          (e) educational materials related to the medical use of cannabis; and

1359          (f) employment opportunities with the cannabis dispensary.
1360          Section 43. Section 26-58-504 is enacted to read:
1361          26-58-504. Inspections.
1362          (1) The department shall inspect, in accordance with Subsection (2), a cannabis
1363     dispensary's facility and records in order to determine if the cannabis dispensary complies with
1364     the licensing requirements of this part.
1365          (2) The department may inspect the records and facility of a cannabis dispensary at any
1366     time, scheduled or unscheduled.
1367          Section 44. Section 26-58-505 is enacted to read:
1368          26-58-505. Cannabis, cannabis product, or medical cannabis device
1369     transportation.
1370          (1) Except for an individual or designated caregiver with a medical cannabis card who
1371     possesses cannabis or a cannabis product in accordance with Section 26-58-204, an individual
1372     may only transport cannabis, a cannabis product, or a cannabis device between cannabis
1373     production establishments or between a cannabis production establishment and a cannabis
1374     dispensary if the individual is:
1375          (a) a registered cannabis production establishment agent; or
1376          (b) a registered cannabis dispensary agent.
1377          (2) An individual transporting cannabis, a cannabis product, or a medical cannabis
1378     device shall possess a transportation manifest that:
1379          (a) includes a unique identifier that links the cannabis, cannabis product, or medical
1380     cannabis device to a related inventory control system;
1381          (b) includes origin and destination information for any cannabis, cannabis product, or
1382     medical cannabis device the individual is transporting; and
1383          (c) indicates the departure and arrival times and locations of the individual transporting
1384     the cannabis, cannabis product, or medical cannabis device.
1385          (3) In addition to the requirements in Subsections (1) and (2), the department may
1386     establish, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1387     Rulemaking Act, requirements for transporting cannabis, a cannabis product, or a medical
1388     cannabis device that reflect best practices for cannabis or cannabis product transportation for
1389     safety for human cannabis or cannabis product consumption.

1390          (4) A cannabis dispensary agent registered with the department is guilty of an
1391     infraction if the registered cannabis dispensary agent:
1392          (a) transports cannabis, a cannabis product, or a medical cannabis device; and
1393          (b) does not possess, on the registered cannabis dispensary agent's person or in the
1394     transport vehicle, a manifest that complies with Subsection (3).
1395          (5) A registered cannabis dispensary agent who is guilty of an infraction under
1396     Subsection (3) is subject to a fine of no more than $100.
1397          Section 45. Section 26-58-601 is enacted to read:
1398     
Part 6. Enforcement

1399          26-58-601. Enforcement -- Fine -- Citation.
1400          (1) The department may, for a violation of this chapter by a person who is a cannabis
1401     dispensary or cannabis dispensary agent:
1402          (a) revoke the person's cannabis dispensary license or cannabis dispensary agent
1403     registration card;
1404          (b) refuse to renew the person's license or registration; or
1405          (c) assess the person an administrative penalty.
1406          (2) The department shall deposit an administrative penalty imposed under this section
1407     into the Medical Cannabis Restricted Account.
1408          (3) The department may, for a person subject to an uncontested citation, a stipulated
1409     settlement, or a finding of a violation in an adjudicative proceeding under this section:
1410          (a) assess the person a fine, established in accordance with Section 63J-1-504, of up to
1411     $5,000 per violation, in accordance with a fine schedule established by rule made in accordance
1412     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
1413          (b) order the person to cease and desist from, and cure, the action that creates a
1414     violation.
1415          (4) The department may not revoke a cannabis dispensary's license via a citation.
1416          (5) If, within 20 calendar days after the day on which the department issues a citation
1417     for a violation of this chapter, the person that is the subject of the citation fails to request a
1418     hearing to contest the citation, the citation becomes the basis of the department's final order.
1419          (6) The department may, for a person who fails to cure the violation for which a
1420     citation under this section:

1421          (a) refuse to issue or renew the person's license or cannabis dispensary agent
1422     registration card; or
1423          (b) suspend, revoke, or place on probation the person's license or cannabis dispensary
1424     agent registration card.
1425          Section 46. Section 30-3-10 is amended to read:
1426          30-3-10. Custody of children in case of separation or divorce -- Custody
1427     consideration.
1428          (1) If a husband and wife having minor children are separated, or their marriage is
1429     declared void or dissolved, the court shall make an order for the future care and custody of the
1430     minor children as it considers appropriate.
1431          (a) In determining any form of custody, including a change in custody, the court shall
1432     consider the best interests of the child without preference for either the mother or father solely
1433     because of the biological sex of the parent and, among other factors the court finds relevant, the
1434     following:
1435          (i) the past conduct and demonstrated moral standards of each of the parties;
1436          (ii) which parent is most likely to act in the best interest of the child, including
1437     allowing the child frequent and continuing contact with the noncustodial parent;
1438          (iii) the extent of bonding between the parent and child, meaning the depth, quality,
1439     and nature of the relationship between a parent and child;
1440          (iv) whether the parent has intentionally exposed the child to pornography or material
1441     harmful to a minor, as defined in Section 76-10-1201; and
1442          (v) those factors outlined in Section 30-3-10.2.
1443          (b) There shall be a rebuttable presumption that joint legal custody, as defined in
1444     Section 30-3-10.1, is in the best interest of the child, except in cases where there is:
1445          (i) domestic violence in the home or in the presence of the child;
1446          (ii) special physical or mental needs of a parent or child, making joint legal custody
1447     unreasonable;
1448          (iii) physical distance between the residences of the parents, making joint decision
1449     making impractical in certain circumstances; or
1450          (iv) any other factor the court considers relevant including those listed in this section
1451     and Section 30-3-10.2.

1452          (c) The person who desires joint legal custody shall file a proposed parenting plan in
1453     accordance with Sections 30-3-10.8 and 30-3-10.9. A presumption for joint legal custody may
1454     be rebutted by a showing by a preponderance of the evidence that it is not in the best interest of
1455     the child.
1456          (d) The children may not be required by either party to testify unless the trier of fact
1457     determines that extenuating circumstances exist that would necessitate the testimony of the
1458     children be heard and there is no other reasonable method to present their testimony.
1459          (e) The court may inquire of the children and take into consideration the children's
1460     desires regarding future custody or parent-time schedules, but the expressed desires are not
1461     controlling and the court may determine the children's custody or parent-time otherwise. The
1462     desires of a child 14 years of age or older shall be given added weight, but is not the single
1463     controlling factor.
1464          (f) If interviews with the children are conducted by the court pursuant to Subsection
1465     (1)(e), they shall be conducted by the judge in camera. The prior consent of the parties may be
1466     obtained but is not necessary if the court finds that an interview with the children is the only
1467     method to ascertain the child's desires regarding custody.
1468          (2) In awarding custody, the court shall consider, among other factors the court finds
1469     relevant, which parent is most likely to act in the best interests of the child, including allowing
1470     the child frequent and continuing contact with the noncustodial parent as the court finds
1471     appropriate.
1472          (3) If the court finds that one parent does not desire custody of the child, the court shall
1473     take that evidence into consideration in determining whether to award custody to the other
1474     parent.
1475          (4) (a) Except as provided in Subsection (4)(b), a court may not discriminate against a
1476     parent due to a disability, as defined in Section 57-21-2, in awarding custody or determining
1477     whether a substantial change has occurred for the purpose of modifying an award of custody.
1478          (b) If a court takes a parent's disability into account in awarding custody or determining
1479     whether a substantial change has occurred for the purpose of modifying an award of custody,
1480     the parent with a disability may rebut any evidence, presumption, or inference arising from the
1481     disability by showing that:
1482          (i) the disability does not significantly or substantially inhibit the parent's ability to

1483     provide for the physical and emotional needs of the child at issue; or
1484          (ii) the parent with a disability has sufficient human, monetary, or other resources
1485     available to supplement the parent's ability to provide for the physical and emotional needs of
1486     the child at issue.
1487          (c) Nothing in this section may be construed to apply to adoption proceedings under
1488     Title 78B, Chapter 6, Part 1, Utah Adoption Act.
1489          (5) This section establishes neither a preference nor a presumption for or against joint
1490     physical custody or sole physical custody, but allows the court and the family the widest
1491     discretion to choose a parenting plan that is in the best interest of the child.
1492          (6) In considering the past conduct and demonstrated moral standards of each of the
1493     parties as described under Subsection (1)(a)(i), a court may not discriminate against a parent
1494     because of the parent's possession or consumption of a cannabis product or a medical cannabis
1495     device, in accordance with Title 26, Chapter 58, Medical Cannabis Act.
1496          Section 47. Section 41-6a-517 is amended to read:
1497          41-6a-517. Definitions -- Driving with any measurable controlled substance in the
1498     body -- Penalties -- Arrest without warrant.
1499          (1) As used in this section:
1500          (a) "Controlled substance" has the same meaning as in Section 58-37-2.
1501          (b) "Practitioner" has the same meaning as in Section 58-37-2.
1502          (c) "Prescribe" has the same meaning as in Section 58-37-2.
1503          (d) "Prescription" has the same meaning as in Section 58-37-2.
1504          (2) In cases not amounting to a violation of Section 41-6a-502, a person may not
1505     operate or be in actual physical control of a motor vehicle within this state if the person has any
1506     measurable controlled substance or metabolite of a controlled substance in the person's body.
1507          (3) It is an affirmative defense to prosecution under this section that the controlled
1508     substance was:
1509          (a) involuntarily ingested by the accused;
1510          (b) prescribed by a practitioner for use by the accused; [or]
1511          (c) a cannabis product that was:
1512          (i) not causing impairment; and
1513          (ii) (A) recommended by a physician to the accused, if the accused holds a valid

1514     medical cannabis card under Title 26, Chapter 58, Medical Cannabis Act; or
1515          (B) ingested by the accused in another state in which the use of a cannabis product is
1516     legal under state law; or
1517          [(c)] (d) otherwise legally ingested.
1518          (4) (a) A person convicted of a violation of Subsection (2) is guilty of a class B
1519     misdemeanor.
1520          (b) A person who violates this section is subject to conviction and sentencing under
1521     both this section and any applicable offense under Section 58-37-8.
1522          (5) A peace officer may, without a warrant, arrest a person for a violation of this
1523     section when the officer has probable cause to believe the violation has occurred, although not
1524     in the officer's presence, and if the officer has probable cause to believe that the violation was
1525     committed by the person.
1526          (6) The Driver License Division shall, if the person is 21 years of age or older on the
1527     date of arrest:
1528          (a) suspend, for a period of 120 days, the driver license of a person convicted under
1529     Subsection (2) of an offense committed on or after July 1, 2009; or
1530          (b) revoke, for a period of two years, the driver license of a person if:
1531          (i) the person has a prior conviction as defined under Subsection 41-6a-501(2); and
1532          (ii) the current violation under Subsection (2) is committed on or after July 1, 2009,
1533     and within a period of 10 years after the date of the prior violation.
1534          (7) The Driver License Division shall, if the person is 19 years of age or older but
1535     under 21 years of age on the date of arrest:
1536          (a) suspend, until the person is 21 years of age or for a period of one year, whichever is
1537     longer, the driver license of a person convicted under Subsection (2) of an offense committed
1538     on or after July 1, 2011; or
1539          (b) revoke, until the person is 21 years of age or for a period of two years, whichever is
1540     longer, the driver license of a person if:
1541          (i) the person has a prior conviction as defined under Subsection 41-6a-501(2); and
1542          (ii) the current violation under Subsection (2) is committed on or after July 1, 2009,
1543     and within a period of 10 years after the date of the prior violation.
1544          (8) The Driver License Division shall, if the person is under 19 years of age on the date

1545     of arrest:
1546          (a) suspend, until the person is 21 years of age, the driver license of a person convicted
1547     under Subsection (2) of an offense committed on or after July 1, 2009; or
1548          (b) revoke, until the person is 21 years of age, the driver license of a person if:
1549          (i) the person has a prior conviction as defined under Subsection 41-6a-501(2); and
1550          (ii) the current violation under Subsection (2) is committed on or after July 1, 2009,
1551     and within a period of 10 years after the date of the prior violation.
1552          (9) The Driver License Division shall subtract from any suspension or revocation
1553     period the number of days for which a license was previously suspended under Section
1554     53-3-223 or 53-3-231, if the previous suspension was based on the same occurrence upon
1555     which the record of conviction is based.
1556          (10) The Driver License Division shall:
1557          (a) deny, suspend, or revoke a person's license for the denial and suspension periods in
1558     effect prior to July 1, 2009, for a conviction of a violation under Subsection (2) that was
1559     committed prior to July 1, 2009; or
1560          (b) deny, suspend, or revoke the operator's license of a person for the denial,
1561     suspension, or revocation periods in effect from July 1, 2009, through June 30, 2011, if:
1562          (i) the person was 20 years of age or older but under 21 years of age at the time of
1563     arrest; and
1564          (ii) the conviction under Subsection (2) is for an offense that was committed on or after
1565     July 1, 2009, and prior to July 1, 2011.
1566          (11) A court that reported a conviction of a violation of this section for a violation that
1567     occurred on or after July 1, 2009, to the Driver License Division may shorten the suspension
1568     period imposed under Subsection (7)(a) or (8)(a) prior to completion of the suspension period
1569     if the person:
1570          (a) completes at least six months of the license suspension;
1571          (b) completes a screening;
1572          (c) completes an assessment, if it is found appropriate by a screening under Subsection
1573     (11)(b);
1574          (d) completes substance abuse treatment if it is found appropriate by the assessment
1575     under Subsection (11)(c);

1576          (e) completes an educational series if substance abuse treatment is not required by the
1577     assessment under Subsection (11)(c) or the court does not order substance abuse treatment;
1578          (f) has not been convicted of a violation of any motor vehicle law in which the person
1579     was involved as the operator of the vehicle during the suspension period imposed under
1580     Subsection (7)(a) or (8)(a);
1581          (g) has complied with all the terms of the person's probation or all orders of the court if
1582     not ordered to probation; and
1583          (h) (i) is 18 years of age or older and provides a sworn statement to the court that the
1584     person has not consumed a controlled substance not prescribed by a practitioner for use by the
1585     person or unlawfully consumed alcohol during the suspension period imposed under
1586     Subsection (7)(a) or (8)(a); or
1587          (ii) is under 18 years of age and has the person's parent or legal guardian provide an
1588     affidavit or other sworn statement to the court certifying that to the parent or legal guardian's
1589     knowledge the person has not consumed a controlled substance not prescribed by a practitioner
1590     for use by the person or unlawfully consumed alcohol during the suspension period imposed
1591     under Subsection (7)(a) or (8)(a).
1592          (12) If the court shortens a person's license suspension period in accordance with the
1593     requirements of Subsection (11), the court shall forward the order shortening the person's
1594     license suspension period prior to the completion of the suspension period imposed under
1595     Subsection (7)(a) or (8)(a) to the Driver License Division.
1596          (13) (a) The court shall notify the Driver License Division if a person fails to:
1597          (i) complete all court ordered screening and assessment, educational series, and
1598     substance abuse treatment; or
1599          (ii) pay all fines and fees, including fees for restitution and treatment costs.
1600          (b) Upon receiving the notification, the division shall suspend the person's driving
1601     privilege in accordance with Subsections 53-3-221(2) and (3).
1602          (14) The court shall order supervised probation in accordance with Section 41-6a-507
1603     for a person convicted under Subsection (2).
1604          Section 48. Section 53-1-106.5 is enacted to read:
1605          53-1-106.5. Medical Cannabis Act -- Department duties.
1606          (1) In addition to the duties described in Section 53-1-106, the department shall:

1607          (a) develop standards for training peace officers and law enforcement agencies in state
1608     medical cannabis law and the use of the state electronic verification system; and
1609          (b) collaborate with the Department of Health and the Department of Agriculture and
1610     Food to provide a curriculum for training peace officers and law enforcement agencies in
1611     medical cannabis.
1612          (2) The department may not allow a law enforcement official to access the electronic
1613     verification system unless the law enforcement official has completed the training described in
1614     Subsections (1)(b) and (1)(c).
1615          Section 49. Section 58-37-3.6 is enacted to read:
1616          58-37-3.6. Exemption for possession or use of cannabis to treat a qualifying
1617     illness.
1618          (1) As used in this section:
1619          (a) (i) "Cannabis" means the plant cannabis sativa.
1620          (ii) "Cannabis" includes marijuana.
1621          (b) "Cannabis dispensary" means the same as that term is defined in Section
1622     26-58-102.
1623          (c) "Cannabis product" means a product that:
1624          (i) is intended for human ingestion;
1625          (ii) contains cannabinoids extracted out of a whole cannabis plant; and
1626          (iii) is separated into doses with an identified amount of total cannabinoids and
1627     cannabinoid profile per dose.
1628          (d) "Designated caregiver" means the same as that term is defined in Section
1629     26-58-102.
1630          (e) "Drug paraphernalia" means the same as that term is defined in Section 58-37a-3.
1631          (f) "Marijuana" means the same as that term is defined in Section 58-37-2.
1632          (g) "Medical cannabis card" means the same as that term is defined in Section
1633     26-58-102.
1634          (h) "Medical cannabis device" means a device that:
1635          (i) an individual uses to ingest a lawfully sold cannabis product; and
1636          (ii) measures the amount of cannabinoids ingested.
1637          (i) "Qualifying illness" means the same as that term is defined in Section 26-58-102.

1638          (j) "Tetrahydrocannabinol" means a substance derived from cannabis that meets the
1639     description in Subsection 58-37-4(2)(a)(iii)(AA).
1640          (2) Notwithstanding any other provision of this chapter:
1641          (a) an individual who grows, possesses, sells, or offers to sell cannabis is not subject to
1642     the penalties described in this title for the growth, possession, sale, or offer for sale of
1643     marijuana or tetrahydrocannabinol to the extent that the individual's growth, possession, sale,
1644     or offer for sale of the cannabis complies with:
1645          (i) Title 4, Chapter 42, Cannabis Production Establishment; and
1646          (ii) Title 26, Chapter 58, Medical Cannabis Act;
1647          (b) an individual who possesses, sells, or offers to sell a cannabis product or a medical
1648     cannabis device is not subject to the penalties described in this title for the possession, sale, or
1649     offer for sale of marijuana or tetrahydrocannabinol to the extent that the individual's
1650     possession, sale, or offer for sale of the cannabis product or medical cannabis device complies
1651     with:
1652          (i) Title 4, Chapter 42, Cannabis Production Establishment; and
1653          (ii) Title 26, Chapter 58, Medical Cannabis Act;
1654          (c) an individual who possesses, sells, or offers to sell a medical cannabis device is not
1655     subject to the penalties described in this title for the possession, sale, or offer for sale of
1656     marijuana or tetrahydrocannabinol drug paraphernalia to the extent that the individual's
1657     possession, sale, or offer for sale of the medical cannabis device complies with:
1658          (i) Title 4, Chapter 42, Cannabis Production Establishment; and
1659          (ii) Title 26, Chapter 58, Medical Cannabis Act.
1660          (3) An individual with a medical cannabis card is guilty of an infraction if the
1661     individual uses or possesses drug paraphernalia that is not a medical cannabis device.
1662          (4) An individual who is guilty of an infraction under Subsection (3) is subject to a
1663     $100 fine.
1664          Section 50. Section 58-37-3.7 is enacted to read:
1665          58-37-3.7. Affirmative defense.
1666          (1) Before the day on which the Department of Health is issuing medical cannabis
1667     cards and a cannabis dispensary in the state is licensed and selling a cannabis product, it is an
1668     affirmative defense to criminal charges against an individual for the use or possession of

1669     marijuana, tetrahydrocannabinol, or marijuana or tetrahydrocannabinol drug paraphernalia
1670     under this chapter that the individual's conduct would have been lawful after the individual
1671     obtains a medical cannabis card under Title 26, Chapter 58, Medical Cannabis Act.
1672          (2) A court shall, for charges that the court dismisses under Subsection (1), dismiss the
1673     charges without prejudice.
1674          Section 51. Section 59-12-104.7 is enacted to read:
1675          59-12-104.7. Exemption from sales tax for medical cannabis.
1676          (1) As used in this section:
1677          (a) "Cannabis" means the same as that term is defined in Section 58-37-3.6.
1678          (b) "Cannabis dispensary" means the same as that term is defined in Section
1679     26-58-102.
1680          (c) "Cannabis product" means the same as that term is defined in Section 58-37-3.6.
1681          (d) "Medical cannabis device" means the same as that term is defined in Section
1682     58-37-3.6.
1683          (2) In addition to the exemptions described in Section 59-12-104, the sale, by a
1684     licensed cannabis dispensary, of a cannabis product or a medical cannabis device, is not subject
1685     to the taxes imposed by this chapter.
1686          Section 52. Section 59-28-101 is enacted to read:
1687     
CHAPTER 28. MEDICAL CANNABIS TAX ACT

1688          59-28-101. Title.
1689          This chapter is known as the "Medical Cannabis Tax Act."
1690          Section 53. Section 59-28-102 is enacted to read:
1691          59-28-102. Definitions.
1692          As used in this chapter:
1693          (1) "Cannabis" means the same as that term is defined in Section 58-37-3.6.
1694          (2) "Cannabis dispensary" means the same as that term is defined in Section
1695     26-58-102.
1696          (3) "Cannabis product" means the same as that term is defined in Section 58-37-3.6.
1697          (4) "Medical cannabis device" means the same as that term is defined in Section
1698     58-37-3.6.
1699          (5) "Medical Cannabis Restricted Account" means the account created in Section

1700     26-58-108.
1701          Section 54. Section 59-28-103 is enacted to read:
1702          59-28-103. Imposition of tax -- Rate.
1703          There is imposed a tax on the retail purchaser of a cannabis product, or a medical
1704     cannabis device at a cannabis dispensary in the state, in an amount equal to 4.70% of amounts
1705     paid or charged for the cannabis product or medical cannabis device.
1706          Section 55. Section 59-28-104 is enacted to read:
1707          59-28-104. Collection of tax.
1708          A cannabis dispensary shall:
1709          (1) collect the tax imposed by Section 59-28-103 from a cannabis product or medical
1710     cannabis device purchaser; and
1711          (2) pay the tax collected under Subsection (1):
1712          (a) to the commission quarterly on or before the last day of the month immediately
1713     following the last day of the previous quarter; and
1714          (b) using a form prescribed by the commission.
1715          Section 56. Section 59-28-105 is enacted to read:
1716          59-28-105. Deposit of tax revenue.
1717          The commission shall deposit revenues generated by the tax imposed by this chapter
1718     into the Medical Cannabis Restricted Account.
1719          Section 57. Section 59-28-106 is enacted to read:
1720          59-28-106. Records.
1721          (1) A cannabis dispensary shall maintain any record typically deemed necessary to
1722     determine the amount of tax that the cannabis dispensary is required to remit to the commission
1723     under this chapter.
1724          (2) The commission may require a cannabis dispensary to keep any record the
1725     commission reasonably considers necessary to constitute sufficient evidence of the amount of
1726     tax the cannabis dispensary is required to remit to the commission under this chapter:
1727          (a) by notice served upon the cannabis dispensary; or
1728          (b) by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1729     Rulemaking Act.
1730          (3) Upon notice by the commission, a cannabis dispensary shall open the cannabis

1731     dispensary's records for examination by the commission.
1732          Section 58. Section 59-28-107 is enacted to read:
1733          59-28-107. Rulemaking authority -- Enforcement not more strict than those
1734     applied to a similarly situated business.
1735          (1) Except as provided in Subsection (2), the commission may make rules in
1736     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to:
1737          (a) implement the tax imposed by this chapter; and
1738          (b) enforce payment of the tax imposed by this chapter.
1739          (2) The commission may not make a rule that applies to a cannabis dispensary that is
1740     more restrictive than would apply to a similarly situated business.
1741          (3) The commission may not enforce this chapter against a cannabis dispensary more
1742     strictly than the commission would for a similarly situated business.
1743          Section 59. Section 59-28-108 is enacted to read:
1744          59-28-108. Penalties and interest.
1745          A cannabis dispensary that fails to comply with any provision of this chapter is subject
1746     to penalties and interest as provided in Sections 59-1-401 and 59-1-402.
1747          Section 60. Section 62A-4a-202.1 is amended to read:
1748          62A-4a-202.1. Entering home of a child -- Taking a child into protective custody
1749     -- Caseworker accompanied by peace officer -- Preventive services -- Shelter facility or
1750     emergency placement.
1751          (1) A peace officer or child welfare worker may not:
1752          (a) enter the home of a child who is not under the jurisdiction of the court, remove a
1753     child from the child's home or school, or take a child into protective custody unless authorized
1754     under Subsection 78A-6-106(2); or
1755          (b) remove a child from the child's home or take a child into custody under this section
1756     solely on the basis of:
1757          (i) educational neglect, truancy, or failure to comply with a court order to attend
1758     school[.]; or
1759          (ii) the possession or use of a cannabis product or a medical cannabis device in the
1760     home, if the use and possession of the cannabis product or medical cannabis device is in
1761     compliance with Title 26, Chapter 58, Medical Cannabis Act.

1762          (2) A child welfare worker within the division may take action under Subsection (1)
1763     accompanied by a peace officer, or without a peace officer when a peace officer is not
1764     reasonably available.
1765          (3) (a) If possible, consistent with the child's safety and welfare, before taking a child
1766     into protective custody, the child welfare worker shall also determine whether there are
1767     services available that, if provided to a parent or guardian of the child, would eliminate the
1768     need to remove the child from the custody of the child's parent or guardian.
1769          (b) If the services described in Subsection (3)(a) are reasonably available, they shall be
1770     utilized.
1771          (c) In determining whether the services described in Subsection (3)(a) are reasonably
1772     available, and in making reasonable efforts to provide those services, the child's health, safety,
1773     and welfare shall be the child welfare worker's paramount concern.
1774          (4) (a) A child removed or taken into custody under this section may not be placed or
1775     kept in a secure detention facility pending court proceedings unless the child is detainable
1776     based on guidelines promulgated by the Division of Juvenile Justice Services.
1777          (b) A child removed from the custody of the child's parent or guardian but who does
1778     not require physical restriction shall be given temporary care in:
1779          (i) a shelter facility; or
1780          (ii) an emergency placement in accordance with Section 62A-4a-209.
1781          (c) When making a placement under Subsection (4)(b), the Division of Child and
1782     Family Services shall give priority to a placement with a noncustodial parent, relative, or
1783     friend, in accordance with Section 62A-4a-209.
1784          (d) If the child is not placed with a noncustodial parent, a relative, or a designated
1785     friend, the caseworker assigned to the child shall file a report with the caseworker's supervisor
1786     explaining why a different placement was in the child's best interest.
1787          (5) When a child is removed from the child's home or school or taken into protective
1788     custody, the caseworker shall give a parent of the child a pamphlet or flier explaining:
1789          (a) the parent's rights under this part, including the right to be present and participate in
1790     any court proceeding relating to the child's case;
1791          (b) that it may be in the parent's best interest to contact an attorney and that, if the
1792     parent cannot afford an attorney, the court will appoint one;

1793          (c) the name and contact information of a division employee the parent may contact
1794     with questions;
1795          (d) resources that are available to the parent, including:
1796          (i) mental health resources;
1797          (ii) substance abuse resources; and
1798          (iii) parenting classes; and
1799          (e) any other information considered relevant by the division.
1800          (6) The pamphlet or flier described in Subsection (5) shall be:
1801          (a) evaluated periodically for its effectiveness at conveying necessary information and
1802     revised accordingly;
1803          (b) written in simple, easy-to-understand language; and
1804          (c) available in English and other languages as the division determines to be
1805     appropriate and necessary.
1806          Section 61. Section 63I-1-226 is amended to read:
1807          63I-1-226. Repeal dates, Title 26.
1808          (1) Title 26, Chapter 9f, Utah Digital Health Service Commission Act, is repealed July
1809     1, 2025.
1810          (2) Section 26-10-11 is repealed July 1, 2020.
1811          (3) Section 26-21-23, Licensing of non-Medicaid nursing care facility beds, is repealed
1812     July 1, 2018.
1813          (4) Title 26, Chapter 33a, Utah Health Data Authority Act, is repealed July 1, 2024.
1814          (5) Title 26, Chapter 36a, Hospital Provider Assessment Act, is repealed July 1, 2016.
1815          (6) Section 26-38-2.5 is repealed July 1, 2017.
1816          (7) Section 26-38-2.6 is repealed July 1, 2017.
1817          (8) Title 26, Chapter 56, Hemp Extract Registration Act, is repealed [July 1, 2016]
1818     January 1, 2017.
1819          Section 62. Section 63I-1-258 is amended to read:
1820          63I-1-258. Repeal dates, Title 58.
1821          (1) Title 58, Chapter 13, Health Care Providers Immunity from Liability Act, is
1822     repealed July 1, 2026.
1823          (2) Title 58, Chapter 15, Health Facility Administrator Act, is repealed July 1, 2025.

1824          (3) Title 58, Chapter 20a, Environmental Health Scientist Act, is repealed July 1, 2018.
1825          (4) Section 58-37-4.3 is repealed [July 1, 2016] January 1, 2017.
1826          (5) Title 58, Chapter 40, Recreational Therapy Practice Act, is repealed July 1, 2023.
1827          (6) Title 58, Chapter 41, Speech-Language Pathology and Audiology Licensing Act, is
1828     repealed July 1, 2019.
1829          (7) Title 58, Chapter 42a, Occupational Therapy Practice Act, is repealed July 1, 2025.
1830          (8) Title 58, Chapter 46a, Hearing Instrument Specialist Licensing Act, is repealed July
1831     1, 2023.
1832          (9) Title 58, Chapter 47b, Massage Therapy Practice Act, is repealed July 1, 2024.
1833          (10) Title 58, Chapter 61, Part 7, Behavior Analyst Licensing Act, is repealed July 1,
1834     2026.
1835          (11) Title 58, Chapter 72, Acupuncture Licensing Act, is repealed July 1, 2017.
1836          Section 63. Section 78A-6-508 is amended to read:
1837          78A-6-508. Evidence of grounds for termination.
1838          (1) In determining whether a parent or parents have abandoned a child, it is prima facie
1839     evidence of abandonment that the parent or parents:
1840          (a) although having legal custody of the child, have surrendered physical custody of the
1841     child, and for a period of six months following the surrender have not manifested to the child
1842     or to the person having the physical custody of the child a firm intention to resume physical
1843     custody or to make arrangements for the care of the child;
1844          (b) have failed to communicate with the child by mail, telephone, or otherwise for six
1845     months;
1846          (c) failed to have shown the normal interest of a natural parent, without just cause; or
1847          (d) have abandoned an infant, as described in Subsection 78A-6-316(1).
1848          (2) In determining whether a parent or parents are unfit or have neglected a child the
1849     court shall consider, but is not limited to, the following circumstances, conduct, or conditions:
1850          (a) emotional illness, mental illness, or mental deficiency of the parent that renders the
1851     parent unable to care for the immediate and continuing physical or emotional needs of the child
1852     for extended periods of time;
1853          (b) conduct toward a child of a physically, emotionally, or sexually cruel or abusive
1854     nature;

1855          (c) habitual or excessive use of intoxicating liquors, controlled substances, or
1856     dangerous drugs that render the parent unable to care for the child;
1857          (d) repeated or continuous failure to provide the child with adequate food, clothing,
1858     shelter, education, or other care necessary for the child's physical, mental, and emotional health
1859     and development by a parent or parents who are capable of providing that care;
1860          (e) whether the parent is incarcerated as a result of conviction of a felony, and the
1861     sentence is of such length that the child will be deprived of a normal home for more than one
1862     year;
1863          (f) a history of violent behavior; or
1864          (g) whether the parent has intentionally exposed the child to pornography or material
1865     harmful to a minor, as defined in Section 76-10-1201.
1866          (3) Notwithstanding Subsection (2)(c), the court may not discriminate against a parent
1867     because of the parent's possession or consumption of a cannabis product or a medical cannabis
1868     device, in accordance with Title 26, Chapter 58, Medical Cannabis Act.
1869          [(3)] (4) A parent who, legitimately practicing the parent's religious beliefs, does not
1870     provide specified medical treatment for a child is not, for that reason alone, a negligent or unfit
1871     parent.
1872          [(4)] (5) (a) Notwithstanding Subsection (2), a parent may not be considered neglectful
1873     or unfit because of a health care decision made for a child by the child's parent unless the state
1874     or other party to the proceeding shows, by clear and convincing evidence, that the health care
1875     decision is not reasonable and informed.
1876          (b) Nothing in Subsection [(4)] (5)(a) may prohibit a parent from exercising the right to
1877     obtain a second health care opinion.
1878          [(5)] (6) If a child has been placed in the custody of the division and the parent or
1879     parents fail to comply substantially with the terms and conditions of a plan within six months
1880     after the date on which the child was placed or the plan was commenced, whichever occurs
1881     later, that failure to comply is evidence of failure of parental adjustment.
1882          [(6)] (7) The following circumstances constitute prima facie evidence of unfitness:
1883          (a) sexual abuse, sexual exploitation, injury, or death of a sibling of the child, or of any
1884     child, due to known or substantiated abuse or neglect by the parent or parents;
1885          (b) conviction of a crime, if the facts surrounding the crime are of such a nature as to

1886     indicate the unfitness of the parent to provide adequate care to the extent necessary for the
1887     child's physical, mental, or emotional health and development;
1888          (c) a single incident of life-threatening or gravely disabling injury to or disfigurement
1889     of the child;
1890          (d) the parent has committed, aided, abetted, attempted, conspired, or solicited to
1891     commit murder or manslaughter of a child or child abuse homicide; or
1892          (e) the parent intentionally, knowingly, or recklessly causes the death of another parent
1893     of the child, without legal justification.
1894          Section 64. Effective date.
1895          This bill takes effect on July 1, 2016.