27 4-41a-102 4-41a-201 4-41a-201.1 4-41a-202 4-41a-301 4-41a-401 4-41a-602 4-41a-604 4-41a-802 4-41a-1001 4-41a-1005 4-41a-1101 4-41a-1102 4-41a-1106 4-41a-1202 26B-1-421 26B-4-201 26B-4-202 26B-4-204 26B-4-207 26B-4-213 26B-4-245 34A-5-114 63I-2-236 SB0233 SB0046 4-41a-102 SB0233 SB0046 26B-4-201 MEDICAL CANNABIS AMENDMENTS 2024 GENERAL SESSION STATE OF UTAH Chief Sponsor: Luz Escamilla House Sponsor: Raymond P. Ward LONG TITLE General Description: This bill modifies provisions related to medical cannabis. Highlighted Provisions: This bill: defines terms; allows the delivery of medical cannabis to more address types; allows a medical cannabis pharmacy to engage in additional targeted marketing; allows a medical cannabis processor to engage in targeted marketing subject to administrative rule; allows a medical clinic to engage in targeted marketing; prohibits anticompetitive behavior; modifies provisions related to cannabis production facility applications; modifies the duties and membership of the Medical Cannabis Production and Pharmacy Licensing Board (licensing board); prohibits the use of certain terms on medical cannabis products; modifies reporting requirements; changes requirements related to felonies and obtaining certain cannabis business licenses; requires pharmacy licenses to be renewed and awarded under the licensing board; allows additional medical providers to provide recommendations to the Compassionate Use Board; modifies provisions related to public employee protections for medical cannabis and other prescription use; allows a public employee to file a complaint with the Labor Commission regarding discriminatory practices related to medical cannabis use; creates a penalty for a health care provider who provides medical cannabis recommendations for an entity that is violating advertisement restrictions; and extends the repeal date of the Medical Cannabis Governance Structure Working Group. Money Appropriated in this Bill: None Other Special Clauses: This bill provides a coordination clause. Utah Code Sections Affected: AMENDS: 4-41a-102, as last amended by Laws of Utah 2023, Chapters 273, 313 and 327 4-41a-201, as last amended by Laws of Utah 2023, Chapters 273, 313 and 327 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 327 4-41a-201.1, as enacted by Laws of Utah 2021, Chapter 350 4-41a-202, as renumbered and amended by Laws of Utah 2018, Third Special Session, Chapter 1 4-41a-301, as last amended by Laws of Utah 2023, Chapter 313 4-41a-401, as renumbered and amended by Laws of Utah 2018, Third Special Session, Chapter 1 4-41a-602, as last amended by Laws of Utah 2023, Chapter 313 4-41a-802, as last amended by Laws of Utah 2023, Chapter 273 4-41a-1001, as last amended by Laws of Utah 2023, Chapter 317 and renumbered and amended by Laws of Utah 2023, Chapters 273, 307 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 307 4-41a-1005, as renumbered and amended by Laws of Utah 2023, Chapters 273, 307 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 307 4-41a-1101, as last amended by Laws of Utah 2023, Chapter 317 and renumbered and amended by Laws of Utah 2023, Chapters 273, 307 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 307 4-41a-1102, as last amended by Laws of Utah 2023, Chapter 317 and renumbered and amended by Laws of Utah 2023, Chapters 273, 307 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 307 4-41a-1106, as last amended by Laws of Utah 2023, Chapter 317 and renumbered and amended by Laws of Utah 2023, Chapters 273, 307 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 307 4-41a-1202, as last amended by Laws of Utah 2023, Chapter 317 and renumbered and amended by Laws of Utah 2023, Chapters 273, 307 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 307 26B-1-421, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered and amended by Laws of Utah 2023, Chapter 305 26B-4-201, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered and amended by Laws of Utah 2023, Chapter 307 26B-4-202, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered and amended by Laws of Utah 2023, Chapter 307 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 307 26B-4-204, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered and amended by Laws of Utah 2023, Chapter 307 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 307 26B-4-207, as renumbered and amended by Laws of Utah 2023, Chapter 307 26B-4-213, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered and amended by Laws of Utah 2023, Chapter 307 and last amended by Coordination Clause, Laws of Utah 2023, Chapter 307 26B-4-245, as enacted by Laws of Utah 2023, Chapter 273 63I-2-236, as last amended by Laws of Utah 2023, Chapters 87, 101 and 273 ENACTS: 4-41a-604, Utah Code Annotated 1953 34A-5-114, Utah Code Annotated 1953 Utah Code Sections Affected by Coordination Clause: AMENDS: 26 4-41a-102, as last amended by Laws of Utah 2023, Chapters 273, 313 and 327 26 26B-4-201, as last amended by Laws of Utah 2023, Chapters 273, 317 and renumbered and amended by Laws of Utah 2023, Chapter 307 Be it enacted by the Legislature of the state of Utah:

Section 1, Section 4-41a-102 is amended to read: 4-41a-102. Definitions. As used in this chapter: (1)"Adulterant" means any poisonous or deleterious substance in a quantity that may be injurious to health, including: (a)pesticides; (b)heavy metals; (c)solvents; (d)microbial life; (e)artificially derived cannabinoid; (f)toxins; or (g)foreign matter. (2)"Advisory board" means the Medical Cannabis Policy Advisory Board created in Section 26B-1-435. (3) (a) "Anticompetitive business practice" means any practice that reduces the amount of competition in the medical cannabis market that would be considered an attempt to monopolize, as defined in Section 76-10-3103. (b) "Anticompetitive business practice" may include: (i) agreements that may be considered unreasonable when competitors interact to the extent that they are: (A) no longer acting independently; or (B) when collaborating are able to wield market power together; (ii) monopolizing or attempting to monopolize trade by: (A) acting to maintain or acquire a dominant position in the market; or (B) preventing new entry into the market; or (iii) other conduct outlined in rule. (3) (4) (a)"Artificially derived cannabinoid" means a chemical substance that is created by a chemical reaction that changes the molecular structure of any chemical substance derived from the cannabis plant. (b)"Artificially derived cannabinoid" does not include: (i)a naturally occurring chemical substance that is separated from the cannabis plant by a chemical or mechanical extraction process; or (ii)a cannabinoid that is produced by decarboxylation from a naturally occurring cannabinoid acid without the use of a chemical catalyst. (4) (5) "Cannabis Research Review Board" means the Cannabis Research Review Board created in Section 26B-1-420. (5) (6) "Cannabis" means the same as that term is defined in Section 26B-4-201. (6) (7) "Cannabis concentrate" means: (a)the product of any chemical or physical process applied to naturally occurring biomass that concentrates or isolates the cannabinoids contained in the biomass; and (b)any amount of a natural cannabinoid or artificially derived cannabinoid in an artificially derived cannabinoid's purified state. (7) (8) "Cannabis cultivation byproduct" means any portion of a cannabis plant that is not intended to be sold as a cannabis plant product. (8) (9) "Cannabis cultivation facility" means a person that: (a)possesses cannabis; (b)grows or intends to grow cannabis; and (c)sells or intends to sell cannabis to a cannabis cultivation facility, a cannabis processing facility, or a medical cannabis research licensee. (9) (10) "Cannabis cultivation facility agent" means an individual who : holds a valid cannabis production establishment agent registration card with a cannabis cultivation facility designation. (10) (11) "Cannabis derivative product" means a product made using cannabis concentrate. (11) (12) "Cannabis plant product" means any portion of a cannabis plant intended to be sold in a form that is recognizable as a portion of a cannabis plant. (12) (13) "Cannabis processing facility" means a person that: (a)acquires or intends to acquire cannabis from a cannabis production establishment; (b)possesses cannabis with the intent to manufacture a cannabis product; (c)manufactures or intends to manufacture a cannabis product from unprocessed cannabis or a cannabis extract; and (d)sells or intends to sell a cannabis product to a medical cannabis pharmacy or a medical cannabis research licensee. (13) (14) "Cannabis processing facility agent" means an individual who : holds a valid cannabis production establishment agent registration card with a cannabis processing facility designation. (14) (15) "Cannabis product" means the same as that term is defined in Section 26B-4-201. (15) (16) "Cannabis production establishment" means a cannabis cultivation facility, a cannabis processing facility, or an independent cannabis testing laboratory. (16) (17) "Cannabis production establishment agent" means a cannabis cultivation facility agent, a cannabis processing facility agent, or an independent cannabis testing laboratory agent. (17) (18) "Cannabis production establishment agent registration card" means a registration card that the department issues that: (a)authorizes an individual to act as a cannabis production establishment agent; and (b)designates the type of cannabis production establishment for which an individual is authorized to act as an agent. (18) (19) "Community location" means a public or private elementary or secondary school, a church, a public library, a public playground, or a public park. (19) (20) "Cultivation space" means, quantified in square feet, the horizontal area in which a cannabis cultivation facility cultivates cannabis, including each level of horizontal area if the cannabis cultivation facility hangs, suspends, stacks, or otherwise positions plants above other plants in multiple levels. (20) (21) "Delivery address" means: (a)for a medical cannabis cardholder who is not a facility , : (i) the medical cannabis cardholder's home address; or (ii) an address designated by the medical cannabis cardholder that: (A) is the medical cannabis cardholder's workplace; and (B) is not a community location; or (b)for a medical cannabis cardholder that is a facility, the facility's address. (21) (22) "Department" means the Department of Agriculture and Food. (22) (23) "Family member" means a parent, step-parent, spouse, child, sibling, step-sibling, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent, or grandchild. (24) "Government issued photo identification" means the same as that term is defined in Section 26B-4-201, including expired identification in accordance with Section 26B-4-244 . (23) (25) "Home delivery medical cannabis pharmacy" means a medical cannabis pharmacy that the department authorizes, as part of the pharmacy's license, to deliver medical cannabis shipments to a delivery address to fulfill electronic orders that the state central patient portal facilitates. (24) (26) (a)"Independent cannabis testing laboratory" means a person that: (i)conducts a chemical or other analysis of cannabis or a cannabis product; or (ii)acquires, possesses, and transports cannabis or a cannabis product with the intent to conduct a chemical or other analysis of the cannabis or cannabis product. (b)"Independent cannabis testing laboratory" includes a laboratory that the department or a research university operates in accordance with Subsection 4-41a-201(14). (25) (27) "Independent cannabis testing laboratory agent" means an individual who : holds a valid cannabis production establishment agent registration card with an independent cannabis testing laboratory designation. (26) (28) "Inventory control system" means a system described in Section 4-41a-103. (27) (29) "Licensing board" or "board" means the Cannabis Production Establishment and Pharmacy Licensing Advisory Board created in Section 4-41a-201.1. (28) (30) "Medical cannabis" means the same as that term is defined in Section 26B-4-201. (29) (31) "Medical cannabis card" means the same as that term is defined in Section 26B-4-201 . (30) (32) "Medical cannabis courier" means a courier that: (a)the department licenses in accordance with Section 4-41a-1201; and (b)contracts with a home delivery medical cannabis pharmacy to deliver medical cannabis shipments to fulfill electronic orders that the state central patient portal facilitates. (31) (33) "Medical cannabis courier agent" means an individual who: (a)is an employee of a medical cannabis courier; and (b)who holds a valid medical cannabis courier agent registration card. (32) (34) "Medical cannabis pharmacy" means the same as that term is defined in Section 26B-4-201 . (33) (35) "Medical cannabis pharmacy agent" means the same as that term is defined in Section 26B-4-201. (34) (36) "Medical cannabis research license" means a license that the department issues to a research university for the purpose of obtaining and possessing medical cannabis for academic research. (35) (37) "Medical cannabis research licensee" means a research university that the department licenses to obtain and possess medical cannabis for academic research, in accordance with Section 4-41a-901. (36) (38) "Medical cannabis shipment" means a shipment of medical cannabis or a medical cannabis product that a home delivery medical cannabis pharmacy or a medical cannabis courier delivers to a delivery address to fulfill an electronic medical cannabis order that the state central patient portal facilitates. (37) (39) "Medical cannabis treatment" means the same as that term is defined in Section 26B-4-201 . (38) (40) "Medicinal dosage form" means the same as that term is defined in Section 26B-4-201 . (39) (41) "Pharmacy medical provider" means the same as that term is defined in Section 26B-4-201 . (40) (42) "Qualified medical provider" means the same as that term is defined in Section 26B-4-201 . (41) (43) "Qualified Production Enterprise Fund" means the fund created in Section 4-41a-104 . (42) (44) "Recommending medical provider" means the same as that term is defined in Section 26B-4-201. (43) (45) "Research university" means the same as that term is defined in Section 53B-7-702 and a private, nonprofit college or university in the state that: (a)is accredited by the Northwest Commission on Colleges and Universities; (b)grants doctoral degrees; and (c)has a laboratory containing or a program researching a schedule I controlled substance described in Section 58-37-4. (44) (46) "State electronic verification system" means the system described in Section 26B-4-202 . (47) "Targeted marketing" means the promotion of a cannabis product, medical cannabis brand, or a medical cannabis device using any of the following methods: (a) electronic communication to an individual who is at least 21 years old and has requested to receive promotional information; (b) an in-person marketing event that is: (i) held inside a medical cannabis pharmacy; and (ii) in an area where only a medical cannabis cardholder may access the event; (c) other marketing material that is physically available or digitally displayed in a medical cannabis pharmacy; or (d) a leaflet a medical cannabis pharmacy places in the opaque package or box that is provided to an individual when obtaining medical cannabis: (i) in the medical cannabis pharmacy; (ii) at the medical cannabis pharmacy's drive-through pick up window; or (iii) in a medical cannabis shipment. (45) (48) "Tetrahydrocannabinol" or "THC" means the same as that term is defined in Section 4-41-102. (46) (49) "THC analog" means the same as that term is defined in Section 4-41-102. (47) (50) "Total composite tetrahydrocannabinol" means all detectable forms of tetrahydrocannabinol. (48) (51) "Total tetrahydrocannabinol" or "total THC" means the same as that term is defined in Section 4-41-102.

Section 2, Section 4-41a-201 is amended to read: 4-41a-201. Cannabis production establishment -- License. (1)Except as provided in Subsection (14), a person may not operate a cannabis production establishment without a license that the department issues under this chapter. (2) (a) (i)Subject to Subsections (6), (7), (8), and (13) and to Section 4-41a-205, for a licensing process that the department initiates after March 17, 2021, the department, through the licensing board, shall issue licenses in accordance with Section 4-41a-201.1. (ii)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department shall make rules to specify a transparent and efficient process to: (A)solicit applications for a license under this section; (B)allow for comments and questions in the development of applications; (C)timely and objectively evaluate applications; (D)hold public hearings that the department deems appropriate; and (E)select applicants to receive a license. (iii)The department may not issue a license to operate a cannabis production establishment to an applicant who is not eligible for a license under this section. (b)An applicant is eligible for a license under this section if the applicant submits to the licensing board: (i)subject to Subsection (2)(c), a proposed name and address or, for a cannabis cultivation facility, addresses of no more than two facility locations, located in a zone described in Subsection 4-41a-406(2)(a) or (b), where the applicant will operate the cannabis production establishment; (ii)the name and address of any individual who has: (A)for a publicly traded company, a financial or voting interest of 2% 10% or greater in the proposed cannabis production establishment; (B)for a privately held company, a financial or voting interest in the proposed cannabis production establishment; or (C)the power to direct or cause the management or control of a proposed cannabis production establishment; (iii)an operating plan that: (A)complies with Section 4-41a-204; (B)includes operating procedures that comply with this chapter and any law the municipality or county in which the person is located adopts that is consistent with Section 4-41a-406; and (C)the department or licensing board approves; (iv)a statement that the applicant will obtain and maintain a liquid cash account with a financial institution or a performance bond that a surety authorized to transact surety business in the state issues in an amount of at least: (A)$100,000 for each cannabis cultivation facility for which the applicant applies; or (B)$50,000 for each cannabis processing facility or independent cannabis testing laboratory for which the applicant applies; (v)an application fee in an amount that, subject to Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504; and (vi)a description of any investigation or adverse action taken by any licensing jurisdiction, government agency, law enforcement agency, or court in any state for any violation or detrimental conduct in relation to any of the applicant's cannabis-related operations or businesses. (c) (i)A person may not locate a cannabis production establishment: (A)within 1,000 feet of a community location; or (B)in or within 600 feet of a district that the relevant municipality or county has zoned as primarily residential. (ii)The proximity requirements described in Subsection (2)(c)(i) shall be measured from the nearest entrance to the cannabis production establishment by following the shortest route of ordinary pedestrian travel to the property boundary of the community location or residential area. (iii)The licensing board may grant a waiver to reduce the proximity requirements in Subsection (2)(c)(i) by up to 20% if the licensing board determines that it is not reasonably feasible for the applicant to site the proposed cannabis production establishment without the waiver. (iv)An applicant for a license under this section shall provide evidence of compliance with the proximity requirements described in Subsection (2)(c)(i). (3)If the licensing board approves an application for a license under this section and Section 4-41a-201.1: (a)the applicant shall pay the department : (i) an initial license fee in an amount that, subject to Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504 ; or ; and (ii) a fee for a 120-day limited license to operate as a cannabis processing facility described in Subsection (3)(b) that is equal to 33% of the initial license fee described in Subsection (3)(a)(i); and (b)the department shall notify the Department of Public Safety of the license approval and the names of each individual described in Subsection (2)(b)(ii). (4) (a)Except as provided in Subsection (4)(b), a cannabis production establishment shall obtain a separate license for each type of cannabis production establishment and each location of a cannabis production establishment. (b)The licensing board may issue a cannabis cultivation facility license and a cannabis processing facility license to a person to operate at the same physical location or at separate physical locations. (5)If the licensing board receives more than one application for a cannabis production establishment within the same city or town, the licensing board shall consult with the local land use authority before approving any of the applications pertaining to that city or town. (6)The licensing board may not issue a license to operate an independent cannabis testing laboratory to a person who: (a)holds a license or has an ownership interest in a medical cannabis pharmacy, a cannabis processing facility, or a cannabis cultivation facility; (b)has an owner, officer, director, or employee whose family member holds a license or has an ownership interest in a medical cannabis pharmacy, a cannabis processing facility, or a cannabis cultivation facility; or (c)proposes to operate the independent cannabis testing laboratory at the same physical location as a medical cannabis pharmacy, a cannabis processing facility, or a cannabis cultivation facility. (7)The licensing board may not issue a license to operate a cannabis production establishment to an applicant if any individual described in Subsection (2)(b)(ii): (a)has been convicted under state or federal law of: (i)a felony in the preceding 10 years; or (ii)after December 3, 2018, a misdemeanor for drug distribution; (b)is younger than 21 years old; or (c)after September 23, 2019, until January 1, 2023, is actively serving as a legislator. (8) (a)If an applicant for a cannabis production establishment license under this section holds a license under Title 4, Chapter 41, Hemp and Cannabinoid Act, the licensing board may not give preference to the applicant based on the applicant's status as a holder of the license. (b)If an applicant for a license to operate a cannabis cultivation facility under this section holds a license to operate a medical cannabis pharmacy under this title, the licensing board may give consideration to the applicant based on the applicant's status as a holder of a medical cannabis pharmacy license if: (i)the applicant demonstrates that a decrease in costs to patients is more likely to result from the applicant's vertical integration than from a more competitive marketplace; and (ii)the licensing board finds multiple other factors, in addition to the existing license, that support granting the new license. (9)The licensing board may revoke a license under this part: (a)if the cannabis production establishment does not begin cannabis production operations within one year after the day on which the licensing board issues the initial license; (b)after the third of the same violation of this chapter in any of the licensee's licensed cannabis production establishments or medical cannabis pharmacies; (c)if any individual described in Subsection (2)(b) is convicted, while the license is active, under state or federal law of: (i)a felony; or (ii)after December 3, 2018, a misdemeanor for drug distribution; (d)if the licensee fails to provide the information described in Subsection (2)(b)(vi) at the time of application, or fails to supplement the information described in Subsection (2)(b)(vi) with any investigation or adverse action that occurs after the submission of the application within 14 calendar days after the licensee receives notice of the investigation or adverse action; (e)if the cannabis production establishment demonstrates a willful or reckless disregard for the requirements of this chapter or the rules the department makes in accordance with this chapter; (f)if, after a change of ownership described in Subsection (15)(b), the board determines that the cannabis production establishment no longer meets the minimum standards for licensure and operation of the cannabis production establishment described in this chapter; or (g)for an independent cannabis testing laboratory, if the independent cannabis testing laboratory fails to substantially meet the performance standards described in Subsection (14)(b) . ; or (h) if, following an investigation conducted pursuant to Subsection 4-41a-201.1(11), the board identifies that the licensee has participated in anticompetitive business practices. (10) (a)A person who receives a cannabis production establishment license under this chapter, if the municipality or county where the licensed cannabis production establishment will be located requires a local land use permit, shall submit to the licensing board a copy of the licensee's approved application for the land use permit within 120 days after the day on which the licensing board issues the license. (b)If a licensee fails to submit to the licensing board a copy of the licensee's approved land use permit application in accordance with Subsection (10)(a), the licensing board may revoke the licensee's license. (11)The department shall deposit the proceeds of a fee that the department imposes under this section into the Qualified Production Enterprise Fund. (12)The department shall begin accepting applications under this part on or before January 1, 2020. (13) (a)The department's authority, and consequently the licensing board's authority, to issue a license under this section is plenary and is not subject to review. (b)Notwithstanding Subsection (2)(a)(ii)(A), the decision of the department to award a license to an applicant is not subject to: (i)Title 63G, Chapter 6a, Part 16, Protests; or (ii)Title 63G, Chapter 6a, Part 17, Procurement Appeals Board. (14) (a)Notwithstanding this section, the department: (i)may operate or partner with a research university to operate an independent cannabis testing laboratory; (ii)if the department operates or partners with a research university to operate an independent cannabis testing laboratory, may not cease operating or partnering with a research university to operate the independent cannabis testing laboratory unless: (A)the department issues at least two licenses to independent cannabis testing laboratories; and (B)the department has ensured that the licensed independent cannabis testing laboratories have sufficient capacity to provide the testing necessary to support the state's medical cannabis market; and (iii)after ceasing department or research university operations under Subsection (14)(a)(ii) shall resume independent cannabis testing laboratory operations at any time if: (A)fewer than two licensed independent cannabis testing laboratories are operating; or (B)the licensed independent cannabis testing laboratories become, in the department's determination, unable to fully meet the market demand for testing. (b) (i)The department shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish performance standards for the operation of an independent cannabis testing laboratory, including deadlines for testing completion. (ii)A license that the department issues to an independent cannabis testing laboratory is contingent upon substantial satisfaction of the performance standards described in Subsection (14)(b)(i), as determined by the board. (15) (a)A cannabis production establishment license is not transferrable or assignable. (b)If the ownership of a cannabis production establishment changes by 50% or more: (i)the cannabis production establishment shall submit a new application described in Subsection (2)(b), subject to Subsection (2)(c); (ii)within 30 days of the submission of the application, the board shall: (A)conduct the application review described in Section 4-41a-201.1; and (B)award a license to the cannabis production establishment for the remainder of the term of the cannabis production establishment's license before the ownership change if the cannabis production establishment meets the minimum standards for licensure and operation of the cannabis production establishment described in this chapter; and (iii)if the board approves the license application, notwithstanding Subsection (3), the cannabis production establishment shall pay a license fee that the department sets in accordance with Section 63J-1-504 in an amount that covers the board's cost of conducting the application review.

Section 3, Section 4-41a-201.1 is amended to read: 4-41a-201.1. Cannabis Production Establishment and Pharmacy Licensing Advisory Board -- Composition -- Duties. (1)There is created within the department the Cannabis Production Establishment and Pharmacy Licensing Advisory Board. (2)The commissioner shall: (a)appoint the members of the board; (b)submit the name of each individual that the commissioner appoints under Subsection (2)(a) to the governor for confirmation or rejection; and (c)if the governor rejects an appointee that the commissioner submits under Subsection (2)(b), appoint another individual in accordance with this Subsection (2). (3) (a)Except as provided in Subsection (3)(c), the board shall consist of the following six eight members: (i)the following five seven voting members whom the commissioner appoints: (A)one member of the public; (B)one member with knowledge and experience in the pharmaceutical or nutraceutical manufacturing industry; (C)one member representing law enforcement; (D)one member whom an organization representing medical cannabis patients recommends; and (E)a chemist who has experience with cannabis and who is associated with a research university; and (F) a pharmacist who is not associated with the medical cannabis industry; and (G) an accountant; and (ii)the commissioner or the commissioner's designee as a non-voting member, except to cast a deciding vote in the event of a tie. (b)The commissioner may appoint a seventh ninth member to the board who has a background in the cannabis cultivation and processing industry. (c)The commissioner or the commissioner's designee shall serve as the chair of the board. (d)An individual is not eligible for appointment to be a member of the board if the individual: (i)has any commercial or ownership interest in a cannabis production establishment, medical cannabis pharmacy, or medical cannabis courier; (ii)has an owner, officer, director, or employee whose family member holds a license or has an ownership interest in a cannabis production establishment, medical cannabis pharmacy, or medical cannabis courier; or (iii)is employed or contracted to lobby on behalf of any cannabis production establishment, medical cannabis pharmacy, or medical cannabis courier. (4) (a)Except as provided in Subsection (4)(b), a voting board member shall serve a term of four years, beginning July 1 and ending June 30. (b)Notwithstanding Subsection (4)(a), for the initial appointments to the board, the commissioner shall stagger the length of the terms of board members to ensure that the commissioner appoints two or three board members every two years. (c)As a board member's term expires: (i)the board member is eligible for reappointment; and (ii)the commissioner shall make an appointment, in accordance with Subsection (2), for the new term before the end of the member's term. (d)When a vacancy occurs on the board for any reason other than the expiration of a board member's term, the commissioner shall appoint a replacement to the vacant position, in accordance with Subsection (2), for the unexpired term. (e)In making appointments, the commissioner shall ensure that no two members of the board are employed by or represent the same company or nonprofit organization. (f)The commissioner may remove a board member for cause, neglect of duty, inefficiency, or malfeasance. (5) (a) (i) Four Five members of the board constitute a quorum of the board. (ii)An action of the majority of the board members when a quorum is present constitutes an action of the board. (b)The department shall provide staff support to the board. (c)A member of the board may not receive compensation or benefits for the member's service, but may receive per diem and travel expenses in accordance with: (i)Section 63A-3-106; (ii)Section 63A-3-107; and (iii)rules made by the Division of Finance in accordance with Sections 63A-3-106 and 63A-3-107. (6)The board shall: (a)meet as called by the chair to review cannabis production establishment and pharmacy license applications; (b)review each license application for compliance with: (i)this chapter; and (ii)department rules; (c)conduct a public hearing to consider the license application; (d)approve the department's license application forms and checklists; and (e)make a determination on each license application. (7)The board shall hold a public hearing to review a cannabis production establishment's or pharmacy's license if the establishment: (a)changes ownership by an interest of 20% or more; (b)changes or adds a location; (c)upgrades to a different licensing tier under department rule; (d)changes extraction or formulation standard operating procedures; (e)adds an industrial hemp processing or cultivation license to the same location as the cannabis production establishment's processing facility; or (f)as necessary based on the recommendation of the department. (8) In a public hearing held under Subsection (7), the board may consider the following in determining whether to approve a request to change pharmacy locations: (a) medical cannabis availability, quality, and variety; (b) whether geographic dispersal among licensees is sufficient to reasonably maximize access to the largest number of medical cannabis cardholders; (c) the extent to which the pharmacy can increase efficiency and reduce the cost to patients of medical cannabis; and (d) the factors listed in Subsection 4-41a-1004(7). (9) In a public hearing held pursuant to Subsection (7), the board may not approve a request to change a medical cannabis pharmacy location outside of the pharmacy's current region established under Subsection 4-41a-1005(1)(c)(ii)(A). (8) (10) (a)The board shall meet annually in December to consider cannabis production establishment and pharmacy license renewal applications. (b)During the meeting described in Subsection (8)(a) (10)(a): (i)a representative from each applicant for renewal shall: (A)attend in person or electronically; or (B)submit information before the meeting, as the board may require, for the board's consideration; and (ii)the board shall consider, for each cannabis cultivation facility seeking renewal, information including: (A)the amount of biomass the licensee produced during the current calendar year; (B)the amount of biomass the licensee projects to produce during the following year; (C)the amount of hemp waste the licensee currently holds; (D)the current square footage or acres of growing area the licensee uses; and (E)the square footage or acres of growing area the licensee projects to use in the following year; and (iii)the board shall consider, for each cannabis processing facility seeking renewal, information including: (A)methods and procedures for extraction; (B)standard operating procedures; and (C)a complete listing of the medical dosage forms that the licensee produces . ; and (iv) the board shall consider, for each cannabis pharmacy seeking renewal, information including: (A) product availability, quality, and variety; (B) the pharmacy's operating procedures and practices; and (C) the factors listed in Subsection 4-41a-1003(1). (c) Following consideration of the information provided under Subsection (10)(b), the board may elect to approve, deny, or issue conditional approval of a cannabis production establishment or pharmacy license renewal application. (c) (d) The information a licensee or license applicant provides to the board for a license determination constitutes a protected record under Subsection 63G-2-305(1) or (2) if the applicant or licensee provides the board with the information regarding business confidentiality required in Section 63G-2-309. (11) In cooperation with the attorney general, the board may investigate information received by the department indicating that a licensee is potentially engaging in anticompetitive business practices.

Section 4, Section 4-41a-202 is amended to read: 4-41a-202. Cannabis production establishment owners and directors -- Criminal background checks. (1)Each applicant for a license as a cannabis production establishment shall submit to the department, at the time of application, from each individual who has a financial or voting interest of 2% 10% or greater in the applicant or who has the power to direct or cause the management or control of the applicant: (a)a fingerprint card in a form acceptable to the Department of Public Safety; (b)a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the registration of the individual's fingerprints in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service; and (c)consent to a fingerprint background check by: (i)the Utah Bureau of Criminal Identification; and (ii)the Federal Bureau of Investigation. (2)The Bureau of Criminal Identification shall: (a)check the fingerprints the applicant submits under Subsection (1) against the applicable state, regional, and national criminal records databases, including the Federal Bureau of Investigation Next Generation Identification System; (b)report the results of the background check to the department; (c)maintain a separate file of fingerprints that applicants submit under Subsection (1) for search by future submissions to the local and regional criminal records databases, including latent prints; (d)request that the fingerprints be retained in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service for search by future submissions to national criminal records databases, including the Next Generation Identification System and latent prints; and (e)establish a privacy risk mitigation strategy to ensure that the department only receives notifications for an individual with whom the department maintains an authorizing relationship. (3)The department shall: (a)assess an individual who submits fingerprints under Subsection (1) a fee in an amount that the department sets in accordance with Section 63J-1-504 for the services that the Bureau of Criminal Identification or another authorized agency provides under this section; and (b)remit the fee described in Subsection (3)(a) to the Bureau of Criminal Identification.

Section 5, Section 4-41a-301 is amended to read: 4-41a-301. Cannabis production establishment agent -- Registration. (1)An individual may not act as a cannabis production establishment agent unless the department registers the individual as a cannabis production establishment agent, regardless of whether the individual is a seasonal, temporary, or permanent employee. (2)The following individuals, regardless of the individual's status as a qualified medical provider, may not serve as a cannabis production establishment agent, have a financial or voting interest of 2% or greater in a cannabis production establishment, or have the power to direct or cause the management or control of a cannabis production establishment: (a)a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act; (b)an advanced practice registered nurse licensed under Title 58, Chapter 31b, Nurse Practice Act; (c)a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or (d)a physician assistant licensed under Title 58, Chapter 70a, Utah Physician Assistant Act. (3)An independent cannabis testing laboratory agent may not act as an agent for a medical cannabis pharmacy, a medical cannabis courier, a cannabis processing facility, or a cannabis cultivation facility. (4) (a)The department shall, within 15 business days after the day on which the department receives a complete application from a prospective cannabis production establishment agent, register and issue a cannabis production establishment agent registration card to the prospective agent if the prospective agent: (i)provides to the department: (A)the prospective agent's name and address; (B)which cannabis production establishment agent designations the applicant desires; and (C)the submission required under Subsection (4)(b); and (ii)pays a fee to the department in an amount that, subject to Subsection 4-41a-104 (5), the department sets in accordance with Section 63J-1-504. (b)Each prospective agent described in Subsection (4)(a) shall: (i)submit to the department: (A)a fingerprint card in a form acceptable to the Department of Public Safety; and (B)a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the registration of the prospective agent's fingerprints in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service; and (ii)consent to a fingerprint background check by: (A)the Bureau of Criminal Identification; and (B)the Federal Bureau of Investigation. (c)The Bureau of Criminal Identification shall: (i)check the fingerprints the prospective agent submits under Subsection (4)(b) against the applicable state, regional, and national criminal records databases, including the Federal Bureau of Investigation Next Generation Identification System; (ii)report the results of the background check to the department; (iii)maintain a separate file of fingerprints that prospective agents submit under Subsection (4)(b) for search by future submissions to the local and regional criminal records databases, including latent prints; (iv)request that the fingerprints be retained in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service for search by future submissions to national criminal records databases, including the Next Generation Identification System and latent prints; and (v)establish a privacy risk mitigation strategy to ensure that the department only receives notifications for an individual with whom the department maintains an authorizing relationship. (d)The department shall: (i)assess an individual who submits fingerprints under Subsection (4)(b) a fee in an amount that the department sets in accordance with Section 63J-1-504 for the services that the Bureau of Criminal Identification or another authorized agency provides under this section; and (ii)remit the fee described in Subsection (4)(d)(i) to the Bureau of Criminal Identification. (5) (a)The department shall designate, on an individual's cannabis production establishment agent registration card the type of cannabis production establishment for which the individual is authorized to act as an agent. (b)When issuing a card under Subsection (5)(a) the department: (i)may issue a cannabis production establishment agent registration card that contains both a cannabis processing facility designation and a cannabis cultivator facility designation; and (ii)if the cannabis production establishment agent registration card will contain an independent cannabis testing laboratory designation, may not include any other designations. (6)A cannabis production establishment agent shall comply with: (a)a certification standard that the department develops; or (b)a certification standard that the department has reviewed and approved. (7) (a)The department shall ensure that the certification standard described in Subsection (6) includes training: (i)in Utah medical cannabis law; (ii)for a cannabis cultivation facility agent, in cannabis cultivation best practices; (iii)for a cannabis processing facility agent, in cannabis processing, manufacturing safety procedures for items for human consumption, and sanitation best practices; and (iv)for an independent cannabis testing laboratory agent, in cannabis testing best practices. (b)The department shall review the training described in Subsection (7)(a) annually or as often as necessary to ensure compliance with this section. (8)For an individual who holds or applies for a cannabis production establishment agent registration card: (a)the department may revoke or refuse to issue the card if the individual violates the requirements of this chapter; and (b)the department shall revoke or refuse to issue the card if the individual is convicted under state or federal law of: (i)a felony in the preceding 10 years; or (ii)after December 3, 2018, a misdemeanor for drug distribution. (9) (a)A cannabis production establishment agent registration card expires two years after the day on which the department issues the card. (b)A cannabis production establishment agent may renew the agent's registration card if the agent: (i)is eligible for a cannabis production establishment registration card under this section; (ii)certifies to the department in a renewal application that the information in Subsection (4)(a) is accurate or updates the information; and (iii)pays to the department a renewal fee in an amount that: (A)subject to Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504; and (B)may not exceed the cost of the relatively lower administrative burden of renewal in comparison to the original application process. (10)A cannabis production establishment shall: (a)maintain a list of each employee that holds a cannabis production establishment agent registration card; and (b)provide the list to the department upon request.

Section 6, Section 4-41a-401 is amended to read: 4-41a-401. Cannabis production establishment -- General operating requirements. (1) (a)A cannabis production establishment shall operate in accordance with the operating plan described in Sections 4-41a-201 and 4-41a-204. (b)A cannabis production establishment shall notify the department before a change in the cannabis production establishment's operating plan. (c) (i)If a cannabis production establishment changes the cannabis production establishment's operating plan, the establishment shall ensure that the new operating plan complies with this chapter. (ii)The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, a process to: (A)review a change notification described in Subsection (1)(b); (B)identify for the cannabis production establishment each point of noncompliance between the new operating plan and this chapter; (C)provide an opportunity for the cannabis production establishment to address each identified point of noncompliance; and (D)suspend or revoke a license if the cannabis production establishment fails to cure the noncompliance. (2)A cannabis production establishment shall operate: (a)except as provided in Subsection (5), in a facility that is accessible only by an individual with a valid cannabis production establishment agent registration card issued under Section 4-41a-301; and (b)at the physical address provided to the department under Section 4-41a-201. (3)A cannabis production establishment may not employ an individual who is younger than 21 years old. (4)A cannabis production establishment may not employ an individual who has been convicted, under state or federal law, of: (a)a felony in the preceding 10 years; or (b)after December 3, 2018, a misdemeanor for drug distribution. (5)A cannabis production establishment may authorize an individual who is at least 18 years old and is not a cannabis production establishment agent to access the cannabis production establishment if the cannabis production establishment: (a)tracks and monitors the individual at all times while the individual is at the cannabis production establishment; and (b)maintains a record of the individual's access, including arrival and departure. (6)A cannabis production establishment shall operate in a facility that has: (a)a single, secure public entrance; (b)a security system with a backup power source that: (i)detects and records entry into the cannabis production establishment; and (ii)provides notice of an unauthorized entry to law enforcement when the cannabis production establishment is closed; and (c)a lock or equivalent restrictive security feature on any area where the cannabis production establishment stores cannabis or a cannabis product.

Section 7, Section 4-41a-602 is amended to read: 4-41a-602. Cannabis product -- Labeling and child-resistant packaging. (1)For any cannabis product that a cannabis processing facility processes or produces and for any raw cannabis that the facility packages, the facility shall: (a)label the cannabis or cannabis product with a label that: (i)clearly and unambiguously states that the cannabis product or package contains cannabis; (ii)clearly displays the amount of total composite tetrahydrocannabinol, cannabidiol, and any known cannabinoid that is greater than 1% of the total cannabinoids contained in the cannabis or cannabis product as determined under Subsection 4-41a-701 (4); (iii)has a unique identification number that: (A)is connected to the inventory control system; and (B)identifies the unique cannabis product manufacturing process the cannabis processing facility used to manufacture the cannabis product; (iv)identifies the cannabinoid extraction process that the cannabis processing facility used to create the cannabis product; (v)does not display an image, word, or phrase that the facility knows or should know appeals to children; and (vi)discloses each active or potentially active ingredient, in order of prominence, and possible allergen; and (b)package the raw cannabis or cannabis product in a medicinal dosage form in a container that: (i)is tamper evident and tamper resistant; (ii)does not appeal to children; (iii)does not mimic a candy container; (iv)complies with child-resistant effectiveness standards that the United States Consumer Product Safety Commission establishes; (v)includes a warning label that states: (A)for a container labeled before July 1, 2021, "WARNING: Cannabis has intoxicating effects and may be addictive. Do not operate a vehicle or machinery under its influence. KEEP OUT OF REACH OF CHILDREN. This product is for medical use only. Use only as directed by a qualified medical provider."; (B)for a container labeled on or after July 1, 2021, "WARNING: Cannabis has intoxicating effects and may be addictive. Do not operate a vehicle or machinery under its influence. KEEP OUT OF REACH OF CHILDREN. This product is for medical use only. Use only as directed by a recommending medical provider."; or (C)for a container labeled on or after January 1, 2024, "WARNING: Cannabis has intoxicating effects, may be addictive, and may increase risk of mental illness. Do not operate a vehicle or machinery under its influence. KEEP OUT OF REACH OF CHILDREN. This product is for medical use only. Use only as directed by a recommending medical provider."; and (vi)for raw cannabis or a cannabis product sold in a vaporizer cartridge labeled on or after May 3, 2023, includes a warning label that states: (A)"WARNING: Vaping of cannabis-derived products has been associated with lung injury."; and (B)"WARNING: Inhalation of cannabis smoke has been associated with lung injury.". (2) To ensure that a cannabis product that a cannabis processing facility processes or produces has a medical rather than recreational disposition, the facility may not produce or process a product whose logo, product name, or brand name includes terms related to recreational marijuana, including "weed," "pot," "reefer," "grass," "hash," "ganja," "Mary Jane," "high," "haze," "stoned," "joint," "bud," "smoke," "euphoria," "dank," "doobie," "kush," "frost," "cookies," "rec," "bake," "blunt," "combust," "bong," "budtender," "dab," "blaze," "toke," or "420." (2) (3) For any cannabis or cannabis product that the cannabis processing facility processes into a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or rectangular cuboid shape, the facility shall: (a)ensure that the label described in Subsection (1)(a) does not contain a photograph or other image of the content of the container; and (b)include on the label described in Subsection (1)(a) a warning about the risks of over-consumption. (3) (4) For any cannabis product that contains an artificially derived cannabinoid, the cannabis processing facility shall ensure that the label clearly: (a)identifies each artificially derived cannabinoid; and (b)identifies that each artificially derived cannabinoid is an artificially derived cannabinoid. (4) (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department: (a)shall make rules to establish: (i)a standard labeling format that: (A)complies with the requirements of this section; and (B)ensures inclusion of a pharmacy label; and (ii)additional requirements on packaging for cannabis and cannabis products to ensure safety and product quality; and (b)may make rules to further define standards regarding images, words, phrases, or containers that may appeal to children under Subsection (1)(a)(v) or (1)(b)(ii).

Section 8, Section 4-41a-604 is enacted to read: 4-41a-604. Advertising. In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department may make rules establishing conditions under which a cannabis processing facility may engage in targeted marketing.

Section 9, Section 4-41a-802 is amended to read: 4-41a-802. Report. (1)At or before the November interim meeting each year, the department shall report to the Health and Human Services Interim Committee on: (a)the number of applications and renewal applications that the department receives under this chapter; (b)the number of each type of cannabis production facility that the department licenses in each county; (c)the amount of cannabis that licensees grow; (d)the amount of cannabis that licensees manufacture into cannabis products; (e)the number of licenses the department revokes under this chapter; (f)the department's operation of an independent cannabis testing laboratory under Section 4-41a-201, including: (i)the cannabis and cannabis products the department tested; and (ii)the results of the tests the department performed; and (g)the expenses incurred and revenues generated under this chapter . ; and (h) an analysis of product availability in medical cannabis pharmacies in consultation with the Department of Health and Human Services. (2)The department may not include personally identifying information in the report described in this section. (3)The department shall report to the working group described in Section 36-12-8.2 as requested by the working group.

Section 10, Section 4-41a-1001 is amended to read: 4-41a-1001. Medical cannabis pharmacy -- License -- Eligibility. (1)A person may not operate as a medical cannabis pharmacy without a license that the department issues under this part. (2) (a) (i)Subject to Subsections (4) and (5) and to Section 4-41a-1005, the department shall issue a license to operate a medical cannabis pharmacy in accordance with Title 63G, Chapter 6a, Utah Procurement Code through the licensing board created under Section 4-41a-201.1 . (ii)The department may not issue a license to operate a medical cannabis pharmacy to an applicant who is not eligible for a license under this section. (b)An applicant is eligible for a license under this section if the applicant submits to the department: (i)subject to Subsection (2)(c), a proposed name and address where the applicant will operate the medical cannabis pharmacy; (ii)the name and address of an individual who: (A)for a publicly traded company, has a financial or voting interest of 10% or greater in the proposed medical cannabis pharmacy; (B)for a privately held company, a financial or voting interest in the proposed medical cannabis pharmacy; or (C)has the power to direct or cause the management or control of a proposed medical cannabis pharmacy; (iii)for each application that the applicant submits to the department, a statement from the applicant that the applicant will obtain and maintain: (A)a performance bond in the amount of $100,000 issued by a surety authorized to transact surety business in the state; or (B)a liquid cash account in the amount of $100,000 with a financial institution; (iv)an operating plan that: (A)complies with Section 4-41a-1004; (B)includes operating procedures to comply with the operating requirements for a medical cannabis pharmacy described in this part and with a relevant municipal or county law that is consistent with Section 4-41a-1106; and (C)the department approves; (v)an application fee in an amount that, subject to Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504; and (vi)a description of any investigation or adverse action taken by any licensing jurisdiction, government agency, law enforcement agency, or court in any state for any violation or detrimental conduct in relation to any of the applicant's cannabis-related operations or businesses. (c) (i)A person may not locate a medical cannabis pharmacy: (A)within 200 feet of a community location; or (B)in or within 600 feet of a district that the relevant municipality or county has zoned as primarily residential. (ii)The proximity requirements described in Subsection (2)(c)(i) shall be measured from the nearest entrance to the medical cannabis pharmacy establishment by following the shortest route of ordinary pedestrian travel to the property boundary of the community location or residential area. (iii)The department may grant a waiver to reduce the proximity requirements in Subsection (2)(c)(i) by up to 20% if the department determines that it is not reasonably feasible for the applicant to site the proposed medical cannabis pharmacy without the waiver. (iv)An applicant for a license under this section shall provide evidence of compliance with the proximity requirements described in Subsection (2)(c)(i). (d)The department may not issue a license to an eligible applicant that the department has selected to receive a license until the selected eligible applicant complies with the bond or liquid cash requirement described in Subsection (2)(b)(iii). (e)If the department receives more than one application for a medical cannabis pharmacy within the same city or town, the department shall consult with the local land use authority before approving any of the applications pertaining to that city or town. (f) In considering the issuance of a medical cannabis pharmacy license under this section, the department may consider the extent to which the pharmacy can increase efficiency and reduce the cost to patients of medical cannabis. (3)If the department selects an applicant for a medical cannabis pharmacy license under this section, the department shall: (a)charge the applicant an initial license fee in an amount that, subject to Subsection 4-41a-104 (5), the department sets in accordance with Section 63J-1-504; (b)notify the Department of Public Safety of the license approval and the names of each individual described in Subsection (2)(b)(ii); and (c)charge the licensee a fee in an amount that, subject to Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504, for any change in location, ownership, or company structure. (4)The department may not issue a license to operate a medical cannabis pharmacy to an applicant if an individual described in Subsection (2)(b)(ii): (a)has been convicted under state or federal law of: (i)a felony in the preceding 10 years; or (ii)after December 3, 2018, a misdemeanor for drug distribution; (b)is younger than 21 years old; or (c)after September 23, 2019, until January 1, 2023, is actively serving as a legislator. (5) (a)If an applicant for a medical cannabis pharmacy license under this section holds another license under this chapter, the department may not give preference to the applicant based on the applicant's status as a holder of the license. (b)If an applicant for a medical cannabis pharmacy license under this section holds a license to operate a cannabis cultivation facility under this section, the department may give consideration to the applicant's status as a holder of the license if: (i)the applicant demonstrates that a decrease in costs to patients is more likely to result from the applicant's vertical integration than from a more competitive marketplace; and (ii)the department finds multiple other factors, in addition to the existing license, that support granting the new license. (6) (a) The department licensing board may revoke a license under this part: (i) (a) if the medical cannabis pharmacy does not begin operations within one year after the day on which the department issues an announcement of the department's intent to award a license to the medical cannabis pharmacy; (ii) (b) after the third the same violation of this chapter in any of the licensee's licensed cannabis production establishments or medical cannabis pharmacies; (iii) (c) if an individual described in Subsection (2)(b)(ii) is convicted, while the license is active, under state or federal law of: (A) (i) a felony; or (B) (ii) after December 3, 2018, a misdemeanor for drug distribution; (iv) (d) if the licensee fails to provide the information described in Subsection (2)(b)(vi) at the time of application, or fails to supplement the information described in Subsection (2)(b)(vi) with any investigation or adverse action that occurs after the submission of the application within 14 calendar days after the licensee receives notice of the investigation or adverse action; (v) (e) if the medical cannabis pharmacy demonstrates a willful or reckless disregard for the requirements of this chapter or the rules the department makes in accordance with this chapter; or (vi) (f) if, after a change of ownership described in Subsection (11)(c), the department determines that the medical cannabis pharmacy no longer meets the minimum standards for licensure and operation of the medical cannabis pharmacy described in this chapter . ; or (g) if through an investigation conducted under Subsection 4-41a-201.1(11) and in accordance with Title 63G, Chapter 4, Administrative Procedures Act, the board finds that the licensee has participated in anticompetitive business practices. (b) The department shall rescind a notice of an intent to issue a license under this part to an applicant or revoke a license issued under this part if the associated medical cannabis pharmacy does not begin operation on or before June 1, 2021. (7) (a)A person who receives a medical cannabis pharmacy license under this chapter, if the municipality or county where the licensed medical cannabis pharmacy will be located requires a local land use permit, shall submit to the department a copy of the licensee's approved application for the land use permit within 120 days after the day on which the department issues the license. (b)If a licensee fails to submit to the department a copy the licensee's approved land use permit application in accordance with Subsection (7)(a), the department may revoke the licensee's license. (8)The department shall deposit the proceeds of a fee imposed by this section into the Qualified Production Enterprise Fund. (9)The department shall begin accepting applications under this part on or before March 1, 2020. (10) (a)The department's authority to issue a license under this section is plenary and is not subject to review. (b)Notwithstanding Subsection (2), the decision of the department to award a license to an applicant is not subject to: (i)Title 63G, Chapter 6a, Part 16, Protests; or (ii)Title 63G, Chapter 6a, Part 17, Procurement Appeals Board. (11) (a)A medical cannabis pharmacy license is not transferrable or assignable. (b)A medical cannabis pharmacy shall report in writing to the department no later than 10 business days before the date of any change of ownership of the medical cannabis pharmacy. (c)If the ownership of a medical cannabis pharmacy changes by 50% or more: (i)concurrent with the report described in Subsection (11)(b), the medical cannabis pharmacy shall submit a new application described in Subsection (2)(b), subject to Subsection (2)(c); (ii)within 30 days of the submission of the application, the department shall: (A)conduct an application review; and (B)award a license to the medical cannabis pharmacy for the remainder of the term of the medical cannabis pharmacy's license before the ownership change if the medical cannabis pharmacy meets the minimum standards for licensure and operation of the medical cannabis pharmacy described in this chapter; and (iii)if the department approves the license application, notwithstanding Subsection (3), the medical cannabis pharmacy shall pay a license fee that the department sets in accordance with Section 63J-1-504 in an amount that covers the board's department's cost of conducting the application review.

Section 11, Section 4-41a-1005 is amended to read: 4-41a-1005. Maximum number of licenses. (1) (a)Except as provided in Subsections Subsection (1)(b) or (d), if a sufficient number of applicants apply, the department shall issue up to 15 medical cannabis pharmacy licenses in accordance with this section. (b)If an insufficient number of qualified applicants apply for the available number of medical cannabis pharmacy licenses, the department shall issue a medical cannabis pharmacy license to each qualified applicant. (c)The department may issue the licenses described in Subsection (1)(a) in accordance with this Subsection (1)(c). (i)Using one procurement process, the department may issue eight licenses to an initial group of medical cannabis pharmacies and six licenses to a second group of medical cannabis pharmacies. (ii) If the department issues licenses in two phases in accordance with Subsection (1)(c)(i), the The department shall: (A)divide the state into no less than four geographic regions , set by the department in rule ; (B)issue at least one license in each geographic region during each phase of issuing licenses; and (C)complete the process of issuing medical cannabis pharmacy licenses no later than July 1, 2020. (iii)In issuing a 15th license under Subsection (1), the department shall ensure that the license recipient will locate the medical cannabis pharmacy within Dagget, Duchesne, Uintah, Carbon, Sevier, Emery, Grand, or San Juan County. (d) (i)The department may issue licenses to operate a medical cannabis pharmacy in addition to the licenses described in Subsection (1)(a) if the department determines, in consultation with the Department of Health and Human Services and after an annual or more frequent analysis of the current and anticipated market for medical cannabis, that each additional license is necessary to provide an adequate supply, quality, or variety of medical cannabis to medical cannabis cardholders. (ii)The department shall: (A)in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to establish criteria and processes for the consultation, analysis, and application for a license described in Subsection (1)(d)(i); and (B)report to the Executive Appropriations Committee of the Legislature before each time the department issues an additional license under Subsection (1)(d)(i) regarding the results of the consultation and analysis described in Subsection (1)(d)(i) and the application of the criteria described in Subsection (1)(d)(ii)(A). (2) (a)If there are more qualified applicants than there are available licenses for medical cannabis pharmacies, the department shall: (i)evaluate each applicant and award the license to the applicant that best demonstrates: (A)experience with establishing and successfully operating a business that involves complying with a regulatory environment, tracking inventory, and training, evaluating, and monitoring employees; (B)an operating plan that will best ensure the safety and security of patrons and the community; (C)positive connections to the local community; (D)the suitability of the proposed location and the location's accessibility for qualifying patients; (E)the extent to which the applicant can increase efficiency and reduce the cost of medical cannabis for patients; and (F)a strategic plan described in Subsection 4-41a-1004(7) that has a comparatively high likelihood of success; and (ii)ensure a geographic dispersal among licensees that is sufficient to reasonably maximize access to the largest number of medical cannabis cardholders. (b)In making the evaluation described in Subsection (2)(a), the department may give increased consideration to applicants who indicate a willingness to: (i)operate as a home delivery medical cannabis pharmacy that accepts electronic medical cannabis orders that the state central patient portal facilitates; and (ii)accept payments through: (A)a payment provider that the Division of Finance approves, in consultation with the state treasurer, in accordance with Section 4-41a-108; or (B)a financial institution in accordance with Subsection 4-41a-108(4). (3)The department may conduct a face-to-face interview with an applicant for a license that the department evaluates under Subsection (2).

Section 12, Section 4-41a-1101 is amended to read: 4-41a-1101. Operating requirements -- General. (1) (a)A medical cannabis pharmacy shall operate: (i)at the physical address provided to the department under Section 4-41a-1001; and (ii)in accordance with the operating plan provided to the department under Section 4-41a-1001 and, if applicable, Section 4-41a-1004. (b)A medical cannabis pharmacy shall notify the department before a change in the medical cannabis pharmacy's physical address or operating plan. (2)An individual may not enter a medical cannabis pharmacy unless the individual: (a)is at least 18 years old or is an emancipated minor under Section 80-7-105; and (b)except as provided in Subsection (4): (i)possesses a valid: (A)medical cannabis pharmacy agent registration card; (B)pharmacy medical provider registration card; or (C)medical cannabis card; (ii)is an employee of the department performing an inspection under Section 4-41a-1103 ; or (iii)is another individual as the department provides. (3)A medical cannabis pharmacy may not employ an individual who is younger than 21 years old. (4)Notwithstanding Subsection (2)(a), a medical cannabis pharmacy may authorize an individual who is not a medical cannabis pharmacy agent or pharmacy medical provider to access the medical cannabis pharmacy if the medical cannabis pharmacy tracks and monitors the individual at all times while the individual is at the medical cannabis pharmacy and maintains a record of the individual's access. (5)A medical cannabis pharmacy shall operate in a facility that has: (a)a single, secure public entrance; (b)a security system with a backup power source that: (i)detects and records entry into the medical cannabis pharmacy; and (ii)provides notice of an unauthorized entry to law enforcement when the medical cannabis pharmacy is closed; and (c)a lock on each area where the medical cannabis pharmacy stores cannabis or a cannabis product. (6)A medical cannabis pharmacy shall post, both clearly and conspicuously in the medical cannabis pharmacy, the limit on the purchase of cannabis described in Subsection 4-41a-1102 (2). (7)Except for an emergency situation described in Subsection 26B-4-213(3)(c), a medical cannabis pharmacy may not allow any individual to consume cannabis on the property or premises of the medical cannabis pharmacy. (8)A medical cannabis pharmacy may not sell cannabis or a cannabis product without first indicating on the cannabis or cannabis product label the name of the medical cannabis pharmacy. (9) (a)Each medical cannabis pharmacy shall retain in the pharmacy's records the following information regarding each recommendation underlying a transaction: (i)the recommending medical provider's name, address, and telephone number; (ii)the patient's name and address; (iii)the date of issuance; (iv)directions of use and dosing guidelines or an indication that the recommending medical provider did not recommend specific directions of use or dosing guidelines; and (v)if the patient did not complete the transaction, the name of the medical cannabis cardholder who completed the transaction. (b) (i)Except as provided in Subsection (9)(b)(iii), a medical cannabis pharmacy may not sell medical cannabis unless the medical cannabis has a label securely affixed to the container indicating the following minimum information: (A)the name, address, and telephone number of the medical cannabis pharmacy; (B)the unique identification number that the medical cannabis pharmacy assigns; (C)the date of the sale; (D)the name of the patient; (E)the name of the recommending medical provider who recommended the medical cannabis treatment; (F)directions for use and cautionary statements, if any; (G)the amount dispensed and the cannabinoid content; (H)the suggested use date; (I)for unprocessed cannabis flower, the legal use termination date; and (J)any other requirements that the department determines, in consultation with the Division of Professional Licensing and the Board of Pharmacy. (ii)A medical cannabis pharmacy is exempt from the requirement to provide the following information under Subsection (9)(b)(i) if the information is already provided on the product label that a cannabis production establishment affixes: (A)a unique identification number; (B)directions for use and cautionary statements; (C)amount and cannabinoid content; and (D)a suggested use date. (iii)If the size of a medical cannabis container does not allow sufficient space to include the labeling requirements described in Subsection (9)(b)(i), the medical cannabis pharmacy may provide the following information described in Subsection (9)(b)(i) on a supplemental label attached to the container or an informational enclosure that accompanies the container: (A)the cannabinoid content; (B)the suggested use date; and (C)any other requirements that the department determines. (iv)A medical cannabis pharmacy may sell medical cannabis to another medical cannabis pharmacy without a label described in Subsection (9)(b)(i). (10)A pharmacy medical provider or medical cannabis pharmacy agent shall: (a)upon receipt of an order from a limited medical provider in accordance with Subsections 26B-4-204(1)(b) through (d): (i)for a written order or an electronic order under circumstances that the department determines, contact the limited medical provider or the limited medical provider's office to verify the validity of the recommendation; and (ii)for an order that the pharmacy medical provider or medical cannabis pharmacy agent verifies under Subsection (10)(a)(i) or an electronic order that is not subject to verification under Subsection (10)(a)(i), enter the limited medical provider's recommendation or renewal, including any associated directions of use, dosing guidelines, or caregiver indication, in the state electronic verification system; (b)in processing an order for a holder of a conditional medical cannabis card described in Subsection 26B-4-213(1)(b) that appears irregular or suspicious in the judgment of the pharmacy medical provider or medical cannabis pharmacy agent, contact the recommending medical provider or the recommending medical provider's office to verify the validity of the recommendation before processing the cardholder's order; (c)unless the medical cannabis cardholder has had a consultation under Subsection 26B-4-231 (5), verbally offer to a medical cannabis cardholder at the time of a purchase of cannabis, a cannabis product, or a medical cannabis device, personal counseling with the pharmacy medical provider; and (d)provide a telephone number or website by which the cardholder may contact a pharmacy medical provider for counseling. (11) (a)A medical cannabis pharmacy may create a medical cannabis disposal program that allows an individual to deposit unused or excess medical cannabis , or cannabis residue from a medical cannabis device , or medical cannabis product in a locked box or other secure receptacle within the medical cannabis pharmacy. (b)A medical cannabis pharmacy with a disposal program described in Subsection (11)(a) shall ensure that only a medical cannabis pharmacy agent or pharmacy medical provider can access deposited medical cannabis or medical cannabis products . (c)A medical cannabis pharmacy shall dispose of any deposited medical cannabis or medical cannabis products by: (i)rendering the deposited medical cannabis or medical cannabis products unusable and unrecognizable before transporting deposited medical cannabis or medical cannabis products from the medical cannabis pharmacy; and (ii)disposing of the deposited medical cannabis or medical cannabis products in accordance with: (A)federal and state law, rules, and regulations related to hazardous waste; (B)the Resource Conservation and Recovery Act, 42 U.S.C. Sec. 6991 et seq.; (C)Title 19, Chapter 6, Part 5, Solid Waste Management Act; and (D)other regulations that the department makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. (12) A medical cannabis pharmacy: (a) shall employ a pharmacist who is licensed under Title 58, Chapter 17b, Pharmacy Practice Act, as a pharmacy medical provider; (b) may employ a physician who has the authority to write a prescription and is licensed under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act, as a pharmacy medical provider; (c) shall ensure that a pharmacy medical provider described in Subsection (12)(a) works onsite during all business hours; (d) shall designate one pharmacy medical provider described in Subsection (12)(a) as the pharmacist-in-charge to oversee the operation of and generally supervise the medical cannabis pharmacy; and (e) shall allow the pharmacist-in-charge to determine which cannabis and cannabis products the medical cannabis pharmacy maintains in the medical cannabis pharmacy's inventory. (12) (13) The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, protocols for a recall of cannabis and cannabis products by a medical cannabis pharmacy.

Section 13, Section 4-41a-1102 is amended to read: 4-41a-1102. Dispensing -- Amount a medical cannabis pharmacy may dispense -- Reporting -- Form of cannabis or cannabis product. (1) (a)A medical cannabis pharmacy may not sell a product other than: (i)cannabis in a medicinal dosage form that the medical cannabis pharmacy acquired from another medical cannabis pharmacy or a cannabis processing facility that is licensed under Section 4-41a-201; (ii)a cannabis product in a medicinal dosage form that the medical cannabis pharmacy acquired from another medical cannabis pharmacy or a cannabis processing facility that is licensed under Section 4-41a-201; (iii)a medical cannabis device; or (iv)educational material related to the medical use of cannabis. (b)A medical cannabis pharmacy may only sell an item listed in Subsection (1)(a) to an individual with: (i) (A)a medical cannabis card; or (B)a Department of Health and Human Services registration described in Subsection 26B-4-213(10); and (ii)a corresponding government issued photo identification. (c)Notwithstanding Subsection (1)(a), a medical cannabis pharmacy may not sell a cannabis-based drug that the United States Food and Drug Administration has approved. (d)Notwithstanding Subsection (1)(b), a medical cannabis pharmacy may not sell a medical cannabis device or medical cannabis product to an individual described in Subsection 26B-4-213(2)(a)(i)(B) or to a minor described in Subsection 26B-4-213 (2)(c) unless the individual or minor has the approval of the Compassionate Use Board in accordance with Subsection 26B-1-421(5). (2)A medical cannabis pharmacy: (a)may dispense to a medical cannabis cardholder, in any one 28-day period, up to the legal dosage limit of: (i)unprocessed cannabis that: (A)is in a medicinal dosage form; and (B)carries a label clearly displaying the amount of tetrahydrocannabinol and cannabidiol in the cannabis; and (ii)a cannabis product that is in a medicinal dosage form; and (b)may not dispense: (i) except for a medical cannabis cardholder approved under Subsection 26B-4-245 (2), more medical cannabis than described in Subsection (2)(a); or (ii)to an individual whose recommending medical provider did not recommend directions of use and dosing guidelines, until the individual consults with the pharmacy medical provider in accordance with Subsection 26B-4-231(5) any medical cannabis. (3) (a)A medical cannabis pharmacy shall: (i) (A)access the state electronic verification system before dispensing cannabis or a cannabis product to a medical cannabis cardholder in order to determine if the cardholder or, where applicable, the associated patient has met the maximum amount of medical cannabis described in Subsection (2); and (B)if the verification in Subsection (3)(a)(i) (A) indicates that the individual has met the maximum amount described in Subsection (2), decline the sale, and notify the recommending medical provider who made the underlying recommendation; (ii)submit a record to the state electronic verification system each time the medical cannabis pharmacy dispenses medical cannabis to a medical cannabis cardholder; (iii)ensure that the pharmacy medical provider who is a licensed pharmacist reviews each medical cannabis transaction before dispensing the medical cannabis to the cardholder in accordance with pharmacy practice standards; (iv)package any medical cannabis that is in a container that: (A)complies with Subsection 4-41a-602(1)(b) or, if applicable, provisions related to a container for unprocessed cannabis flower in the definition of "medicinal dosage form" in Section 26B-4-201; (B)is tamper-resistant and tamper-evident; and (C)provides an opaque bag or box for the medical cannabis cardholder's use in transporting the container in public; (v)for a product that is a cube that is designed for ingestion through chewing or holding in the mouth for slow dissolution, include a separate, off-label warning about the risks of over-consumption; and (vi)beginning January 1, 2024, for a cannabis product that is cannabis flower, vaporizer cartridges, or concentrate, provide the product's terpene profiles collected under Subsection 4-41a-602(4) 4-41a-701(4) at or before the point of sale. (b)A medical cannabis cardholder transporting or possessing the container described in Subsection (3)(a)(iv) in public shall keep the container within the opaque bag or box that the medical cannabis pharmacist provides. (4) (a)Except as provided in Subsection (4)(b), a medical cannabis pharmacy may not sell medical cannabis in the form of a cigarette or a medical cannabis device that is intentionally designed or constructed to resemble a cigarette. (b)A medical cannabis pharmacy may sell a medical cannabis device that warms cannabis material into a vapor without the use of a flame and that delivers cannabis to an individual's respiratory system. (5) (a)A medical cannabis pharmacy may not give, at no cost, a product that the medical cannabis pharmacy is allowed to sell under Subsection (1)(a)(i), (ii), or (iii). (b)A medical cannabis pharmacy may give, at no cost, educational material related to the medical use of cannabis. (6)A medical cannabis pharmacy may purchase and store medical cannabis devices regardless of whether the seller has a cannabis-related license under this chapter or Title 26B, Utah Health and Human Services Code.

Section 14, Section 4-41a-1106 is amended to read: 4-41a-1106. Medical cannabis pharmacy agent -- Registration. (1)An individual may not serve as a medical cannabis pharmacy agent of a medical cannabis pharmacy unless the department registers the individual as a medical cannabis pharmacy agent. (2)A recommending medical provider may not act as a medical cannabis pharmacy agent, have a financial or voting interest of 2% or greater in a medical cannabis pharmacy, or have the power to direct or cause the management or control of a medical cannabis pharmacy. (3) (a)The department shall, within 15 days after the day on which the department receives a complete application from a medical cannabis pharmacy on behalf of a prospective medical cannabis pharmacy agent, register and issue a medical cannabis pharmacy agent registration card to the prospective agent if the medical cannabis pharmacy: (i)provides to the department: (A)the prospective agent's name and address; (B)the name and location of the licensed medical cannabis pharmacy where the prospective agent seeks to act as the medical cannabis pharmacy agent; and (C)the submission required under Subsection (3)(b); and (ii)pays a fee to the department in an amount that, subject to Subsection 4-41a-104 (5), the department sets in accordance with Section 63J-1-504. (b)Each prospective agent described in Subsection (3)(a) shall: (i)submit to the department: (A)a fingerprint card in a form acceptable to the Department of Public Safety; and (B)a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the registration of the prospective agent's fingerprints in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service; and (ii)consent to a fingerprint background check by: (A)the Bureau of Criminal Identification; and (B)the Federal Bureau of Investigation. (c)The Bureau of Criminal Identification shall: (i)check the fingerprints the prospective agent submits under Subsection (3)(b) against the applicable state, regional, and national criminal records databases, including the Federal Bureau of Investigation Next Generation Identification System; (ii)report the results of the background check to the department; (iii)maintain a separate file of fingerprints that prospective agents submit under Subsection (3)(b) for search by future submissions to the local and regional criminal records databases, including latent prints; (iv)request that the fingerprints be retained in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service for search by future submissions to national criminal records databases, including the Next Generation Identification System and latent prints; and (v)establish a privacy risk mitigation strategy to ensure that the department only receives notifications for an individual with whom the department maintains an authorizing relationship. (d)The department shall: (i)assess an individual who submits fingerprints under Subsection (3)(b) a fee in an amount that the department sets in accordance with Section 63J-1-504 for the services that the Bureau of Criminal Identification or another authorized agency provides under this section; and (ii)remit the fee described in Subsection (3)(d)(i) to the Bureau of Criminal Identification. (4)The department shall designate, on an individual's medical cannabis pharmacy agent registration card the name of the medical cannabis pharmacy where the individual is registered as an agent. (5)A medical cannabis pharmacy agent shall comply with a certification standard that the department develops in collaboration with the Division of Professional Licensing and the Board of Pharmacy, or a third-party certification standard that the department designates by rule, in collaboration with the Division of Professional Licensing and the Board of Pharmacy and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. (6)The department shall ensure that the certification standard described in Subsection (5) includes training in: (a)Utah medical cannabis law; and (b)medical cannabis pharmacy best practices. (7)The department may revoke the medical cannabis pharmacy agent registration card of, or refuse to issue a medical cannabis pharmacy agent registration card to, an individual who: (a)violates the requirements of this chapter; or (b)is convicted under state or federal law of: (i)a felony within the preceding 10 years; or (ii)after December 3, 2018, a misdemeanor for drug distribution. (8) (a)A medical cannabis pharmacy agent registration card expires two years after the day on which the department issues or renews the card. (b)A medical cannabis pharmacy agent may renew the agent's registration card if the agent: (i)is eligible for a medical cannabis pharmacy agent registration card under this section; (ii)certifies to the department in a renewal application that the information in Subsection (3)(a) is accurate or updates the information; and (iii)pays to the department a renewal fee in an amount that: (A)subject to Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504; and (B)may not exceed the cost of the relatively lower administrative burden of renewal in comparison to the original application process. (9) (a)As a condition precedent to registration and renewal of a medical cannabis pharmacy agent registration card, a medical cannabis pharmacy agent shall: (i)complete at least one hour of continuing education regarding patient privacy and federal health information privacy laws that is offered by the department under Subsection (9)(b) or an accredited or approved continuing education provider that the department recognizes as offering continuing education appropriate for the medical cannabis pharmacy practice; and (ii)make a continuing education report to the department in accordance with a process that the department establishes by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and in collaboration with the Division of Professional Licensing and the Board of Pharmacy. (b)The department may, in consultation with the Division of Professional Licensing, develop the continuing education described in this Subsection (9). (c)The pharmacist-in-charge described in Section 26B-4-219 shall ensure that each medical cannabis pharmacy agent working in the medical cannabis pharmacy who has access to the state electronic verification system is in compliance with this Subsection (9). (d) A medical cannabis pharmacy agent may not access the electronic verification system following the termination of the medical cannabis pharmacy agent's employment. (10)A medical cannabis pharmacy shall: (a)maintain a list of employees that have a medical cannabis pharmacy agent registration card; and (b)provide the list to the department upon request.

Section 15, Section 4-41a-1202 is amended to read: 4-41a-1202. Home delivery of medical cannabis shipments -- Medical cannabis couriers -- License. (1)The department shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to ensure the safety, security, and efficiency of a home delivery medical cannabis pharmacy's fulfillment of electronic medical cannabis orders that the state central patient portal facilitates, including rules regarding the safe and controlled delivery of medical cannabis shipments. (2)A person may not operate as a medical cannabis courier without a license that the department issues under this section. (3) (a)Subject to Subsections (5) and (6), the department shall issue a license to operate as a medical cannabis courier to an applicant who is eligible for a license under this section. (b)An applicant is eligible for a license under this section if the applicant submits to the department: (i)the name and address of an individual who: (A)has a financial or voting interest of 10% or greater in the proposed medical cannabis courier; or (B)has the power to direct or cause the management or control of a proposed cannabis production establishment; (ii)an operating plan that includes operating procedures to comply with the operating requirements for a medical cannabis courier described in this chapter; and (iii)an application fee in an amount that, subject to Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504. (4)If the department determines that an applicant is eligible for a license under this section, the department shall: (a)charge the applicant an initial license fee in an amount that, subject to Subsection 4-41a-104 (5), the department sets in accordance with Section 63J-1-504; and (b)notify the Department of Public Safety of the license approval and the names of each individual described in Subsection (3)(b)(i). (5)The department may not issue a license to operate as a medical cannabis courier to an applicant if an individual described in Subsection (3)(b)(i): (a)has been convicted under state or federal law of: (i)a felony in the preceding 10 years; or (ii)after September 23, 2019, a misdemeanor for drug distribution; or (b)is younger than 21 years old. (6)The department may revoke a license under this part if: (a)the medical cannabis courier does not begin operations within one year after the day on which the department issues the initial license; (b)the medical cannabis courier makes the same violation of this chapter three times; (c)an individual described in Subsection (3)(b)(i) is convicted, while the license is active, under state or federal law of: (i)a felony; or (ii)after September 23, 2019, a misdemeanor for drug distribution; or (d)after a change of ownership described in Subsection (15)(c), the department determines that the medical cannabis courier no longer meets the minimum standards for licensure and operation of the medical cannabis courier described in this chapter. (7)The department shall deposit the proceeds of a fee imposed by this section in the Qualified Production Enterprise Fund. (8)The department shall begin accepting applications under this section on or before July 1, 2020. (9)The department's authority to issue a license under this section is plenary and is not subject to review. (10)Each applicant for a license as a medical cannabis courier shall submit, at the time of application, from each individual who has a financial or voting interest of 10% or greater in the applicant or who has the power to direct or cause the management or control of the applicant: (a)a fingerprint card in a form acceptable to the Department of Public Safety; (b)a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the registration of the individual's fingerprints in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service; and (c)consent to a fingerprint background check by: (i)the Bureau of Criminal Identification; and (ii)the Federal Bureau of Investigation. (11)The Bureau of Criminal Identification shall: (a)check the fingerprints the applicant submits under Subsection (10) against the applicable state, regional, and national criminal records databases, including the Federal Bureau of Investigation Next Generation Identification System; (b)report the results of the background check to the department; (c)maintain a separate file of fingerprints that applicants submit under Subsection (10) for search by future submissions to the local and regional criminal records databases, including latent prints; (d)request that the fingerprints be retained in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service for search by future submissions to national criminal records databases, including the Next Generation Identification System and latent prints; and (e)establish a privacy risk mitigation strategy to ensure that the department only receives notifications for an individual with whom the department maintains an authorizing relationship. (12)The department shall: (a)assess an individual who submits fingerprints under Subsection (10) a fee in an amount that the department sets in accordance with Section 63J-1-504 for the services that the Bureau of Criminal Identification or another authorized agency provides under this section; and (b)remit the fee described in Subsection (12)(a) to the Bureau of Criminal Identification. (13)The department shall renew a license under this section every year if, at the time of renewal: (a)the licensee meets the requirements of this section; and (b)the licensee pays the department a license renewal fee in an amount that, subject to Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504. (14)A person applying for a medical cannabis courier license shall submit to the department a proposed operating plan that complies with this section and that includes: (a)a description of the physical characteristics of any proposed facilities, including a floor plan and an architectural elevation, and delivery vehicles; (b)a description of the credentials and experience of each officer, director, or owner of the proposed medical cannabis courier; (c)the medical cannabis courier's employee training standards; (d)a security plan; and (e)storage and delivery protocols, both short and long term, to ensure that medical cannabis shipments are stored and delivered in a manner that is sanitary and preserves the integrity of the cannabis. (15) (a)A medical cannabis courier license is not transferrable or assignable. (b)A medical cannabis courier shall report in writing to the department no later than 10 business days before the date of any change of ownership of the medical cannabis courier. (c)If the ownership of a medical cannabis courier changes by 50% or more: (i)concurrent with the report described in Subsection (15)(b), the medical cannabis courier shall submit a new application described in Subsection (3)(b); (ii)within 30 days of the submission of the application, the department shall: (A)conduct an application review; and (B)award a license to the medical cannabis courier for the remainder of the term of the medical cannabis courier's license before the ownership change if the medical cannabis courier meets the minimum standards for licensure and operation of the medical cannabis courier described in this chapter; and (iii)if the department approves the license application, notwithstanding Subsection (4), the medical cannabis courier shall pay a license fee that the department sets in accordance with Section 63J-1-504 in an amount that covers the board's cost of conducting the application review. (16) (a)Except as provided in Subsection(16)(b), a person may not advertise regarding the transportation of medical cannabis. (b)Notwithstanding Subsection (15)(a) and subject to Section 4-41a-109, a licensed home delivery medical cannabis pharmacy or a licensed medical cannabis courier may advertise: (i)a green cross; (ii)the pharmacy's or courier's name and logo; and (iii)that the pharmacy or courier is licensed to transport medical cannabis shipments.

Section 16, Section 26B-1-421 is amended to read: 26B-1-421. Compassionate Use Board. (1)The definitions in Section 26B-4-201 apply to this section. (2) (a)The department shall establish a Compassionate Use Board consisting of: (i)seven qualified medical providers that the executive director appoints and the Senate confirms with the advice and consent of the Senate: (A)who are knowledgeable about the medicinal use of cannabis; (B)who are physicians licensed under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; and (C)who are board certified by the American Board of Medical Specialties or an American Osteopathic Association Specialty Certifying Board in the specialty of neurology, pain medicine and pain management, medical oncology, psychiatry, infectious disease, internal medicine, pediatrics, family medicine, or gastroenterology; and (ii)as a nonvoting member and the chair of the Compassionate Use Board, the executive director or the director's designee. (b)In appointing the seven qualified medical providers described in Subsection (2)(a), the executive director shall ensure that at least two have a board certification in pediatrics. (3) (a)Of the members of the Compassionate Use Board that the executive director first appoints: (i)three shall serve an initial term of two years; and (ii)the remaining members shall serve an initial term of four years. (b)After an initial term described in Subsection (3)(a) expires: (i)each term is four years; and (ii)each board member is eligible for reappointment. (c)A member of the Compassionate Use Board may serve until a successor is appointed. (d)Four members constitute a quorum of the Compassionate Use Board. (4)A member of the Compassionate Use Board may receive: (a)notwithstanding Section 63A-3-106, compensation or benefits for the member's service; and (b)travel expenses in accordance with Section 63A-3-107 and rules made by the Division of Finance in accordance with Section 63A-3-107. (5)The Compassionate Use Board shall: (a)review and recommend for department approval a petition to the board regarding an individual described in Subsection 26B-4-213(2)(a), a minor described in Subsection 26B-4-213 (2)(c), or an individual who is not otherwise qualified to receive a medical cannabis card to obtain a medical cannabis card for compassionate use, for the standard or a reduced period of validity, if: (i)for an individual who is not otherwise qualified to receive a medical cannabis card, the individual's qualified recommending medical provider is actively treating the individual for an intractable condition that: (A)substantially impairs the individual's quality of life; and (B)has not, in the qualified recommending medical provider's professional opinion, adequately responded to conventional treatments; (ii)the qualified recommending medical provider: (A)recommends that the individual or minor be allowed to use medical cannabis; and (B)provides a letter, relevant treatment history, and notes or copies of progress notes describing relevant treatment history including rationale for considering the use of medical cannabis; and (iii)the Compassionate Use Board determines that: (A)the recommendation of the individual's qualified recommending medical provider is justified; and (B)based on available information, it may be in the best interests of the individual to allow the use of medical cannabis; (b)when a qualified recommending medical provider recommends that an individual described in Subsection 26B-4-213(2)(a)(i)(B) or a minor described in Subsection 26B-4-213 (2)(c) be allowed to use a medical cannabis device or medical cannabis product medical cannabis to vaporize a medical cannabis treatment, review and approve or deny the use of the medical cannabis device or medical cannabis product medical cannabis ; (c)unless no petitions are pending: (i)meet to receive or review compassionate use petitions at least quarterly; and (ii)if there are more petitions than the board can receive or review during the board's regular schedule, as often as necessary; (d)except as provided in Subsection (6), complete a review of each petition and recommend to the department approval or denial of the applicant for qualification for a medical cannabis card within 90 days after the day on which the board received the petition; (e)consult with the department regarding the criteria described in Subsection (6); and (f)report, before November 1 of each year, to the Health and Human Services Interim Committee and the Medical Cannabis Governance Structure Working Group: (i)the number of compassionate use recommendations the board issued during the past year; and (ii)the types of conditions for which the board recommended compassionate use . ; and (iii) the number of applications that are not completed. (6)The department shall make rules, in consultation with the Compassionate Use Board and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish a process and criteria for a petition to the board to automatically qualify for expedited final review and approval or denial by the department in cases where, in the determination of the department and the board: (a)time is of the essence; (b)engaging the full review process would be unreasonable in light of the petitioner's physical condition; and (c)sufficient factors are present regarding the petitioner's safety. (7) (a) (i)The department shall review: (A)any compassionate use for which the Compassionate Use Board recommends approval under Subsection (5)(d) to determine whether the board properly exercised the board's discretion under this section; and (B)any expedited petitions the department receives under the process described in Subsection (6). (ii)If the department determines that the Compassionate Use Board properly exercised the board's discretion in recommending approval under Subsection (5)(d) or that the expedited petition merits approval based on the criteria established in accordance with Subsection (6), the department shall: (A)issue the relevant medical cannabis card; and (B)provide for the renewal of the medical cannabis card in accordance with the recommendation of the qualified recommending medical provider described in Subsection (5)(a). (b) (i)If the Compassionate Use Board recommends denial under Subsection (5)(d), the individual seeking to obtain a medical cannabis card may petition the department to review the board's decision. (ii)If the department determines that the Compassionate Use Board's recommendation for denial under Subsection (5)(d) was arbitrary or capricious: (A)the department shall notify the Compassionate Use Board of the department's determination; and (B)the board shall reconsider the Compassionate Use Board's refusal to recommend approval under this section. (c)In reviewing the Compassionate Use Board's recommendation for approval or denial under Subsection (5)(d) in accordance with this Subsection (7), the department shall presume the board properly exercised the board's discretion unless the department determines that the board's recommendation was arbitrary or capricious. (8)Any individually identifiable health information contained in a petition that the Compassionate Use Board or department receives under this section is a protected record in accordance with Title 63G, Chapter 2, Government Records Access and Management Act. (9)The Compassionate Use Board shall annually report the board's activity to the Cannabis Research Review Board and the advisory board.

Section 17, Section 26B-4-201 is amended to read: 26B-4-201. Definitions. As used in this part: (1)"Active tetrahydrocannabinol" means THC, any THC analog, and tetrahydrocannabinolic acid. (2) "Administration of criminal justice" means the performance of detection, apprehension, detention, pretrial release, post-trial release, prosecution, and adjudication. (2) (3) "Advertise" or "advertising" means information provided by a medical cannabis pharmacy in any medium: (a)to the public; and (b)that is not age restricted to an individual who is at least 21 years old. (3) (4) "Advisory board" means the Medical Cannabis Policy Advisory Board created in Section 26B-1-435. (4) (5) " Cannabis Research Review Board" means the Cannabis Research Review Board created in Section 26B-1-420. (5) (6) "Cannabis" means marijuana. (6) (7) "Cannabis cultivation facility" means the same as that term is defined in Section 4-41a-102 . (7) (8) "Cannabis processing facility" means the same as that term is defined in Section 4-41a-102 . (8) (9) "Cannabis product" means a product that: (a)is intended for human use; and (b)contains cannabis or any tetrahydrocannabinol or THC analog in a total concentration of 0.3% or greater on a dry weight basis. (9) (10) "Cannabis production establishment" means the same as that term is defined in Section 4-41a-102. (10) (11) "Cannabis production establishment agent" means the same as that term is defined in Section 4-41a-102. (11) (12) "Cannabis production establishment agent registration card" means the same as that term is defined in Section 4-41a-102. (12) (13) "Community location" means a public or private elementary or secondary school, a church, a public library, a public playground, or a public park. (13) (14) "Conditional medical cannabis card" means an electronic medical cannabis card that the department issues in accordance with Subsection 26B-4-213(1)(b) to allow an applicant for a medical cannabis card to access medical cannabis during the department's review of the application. (14) (15) "Controlled substance database" means the controlled substance database created in Section 58-37f-201. (15) (16) "Delivery address" means : the same as that term is defined in Section 4-41a-102. (a) for a medical cannabis cardholder who is not a facility, the medical cannabis cardholder's home address; or (b) for a medical cannabis cardholder that is a facility, the facility's address. (16) (17) "Department" means the Department of Health and Human Services. (17) (18) "Designated caregiver" means: (a)an individual: (i)whom an individual with a medical cannabis patient card or a medical cannabis guardian card designates as the patient's caregiver; and (ii)who registers with the department under Section 26B-4-214; or (b) (i)a facility that an individual designates as a designated caregiver in accordance with Subsection 26B-4-214(1)(b); or (ii)an assigned employee of the facility described in Subsection 26B-4-214(1)(b)(ii). (18) (19) "Directions of use" means recommended routes of administration for a medical cannabis treatment and suggested usage guidelines. (19) (20) "Dosing guidelines" means a quantity range and frequency of administration for a recommended treatment of medical cannabis. (20) (21) "Financial institution" means a bank, trust company, savings institution, or credit union, chartered and supervised under state or federal law. (21) (22) "Government issued photo identification" means any of the following forms of identification: (a)a valid state-issued driver license or identification card; (b)a valid United States federal-issued photo identification, including: (i)a United States passport; (ii)a United States passport card; (iii)a United States military identification card; or (iv)a permanent resident card or alien registration receipt card; or (c)a foreign passport. (22) (23) "Home delivery medical cannabis pharmacy" means a medical cannabis pharmacy that the department authorizes, as part of the pharmacy's license, to deliver medical cannabis shipments to a delivery address to fulfill electronic orders that the state central patient portal facilitates. (23) (24) "Inventory control system" means the system described in Section 4-41a-103. (24) (25) "Legal dosage limit" means an amount that: (a)is sufficient to provide 30 days of treatment based on the dosing guidelines that the relevant recommending medical provider or the state central patient portal or pharmacy medical provider, in accordance with Subsection 26B-4-230(5), recommends; and (b)may not exceed: (i)for unprocessed cannabis in a medicinal dosage form, 113 grams by weight; and (ii)for a cannabis product in a medicinal dosage form, a quantity that contains, in total, greater than 20 grams of active tetrahydrocannabinol. (25) (26) "Legal use termination date" means a date on the label of a container of unprocessed cannabis flower: (a)that is 60 days after the date of purchase of the cannabis; and (b)after which, the cannabis is no longer in a medicinal dosage form outside of the primary residence of the relevant medical cannabis patient cardholder. (26) (27) "Limited medical provider" means an individual who: (a)meets the recommending qualifications; and (b)has no more than 15 patients with a valid medical cannabis patient card or provisional patient card as a result of the individual's recommendation, in accordance with Subsection 26B-4-204(1)(b). (27) (28) "Marijuana" means the same as that term is defined in Section 58-37-2. (28) (29) "Medical cannabis" means cannabis in a medicinal dosage form or a cannabis product in a medicinal dosage form. (29) (30) "Medical cannabis card" means a medical cannabis patient card, a medical cannabis guardian card, a medical cannabis caregiver card, or a conditional medical cannabis card. (30) (31) "Medical cannabis cardholder" means: (a)a holder of a medical cannabis card; or (b)a facility or assigned employee, described in Subsection(17)(b) Subsection (18)(b), only: (i)within the scope of the facility's or assigned employee's performance of the role of a medical cannabis patient cardholder's caregiver designation under Subsection 26B-4-214 (1)(b); and (ii)while in possession of documentation that establishes: (A)a caregiver designation described in Subsection 26B-4-214(1)(b); (B)the identity of the individual presenting the documentation; and (C)the relation of the individual presenting the documentation to the caregiver designation. (31) (32) "Medical cannabis caregiver card" means an electronic document that a cardholder may print or store on an electronic device or a physical card or document that: (a)the department issues to an individual whom a medical cannabis patient cardholder or a medical cannabis guardian cardholder designates as a designated caregiver; and (b)is connected to the electronic verification system. (32) (33) "Medical cannabis courier" means the same as that term is defined in Section 4-41a-102 . (33) (34) "Medical cannabis courier agent" means the same as that term is defined in Section 4-41a-102. (34) (35) (a)"Medical cannabis device" means a device that an individual uses to ingest or inhale cannabis in a medicinal dosage form or a cannabis product in a medicinal dosage form. (b)"Medical cannabis device" does not include a device that: (i)facilitates cannabis combustion; or (ii)an individual uses to ingest substances other than cannabis. (35) (36) "Medical cannabis guardian card" means an electronic document that a cardholder may print or store on an electronic device or a physical card or document that: (a)the department issues to the parent or legal guardian of a minor with a qualifying condition; and (b)is connected to the electronic verification system. (36) (37) "Medical cannabis patient card" means an electronic document that a cardholder may print or store on an electronic device or a physical card or document that: (a)the department issues to an individual with a qualifying condition; and (b)is connected to the electronic verification system. (37) (38) "Medical cannabis pharmacy" means a person that: (a) (i)acquires or intends to acquire medical cannabis or a cannabis product in a medicinal dosage form from a cannabis processing facility or another medical cannabis pharmacy or a medical cannabis device; or (ii)possesses medical cannabis or a medical cannabis device; and (b)sells or intends to sell medical cannabis or a medical cannabis device to a medical cannabis cardholder. (38) (39) "Medical cannabis pharmacy agent" means an individual who holds a valid medical cannabis pharmacy agent registration card issued by the department. (39) (40) "Medical cannabis pharmacy agent registration card" means a registration card issued by the department that authorizes an individual to act as a medical cannabis pharmacy agent. (40) (41) "Medical cannabis shipment" means the same as that term is defined in Section 4-41a-102 . (41) (42) "Medical cannabis treatment" means cannabis in a medicinal dosage form, a cannabis product in a medicinal dosage form, or a medical cannabis device. (42) (43) (a)"Medicinal dosage form" means: (i)for processed medical cannabis or a medical cannabis product , the following with a specific and consistent cannabinoid content: (A)a tablet; (B)a capsule; (C)a concentrated liquid or viscous oil; (D)a liquid suspension that, after December 1, 2022, does not exceed 30 ml; (E)a topical preparation; (F)a transdermal preparation; (G)a sublingual preparation; (H)a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or rectangular cuboid shape; (I)a resin or wax; or (J)an aerosol; or (K) a suppository preparation; or (L) a soft or hard confection that is a uniform rectangular cuboid or uniform spherical shape, is homogeneous in color and texture, and each piece is a single serving; or (ii)for unprocessed cannabis flower, a container described in Section 4-41a-602 that: (A)contains cannabis flowers in a quantity that varies by no more than 10% from the stated weight at the time of packaging; (B)at any time the medical cannabis cardholder transports or possesses the container in public, is contained within an opaque bag or box that the medical cannabis pharmacy provides; and (C)is labeled with the container's content and weight, the date of purchase, the legal use termination date, and after December 31, 2020, a barcode that provides information connected to an inventory control system . (b)"Medicinal dosage form" includes a portion of unprocessed cannabis flower that: (i)the medical cannabis cardholder has recently removed from the container described in Subsection (42)(a)(ii) (43)(a)(ii) for use; and (ii)does not exceed the quantity described in Subsection (42)(a)(ii) (43)(a)(ii). (c)"Medicinal dosage form" does not include: (i)any unprocessed cannabis flower outside of the container described in Subsection (42)(a)(ii) (43)(a)(ii), except as provided in Subsection (42)(b) (43)(b); (ii)any unprocessed cannabis flower in a container described in Subsection (42)(a)(ii) (43)(a)(ii) after the legal use termination date; (iii)a process of vaporizing and inhaling concentrated cannabis by placing the cannabis on a nail or other metal object that is heated by a flame, including a blowtorch; (iv)a liquid suspension that is branded as a beverage ; or (v)a substance described in Subsection (42)(a)(i) (43)(a)(i) or (ii) if the substance is not measured in grams, milligrams, or milliliters . ; or (vi) a substance that contains or is covered to any degree with chocolate. (43) (44) "Nonresident patient" means an individual who: (a)is not a resident of Utah or has been a resident of Utah for less than 45 days; (b)has a currently valid medical cannabis card or the equivalent of a medical cannabis card under the laws of another state, district, territory, commonwealth, or insular possession of the United States; and (c)has been diagnosed with a qualifying condition as described in Section 26B-4-203. (44) (45) "Payment provider" means an entity that contracts with a cannabis production establishment or medical cannabis pharmacy to facilitate transfers of funds between the establishment or pharmacy and other businesses or individuals. (45) (46) "Pharmacy medical provider" means the medical provider required to be on site at a medical cannabis pharmacy under Section 26B-4-219. (46) (47) "Provisional patient card" means a card that: (a)the department issues to a minor with a qualifying condition for whom: (i)a recommending medical provider has recommended a medical cannabis treatment; and (ii)the department issues a medical cannabis guardian card to the minor's parent or legal guardian; and (b)is connected to the electronic verification system. (47) (48) "Qualified medical provider" means an individual: (a)who meets the recommending qualifications; and (b)whom the department registers to recommend treatment with cannabis in a medicinal dosage form under Section 26B-4-204. (48) (49) "Qualified Patient Enterprise Fund" means the enterprise fund created in Section 26B-1-310 . (49) (50) "Qualifying condition" means a condition described in Section 26B-4-203. (50) (51) "Recommend" or "recommendation" means, for a recommending medical provider, the act of suggesting the use of medical cannabis treatment, which: (a)certifies the patient's eligibility for a medical cannabis card; and (b)may include, at the recommending medical provider's discretion, directions of use, with or without dosing guidelines. (51) (52) "Recommending medical provider" means a qualified medical provider or a limited medical provider. (52) (53) "Recommending qualifications" means that an individual: (a) (i)has the authority to write a prescription; (ii)is licensed to prescribe a controlled substance under Title 58, Chapter 37, Utah Controlled Substances Act; and (iii)possesses the authority, in accordance with the individual's scope of practice, to prescribe a Schedule II controlled substance; and (b)is licensed as: (i)a podiatrist under Title 58, Chapter 5a, Podiatric Physician Licensing Act; (ii)an advanced practice registered nurse under Title 58, Chapter 31b, Nurse Practice Act; (iii)a physician under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or (iv)a physician assistant under Title 58, Chapter 70a, Utah Physician Assistant Act. (53) (54) "State central patient portal" means the website the department creates, in accordance with Section 26B-4-236, to facilitate patient safety, education, and an electronic medical cannabis order. (54) (55) "State electronic verification system" means the system described in Section 26B-4-202 . (55) (56) "Targeted marketing" means the promotion by a medical cannabis pharmacy of a medical cannabis product, medical cannabis brand, or a medical cannabis device using any of the following methods: the promotion by a qualified medical provider, medical clinic, or medical office that employs a qualified medical provider of a medical cannabis recommendation service using any of the following methods: (a) electronic communication to an individual who is at least 21 years old and has requested to receive promotional information from the medical cannabis pharmacy; (b) an in-person marketing event that is: (i) held inside a medical cannabis pharmacy; and (ii) in an area where only a medical cannabis cardholder may access the event; or (c) other marketing material that is physically available or digitally displayed in: (i) a medical cannabis pharmacy; and (ii) an area where only a medical cannabis cardholder has access (a) electronic communication to an individual who is at least 21 years old and has requested to receive promotional information; (b) an in-person marketing event that is held in an area where only an individual who is at least 21 years old may access the event; (c) other marketing material that is physically or digitally displayed in the office of the medical clinic or office that employs a qualified medical provider; or (d) a leaflet that a qualified medical provider, medical clinic, or medical office that employs a qualified medical provider shares with an individual who is at least 21 years old . (56) (57) "Tetrahydrocannabinol" or "THC" means a substance derived from cannabis or a synthetic equivalent as described in Subsection 58-37-4(2)(a)(iii)(AA). (57) (58) "THC analog" means the same as that term is defined in Section 4-41-102.

Section 18, Section 26B-4-202 is amended to read: 26B-4-202. Electronic verification system. (1)The Department of Agriculture and Food, the department, the Department of Public Safety, and the Division of Technology Services shall: (a)enter into a memorandum of understanding in order to determine the function and operation of the state electronic verification system in accordance with Subsection (2); (b)coordinate with the Division of Purchasing, under Title 63G, Chapter 6a, Utah Procurement Code, to develop a request for proposals for a third-party provider to develop and maintain the state electronic verification system in coordination with the Division of Technology Services; and (c)select a third-party provider who: (i)meets the requirements contained in the request for proposals issued under Subsection (1)(b); and (ii)may not have any commercial or ownership interest in a cannabis production establishment or a medical cannabis pharmacy. (2)The Department of Agriculture and Food, the department, the Department of Public Safety, and the Division of Technology Services shall ensure that the state electronic verification system described in Subsection (1): (a)allows an individual to apply for a medical cannabis patient card or, if applicable, a medical cannabis guardian card, provided that the card may not become active until: (i)the relevant qualified medical provider completes the associated medical cannabis recommendation; or (ii)for a medical cannabis card related to a limited medical provider's recommendation, the medical cannabis pharmacy completes the recording described in Subsection (2)(d); (b)allows an individual to apply to renew a medical cannabis patient card or a medical cannabis guardian card in accordance with Section 26B-4-213; (c)allows a qualified medical provider, or an employee described in Subsection (3) acting on behalf of the qualified medical provider, to: (i)access dispensing and card status information regarding a patient: (A)with whom the qualified medical provider has a provider-patient relationship; and (B)for whom the qualified medical provider has recommended or is considering recommending a medical cannabis card; (ii)electronically recommendtreatment with cannabis in a medicinal dosage form or a cannabis product in a medicinal dosage form and optionally recommend dosing guidelines; (iii)electronically renew a recommendation to a medical cannabis patient cardholder or medical cannabis guardian cardholder: (A)using telehealth services, for the qualified medical provider who originally recommended a medical cannabis treatment during a face-to-face visit with the patient; or (B)during a face-to-face visit with the patient, for a qualified medical provider who did not originally recommend the medical cannabis treatment during a face-to-face visit ; and (iv)submit an initial application, renewal application, or application payment on behalf of an individual applying for any of the following: (A)a medical cannabis patient card; (B)a medical cannabis guardian card; or (C)a medical cannabis caregiver card; (d)allows a medical cannabis pharmacy medical provider or medical cannabis pharmacy agent, in accordance with Subsection 4-41a-1101(10)(a), to: (i)access the electronic verification system to review the history within the system of a patient with whom the provider or agent is interacting, limited to read-only access for medical cannabis pharmacy agents unless the medical cannabis pharmacy's pharmacist in charge authorizes add and edit access; (ii)record a patient's recommendation from a limited medical provider, including any directions of use, dosing guidelines, or caregiver indications from the limited medical provider; (iii)record a limited medical provider's renewal of the provider's previous recommendation; and (iv)submit an initial application, renewal application, or application payment on behalf of an individual applying for any of the following: (A)a medical cannabis patient card; (B)a medical cannabis guardian card; or (C)a medical cannabis caregiver card; (e)connects with: (i)an inventory control system that a medical cannabis pharmacy uses to track in real time and archive purchases of any cannabis in a medicinal dosage form, cannabis product in a medicinal dosage form, or a medical cannabis device, including: (A)the time and date of each purchase; (B)the quantity and type of cannabis, cannabis product, or medical cannabis device purchased; (C)any cannabis production establishment, any medical cannabis pharmacy, or any medical cannabis courier associated with the cannabis, cannabis product, or medical cannabis device; and (D)the personally identifiable information of the medical cannabis cardholder who made the purchase; and (ii)any commercially available inventory control system that a cannabis production establishment utilizes in accordance with Section 4-41a-103 to use data that the Department of Agriculture and Food requires by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, from the inventory tracking system that a licensee uses to track and confirm compliance; (f)provides access to: (i)the department to the extent necessary to carry out the department's functions and responsibilities under this part; (ii)the Department of Agriculture and Food to the extent necessary to carry out the functions and responsibilities of the Department of Agriculture and Food under Title 4, Chapter 41a, Cannabis Production Establishments and Pharmacies; and (iii)the Division of Professional Licensing to the extent necessary to carry out the functions and responsibilities related to the participation of the following in the recommendation and dispensing of medical cannabis: (A)a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act; (B)a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act; (C)an advanced practice registered nurse licensed under Title 58, Chapter 31b, Nurse Practice Act; (D)a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or (E)a physician assistant licensed under Title 58, Chapter 70a, Utah Physician Assistant Act; (g)provides access to and interaction with the state central patient portal; (h)communicates dispensing information from a record that a medical cannabis pharmacy submits to the state electronic verification system under Subsection 4-41a-1102 (3)(a)(ii) to the controlled substance database; (i)provides access to state or local law enforcement : only to verify the validity of an individual's medical cannabis card for the administration of criminal justice and through a database used by law enforcement; and (i) during a law enforcement encounter, without a warrant, using the individual's driver license or state ID, only for the purpose of determining if the individual subject to the law enforcement encounter has a valid medical cannabis card; or (ii) after obtaining a warrant; and (j)creates a record each time a person accesses the system that identifies the person who accesses the system and the individual whose records the person accesses. (3) (a)An employee of a qualified medical provider may access the electronic verification system for a purpose described in Subsection (2)(c) on behalf of the qualified medical provider if: (i)the qualified medical provider has designated the employee as an individual authorized to access the electronic verification system on behalf of the qualified medical provider; (ii)the qualified medical provider provides written notice to the department of the employee's identity and the designation described in Subsection (3)(a)(i); and (iii)the department grants to the employee access to the electronic verification system. (b)An employee of a business that employs a qualified medical provider may access the electronic verification system for a purpose described in Subsection (2)(c) on behalf of the qualified medical provider if: (i)the qualified medical provider has designated the employee as an individual authorized to access the electronic verification system on behalf of the qualified medical provider; (ii)the qualified medical provider and the employing business jointly provide written notice to the department of the employee's identity and the designation described in Subsection (3)(b)(i); and (iii)the department grants to the employee access to the electronic verification system. (4) (a)As used in this Subsection (4), "prescribing provider" means: (i)a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act; (ii)an advanced practice registered nurse licensed under Title 58, Chapter 31b, Nurse Practice Act; (iii)a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or (iv)a physician assistant licensed under Title 58, Chapter 70a, Utah Physician Assistant Act. (b)A prescribing provider may access information in the electronic verification system regarding a patient the prescribing provider treats. (5)The department may release limited data that the system collects for the purpose of: (a)conducting medical and other department approved research; (b)providing the report required by Section 26B-4-222; and (c)other official department purposes. (6)The department shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish: (a)the limitations on access to the data in the state electronic verification system as described in this section; and (b)standards and procedures to ensure accurate identification of an individual requesting information or receiving information in this section. (7) (a) Any person who knowingly and intentionally releases any information in the state electronic verification system in violation of this section is guilty of a third degree felony. (b) Any person who negligently or recklessly releases any information in the state electronic verification system in violation of this section is guilty of a class C misdemeanor. (8) (a) Any person who obtains or attempts to obtain information from the state electronic verification system by misrepresentation or fraud is guilty of a third degree felony. (b) Any person who obtains or attempts to obtain information from the state electronic verification system for a purpose other than a purpose this part authorizes is guilty of a third degree felony. (9) (a)Except as provided in Subsection Subsections (9)(c) and(9)(e), a person may not knowingly and intentionally use, release, publish, or otherwise make available to any other person information obtained from the state electronic verification system for any purpose other than a purpose specified in this section. (b)Each separate violation of this Subsection (9) is: (i)a third degree felony; and (ii)subject to a civil penalty not to exceed $5,000. (c) A law enforcement officer who uses the database used by law enforcement to access information in the electronic verification system for a reason that is not the administration of criminal justice is guilty of a class B misdemeanor. (c) (d) The department shall determine a civil violation of this Subsection (9) in accordance with Title 63G, Chapter 4, Administrative Procedures Act. (d) (e) Civil penalties assessed under this Subsection (9) shall be deposited into the General Fund. (e) (f) This Subsection (9) does not prohibit a person who obtains information from the state electronic verification system under Subsection (2)(a), (c), or (f) from: (i)including the information in the person's medical chart or file for access by a person authorized to review the medical chart or file; (ii)providing the information to a person in accordance with the requirements of the Health Insurance Portability and Accountability Act of 1996; or (iii)discussing or sharing that information about the patient with the patient.

Section 19, Section 26B-4-204 is amended to read: 26B-4-204. Qualified medical provider registration -- Continuing education -- Treatment recommendation -- Limited medical provider. (1) (a) (i)Except as provided in Subsection (1)(b), an individual may not recommend a medical cannabis treatment unless the department registers the individual as a qualified medical provider in accordance with this section. (ii)Notwithstanding Subsection (1)(a)(i), a qualified medical provider who is podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act, may not recommend a medical cannabis treatment except within the course and scope of a practice of podiatry, as that term is defined in Section 58-5a-102. (b)An individual who meets the recommending qualifications may recommend a medical cannabis treatment as a limited medical provider without registering under Subsection (1)(a) if: (i)the individual recommends the use of medical cannabis to the patient through an order described in Subsection (1)(c) after: (A)a face-to-face visit for an initial recommendation or the renewal of a recommendation for a patient for whom the limited medical provider did not make the patient's original recommendation; or (B)a visit using telehealth services for a renewal of a recommendation for a patient for whom the limited medical provider made the patient's original recommendation; and (ii)the individual's recommendation or renewal would not cause the total number of the individual's patients who have a valid medical cannabis patient card or provisional patient card resulting from the individual's recommendation to exceed 15. (c)The individual described in Subsection (1)(b) shall communicate the individual's recommendation through an order for the medical cannabis pharmacy to record the individual's recommendation or renewal in the state electronic verification system under the individual's recommendation that: (i) (A)the individual or the individual's employee sends electronically to a medical cannabis pharmacy; or (B)the individual gives to the patient in writing for the patient to deliver to a medical cannabis pharmacy; and (ii)may include: (A)directions of use or dosing guidelines; and (B)an indication of a need for a caregiver in accordance with Subsection 26B-4-213 (3)(c). (d)If the limited medical provider gives the patient a written recommendation to deliver to a medical cannabis pharmacy under Subsection (1)(c)(i)(B), the limited medical provider shall ensure that the document includes all of the information that is included on a prescription the provider would issue for a controlled substance, including: (i)the date of issuance; (ii)the provider's name, address and contact information, controlled substance license information, and signature; and (iii)the patient's name, address and contact information, age, and diagnosed qualifying condition. (e)In considering making a recommendation as a limited medical provider, an individual may consult information that the department makes available on the department's website for recommending providers. (2) (a)The department shall, within 15 days after the day on which the department receives an application from an individual, register and issue a qualified medical provider registration card to the individual if the individual: (i)provides to the department the individual's name and address; (ii)provides to the department an acknowledgment that the individual has completed four hours of continuing education related to medical cannabis; (iii)provides to the department evidence that the individual meets the recommending qualifications; (iv)for an applicant on or after November 1, 2021, provides to the department the information described in Subsection (10)(a); and (v)pays the department a fee in an amount that: (A)the department sets, in accordance with Section 63J-1-504; and (B)does not exceed $300 for an initial registration. (b)The department may not register an individual as a qualified medical provider if the individual is: (i)a pharmacy medical provider; or (ii)an owner, officer, director, board member, employee, or agent of a cannabis production establishment, a medical cannabis pharmacy, or a medical cannabis courier. (3) (a)An individual shall complete the continuing education related to medical cannabis in the following amounts: (i)for an individual as a condition precedent to registration, four hours; and (ii)for a qualified medical provider as a condition precedent to renewal, four hours every two years. (b)The department may, in consultation with the Division of Professional Licensing, develop continuing education related to medical cannabis. (c)The continuing education described in this Subsection (3) may discuss: (i)the provisions of this part; (ii)general information about medical cannabis under federal and state law; (iii)the latest scientific research on the endocannabinoid system and medical cannabis, including risks and benefits; (iv)recommendations for medical cannabis as it relates to the continuing care of a patient in pain management, risk management, potential addiction, or palliative care; and (v)best practices for recommending the form and dosage of medical cannabis products medical cannabis based on the qualifying condition underlying a medical cannabis recommendation. (4) (a)Except as provided in Subsection (4)(b), a qualified medical provider may not recommend a medical cannabis treatment to more than 1.5% of the total amount of medical cannabis patient cardholders. (b)If a qualified medical provider receives payment from an insurance plan for services provided under this chapter, then the patient whose insurance plan was billed does not count toward the 1.5% patient cap described in Subsection (4)(a). (5)A recommending medical provider may recommend medical cannabis to an individual under this part only in the course of a provider-patient relationship after the recommending medical provider has completed and documented in the patient's medical record a thorough assessment of the patient's condition and medical history based on the appropriate standard of care for the patient's condition. (6) (a)Except as provided in Subsection Subsections (6)(b) and (c), a person may not advertise that the person or the person's employee recommends a medical cannabis treatment. (b)Notwithstanding Subsection (6)(a) and Section 4-41a-109, a qualified medical provider or clinic or , medical clinic, or medical office that employs a qualified medical provider may advertise only the following: (i)a green cross; (ii)the provider's or clinic's name and logo; (iii)a qualifying condition that the individual treats; (iv) that the individual is registered as a qualified medical provider and recommends medical cannabis; or that the qualified medical provider, medical clinic, or medical office evaluates patients for medical cannabis recommendations; (v)a scientific study regarding medical cannabis use . ; or (vi) contact information. (c) Notwithstanding Subsection (6)(a) and Section 4-41a-109, qualified medical provider, medical clinic, or medical office that employs a qualified medical provider may engage in targeted marketing, as determined by the department through rule, for advertising medical cannabis recommendation services. (7) (a)A qualified medical provider registration card expires two years after the day on which the department issues the card. (b)The department shall renew a qualified medical provider's registration card if the provider: (i)applies for renewal; (ii)is eligible for a qualified medical provider registration card under this section, including maintaining an unrestricted license under the recommending qualifications; (iii)certifies to the department in a renewal application that the information in Subsection (2)(a) is accurate or updates the information; (iv)submits a report detailing the completion of the continuing education requirement described in Subsection (3); and (v)pays the department a fee in an amount that: (A)the department sets, in accordance with Section 63J-1-504; and (B)does not exceed $50 for a registration renewal. (8)The department may revoke the registration of a qualified medical provider who fails to maintain compliance with the requirements of this section. (9)A recommending medical provider may not : (a) receive any compensation or benefit for the qualified medical provider's medical cannabis treatment recommendation from: (a) (i) a cannabis production establishment or an owner, officer, director, board member, employee, or agent of a cannabis production establishment; (b) (ii) a medical cannabis pharmacy or an owner, officer, director, board member, employee, or agent of a medical cannabis pharmacy; or (c) (iii) a recommending medical provider or pharmacy medical provider . ; or (b) provide a medical cannabis recommendation at a medical clinic or medical office that is violating the advertising limitations described in Subsection (6). (10) (a) On or before November 1, 2021, Each quarter, a qualified medical provider shall report to the department, in a manner designated by the department: (i)if applicable, that the qualified medical provider or the entity that employs the qualified medical provider represents online or on printed material that the qualified medical provider is a qualified medical provider or offers medical cannabis recommendations to patients; and (ii) (A) for cash payment without insurance,the fee amount that the qualified medical provider or the entity that employs the qualified medical provider charges a patient for a medical cannabis recommendation , either as an actual cash rate or, if the provider or entity bills insurance, an average cash rate. ; and (B) whether the qualified medical provider or the entity that employs the qualified medical provider bills insurance. (b)The department shall: (i)ensure that the following information related to qualified medical providers and entities described in Subsection (10)(a)(i) is available on the department's website or on the health care price transparency tool under Subsection (10)(b)(ii): (A)the name of the qualified medical provider and, if applicable, the name of the entity that employs the qualified medical provider; (B)the address of the qualified medical provider's office or, if applicable, the entity that employs the qualified medical provider; and (C)the fee amount described in Subsection (10)(a)(ii) (A); and (ii)share data collected under this Subsection (10) with the state auditor for use in the health care price transparency tool described in Section 67-3-11.

Section 20, Section 26B-4-207 is amended to read: 26B-4-207. Nondiscrimination for medical care or government employment -- Notice to prospective and current public employees -- No effect on private employers. (1)For purposes of medical care, including an organ or tissue transplant, a patient's use, in accordance with this part, of cannabis in a medicinal dosage form or a cannabis product in a medicinal dosage form: (a)is considered the equivalent of the authorized use of any other medication used at the discretion of a physician; and (b)does not constitute the use of an illicit substance or otherwise disqualify an individual from needed medical care. (2) (a) Notwithstanding any other provision of law and except as provided in Subsection (2)(b), the state or any political subdivision shall treat: (i) an employee's use of medical cannabis in accordance with this part or Section 58-37-3.7 in the same way the state or political subdivision treats employee use of any prescribed controlled substance; and (ii) an employee's status as a medical cannabis cardholder or an employee's medical cannabis recommendation from a qualified medical provider or limited provider in the same way the state or political subdivision treats an employee's prescriptions for any prescribed controlled substance. (b) A state or political subdivision employee who has a valid medical cannabis card is not subject to retaliatory action, as that term is defined in Section 67-19a-101, for failing a drug test due to marijuana or tetrahydrocannabinol without evidence that the employee was impaired or otherwise adversely affected in the employee's job performance due to the use of medical cannabis. (c) Subsections (2)(a) and (b) do not apply: (i) where the application of Subsection (2)(a) or (b) would jeopardize federal funding, a federal security clearance, or any other federal background determination required for the employee's position; (ii) if the employee's position is dependent on a license or peace officer certification that is subject to federal regulations, including 18 U.S.C. Sec. 922(g)(3); or (iii) if an employee described in Subsections 34A-2-102(1)(h)(ii) through (vi) uses medical cannabis during the 12 hours immediately preceding the employee's shift or during the employee's shift. (3) (2) (a) (i)A state employer or a political subdivision employer shall take the action described in Subsection (3)(a)(ii) (2)(a)(ii) before: (A)giving to a current employee an assignment or duty that arises from or directly relates to an obligation under this part; or (B)hiring a prospective employee whose assignments or duties would include an assignment or duty that arises from or directly relates to an obligation under this part. (ii)The employer described in Subsection (3)(a)(i) (2)(a)(i) shall give the employee or prospective employee described in Subsection (3)(a)(i) (2)(a)(i) a written notice that notifies the employee or prospective employee: (A)that the employee's or prospective employee's job duties may require the employee or prospective employee to engage in conduct which is in violation of the criminal laws of the United States; and (B)that in accepting a job or undertaking a duty described in Subsection (3)(a)(i) (2)(a)(i) , although the employee or prospective employee is entitled to the protections of Title 67, Chapter 21, Utah Protection of Public Employees Act, the employee may not object or refuse to carry out an assignment or duty that may be a violation of the criminal laws of the United States with respect to the manufacture, sale, or distribution of cannabis. (b)The Division of Human Resource Management shall create, revise, and publish the form of the notice described in Subsection (3)(a) (2)(a). (c)Notwithstanding Subsection 67-21-3(3), an employee who has signed the notice described in Subsection (3)(a) (2)(a) may not: (i)claim in good faith that the employee's actions violate or potentially violate the laws of the United States with respect to the manufacture, sale, or distribution of cannabis; or (ii)refuse to carry out a directive that the employee reasonably believes violates the criminal laws of the United States with respect to the manufacture, sale, or distribution of cannabis. (d)An employer may not take retaliatory action as defined in Section 67-19a-101 against a current employee who refuses to sign the notice described in Subsection (3)(a) (2)(a). (4) (3) Nothing in this section requires a private employer to accommodate the use of medical cannabis or affects the ability of a private employer to have policies restricting the use of medical cannabis by applicants or employees.

Section 21, Section 26B-4-213 is amended to read: 26B-4-213. Medical cannabis patient card -- Medical cannabis guardian card -- Conditional medical cannabis card -- Application -- Fees -- Studies. (1) (a)Subject to Section 26B-4-246, within 15 days after the day on which an individual who satisfies the eligibility criteria in this section or Section 26B-4-214 submits an application in accordance with this section or Section 26B-4-214, the department shall: (i)issue a medical cannabis patient card to an individual described in Subsection (2)(a); (ii)issue a medical cannabis guardian card to an individual described in Subsection (2)(b); (iii)issue a provisional patient card to a minor described in Subsection (2)(c); and (iv)issue a medical cannabis caregiver card to an individual described in Subsection 26B-4-214 (4). (b) (i)Upon the entry of a recommending medical provider's medical cannabis recommendation for a patient in the state electronic verification system, either by the provider or the provider's employee or by a medical cannabis pharmacy medical provider or medical cannabis pharmacy in accordance with Subsection 4-41a-1101 (10)(a), the department shall issue to the patient an electronic conditional medical cannabis card, in accordance with this Subsection (1)(b). (ii)A conditional medical cannabis card is valid for the lesser of: (A)60 days; or (B)the day on which the department completes the department's review and issues a medical cannabis card under Subsection (1)(a), denies the patient's medical cannabis card application, or revokes the conditional medical cannabis card under Subsection (8). (iii)The department may issue a conditional medical cannabis card to an individual applying for a medical cannabis patient card for which approval of the Compassionate Use Board is not required. (iv)An individual described in Subsection (1)(b)(iii) has the rights, restrictions, and obligations under law applicable to a holder of the medical cannabis card for which the individual applies and for which the department issues the conditional medical cannabis card. (2) (a)An individual is eligible for a medical cannabis patient card if: (i) (A)the individual is at least 21 years old; or (B)the individual is 18, 19, or 20 years old, the individual petitions the Compassionate Use Board under Section 26B-1-421, and the Compassionate Use Board recommends department approval of the petition; (ii)the individual is a Utah resident; (iii)the individual's recommending medical provider recommends treatment with medical cannabis in accordance with Subsection (4); (iv)the individual signs an acknowledgment stating that the individual received the information described in Subsection (9); and (v)the individual pays to the department a fee in an amount that, subject to Subsection 26B-1-310(5), the department sets in accordance with Section 63J-1-504 . (b) (i)An individual is eligible for a medical cannabis guardian card if the individual: (A)is at least 18 years old; (B)is a Utah resident; (C)is the parent or legal guardian of a minor for whom the minor's qualified recommending medical provider recommends a medical cannabis treatment, the individual petitions the Compassionate Use Board under Section 26B-1-421, and the Compassionate Use Board recommends department approval of the petition; (D)the individual signs an acknowledgment stating that the individual received the information described in Subsection (9); and (E)pays to the department a fee in an amount that, subject to Subsection 26B-1-310 (5), the department sets in accordance with Section 63J-1-504, plus the cost of the criminal background check described in Section 26B-4-215. (ii)The department shall notify the Department of Public Safety of each individual that the department registers for a medical cannabis guardian card. (c) (i)A minor is eligible for a provisional patient card if: (A)the minor has a qualifying condition; (B)the minor's qualified recommending medical provider recommends a medical cannabis treatment to address the minor's qualifying condition; (C)one of the minor's parents or legal guardians petitions the Compassionate Use Board under Section 26B-1-421, and the Compassionate Use Board recommends department approval of the petition; and (D)the minor's parent or legal guardian is eligible for a medical cannabis guardian card under Subsection (2)(b) or designates a caregiver under Subsection (2)(d) who is eligible for a medical cannabis caregiver card under Section 26B-4-214. (ii)The department shall automatically issue a provisional patient card to the minor described in Subsection (2)(c)(i) at the same time the department issues a medical cannabis guardian card to the minor's parent or legal guardian. (d)If the parent or legal guardian of a minor described in Subsections (2)(c)(i)(A) through (C) does not qualify for a medical cannabis guardian card under Subsection (2)(b), the parent or legal guardian may designate up to two caregivers in accordance with Subsection 26B-4-214(1)(c) to ensure that the minor has adequate and safe access to the recommended medical cannabis treatment. (3) (a)An individual who is eligible for a medical cannabis card described in Subsection (2)(a) or (b) shall submit an application for a medical cannabis card to the department: (i)through an electronic application connected to the state electronic verification system; (ii)with the recommending medical provider; and (iii)with information including: (A)the applicant's name, gender, age, and address; (B)the number of the applicant's government issued photo identification; (C)for a medical cannabis guardian card, the name, gender, and age of the minor receiving a medical cannabis treatment under the cardholder's medical cannabis guardian card; and (D)for a provisional patient card, the name of the minor's parent or legal guardian who holds the associated medical cannabis guardian card. (b)The department shall ensure that a medical cannabis card the department issues under this section contains the information described in Subsection (3)(a)(iii). (c) (i)If a recommending medical provider determines that, because of age, illness, or disability, a medical cannabis patient cardholder requires assistance in administering the medical cannabis treatment that the recommending medical provider recommends, the recommending medical provider may indicate the cardholder's need in the state electronic verification system, either directly or, for a limited medical provider, through the order described in Subsections 26B-4-204 (1)(c) and (d). (ii)If a recommending medical provider makes the indication described in Subsection (3)(c)(i): (A)the department shall add a label to the relevant medical cannabis patient card indicating the cardholder's need for assistance; (B)any adult who is 18 years old or older and who is physically present with the cardholder at the time the cardholder needs to use the recommended medical cannabis treatment may handle the medical cannabis treatment and any associated medical cannabis device as needed to assist the cardholder in administering the recommended medical cannabis treatment; and (C)an individual of any age who is physically present with the cardholder in the event of an emergency medical condition, as that term is defined in Section 31A-1-301 , may handle the medical cannabis treatment and any associated medical cannabis device as needed to assist the cardholder in administering the recommended medical cannabis treatment. (iii)A non-cardholding individual acting under Subsection (3)(c)(ii)(B) or (C) may not: (A)ingest or inhale medical cannabis; (B)possess, transport, or handle medical cannabis or a medical cannabis device outside of the immediate area where the cardholder is present or with an intent other than to provide assistance to the cardholder; or (C)possess, transport, or handle medical cannabis or a medical cannabis device when the cardholder is not in the process of being dosed with medical cannabis. (4)To recommend a medical cannabis treatment to a patient or to renew a recommendation, a recommending medical provider shall: (a)visit with the patient face-to-face for an initial recommendation unless the patient: (i)prefers a virtual visit; and (ii) (A)is on hospice or has a terminal illness according to the patient's medical provider; or (B)is a resident of an assisted living facility, as defined in Section 26B-2-201, or a nursing care facility, as defined in Section 26B-2-201; (b)before recommending or renewing a recommendation for medical cannabis in a medicinal dosage form or a cannabis product in a medicinal dosage form: (i)verify the patient's and, for a minor patient, the minor patient's parent or legal guardian's government issued photo identification described in Subsection (3)(a); (ii)review any record related to the patient and, for a minor patient, the patient's parent or legal guardian in: (A)for a qualified medical provider, the state electronic verification system; and (B)the controlled substance database created in Section 58-37f-201; and (iii)consider the recommendation in light of the patient's qualifying condition, history of substance use or opioid use disorder, and history of medical cannabis and controlled substance use during a visit with the patient; and (c)state in the recommending medical provider's recommendation that the patient: (i)suffers from a qualifying condition, including the type of qualifying condition; and (ii)may benefit from treatment with cannabis in a medicinal dosage form or a cannabis product in a medicinal dosage form. (5) (a)Except as provided in Subsection (5)(b) or (c), a medical cannabis card that the department issues under this section is valid for the lesser of: (i)an amount of time that the recommending medical provider determines; or (ii)one year from the day the card is issued. (b) (i)A medical cannabis card that the department issues in relation to a terminal illness described in Section 26B-4-203 expires after one year. (ii)The recommending medical provider may revoke a recommendation that the provider made in relation to a terminal illness described in Section 26B-4-203 if the medical cannabis cardholder no longer has the terminal illness. (c)A medical cannabis card that the department issues in relation to acute pain as described in Section 26B-4-203 expires 30 days after the day on which the department first issues a conditional or full medical cannabis card. (6) (a)A medical cannabis patient card or a medical cannabis guardian card is renewable if: (i)at the time of renewal, the cardholder meets the requirements of Subsection (2)(a) or (b); or (ii)the cardholder received the medical cannabis card through the recommendation of the Compassionate Use Board under Section 26B-1-421. (b)The recommending medical provider who made the underlying recommendation for the card of a cardholder described in Subsection (6)(a) may renew the cardholder's card through phone or video conference with the cardholder, at the recommending medical provider's discretion. (c)Before having access to a renewed card, a cardholder under Subsection (2)(a) or (b) shall pay to the department a renewal fee in an amount that: (i)subject to Subsection 26B-1-310(5), the department sets in accordance with Section 63J-1-504; and (ii)may not exceed the cost of the relatively lower administrative burden of renewal in comparison to the original application process. (d)If a minor meets the requirements of Subsection (2)(c), the minor's provisional patient card renews automatically at the time the minor's parent or legal guardian renews the parent or legal guardian's associated medical cannabis guardian card. (7) (a)A cardholder under this section shall carry the cardholder's valid medical cannabis card with the patient's name. (b) (i)A medical cannabis patient cardholder or a provisional patient cardholder may purchase, in accordance with this part and the recommendation underlying the card, cannabis in a medicinal dosage form, a cannabis product in a medicinal dosage form, or a medical cannabis device. (ii)A cardholder under this section may possess or transport, in accordance with this part and the recommendation underlying the card, cannabis in a medicinal dosage form, a cannabis product in a medicinal dosage form, or a medical cannabis device. (iii)To address the qualifying condition underlying the medical cannabis treatment recommendation: (A)a medical cannabis patient cardholder or a provisional patient cardholder may use cannabis in a medicinal dosage form, a medical cannabis product in a medicinal dosage form, or medical cannabis or a medical cannabis device; and (B)a medical cannabis guardian cardholder may assist the associated provisional patient cardholder with the use of cannabis in a medicinal dosage form, a medical cannabis product in a medicinal dosage form, medical cannabis or a medical cannabis device. (8) (a)The department may revoke a medical cannabis card that the department issues under this section if: (i)the recommending medical provider withdraws the medical provider's recommendation for medical cannabis; or (ii)the cardholder: (A)violates this part; or (B)is convicted under state or federal law of, after March 17, 2021, a drug distribution offense. (b)The department may not refuse to issue a medical cannabis card to a patient solely based on a prior revocation under Subsection (8)(a)(i). (9)The department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, a process to provide information regarding the following to an individual receiving a medical cannabis card: (a)risks associated with medical cannabis treatment; (b)the fact that a condition's listing as a qualifying condition does not suggest that medical cannabis treatment is an effective treatment or cure for that condition, as described in Subsection 26B-4-203(1); and (c)other relevant warnings and safety information that the department determines. (10)The department may establish procedures by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement the application and issuance provisions of this section. (11) (a)On or before September 1, 2021, the department shall establish by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, a process to allow an individual from another state to register with the department in order to purchase medical cannabis or a medical cannabis device from a medical cannabis pharmacy while the individual is visiting the state. (b)The department may only provide the registration process described in Subsection (11)(a): (i)to a nonresident patient; and (ii)for no more than two visitation periods per calendar year of up to 21 calendar days per visitation period. (12) (a)A person may submit to the department a request to conduct a research study using medical cannabis cardholder data that the state electronic verification system contains. (b)The department shall review a request described in Subsection (12)(a) to determine whether an institutional review board, as that term is defined in Section 26B-4-201, could approve the research study. (c)At the time an individual applies for a medical cannabis card, the department shall notify the individual: (i)of how the individual's information will be used as a cardholder; (ii)that by applying for a medical cannabis card, unless the individual withdraws consent under Subsection (12)(d), the individual consents to the use of the individual's information for external research; and (iii)that the individual may withdraw consent for the use of the individual's information for external research at any time, including at the time of application. (d)An applicant may, through the medical cannabis card application, and a medical cannabis cardholder may, through the state central patient portal, withdraw the applicant's or cardholder's consent to participate in external research at any time. (e)The department may release, for the purposes of a study described in this Subsection (12), information about a cardholder under this section who consents to participate under Subsection (12)(c). (f)If an individual withdraws consent under Subsection (12)(d), the withdrawal of consent: (i)applies to external research that is initiated after the withdrawal of consent; and (ii)does not apply to research that was initiated before the withdrawal of consent. (g)The department may establish standards for a medical research study's validity, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. (13)The department shall record the issuance or revocation of a medical cannabis card under this section in the controlled substance database.

Section 22, Section 26B-4-245 is amended to read: 26B-4-245. Purchasing and use limitations -- Exception. (1) An individual with a medical cannabis card: (1) (a) may purchase, in any one 28-day period, up to the legal dosage limit of: (a) (i) unprocessed cannabis in a medicinal dosage form; and (b) (ii) a cannabis product in a medicinal dosage form; (2) (b) may not purchase: (a) (i) except as provided in Subsection (2), more medical cannabis than described in Subsection (1)(a); or (b) (ii) if the relevant recommending medical provider did not recommend directions of use and dosing guidelines, until the individual consults with the pharmacy medical provider in accordance with Subsection 26B-4-231(4), any medical cannabis; and (3) (c) may not use a route of administration that the relevant recommending medical provider or the pharmacy medical provider, in accordance with Subsection 26B-4-231 (4), has not recommended. (2) (a) A qualified medical provider may petition the department to waive the 28-day period limit described in Subsection (1)(a) for a medical cannabis cardholder if the medical cannabis cardholder: (i) has been diagnosed with a terminal illness; (ii) has a life expectancy of six months or less; and (iii) needs the waiver for palliative purposes. (b) The department shall: (i) consult with the Compassionate Use Board to determine whether the waiver should be granted; (ii) issue a response to the petition within 10 days from the day on which the petition is received. (c) The department may waive the 28-day period limit for no more than 180 days. (d) A petition described in this Subsection (2) may be combined with the petition described in Subsection 26B-1-421(6).

Section 23, Section 34A-5-114 is enacted to read: 34A-5-114. Nondiscrimination for medical cannabis use while employed by the government -- Medical cannabis and prescription use. (1) As used in this section: (a) "Adverse employment action" means any of the following in regards to an employee: (i) dismissal from employment; (ii) suspension from employment; (iii) reduction in compensation; (iv) failing to increase compensation by an amount that the employee is otherwise entitled to or was promised; (v) failure to promote an employee if the employee would have otherwise been promoted; or (vi) threaten to take an action described in Subsections (1)(a)(i) through (v). (b) "Government employer" means an employer that is the state or a political subdivision of the state. (c) "Medical cannabis" means the same as that term is defined in Section 26B-4-201. (d) "Medical cannabis cardholder" means the same as that term is defined in Section 26B-4-201 . (2) (a) A government employer may take an adverse employment action against an employee for failing a drug test for the use of medical cannabis that is obtained and used in accordance with state law only if the government employer would take an adverse employment action against an employee for failing a drug test for the use of a prescribed controlled substance that was used in accordance with state law. (b) A government employer may take an adverse employment action against an employee for the sole reason of the employee being a medical cannabis cardholder only if the government employer would take an adverse employment action against an employee for the sole reason that the employee has a prescription for a controlled substance. (c) A government employer that would take an adverse action described in Subsection (2)(a) or (2)(b) shall have a written policy that: (i) is comprehensive in nature regarding when an employee would be disciplined; and (ii) does not treat medical cannabis any differently than another controlled substance. (3) Subsection (2) does not apply: (a) where the application of Subsection (2)(a) or (b) would jeopardize federal funding, a federal security clearance, or any other federal background determination required for the employee's position; or (b) if the employee's position is dependent on a license or peace officer certification that is subject to federal regulations, including 18 U.S.C. Sec. 922(g)(3). (4) Before taking an adverse employment action against an employee solely because the employee is a medical cannabis cardholder or holds a prescription for another controlled substance, a government employer shall: (a) consult with legal counsel, if one is employed or contracted with to provide services to the government employer; and (b) obtain approval from: (i) for a political subdivision, the mayor or county executive; or (ii) for a state employer, the state employer's agency head or the agency head's designee. (5) An employee described in this section: (a) may file a complaint in accordance with Section 34A-5-107 with the commission; and (b) is entitled to any remedies under this chapter for an employer's violation of Subsection (2). (6) Nothing in this section requires a private employer to accommodate the use of medical cannabis or affects the ability of a private employer to have policies restricting the use of medical cannabis by applicants or employees.

Section 24, Section 63I-2-236 is amended to read: 63I-2-236. Repeal dates: Title 36. (1)Section 36-12-8.2 is repealed July 1, 2024 2025. (2)Section 36-29-107.5 is repealed on November 30, 2024. (3)Section 36-29-109 is repealed on November 30, 2027. (4)Section 36-29-110 is repealed on November 30, 2024. (5)Section 36-29-111 is repealed July 1, 2025. (6)The following sections regarding the State Flag Task Force are repealed on January 1, 2024: (a)Section 36-29-201; (b)Section 36-29-202; and (c)Section 36-29-203. (7)Title 36, Chapter 29, Part 3, Mental Illness Psychotherapy Drug Task Force, is repealed December 31, 2023.

Section 25. Effective date. This bill takes effect on May 1, 2024.

Section 26. Coordinating S.B. 233 with S.B. 46. If S.B. 233, Medical Cannabis Amendments, and S.B. 46, Health and Human Services Amendments, both pass and become law, the Legislature intends that, on May 1, 2024: (1) Subsection 4-41a-102(46) in S.B. 46 does not take effect; and (2) the amendments to Subsection 26B-4-201(56) in S.B. 233 supersede the repeal of Subsection 26B-4-201(55), related to targeted marketing, in S.B. 46.