(1)A person may not:
(1)(a) operate as a medical cannabis pharmacy without a license that the department issues under this part;
(1)(b) obtain a medical cannabis pharmacy license if obtaining the license would cause the person to exceed the pharmacy ownership limit;
(1)(c) obtain a partial ownership share of a medical cannabis pharmacy if obtaining the partial ownership share would cause the person to exceed the pharmacy ownership limit; or
(1)(d) enter into any contract or agreement that allows the person to directly or indirectly control the operations of a medical cannabis pharmacy if the person's control of the medical cannabis pharmacy would cause the person to effectively exceed the pharmacy ownership limit.
(2)(2)(a) (2)(a)(i) Subject to Subsections (4) and (5) and to Section 4-41
Free access — add to your briefcase to read the full text and ask questions with AI
(1) A person may not:
(1)(a) operate as a medical cannabis pharmacy without a license that the department issues under this part;
(1)(b) obtain a medical cannabis pharmacy license if obtaining the license would cause the person to exceed the pharmacy ownership limit;
(1)(c) obtain a partial ownership share of a medical cannabis pharmacy if obtaining the partial ownership share would cause the person to exceed the pharmacy ownership limit; or
(1)(d) enter into any contract or agreement that allows the person to directly or indirectly control the operations of a medical cannabis pharmacy if the person's control of the medical cannabis pharmacy would cause the person to effectively exceed the pharmacy ownership limit.
(2) (2)(a) (2)(a)(i) Subject to Subsections (4) and (5) and to Section 4-41a-1005, the licensing board shall issue a license to operate a medical cannabis pharmacy.
(2)(a)(ii) The licensing board may not issue a license to operate a medical cannabis pharmacy to an applicant who is not eligible for a license under this section.
(2)(b) An applicant is eligible for a license under this section if the applicant submits to the licensing board:
(2)(b)(i) subject to Subsection (2)(c), a proposed name and address where the applicant will operate the medical cannabis pharmacy;
(2)(b)(ii) the name and address of an individual who:
(2)(b)(ii)(A) for a publicly traded company, has a financial or voting interest of 10% or greater in the proposed medical cannabis pharmacy;
(2)(b)(ii)(B) for a privately held company, a financial or voting interest in the proposed medical cannabis pharmacy; or
(2)(b)(ii)(C) has the power to direct or cause the management or control of a proposed medical cannabis pharmacy;
(2)(b)(iii) for each application that the applicant submits to the department, a statement from the applicant that the applicant will obtain and maintain:
(2)(b)(iii)(A) a performance bond in the amount of $100,000 issued by a surety authorized to transact surety business in the state; or
(2)(b)(iii)(B) a liquid cash account in the amount of $100,000 with a financial institution;
(2)(b)(iv) an operating plan that:
(2)(b)(iv)(A) complies with Section 4-41a-1004;
(2)(b)(iv)(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
(2)(b)(iv)(C) the department approves;
(2)(b)(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
(2)(b)(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.
(2)(c) (2)(c)(i) A person may not locate a medical cannabis pharmacy:
(2)(c)(i)(A) within 200 feet of a community location; or
(2)(c)(i)(B) in or within 600 feet of a district that the relevant municipality or county has zoned as primarily residential.
(2)(c)(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.
(2)(c)(iii) The licensing board 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.
(2)(c)(iv) An applicant for a license under this section shall provide evidence of compliance with the proximity requirements described in Subsection (2)(c)(i).
(2)(d) The licensing board 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).
(2)(e) If the licensing board 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.
(2)(f) In considering the issuance of a medical cannabis pharmacy license under this section, the licensing board may consider the extent to which the pharmacy can increase efficiency and reduce cost to patients of medical cannabis.
(3) (3)(a) After an entity has been selected for a medical cannabis pharmacy license under this section, the department shall:
(3)(a)(i) 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;
(3)(a)(ii) notify the Department of Public Safety of the license approval and the names of each individual described in Subsection (2)(b)(ii); and
(3)(a)(iii) 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.
(3)(b) For a fee described in Subsection (3)(a)(i), a license fee for a medical cannabis pharmacy located in a medically underserved area as determined by the federal Health Resources and Services Administration shall be 50% less than what is charged for other medical cannabis pharmacies.
(4) The licensing board may not issue a license to operate a medical cannabis pharmacy to an applicant if an individual described in Subsection (2)(b)(ii):
(4)(a) has been convicted under state or federal law of:
(4)(a)(i) a felony in the preceding 10 years; or
(4)(a)(ii) after December 3, 2018, a misdemeanor for drug distribution;
(4)(b) is younger than 21 years old; or
(4)(c) after September 23, 2019, until January 1, 2023, is actively serving as a legislator.
(5) If an applicant for a medical cannabis pharmacy license under this section holds another license under this chapter, the licensing board may not give preference to the applicant based on the applicant's status as a holder of the license.
(6) The licensing board may revoke a license under this part:
(6)(a) 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;
(6)(b) after the third of the same violation of this chapter in any of the licensee's licensed cannabis production establishments or medical cannabis pharmacies;
(6)(c) if an individual described in Subsection (2)(b)(ii) is convicted, while the license is active, under state or federal law of:
(6)(c)(i) a felony; or
(6)(c)(ii) after December 3, 2018, a misdemeanor for drug distribution;
(6)(d) 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;
(6)(e) 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;
(6)(f) if, after a change of ownership described in Subsection (10)(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; or
(6)(g) if through an investigation conducted under Subsection 4-41a-201.1(11) and in accordance with Title 63G, Chapter 4, Administrative Procedures Act, the licensing board finds that the licensee has participated in anticompetitive business practices.
(7) (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.
(7)(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) (9)(a) The licensing board's authority to issue a license under this section is plenary and is not subject to review.
(9)(b) Notwithstanding Subsection (2), the decision of the department to award a license to an applicant is not subject to:
(9)(b)(i) Title 63G, Chapter 6a, Part 16, Protests; or
(9)(b)(ii) Title 63G, Chapter 6a, Part 17, Procurement Appeals Board.
(10) (10)(a) A medical cannabis pharmacy license is not transferrable or assignable.
(10)(b) A medical cannabis pharmacy shall report in writing to the department no later than 45 business days before the date of any change of ownership of the medical cannabis pharmacy.
(10)(c) If the ownership of a medical cannabis pharmacy changes by 50% or more:
(10)(c)(i) concurrent with the report described in Subsection (10)(b), the medical cannabis pharmacy shall submit a new application described in Subsection (2)(b), subject to Subsection (2)(c);
(10)(c)(ii) within 30 days of the submission of the application, the licensing board shall:
(10)(c)(ii)(A) conduct an application review; and
(10)(c)(ii)(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
(10)(c)(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 department's cost of conducting the application review.