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. See Utah Code 4-41a-102
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. See Utah Code 4-41a-102
Cannabis production establishment: means a cannabis cultivation facility, a cannabis processing facility, or an independent cannabis testing laboratory. See Utah Code 4-41a-102
Commissioner: means the commissioner of agriculture and food. See Utah Code 4-1-109
Department: means the Department of Agriculture and Food. See Utah Code 4-41a-102
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. See Utah Code 4-41a-102
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. See Utah Code 4-41a-102
Organization: means a corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal entity. See Utah Code 4-1-109
Person: means a natural person or individual, corporation, organization, or other legal entity. See Utah Code 4-1-109
Quorum: The number of legislators that must be present to do business.
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. See Utah Code 4-41a-102
(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 members:
(i)
the following five 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
(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 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 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:
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 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 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)
(a)
The board shall meet annually in December to consider cannabis production establishment license renewal applications.
(b)
During the meeting described in Subsection (8)(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.
(c)
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.
