2023 Utah Code › Title 4 - Utah Agricultural Code › Chapter 41a - Cannabis Production Establishments and Pharmacies › Part 10 - Medical Cannabis Pharmacy License › Section 1001 - Medical cannabis pharmacy -- License -- Eligibility.

Effective 7/1/2023
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.
(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.
(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; 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 may revoke a license under this part:
(i) 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) after the third the same violation of this chapter in any of the licensee's licensed cannabis production establishments or medical cannabis pharmacies;
(iii) if an individual described in Subsection (2)(b)(ii) is convicted, while the license is active, under state or federal law of:
(A) a felony; or
(B) after December 3, 2018, a misdemeanor for drug distribution;
(iv) 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) 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) 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.
(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 cost of conducting the application review.
Renumbered and Amended by Chapter 273, 2023 General Session
Amended by Chapter 307, 2023 General Session, (Coordination Clause)
Renumbered and Amended by Chapter 307, 2023 General Session
Amended by Chapter 317, 2023 General Session