Renumbered 7/1/2023 26B-4-238. Payment provider for electronic medical cannabis transactions.
(1)
A cannabis production establishment, a medical cannabis pharmacy, or a prospective home delivery medical cannabis pharmacy seeking to use a payment provider shall submit to the Division of Finance and the state treasurer information regarding the payment provider the prospective licensee will use to conduct financial transactions related to medical cannabis, including:
Cannabis production establishment: means the same as that term is defined in Section 4-41a-102. 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
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
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
(a)
the name and contact information of the payment provider;
(b)
the nature of the relationship between the establishment, pharmacy, or prospective pharmacy and the payment provider; and
(c)
for a prospective home delivery medical cannabis pharmacy, the processes the prospective licensee and the payment provider have in place to safely and reliably conduct financial transactions for medical cannabis shipments.
(2)
The Division of Finance shall, in consultation with the state treasurer:
(a)
in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to establish standards for identifying payment providers that demonstrate the functional and technical ability to safely conduct financial transactions related to medical cannabis, including medical cannabis shipments;
(b)
review submissions the Division of Finance and the state treasurer receive under Subsection (1);
(c)
approve a payment provider that meets the standards described in Subsection (2)(a); and
(d)
establish a list of approved payment providers.
(3)
Any licensed cannabis production establishment, licensed medical cannabis pharmacy, or medical cannabis courier may use a payment provider that the Division of Finance approves, in consultation with the state treasurer, to conduct transactions related to the establishment’s, pharmacy’s, or courier’s respective medical cannabis business.
(4)
If Congress passes legislation that allows a cannabis-related business to facilitate payments through or deposit funds in a financial institution, a cannabis production establishment or a medical cannabis pharmacy may facilitate payments through or deposit funds in a financial institution in addition to or instead of a payment provider that the Division of Finance approves, in consultation with the state treasurer, under this section.
Amended by Chapter 307, 2023 General Session, (Coordination Clause) Renumbered and Amended by Chapter 307, 2023 General Session
