Representative Walt Brooks proposes the following substitute bill:


1     
MEDICAL CANNABIS PHARMACY MODIFICATIONS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Walt Brooks

5     
Senate Sponsor: Evan J. Vickers

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to medical cannabis pharmacies.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     creates a pharmacy ownership limit;
14          ▸     clarifies that the pharmacist-in-charge of a medical cannabis pharmacy determines
15     which products are stocked at the medical cannabis pharmacy;
16          ▸     authorizes the use of a closed-door medical cannabis pharmacy;
17          ▸     limits the amount of closed-door medical cannabis pharmacies in certain areas;
18          ▸     makes technical and conforming changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          4-41a-102, as last amended by Laws of Utah 2023, Chapters 273, 313 and 327
26          4-41a-406, as last amended by Laws of Utah 2023, Chapter 327
27          4-41a-1001, as last amended by Laws of Utah 2023, Chapter 317 and renumbered and
28     amended by Laws of Utah 2023, Chapters 273, 307 and last amended by
29     Coordination Clause, Laws of Utah 2023, Chapter 307
30          10-9a-528, as last amended by Laws of Utah 2023, Chapters 273, 327 and last amended
31     by Coordination Clause, Laws of Utah 2023, Chapter 327
32          17-27a-525, as last amended by Laws of Utah 2023, Chapters 273, 327 and last
33     amended by Coordination Clause, Laws of Utah 2023, Chapter 327
34          26B-1-435, as enacted by Laws of Utah 2023, Chapter 273
35          26B-4-219, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered
36     and amended by Laws of Utah 2023, Chapter 307 and last amended by
37     Coordination Clause, Laws of Utah 2023, Chapter 307
38          26B-4-231, as last amended by Laws of Utah 2023, Chapter 317 and renumbered and
39     amended by Laws of Utah 2023, Chapters 273, 307 and last amended by
40     Coordination Clause, Laws of Utah 2023, Chapter 307
41     ENACTS:
42          4-41a-1206, Utah Code Annotated 1953
43     REPEALS:
44          26B-1-435.1, as enacted by Laws of Utah 2023, Chapter 273
45     

46     Be it enacted by the Legislature of the state of Utah:
47          Section 1. Section 4-41a-102 is amended to read:
48          4-41a-102. Definitions.
49          As used in this chapter:
50          (1) "Adulterant" means any poisonous or deleterious substance in a quantity that may
51     be injurious to health, including:
52          (a) pesticides;
53          (b) heavy metals;
54          (c) solvents;
55          (d) microbial life;
56          (e) artificially derived cannabinoid;
57          (f) toxins; or
58          (g) foreign matter.
59          (2) "Advisory board" means the Medical Cannabis Policy Advisory Board created in
60     Section 26B-1-435.
61          (3) (a) "Artificially derived cannabinoid" means a chemical substance that is created by
62     a chemical reaction that changes the molecular structure of any chemical substance derived
63     from the cannabis plant.
64          (b) "Artificially derived cannabinoid" does not include:
65          (i) a naturally occurring chemical substance that is separated from the cannabis plant
66     by a chemical or mechanical extraction process; or
67          (ii) a cannabinoid that is produced by decarboxylation from a naturally occurring
68     cannabinoid acid without the use of a chemical catalyst.
69          (4) "Cannabis Research Review Board" means the Cannabis Research Review Board
70     created in Section 26B-1-420.
71          (5) "Cannabis" means the same as that term is defined in Section 26B-4-201.
72          (6) "Cannabis concentrate" means:
73          (a) the product of any chemical or physical process applied to naturally occurring
74     biomass that concentrates or isolates the cannabinoids contained in the biomass; and
75          (b) any amount of a natural cannabinoid or artificially derived cannabinoid in an
76     artificially derived cannabinoid's purified state.
77          (7) "Cannabis cultivation byproduct" means any portion of a cannabis plant that is not
78     intended to be sold as a cannabis plant product.
79          (8) "Cannabis cultivation facility" means a person that:
80          (a) possesses cannabis;
81          (b) grows or intends to grow cannabis; and
82          (c) sells or intends to sell cannabis to a cannabis cultivation facility, a cannabis
83     processing facility, or a medical cannabis research licensee.
84          (9) "Cannabis cultivation facility agent" means an individual who[:]
85          holds a valid cannabis production establishment agent registration card with a cannabis
86     cultivation facility designation.
87          (10) "Cannabis derivative product" means a product made using cannabis concentrate.
88          (11) "Cannabis plant product" means any portion of a cannabis plant intended to be
89     sold in a form that is recognizable as a portion of a cannabis plant.
90          (12) "Cannabis processing facility" means a person that:
91          (a) acquires or intends to acquire cannabis from a cannabis production establishment;
92          (b) possesses cannabis with the intent to manufacture a cannabis product;
93          (c) manufactures or intends to manufacture a cannabis product from unprocessed
94     cannabis or a cannabis extract; and
95          (d) sells or intends to sell a cannabis product to a medical cannabis pharmacy or a
96     medical cannabis research licensee.
97          (13) "Cannabis processing facility agent" means an individual who[:]
98          holds a valid cannabis production establishment agent registration card with a cannabis
99     processing facility designation.
100          (14) "Cannabis product" means the same as that term is defined in Section 26B-4-201.
101          (15) "Cannabis production establishment" means a cannabis cultivation facility, a
102     cannabis processing facility, or an independent cannabis testing laboratory.
103          (16) "Cannabis production establishment agent" means a cannabis cultivation facility
104     agent, a cannabis processing facility agent, or an independent cannabis testing laboratory agent.
105          (17) "Cannabis production establishment agent registration card" means a registration
106     card that the department issues that:
107          (a) authorizes an individual to act as a cannabis production establishment agent; and
108          (b) designates the type of cannabis production establishment for which an individual is
109     authorized to act as an agent.
110          (18) "Closed-door medical cannabis pharmacy" means a facility operated by a home
111     delivery medical cannabis pharmacy for delivering cannabis or a medical cannabis product.
112          [(18)] (19) "Community location" means a public or private elementary or secondary
113     school, a church, a public library, a public playground, or a public park.
114          [(19)] (20) "Cultivation space" means, quantified in square feet, the horizontal area in
115     which a cannabis cultivation facility cultivates cannabis, including each level of horizontal area
116     if the cannabis cultivation facility hangs, suspends, stacks, or otherwise positions plants above
117     other plants in multiple levels.
118          [(20)] (21) "Delivery address" means:
119          (a) for a medical cannabis cardholder who is not a facility, the medical cannabis
120     cardholder's home address; or
121          (b) for a medical cannabis cardholder that is a facility, the facility's address.
122          [(21)] (22) "Department" means the Department of Agriculture and Food.
123          [(22)] (23) "Family member" means a parent, step-parent, spouse, child, sibling,
124     step-sibling, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law,
125     brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent, or grandchild.
126          [(23)] (24) "Home delivery medical cannabis pharmacy" means a medical cannabis
127     pharmacy that the department authorizes, as part of the pharmacy's license, to deliver medical
128     cannabis shipments to a delivery address to fulfill electronic orders that the state central patient
129     portal facilitates.
130          [(24)] (25) (a) "Independent cannabis testing laboratory" means a person that:
131          (i) conducts a chemical or other analysis of cannabis or a cannabis product; or
132          (ii) acquires, possesses, and transports cannabis or a cannabis product with the intent to
133     conduct a chemical or other analysis of the cannabis or cannabis product.
134          (b) "Independent cannabis testing laboratory" includes a laboratory that the department
135     or a research university operates in accordance with Subsection 4-41a-201(14).
136          [(25)] (26) "Independent cannabis testing laboratory agent" means an individual who[:]
137          holds a valid cannabis production establishment agent registration card with an
138     independent cannabis testing laboratory designation.
139          [(26)] (27) "Inventory control system" means a system described in Section 4-41a-103.
140          [(27)] (28) "Licensing board" or "board" means the Cannabis Production Establishment
141     Licensing Advisory Board created in Section 4-41a-201.1.
142          [(28)] (29) "Medical cannabis" means the same as that term is defined in Section
143     26B-4-201.
144          [(29)] (30) "Medical cannabis card" means the same as that term is defined in Section
145     26B-4-201.
146          [(30)] (31) "Medical cannabis courier" means a courier that:
147          (a) the department licenses in accordance with Section 4-41a-1201; and
148          (b) contracts with a home delivery medical cannabis pharmacy to deliver medical
149     cannabis shipments to fulfill electronic orders that the state central patient portal facilitates.
150          [(31)] (32) "Medical cannabis courier agent" means an individual who:
151          (a) is an employee of a medical cannabis courier; and
152          (b) who holds a valid medical cannabis courier agent registration card.
153          [(32)] (33) "Medical cannabis pharmacy" means the same as that term is defined in
154     Section 26B-4-201.
155          [(33)] (34) "Medical cannabis pharmacy agent" means the same as that term is defined
156     in Section 26B-4-201.
157          [(34)] (35) "Medical cannabis research license" means a license that the department
158     issues to a research university for the purpose of obtaining and possessing medical cannabis for
159     academic research.
160          [(35)] (36) "Medical cannabis research licensee" means a research university that the
161     department licenses to obtain and possess medical cannabis for academic research, in
162     accordance with Section 4-41a-901.
163          [(36)] (37) "Medical cannabis shipment" means a shipment of medical cannabis or a
164     medical cannabis product that a home delivery medical cannabis pharmacy or a medical
165     cannabis courier delivers to a delivery address to fulfill an electronic medical cannabis order
166     that the state central patient portal facilitates.
167          [(37)] (38) "Medical cannabis treatment" means the same as that term is defined in
168     Section 26B-4-201.
169          [(38)] (39) "Medicinal dosage form" means the same as that term is defined in Section
170     26B-4-201.
171          (40) "Pharmacy ownership limit" means an amount equal to 30% of the total number of
172     medical cannabis pharmacy licenses issued by the department rounded down to the nearest
173     whole number.
174          [(39)] (41) "Pharmacy medical provider" means the same as that term is defined in
175     Section 26B-4-201.
176          [(40)] (42) "Qualified medical provider" means the same as that term is defined in
177     Section 26B-4-201.
178          [(41)] (43) "Qualified Production Enterprise Fund" means the fund created in Section
179     4-41a-104.
180          [(42)] (44) "Recommending medical provider" means the same as that term is defined
181     in Section 26B-4-201.
182          [(43)] (45) "Research university" means the same as that term is defined in Section
183     53B-7-702 and a private, nonprofit college or university in the state that:
184          (a) is accredited by the Northwest Commission on Colleges and Universities;
185          (b) grants doctoral degrees; and
186          (c) has a laboratory containing or a program researching a schedule I controlled
187     substance described in Section 58-37-4.
188          [(44)] (46) "State electronic verification system" means the system described in Section
189     26B-4-202.
190          [(45)] (47) "Tetrahydrocannabinol" or "THC" means the same as that term is defined in
191     Section 4-41-102.
192          [(46)] (48) "THC analog" means the same as that term is defined in Section 4-41-102.
193          [(47)] (49) "Total composite tetrahydrocannabinol" means all detectable forms of
194     tetrahydrocannabinol.
195          [(48)] (50) "Total tetrahydrocannabinol" or "total THC" means the same as that term is
196     defined in Section 4-41-102.
197          Section 2. Section 4-41a-406 is amended to read:
198          4-41a-406. Local control.
199          (1) As used in this section:
200          (a) "Cannabis production establishment" means the same as that term is defined in
201     Section 4-41a-102 and includes a closed-door medical cannabis pharmacy.
202          (b) "Land use decision" means the same as that term is defined in Sections 10-9a-103
203     and 17-27a-103.
204          [(b)] (c) "Land use permit" means the same as that term is defined in Sections
205     10-9a-103 and 17-27a-103.
206          [(c)] (d) "Land use regulation" means the same as that term is defined in Sections
207     10-9a-103 and 17-27a-103.
208          (2) (a) If a municipality's or county's zoning ordinances provide for an industrial zone,
209     the operation of a cannabis production establishment shall be a permitted industrial use in any
210     industrial zone unless the municipality or county has designated by ordinance, before an
211     individual submits a land use permit application for a cannabis production establishment, at
212     least one industrial zone in which the operation of a cannabis production establishment is a
213     permitted use.
214          (b) If a municipality's or county's zoning ordinances provide for an agricultural zone,
215     the operation of a cannabis production establishment shall be a permitted agricultural use in
216     any agricultural zone unless the municipality or county has designated by ordinance, before an
217     individual submits a land use permit application for a cannabis production establishment, at
218     least one agricultural zone in which the operation of a cannabis production establishment is a
219     permitted use.
220          (c) The operation of a cannabis production establishment shall be a permitted use on
221     land that the municipality or county has not zoned.
222          (3) A municipality or county may not:
223          (a) on the sole basis that the applicant, or cannabis production establishment violates
224     federal law regarding the legal status of cannabis, deny or revoke:
225          (i) a land use permit to operate a cannabis production facility; or
226          (ii) a business license to operate a cannabis production facility;
227          (b) require a certain distance between a cannabis production establishment and:
228          (i) another cannabis production establishment;
229          (ii) a medical cannabis pharmacy;
230          (iii) a retail tobacco specialty business, as that term is defined in Section 26B-7-501; or
231          (iv) an outlet, as that term is defined in Section 32B-1-202; or
232          (c) in accordance with Subsections 10-9a-509(1) and 17-27a-508(1), enforce a land use
233     regulation against a cannabis production establishment that was not in effect on the day on
234     which the cannabis production establishment submitted a complete land use application.
235          (4) An applicant for a land use permit to operate a cannabis production establishment
236     shall comply with the land use requirements and application process described in:
237          (a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act,
238     including Section 10-9a-528; and
239          (b) Title 17, Chapter 27a, County Land Use, Development, and Management Act,
240     including Section 17-27a-525.
241          Section 3. Section 4-41a-1001 is amended to read:
242          4-41a-1001. Medical cannabis pharmacy -- License -- Eligibility.
243          (1) A person may not:
244          (a) operate as a medical cannabis pharmacy without a license that the department issues
245     under this part[.];
246          (b) obtain a medical cannabis pharmacy license if obtaining the license would cause the
247     person to exceed the pharmacy ownership limit;
248          (c) obtain a partial ownership share of a medical cannabis pharmacy if obtaining the
249     partial ownership share would cause the person to exceed the pharmacy ownership limit; or
250          (d) enter into any contract or agreement that allows the person to directly or indirectly
251     control the operations of a medical cannabis pharmacy if the person's control of the medical
252     cannabis pharmacy would cause the person to effectively exceed the pharmacy ownership limit.
253          (2) (a) (i) Subject to Subsections (4) and (5) and to Section 4-41a-1005, the department
254     shall issue a license to operate a medical cannabis pharmacy in accordance with Title 63G,
255     Chapter 6a, Utah Procurement Code.
256          (ii) The department may not issue a license to operate a medical cannabis pharmacy to
257     an applicant who is not eligible for a license under this section.
258          (b) An applicant is eligible for a license under this section if the applicant submits to
259     the department:
260          (i) subject to Subsection (2)(c), a proposed name and address where the applicant will
261     operate the medical cannabis pharmacy;
262          (ii) the name and address of an individual who:
263          (A) for a publicly traded company, has a financial or voting interest of 10% or greater
264     in the proposed medical cannabis pharmacy;
265          (B) for a privately held company, a financial or voting interest in the proposed medical
266     cannabis pharmacy; or
267          (C) has the power to direct or cause the management or control of a proposed medical
268     cannabis pharmacy;
269          (iii) for each application that the applicant submits to the department, a statement from
270     the applicant that the applicant will obtain and maintain:
271          (A) a performance bond in the amount of $100,000 issued by a surety authorized to
272     transact surety business in the state; or
273          (B) a liquid cash account in the amount of $100,000 with a financial institution;
274          (iv) an operating plan that:
275          (A) complies with Section 4-41a-1004;
276          (B) includes operating procedures to comply with the operating requirements for a
277     medical cannabis pharmacy described in this part and with a relevant municipal or county law
278     that is consistent with Section 4-41a-1106; and
279          (C) the department approves;
280          (v) an application fee in an amount that, subject to Subsection 4-41a-104(5), the
281     department sets in accordance with Section 63J-1-504; and
282          (vi) a description of any investigation or adverse action taken by any licensing
283     jurisdiction, government agency, law enforcement agency, or court in any state for any
284     violation or detrimental conduct in relation to any of the applicant's cannabis-related operations
285     or businesses.
286          (c) (i) A person may not locate a medical cannabis pharmacy:
287          (A) within 200 feet of a community location; or
288          (B) in or within 600 feet of a district that the relevant municipality or county has zoned
289     as primarily residential.
290          (ii) The proximity requirements described in Subsection (2)(c)(i) shall be measured
291     from the nearest entrance to the medical cannabis pharmacy establishment by following the
292     shortest route of ordinary pedestrian travel to the property boundary of the community location
293     or residential area.
294          (iii) The department may grant a waiver to reduce the proximity requirements in
295     Subsection (2)(c)(i) by up to 20% if the department determines that it is not reasonably feasible
296     for the applicant to site the proposed medical cannabis pharmacy without the waiver.
297          (iv) An applicant for a license under this section shall provide evidence of compliance
298     with the proximity requirements described in Subsection (2)(c)(i).
299          (d) The department may not issue a license to an eligible applicant that the department
300     has selected to receive a license until the selected eligible applicant complies with the bond or
301     liquid cash requirement described in Subsection (2)(b)(iii).
302          (e) If the department receives more than one application for a medical cannabis
303     pharmacy within the same city or town, the department shall consult with the local land use
304     authority before approving any of the applications pertaining to that city or town.
305          (3) If the department selects an applicant for a medical cannabis pharmacy license
306     under this section, the department shall:
307          (a) charge the applicant an initial license fee in an amount that, subject to Subsection
308     4-41a-104(5), the department sets in accordance with Section 63J-1-504;
309          (b) notify the Department of Public Safety of the license approval and the names of
310     each individual described in Subsection (2)(b)(ii); and
311          (c) charge the licensee a fee in an amount that, subject to Subsection 4-41a-104(5), the
312     department sets in accordance with Section 63J-1-504, for any change in location, ownership,
313     or company structure.
314          (4) The department may not issue a license to operate a medical cannabis pharmacy to
315     an applicant if an individual described in Subsection (2)(b)(ii):
316          (a) has been convicted under state or federal law of:
317          (i) a felony; or
318          (ii) after December 3, 2018, a misdemeanor for drug distribution;
319          (b) is younger than 21 years old; or
320          (c) after September 23, 2019, until January 1, 2023, is actively serving as a legislator.
321          (5) (a) If an applicant for a medical cannabis pharmacy license under this section holds
322     another license under this chapter, the department may not give preference to the applicant
323     based on the applicant's status as a holder of the license.
324          (b) If an applicant for a medical cannabis pharmacy license under this section holds a
325     license to operate a cannabis cultivation facility under this section, the department may give
326     consideration to the applicant's status as a holder of the license if:
327          (i) the applicant demonstrates that a decrease in costs to patients is more likely to result
328     from the applicant's vertical integration than from a more competitive marketplace; and
329          (ii) the department finds multiple other factors, in addition to the existing license, that
330     support granting the new license.
331          (6) (a) The department may revoke a license under this part:
332          (i) if the medical cannabis pharmacy does not begin operations within one year after
333     the day on which the department issues an announcement of the department's intent to award a
334     license to the medical cannabis pharmacy;
335          (ii) after the third the same violation of this chapter in any of the licensee's licensed
336     cannabis production establishments or medical cannabis pharmacies;
337          (iii) if an individual described in Subsection (2)(b)(ii) is convicted, while the license is
338     active, under state or federal law of:
339          (A) a felony; or
340          (B) after December 3, 2018, a misdemeanor for drug distribution;
341          (iv) if the licensee fails to provide the information described in Subsection (2)(b)(vi) at
342     the time of application, or fails to supplement the information described in Subsection
343     (2)(b)(vi) with any investigation or adverse action that occurs after the submission of the
344     application within 14 calendar days after the licensee receives notice of the investigation or
345     adverse action;
346          (v) if the medical cannabis pharmacy demonstrates a willful or reckless disregard for
347     the requirements of this chapter or the rules the department makes in accordance with this
348     chapter; or
349          (vi) if, after a change of ownership described in Subsection (11)(c), the department
350     determines that the medical cannabis pharmacy no longer meets the minimum standards for
351     licensure and operation of the medical cannabis pharmacy described in this chapter.
352          (b) The department shall rescind a notice of an intent to issue a license under this part
353     to an applicant or revoke a license issued under this part if the associated medical cannabis
354     pharmacy does not begin operation on or before June 1, 2021.
355          (7) (a) A person who receives a medical cannabis pharmacy license under this chapter,
356     if the municipality or county where the licensed medical cannabis pharmacy will be located
357     requires a local land use permit, shall submit to the department a copy of the licensee's
358     approved application for the land use permit within 120 days after the day on which the
359     department issues the license.
360          (b) If a licensee fails to submit to the department a copy the licensee's approved land
361     use permit application in accordance with Subsection (7)(a), the department may revoke the
362     licensee's license.
363          (8) The department shall deposit the proceeds of a fee imposed by this section into the
364     Qualified Production Enterprise Fund.
365          (9) The department shall begin accepting applications under this part on or before
366     March 1, 2020.
367          (10) (a) The department's authority to issue a license under this section is plenary and is
368     not subject to review.
369          (b) Notwithstanding Subsection (2), the decision of the department to award a license
370     to an applicant is not subject to:
371          (i) Title 63G, Chapter 6a, Part 16, Protests; or
372          (ii) Title 63G, Chapter 6a, Part 17, Procurement Appeals Board.
373          (11) (a) A medical cannabis pharmacy license is not transferrable or assignable.
374          (b) A medical cannabis pharmacy shall report in writing to the department no later than
375     10 business days before the date of any change of ownership of the medical cannabis
376     pharmacy.
377          (c) If the ownership of a medical cannabis pharmacy changes by 50% or more:
378          (i) concurrent with the report described in Subsection (11)(b), the medical cannabis
379     pharmacy shall submit a new application described in Subsection (2)(b), subject to Subsection
380     (2)(c);
381          (ii) within 30 days of the submission of the application, the department shall:
382          (A) conduct an application review; and
383          (B) award a license to the medical cannabis pharmacy for the remainder of the term of
384     the medical cannabis pharmacy's license before the ownership change if the medical cannabis
385     pharmacy meets the minimum standards for licensure and operation of the medical cannabis
386     pharmacy described in this chapter; and
387          (iii) if the department approves the license application, notwithstanding Subsection (3),
388     the medical cannabis pharmacy shall pay a license fee that the department sets in accordance
389     with Section 63J-1-504 in an amount that covers the board's cost of conducting the application
390     review.
391          Section 4. Section 4-41a-1206 is enacted to read:
392          4-41a-1206. Closed-door medical cannabis pharmacy.
393          (1) (a) Subject to Subsections (1)(b) and (c), a home delivery medical cannabis
394     pharmacy may open a single closed-door medical cannabis pharmacy.
395          (b) A home delivery medical cannabis pharmacy may not open a closed-door medical
396     cannabis pharmacy unless the home delivery medical cannabis pharmacy:
397          (i) has an operating plan that includes a closed-door medical cannabis pharmacy; and
398          (ii) obtains a license issued by the department for a closed-door medical cannabis
399     pharmacy.
400          (c) An entity that owns multiple home delivery medical cannabis pharmacies may open
401     only one closed-door medical cannabis pharmacy.
402          (d) The department may institute a fee in accordance with Section 63J-1-504 to
403     administer this section.
404          (2) A home delivery medical cannabis pharmacy that opens a closed-door medical
405     cannabis pharmacy under Subsection (1) shall ensure:
406          (a) that a pharmacy medical provider who is a licensed pharmacist:
407          (i) is directly supervising the packaging of an order; and
408          (ii) is present in the closed-door medical cannabis pharmacy when an order is packaged
409     for delivery; and
410          (b) all record keeping requirements, labeling requirements, and patient counseling
411     requirements described in this chapter and Title 26B, Chapter 4, Part 2, Cannabinoid Research
412     and Medical Cannabis, are satisfied before sending out an order.
413          (3) An individual who prepares an order at a closed-door medical cannabis pharmacy
414     under this section shall be registered as:
415          (a) a pharmacy medical provider; or
416          (b) a medical cannabis pharmacy agent.
417          (4) (a) A closed-door medical cannabis pharmacy shall operate:
418          (i) except as provided in Subsection (4)(b), in a facility that is accessible only by an
419     individual who is a pharmacy medical provider or a medical cannabis pharmacy agent; and
420          (ii) at a physical address in accordance with Subsection (6).
421          (b) A closed-door medical cannabis pharmacy may authorize an individual who is at
422     least 18 years old and is not a pharmacy medical provider or a cannabis pharmacy agent to
423     access the closed-door medical cannabis pharmacy if the closed-door medical cannabis
424     pharmacy:
425          (i) tracks and monitors the individual at all times while the individual is at the
426     closed-door medical cannabis pharmacy; and
427          (ii) maintains a record of the individual's access, including arrival and departure.
428          (c) A closed-door medical cannabis pharmacy shall operate in a facility that has:
429          (i) a single, secure public entrance; and
430          (ii) a security system with a backup power source that:
431          (A) detects and records entry into the closed-door medical cannabis pharmacy;
432          (B) provides notice of an unauthorized entry to law enforcement when the closed-door
433     medical cannabis pharmacy is closed; and
434          (C) a lock or equivalent restrictive security feature on any area where the closed-door
435     medical cannabis pharmacy stores a cannabis product.
436          (d) A closed-door medical cannabis pharmacy shall ensure that any cannabis or
437     cannabis products in the closed-door medical cannabis pharmacy that are intended for home
438     delivery are separated in a manner that is readily distinguishable from any other cannabis or
439     cannabis product in the facility.
440          (5) A closed-door medical cannabis pharmacy may only provide cannabis or a cannabis
441     product to an individual through a delivery that complies with this part.
442          (6) (a) A person may not locate a closed-door medical cannabis pharmacy:
443          (i) within 1,000 feet of a community location; or
444          (ii) in or within 600 feet of a district that the relevant municipality or county has zoned
445     as primarily residential.
446          (b) The proximity requirements described in Subsection (6)(a) shall be measured from
447     the nearest entrance to the closed-door medical cannabis pharmacy by following the shortest
448     route of ordinary pedestrian travel to the property boundary of the community location or
449     residential area.
450          (c) The licensing board may grant a waiver to reduce the proximity requirements in
451     Subsection (6)(a) by up to 20% if the licensing board determines that it is not reasonably
452     feasible for the applicant to site the proposed closed-door medical cannabis pharmacy without
453     the waiver.
454          (d) An applicant for a license under this section shall provide evidence of compliance
455     with the proximity requirements described in Subsection (6)(a).
456          (7) When determining where a closed-door medical cannabis pharmacy may open, the
457     licensing board:
458          (a) shall utilize geographic regions created by the department through rule;
459          (b) shall prioritize allowing entities that do not have a medical cannabis pharmacy in a
460     region to open a closed-door medical cannabis pharmacy in the region;
461          (c) if the total amount of closed-door medical cannabis pharmacies, may allow only
462     three closed-door medical cannabis pharmacies to operate in counties of the first and second
463     class as described in Section 17-50-501; and
464          (d) for determining the three closed-door medical cannabis pharmacies described in
465     Subsection (7)(c), consider the following:
466          (i) the history of compliance with state law and rules for all licenses issued under this
467     chapter;
468          (ii) the medical cannabis pharmacy's willingness to offer a variety of brands and
469     products;
470          (iii) the ability of the operating plan to ensure the safety and security of the community;
471          (iv) the suitability of the proposed location and the location's ability to serve the local
472     community; and
473          (v) any other relevant information determined through rule.
474          (8) A closed-door medical cannabis pharmacy may not account for more than:
475          (a) for an entity that holds a single medical cannabis pharmacy license, the greater of:
476          (i) 35% of the medical cannabis pharmacy's total revenue; or
477          (ii) $2,000,000 in total revenue; or
478          (b) for an entity that holds more than one medical cannabis pharmacy license, the
479     greater of:
480          (i) 35% of the total revenue of the entity's medical cannabis pharmacy that generates
481     the most revenue; or
482          (ii) $2,000,000 in total revenue.
483          (9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
484     department shall make rules to implement this section.
485          Section 5. Section 10-9a-528 is amended to read:
486          10-9a-528. Cannabis production establishments, medical cannabis pharmacies,
487     and industrial hemp producer licensee.
488          (1) As used in this section:
489          (a) "Cannabis production establishment" means the same as that term is defined in
490     Section 4-41a-102 and includes a closed-door medical cannabis pharmacy.
491          (b) "Closed-door medical cannabis pharmacy" means the same as that term is defined
492     in Section 4-41a-102.
493          [(b)] (c) "Industrial hemp producer licensee" means the same as the term "licensee" is
494     defined in Section 4-41-102.
495          [(c)] (d) "Medical cannabis pharmacy" means the same as that term is defined in
496     Section 26B-4-201.
497          (2) (a) (i) A municipality may not regulate a cannabis production establishment or a
498     medical cannabis pharmacy in conflict with:
499          (A) Title 4, Chapter 41a, Cannabis Production Establishments and Pharmacies, and
500     applicable jurisprudence; and
501          (B) this chapter.
502          (ii) A municipality may not regulate an industrial hemp producer licensee in conflict
503     with:
504          (A) Title 4, Chapter 41, Hemp and Cannabinoid Act, and applicable jurisprudence; and
505          (B) this chapter.
506          (b) The Department of Agriculture and Food has plenary authority to license programs
507     or entities that operate a cannabis production establishment or a medical cannabis pharmacy.
508          (3) (a) Within the time period described in Subsection (3)(b), a municipality shall
509     prepare and adopt a land use regulation, development agreement, or land use decision in
510     accordance with this title and:
511          (i) regarding a cannabis production establishment, Section 4-41a-406; or
512          (ii) regarding a medical cannabis pharmacy, Section [4-41a-110] 4-41a-1105.
513          (b) A municipality shall take the action described in Subsection (3)(a):
514          (i) before January 1, 2021, within 45 days after the day on which the municipality
515     receives a petition for the action; and
516          (ii) after January 1, 2021, in accordance with Subsection 10-9a-509.5(2).
517          Section 6. Section 17-27a-525 is amended to read:
518          17-27a-525. Cannabis production establishments and medical cannabis
519     pharmacies.
520          (1) As used in this section:
521          (a) "Cannabis production establishment" means the same as that term is defined in
522     Section 4-41a-102 and includes a closed-door medical cannabis pharmacy.
523          (b) "Closed-door medical cannabis pharmacy" means the same as that term is defined
524     in Section 4-41a-102.
525          [(b)] (c) "Industrial hemp producer licensee" means the same as the term "licensee" is
526     defined in Section 4-41-102.
527          [(c)] (d) "Medical cannabis pharmacy" means the same as that term is defined in
528     Section 26B-4-201.
529          (2) (a) (i) A county may not regulate a cannabis production establishment or a medical
530     cannabis pharmacy in conflict with:
531          (A) Title 4, Chapter 41a, Cannabis Production Establishments and Pharmacies, and
532     applicable jurisprudence; and
533          (B) this chapter.
534          (ii) A county may not regulate an industrial hemp producer licensee in conflict with:
535          (A) Title 4, Chapter 41, Hemp and Cannabinoid Act, and applicable jurisprudence; and
536          (B) this chapter.
537          (b) The Department of Agriculture and Food has plenary authority to license programs
538     or entities that operate a cannabis production establishment or a medical cannabis pharmacy.
539          (3) (a) Within the time period described in Subsection (3)(b), a county shall prepare
540     and adopt a land use regulation, development agreement, or land use decision in accordance
541     with this title and:
542          (i) regarding a cannabis production establishment, Section 4-41a-406; or
543          (ii) regarding a medical cannabis pharmacy, Section [4-41a-110] 4-41a-1105.
544          (b) A county shall take the action described in Subsection (3)(a):
545          (i) before January 1, 2021, within 45 days after the day on which the county receives a
546     petition for the action; and
547          (ii) after January 1, 2021, in accordance with Subsection 17-27a-509.5(2).
548          Section 7. Section 26B-1-435 is amended to read:
549          26B-1-435. Medical Cannabis Policy Advisory Board creation -- Membership --
550     Duties.
551          (1) There is created within the department the Medical Cannabis Policy Advisory
552     Board.
553          (2) (a) The advisory board shall consist of the following members:
554          (i) appointed by the executive director:
555          (A) a qualified medical provider who has recommended medical cannabis to at least
556     100 patients [who have a medical cannabis patient card at the time of appointment] before
557     being appointed;
558          (B) a medical research professional;
559          (C) a mental health specialist;
560          (D) an individual who represents an organization that advocates for medical cannabis
561     patients;
562          (E) an individual who holds a medical cannabis patient card; and
563          (F) a member of the general public who does not hold a medical cannabis card; and
564          (ii) appointed by the commissioner of the Department of Agriculture and Food:
565          (A) an individual who owns or operates a licensed cannabis cultivation facility;
566          (B) an individual who owns or operates a licensed medical cannabis pharmacy; and
567          (C) a law enforcement officer.
568          (b) The commissioner of the Department of Agriculture and Food shall ensure that at
569     least one individual appointed under Subsection (2)(a)(ii)(A) or (B) also owns or operates a
570     licensed cannabis processing facility.
571          (3) (a) Subject to Subsection (3)(b), a member of the advisory board shall serve for a
572     four year term.
573          (b) When appointing the initial membership of the advisory board, the executive
574     director and the commissioner of the Department of Agriculture and Food shall coordinate to
575     appoint four advisory board members to serve a term of two years to ensure that approximately
576     half of the board is appointed every two years.
577          (4) (a) If an advisory board member is no longer able to serve as a member, a new
578     member shall be appointed in the same manner as the original appointment.
579          (b) A member appointed in accordance with Subsection (4)(a) shall serve for the
580     remainder of the unexpired term of the original appointment.
581          (5) (a) A majority of the advisory board members constitutes a quorum.
582          (b) The action of a majority of a quorum constitutes an action of the advisory board.
583          (c) [The] For a term lasting one year, the advisory board shall annually designate [one
584     of the advisory board's members] members of the advisory board to serve as chair [for a
585     one-year period.] and vice-chair.
586          (d) When designating the chair and vice-chair, the advisory board shall ensure that at
587     least one individual described Subsection (2)(a)(i) is appointed as chair or vice-chair.
588          (6) An advisory board member may not receive compensation or benefits for the
589     member's service on the advisory board but may receive per diem and reimbursement for travel
590     expenses incurred as an advisory board member in accordance with:
591          (a) Sections 63A-3-106 and 63A-3-107; and
592          (b) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
593     63A-3-107.
594          (7) The department shall:
595          (a) provide staff support for the advisory board; and
596          (b) assist the advisory board in conducting meetings.
597          (8) The advisory board may recommend:
598          (a) to the department or the Department of Agriculture and Food changes to current or
599     proposed medical cannabis rules or statutes;
600          (b) to the appropriate legislative committee whether the advisory board supports a
601     change to medical cannabis statutes.
602          (9) The advisory board shall:
603          (a) review any draft rule that is authorized under this chapter or Title 4, Chapter 41a,
604     Cannabis Production Establishments and Pharmacies;
605          (b) consult with the Department of Agriculture and Food regarding the issuance of an
606     additional:
607          (i) cultivation facility license under Section 4-41a-205; or
608          (ii) pharmacy license under Section 4-41a-1005;
609          (c) consult with the department regarding cannabis patient education;
610          (d) consult regarding the reasonableness of any fees set by the department or the
611     Department of Agriculture and Food that pertain to the medical cannabis program; and
612          (e) consult regarding any issue pertaining to medical cannabis when asked by the
613     department or the Utah Department of Agriculture and Food.
614          Section 8. Section 26B-4-219 is amended to read:
615          26B-4-219. Pharmacy medical providers -- Registration -- Continuing education.
616          (1) (a) A medical cannabis pharmacy:
617          (i) shall employ a pharmacist who is licensed under Title 58, Chapter 17b, Pharmacy
618     Practice Act, as a pharmacy medical provider;
619          (ii) may employ a physician who has the authority to write a prescription and is
620     licensed under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah
621     Osteopathic Medical Practice Act, as a pharmacy medical provider;
622          (iii) shall ensure that a pharmacy medical provider described in Subsection (1)(a)(i)
623     works onsite during all business hours; and
624          (iv) shall designate one pharmacy medical provider described in Subsection (1)(a)(i) as
625     the pharmacist-in-charge to oversee the operation of and generally supervise the medical
626     cannabis pharmacy.
627          (b) The pharmacist-in-charge shall determine which cannabis and cannabis products
628     the medical cannabis pharmacy maintains in the medical cannabis pharmacy's inventory.
629          [(b)] (c) An individual may not serve as a pharmacy medical provider unless the
630     department registers the individual as a pharmacy medical provider in accordance with
631     Subsection (2).
632          (2) (a) The department shall, within 15 days after the day on which the department
633     receives an application from a medical cannabis pharmacy on behalf of a prospective pharmacy
634     medical provider, register and issue a pharmacy medical provider registration card to the
635     prospective pharmacy medical provider if the medical cannabis pharmacy:
636          (i) provides to the department:
637          (A) the prospective pharmacy medical provider's name and address;
638          (B) the name and location of the licensed medical cannabis pharmacy where the
639     prospective pharmacy medical provider seeks to act as a pharmacy medical provider;
640          (C) a report detailing the completion of the continuing education requirement described
641     in Subsection (3); and
642          (D) evidence that the prospective pharmacy medical provider is a pharmacist who is
643     licensed under Title 58, Chapter 17b, Pharmacy Practice Act, or a physician who has the
644     authority to write a prescription and is licensed under Title 58, Chapter 67, Utah Medical
645     Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; and
646          (ii) pays a fee to the department in an amount that, subject to Subsection 26B-1-310(5),
647     the department sets in accordance with Section 63J-1-504.
648          (b) The department may not register a recommending medical provider as a pharmacy
649     medical provider.
650          (3) (a) A pharmacy medical provider shall complete the continuing education described
651     in this Subsection (3) in the following amounts:
652          (i) as a condition precedent to registration, four hours; and
653          (ii) as a condition precedent to renewal of the registration, four hours every two years.
654          (b) In accordance with Subsection (3)(a), the pharmacy medical provider shall:
655          (i) complete continuing education:
656          (A) regarding the topics described in Subsection (3)(d); and
657          (B) offered by the department under Subsection (3)(c) or an accredited or approved
658     continuing education provider that the department recognizes as offering continuing education
659     appropriate for the medical cannabis pharmacy practice; and
660          (ii) make a continuing education report to the department in accordance with a process
661     that the department establishes by rule, in accordance with Title 63G, Chapter 3, Utah
662     Administrative Rulemaking Act, and in collaboration with the Division of Professional
663     Licensing and:
664          (A) for a pharmacy medical provider who is licensed under Title 58, Chapter 17b,
665     Pharmacy Practice Act, the Board of Pharmacy;
666          (B) for a pharmacy medical provider licensed under Title 58, Chapter 67, Utah Medical
667     Practice Act, the Physicians Licensing Board; and
668          (C) for a pharmacy medical provider licensed under Title 58, Chapter 68, Utah
669     Osteopathic Medical Practice Act, the Osteopathic Physician and Surgeon's Licensing Board.
670          (c) The department may, in consultation with the Division of Professional Licensing,
671     develop the continuing education described in this Subsection (3).
672          (d) The continuing education described in this Subsection (3) may discuss:
673          (i) the provisions of this part;
674          (ii) general information about medical cannabis under federal and state law;
675          (iii) the latest scientific research on the endocannabinoid system and medical cannabis,
676     including risks and benefits;
677          (iv) recommendations for medical cannabis as it relates to the continuing care of a
678     patient in pain management, risk management, potential addiction, and palliative care; or
679          (v) best practices for recommending the form and dosage of [a] medical cannabis
680     [product] based on the qualifying condition underlying a medical cannabis recommendation.
681          (4) (a) A pharmacy medical provider registration card expires two years after the day
682     on which the department issues or renews the card.
683          (b) A pharmacy medical provider may renew the provider's registration card if the
684     provider:
685          (i) is eligible for a pharmacy medical provider registration card under this section;
686          (ii) certifies to the department in a renewal application that the information in
687     Subsection (2)(a) is accurate or updates the information;
688          (iii) submits a report detailing the completion of the continuing education requirement
689     described in Subsection (3); and
690          (iv) pays to the department a renewal fee in an amount that:
691          (A) subject to Subsection 26B-1-310(5), the department sets in accordance with
692     Section 63J-1-504; and
693          (B) may not exceed the cost of the relatively lower administrative burden of renewal in
694     comparison to the original application process.
695          (5) (a) Except as provided in Subsection (5)(b), a person may not advertise that the
696     person or another person dispenses medical cannabis.
697          (b) Notwithstanding Subsection (5)(a) and Section 4-41a-109, a registered pharmacy
698     medical provider may advertise the following:
699          (i) a green cross;
700          (ii) that the person is registered as a pharmacy medical provider and dispenses medical
701     cannabis; or
702          (iii) a scientific study regarding medical cannabis use.
703          (6) (a) The department may revoke a pharmacy medical provider's registration for a
704     violation of this chapter.
705          (b) The department may inspect patient records held by a medical cannabis pharmacy
706     to ensure a pharmacy medical provider is practicing in accordance with this chapter and
707     applicable rules.
708          Section 9. Section 26B-4-231 is amended to read:
709          26B-4-231. Partial filling -- Pharmacy medical provider directions of use.
710          (1) As used in this section, "partially fill" means to provide less than the full amount of
711     cannabis or cannabis product that the recommending medical provider recommends, if the
712     recommending medical provider recommended specific dosing guidelines.
713          (2) A pharmacy medical provider may partially fill a recommendation for a medical
714     cannabis treatment at the request of the recommending medical provider who issued the
715     medical cannabis treatment recommendation or the medical cannabis cardholder.
716          (3) The department shall make rules, in collaboration with the Division of Professional
717     Licensing and the Board of Pharmacy and in accordance with Title 63G, Chapter 3, Utah
718     Administrative Rulemaking Act, specifying how to record the date, quantity supplied, and
719     quantity remaining of a partially filled medical cannabis treatment recommendation.
720          (4) A pharmacy medical provider who is a pharmacist may, upon the request of a
721     medical cannabis cardholder, determine different dosing guidelines, subject to the dosing limits
722     in Subsection 4-41a-1102(2), to fill the quantity remaining of a partially filled medical cannabis
723     treatment recommendation if:
724          (a) the pharmacy medical provider determined dosing guidelines for the partial fill
725     under Subsection 4-41a-1102(5) or (6); and
726          (b) the medical cannabis cardholder reports that:
727          (i) the partial fill did not substantially affect the qualifying condition underlying the
728     medical cannabis recommendation; or
729          (ii) the patient experienced an adverse reaction to the partial fill or was otherwise
730     unable to successfully use the partial fill.
731          (5) If a recommending medical provider recommends treatment with medical cannabis
732     but wishes for the pharmacy medical provider to determine directions of use and dosing
733     guidelines:
734          (a) the recommending medical provider shall provide to the pharmacy medical
735     provider, either through the state electronic verification system or through a medical cannabis
736     pharmacy's recording of a recommendation under the order of a limited medical provider, any
737     of the following information that the recommending medical provider feels would be needed to
738     provide appropriate directions of use and dosing guidelines:
739          (i) information regarding the qualifying condition underlying the recommendation;
740          (ii) information regarding prior treatment attempts with medical cannabis; and
741          (iii) portions of the patient's current medication list; and
742          (b) before the relevant medical cannabis cardholder may obtain medical cannabis, the
743     pharmacy medical provider shall:
744          (i) review pertinent medical records, including the recommending medical provider
745     documentation described in Subsection (5)(a); and
746          (ii) [unless the pertinent medical records show directions of use and dosing guidelines
747     from a state central patient portal medical provider in accordance with Subsection (6),] after
748     completing the review described in Subsection (5)(b)(i) and consulting with the recommending
749     medical provider as needed, determine the best course of treatment through consultation with
750     the cardholder regarding:
751          (A) the patient's qualifying condition underlying the recommendation from the
752     recommending medical provider;
753          (B) indications for available treatments;
754          (C) directions of use and dosing guidelines; and
755          (D) potential adverse reactions.
756          Section 10. Repealer.
757          This bill repeals:
758          Section 26B-1-435.1, Medical Cannabis Policy Advisory Board duties.
759          Section 11. Effective date.
760          This bill takes effect on May 1, 2024.