Utah Code 4-41a-204. Operating plan

4-41a-204. Operating plan.

(1)

A person applying for a cannabis production establishment license or license renewal shall submit to the department for the department’s review a proposed operating plan that complies with this section and that includes:

Terms Used In Utah Code 4-41a-204

Cannabis: means the same as that term is defined in Section 26B-4-201. See Utah Code 4-41a-102
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 product: means the same as that term is defined in Section 26B-4-201. 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

Cultivation space: means , quantified in square feet, the horizontal area in which a cannabis cultivation facility cultivates cannabis, including each level of horizontal area if the cannabis cultivation facility hangs, suspends, stacks, or otherwise positions plants above other plants in multiple levels. See Utah Code 4-41a-102

Department: means the Department of Agriculture and Food. See Utah Code 4-41a-102

Independent cannabis testing laboratory: includes a laboratory that the department or a research university operates in accordance with Subsection 4-41a-201(14). See Utah Code 4-41a-102

Inventory control system: means a system described in Section 4-41a-103. See Utah Code 4-41a-102

Land: includes :Utah Code 68-3-12.5

Person: means a natural person or individual, corporation, organization, or other legal entity. See Utah Code 4-1-109

State electronic verification system: means the system described in Section 26B-4-202. See Utah Code 4-41a-102

(a)

a description of the physical characteristics of the proposed facility or, for a cannabis cultivation facility, no more than two facility locations, including a floor plan and an architectural elevation;

(b)

a description of the credentials and experience of:

(i)	each officer, director, and owner of the proposed cannabis production establishment; and

(ii)	any highly skilled or experienced prospective employee;

(c)	the cannabis production establishment’s employee training standards;

(d)	a security plan;

(e)	a description of the cannabis production establishment’s inventory control system, including a description of how the inventory control system is compatible with the state electronic verification system described in Section 26B-4-202;

(f)	storage protocols, both short- and long-term, to ensure that cannabis is stored in a manner that is sanitary and preserves the integrity of the cannabis;

(g)	for a cannabis cultivation facility, the information described in Subsection (2);

(h)	for a cannabis processing facility, the information described in Subsection (3); and

(i)	for an independent cannabis testing laboratory, the information described in Subsection (4).

(2)

(a)

A cannabis cultivation facility shall ensure that the facility’s operating plan includes the facility’s intended:

(i)	cannabis cultivation practices, including the facility’s intended pesticide use and fertilizer use; and

(ii)	subject to Subsection (2)(b), acreage or square footage under cultivation and anticipated cannabis yield.

(b)

Except as provided in Subsection (2)(c)(i) or (c)(ii), a cannabis cultivation facility may not:

(i)	for a facility that cultivates cannabis only indoors, use more than 100,000 total square feet of cultivation space;

(ii)	for a facility that cultivates cannabis only outdoors, use more than four acres for cultivation; and

(iii)

for a facility that cultivates cannabis through a combination of indoor and outdoor cultivation, use more combined indoor square footage and outdoor acreage than allowed under the department’s formula described in Subsection (2)(e).

(c)

(i)

Each licensee may apply to the department for:

(A)	a one-time, permanent increase of up to 20% of the limitation on the cannabis cultivation facility’s cultivation space; or

(B)	a short-term increase, not to exceed 12 months, of up to 40% of the limitation on the cannabis cultivation facility’s cultivation space.

(ii)

After conducting a review equivalent to the review described in Subsection 4-41a-205(2)(a), if the department determines that additional cultivation is needed, the department may:

(A)	grant the one-time, permanent increase described in Subsection (2)(c)(i)(A); or

(B)	grant the short-term increase described in Subsection (2)(c)(i)(B).

(d)	If a licensee describes an intended acreage or square footage under cultivation under Subsection (2)(a)(ii) that is less than the limitation described in Subsection (2)(b), the licensee may not cultivate more than the licensee’s identified intended acreage or square footage under cultivation.

(e)

The department shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establish a formula for combined usage of indoor and outdoor cultivation that:

(i)	does not exceed, in estimated cultivation yield, the aggregate limitations described in Subsection (2)(b)(i) or (ii); and

(ii)	allows a cannabis cultivation facility to operate both indoors and outdoors.

(f)

(i)	The department may authorize a cannabis cultivation facility to operate at no more than two separate locations.

(ii)	If the department authorizes multiple locations under Subsection (2)(f)(i), the two cannabis cultivation facility locations combined may not exceed the cultivation limitations described in this Subsection (2).

(3)

A cannabis processing facility’s operating plan shall include the facility’s intended cannabis processing practices, including the cannabis processing facility’s intended:

(a)	offered variety of cannabis product;

(b)	cannabinoid extraction method;

(c)	cannabinoid extraction equipment;

(d)	processing equipment;

(e)	processing techniques; and

(f)	sanitation and manufacturing safety procedures for items for human consumption.

(4)

An independent cannabis testing laboratory’s operating plan shall include the laboratory’s intended:

(a)	cannabis and cannabis product testing capability;

(b)	cannabis and cannabis product testing equipment; and

(c)	testing methods, standards, practices, and procedures for testing cannabis and cannabis products.

(5)	Notwithstanding an applicant’s proposed operating plan, a cannabis production establishment is subject to land use regulations, as defined in Sections 10-9a-103 and 17-27a-103, regarding the availability of outdoor cultivation in an industrial zone.

Amended by Chapter 327, 2023 General Session

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