Renumbered 7/1/2023)

Renumbered 7/1/2023
26B-4-228.  Maximum number of licenses — Home delivery medical cannabis pharmacies.

(1) 

Terms Used In Utah Code 26B-4-228

(a) is intended for human use; and
(b) contains cannabis or any tetrahydrocannabinol or THC analog in a total concentration of 0. See Utah Code 26B-4-201
  • Department: means the Department of Health and Human Services. See Utah Code 26B-4-201
  • Financial institution: means a bank, trust company, savings institution, or credit union, chartered and supervised under state or federal law. See Utah Code 26B-4-201
  • 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. See Utah Code 26B-4-201
  • Medical cannabis: means cannabis in a medicinal dosage form or a cannabis product in a medicinal dosage form. See Utah Code 26B-4-201
  • Medical cannabis cardholder: means :
    (a) a holder of a medical cannabis card; or
    (b) a facility or assigned employee, described in Subsection(17)(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. See Utah Code 26B-4-201
  • 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. See Utah Code 26B-4-201
  • 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. See Utah Code 26B-4-201
  • Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • 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. See Utah Code 26B-4-201
  • (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 Agriculture and Food 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 26B-4-227(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 26B-4-238; or

    (B)  a financial institution in accordance with Subsection 26B-4-238(4).

    (3)  The department may conduct a face-to-face interview with an applicant for a license that the department evaluates under Subsection (2).

    (4) 

    (a)  The department may designate a medical cannabis pharmacy as a home delivery medical cannabis pharmacy if the department determines that the medical cannabis pharmacy’s operating plan demonstrates the functional and technical ability to:

    (i)  safely conduct transactions for medical cannabis shipments;

    (ii)  accept electronic medical cannabis orders that the state central patient portal facilitates; and

    (iii)  accept payments through:

    (A)  a payment provider that the Division of Finance approves, in consultation with the state treasurer, in accordance with Section 26B-4-238; or

    (B)  a financial institution in accordance with Subsection 26B-4-238(4).

    (b)  An applicant seeking a designation as a home delivery medical cannabis pharmacy shall identify in the applicant’s operating plan any information relevant to the department’s evaluation described in Subsection (4)(a), including:

    (i)  the name and contact information of the payment provider;

    (ii)  the nature of the relationship between the prospective licensee and the payment provider;

    (iii)  the processes of the following to safely and reliably conduct transactions for medical cannabis shipments:

    (A)  the prospective licensee; and

    (B)  the electronic payment provider or the financial institution described in Subsection (4)(a)(iii); and

    (iv)  the ability of the licensee to comply with the department’s rules regarding the secure transportation and delivery of medical cannabis or medical cannabis product to a medical cannabis cardholder.

    (c)  Notwithstanding any county or municipal ordinance, a medical cannabis pharmacy that the department designates as a home delivery medical cannabis pharmacy may deliver medical cannabis shipments in accordance with this part.

    Amended by Chapter 307, 2023 General Session, (Coordination Clause)
    Renumbered and Amended by Chapter 307, 2023 General Session