2023 Utah Code › Title 4 - Utah Agricultural Code › Chapter 41a - Cannabis Production Establishments and Pharmacies › Part 10 - Medical Cannabis Pharmacy License › Section 1005 - Maximum number of licenses .

Effective 7/1/2023
4-41a-1005.
Maximum number of licenses .
(1)
(a) Except as provided in Subsections (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 department shall:
(A) divide the state into no less than four geographic regions;
(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).
Renumbered and Amended by Chapter 273, 2023 General Session
Renumbered and Amended by Chapter 307, 2023 General Session
Amended by Chapter 307, 2023 General Session, (Coordination Clause)