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Cannabis Production Establishment

Utah Code tit. 4, ch. 4-41a, pt. 4-41a-P2
in effect

Utah Code § 4-41a-201 Cannabis production establishment -- License.

4-41a-201. Cannabis production establishment -- License. (1) Except as provided in Subsection (14), a person may not operate a cannabis production establishment without a license that the department issues under this chapter. (2) (a) (i) Subject to Subsections (6), (7), (8), and (13) and to Section 4-41a-205, for a licensing process that the department initiates after March 17, 2021, the department, through the licensing board, shall issue licenses in accordance with Section 4-41a-201.1. (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department shall make rules to specify a transparent and efficient process to: (A) solicit applications for a license under this section; (B) allow for comments and questions in the development of applications; (C) timely and objectively evaluate applications; (D) hold public hearings that the department deems appropriate; and (E) select applicants to receive a license. (iii) The department may not issue a license to operate a cannabis production establishment to an applicant who is not eligible for a license under this section. (b) An applicant is eligible for a license under this section if the applicant submits to the licensing board: (i) subject to Subsection (2)(c), a proposed name and each address, located in a zone described in Subsection 4-41a-406(2)(a) or (b), where the applicant will operate the cannabis production establishment; (ii) the name and address of any individual who has: (A) for a publicly traded company, a financial or voting interest of 10% or greater in the proposed cannabis production establishment; (B) for a privately held company, a financial or voting interest in the proposed cannabis production establishment; or (C) the power to direct or cause the management or control of a proposed cannabis production establishment; (iii) an operating plan that: (A) complies with Section 4-41a-204; (B) includes operating procedures that comply with this chapter and any law the municipality or county in which the person is located adopts that is consistent with Section 4-41a-406; and (C) the department or licensing board approves; (iv) a statement that the applicant will obtain and maintain a liquid cash account with a financial institution or a performance bond that a surety authorized to transact surety business in the state issues in an amount of at least: (A) $100,000 for each cannabis cultivation facility for which the applicant applies; or (B) $50,000 for each cannabis processing facility or independent cannabis testing laboratory for which the applicant applies; (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 (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. (c) (i) A person may not locate a cannabis production establishment: (A) within 1,000 feet of a community location; or (B) in or within 600 feet of a district that the relevant municipality or county has zoned as primarily residential. (ii) The proximity requirements described in Subsection (2)(c)(i) shall be measured from the nearest entrance to the cannabis production establishment by following the shortest route of ordinary pedestrian travel to the property boundary of the community location or residential area. (iii) The licensing board may grant a waiver to reduce the proximity requirements in Subsection (2)(c)(i) by up to 20% if the licensing board determines that it is not reasonably feasible for the applicant to site the proposed cannabis production establishment without the waiver. (iv) An applicant for a license under this section shall provide evidence of compliance with the proximity requirements described in Subsection (2)(c)(i). (3) If the licensing board approves an application for a license under this section and Section 4-41a-201.1: (a) the applicant shall pay the department 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; and (b) the department shall notify the Department of Public Safety of the license approval and the names of each individual described in Subsection (2)(b)(ii). (4) (a) Except as provided in this Subsection (4), a cannabis production establishment shall obtain a separate license for each type of cannabis production establishment and each location of a cannabis production establishment. (b) The licensing board may issue a cannabis cultivation facility license and a cannabis processing facility license to a person to operate at the same physical location or at separate physical locations. (c) A cannabis cultivation facility may operate at three addresses under a single license. (d) A tier one cannabis processing facility may operate at a second address under the same tier one license if: (i) the second address is co-located at a cannabis cultivation facility operated by the same licensee; and (ii) the licensee pays a fee of $70,000 for the second location. (e) An applicant for a tier two cannabis processing facility license that has a cannabis cultivation facility license and intends to process cannabis at the cannabis cultivation facility shall pay a fee of $25,000 for the tier two cannabis processing facility license. (5) If the licensing board receives more than one application for a cannabis production establishment within the same city or town, the licensing board shall consult with the local land use authority before approving any of the applications pertaining to that city or town. (6) The licensing board may not issue a license to operate an independent cannabis testing laboratory to a person who: (a) holds a license or has an ownership interest in a medical cannabis pharmacy, a cannabis processing facility, or a cannabis cultivation facility; (b) has an owner, officer, director, or employee whose family member holds a license or has an ownership interest in a medical cannabis pharmacy, a cannabis processing facility, or a cannabis cultivation facility; or (c) proposes to operate the independent cannabis testing laboratory at the same physical location as a medical cannabis pharmacy, a cannabis processing facility, or a cannabis cultivation facility. (7) The licensing board may not issue a license to operate a cannabis production establishment to an applicant if any individual described in Subsection (2)(b)(ii): (a) has been convicted under state or federal law of: (i) a felony in the preceding 10 years; or (ii) after December 3, 2018, a misdemeanor for drug distribution; (b) is younger than 21 years old; or (c) after September 23, 2019, until January 1, 2023, is actively serving as a legislator. (8) (a) If an applicant for a cannabis production establishment license under this section holds a license under Chapter 41, Hemp and Cannabinoid Act, the licensing board may not give preference to the applicant based on the applicant's status as a holder of the license. (b) If an applicant for a license to operate a cannabis cultivation facility under this section holds a license to operate a medical cannabis pharmacy under this title, the licensing board may give consideration to the applicant based on the applicant's status as a holder of a medical cannabis pharmacy license if: (i) the applicant demonstrates that a decrease in costs to patients is more likely to result from the applicant's vertical integration than from a more competitive marketplace; and (ii) the licensing board finds multiple other factors, in addition to the existing license, that support granting the new license. (9) The licensing board may revoke a license under this part: (a) if the cannabis production establishment does not begin cannabis production operations within one year after the day on which the licensing board issues the initial license; (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; (c) if any individual described in Subsection (2)(b) is convicted, while the license is active, under state or federal law of: (i) a felony; or (ii) after December 3, 2018, a misdemeanor for drug distribution; (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; (e) if the cannabis production establishment demonstrates a willful or reckless disregard for the requirements of this chapter or the rules the department makes in accordance with this chapter; (f) if, after a change of ownership described in Subsection (15)(b), the board determines that the cannabis production establishment no longer meets the minimum standards for licensure and operation of the cannabis production establishment described in this chapter; (g) for an independent cannabis testing laboratory, if the independent cannabis testing laboratory fails to substantially meet the performance standards described in Subsection (14)(b); or (h) if, following an investigation conducted under Subsection 4-41a-201.1(11), the board finds that the licensee has participated in an anticompetitive business practice. (10) (a) A person who receives a cannabis production establishment license under this chapter, if the municipality or county where the licensed cannabis production establishment will be located requires a local land use permit, shall submit to the licensing board a copy of the licensee's approved application for the land use permit within 120 days after the day on which the licensing board issues the license. (b) If a licensee fails to submit to the licensing board a copy of the licensee's approved land use permit application in accordance with Subsection (10)(a), the licensing board may revoke the licensee's license. (11) The department shall deposit the proceeds of a fee that the department imposes under this section into the Qualified Production Enterprise Fund. (12) The department shall begin accepting applications under this part on or before January 1, 2020. (13) (a) The department's authority, and consequently the licensing board's authority, to issue a license under this section is plenary and is not subject to review. (b) Notwithstanding Subsection (2)(a)(ii), the decision of the department to award a license to an applicant is not subject to: (i) Title 63G, Chapter 6a, Part 16, Protests; or (ii) Title 63G, Chapter 6a, Part 17, Procurement Appeals Board. (14) (a) Notwithstanding this section, the department: (i) may operate or partner with a research university to operate an independent cannabis testing laboratory; (ii) if the department operates or partners with a research university to operate an independent cannabis testing laboratory, may not cease operating or partnering with a research university to operate the independent cannabis testing laboratory unless: (A) the department issues at least two licenses to independent cannabis testing laboratories; and (B) the department has ensured that the licensed independent cannabis testing laboratories have sufficient capacity to provide the testing necessary to support the state's medical cannabis market; and (iii) after ceasing department or research university operations under Subsection (14)(a)(ii) shall resume independent cannabis testing laboratory operations at any time if: (A) fewer than two licensed independent cannabis testing laboratories are operating; or (B) the licensed independent cannabis testing laboratories become, in the department's determination, unable to fully meet the market demand for testing. (b) (i) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish performance standards for the operation of an independent cannabis testing laboratory, including deadlines for testing completion. (ii) A license that the department issues to an independent cannabis testing laboratory is contingent upon substantial satisfaction of the performance standards described in Subsection (14)(b)(i), as determined by the board. (15) (a) A cannabis production establishment license is not transferrable or assignable. (b) If the ownership of a cannabis production establishment changes by 50% or more: (i) the cannabis production establishment shall submit a new application described in Subsection (2)(b), subject to Subsection (2)(c); (ii) within 60 days of the submission of the application, the board shall: (A) conduct the application review described in Section 4-41a-201.1; and (B) award a license to the cannabis production establishment for the remainder of the term of the cannabis production establishment's license before the ownership change if the cannabis production establishment meets the minimum standards for licensure and operation of the cannabis production establishment described in this chapter; and (iii) if the board approves the license application, notwithstanding Subsection (3), the cannabis production establishment shall pay a license fee that the department sets in accordance with Section 63J-1-504 in an amount that covers the board's cost of conducting the application review. Amended by Chapter 421, 2026 General Session

Utah Code § 4-41a-201.1 Specialized Product Authority Licensing Board -- Composition -- Duties.

4-41a-201.1. Specialized Product Authority Licensing Board -- Composition -- Duties. (1) There is created within the department the Specialized Product Authority Licensing Board. (2) The commissioner shall hire three directors as employees of the department to be on the licensing board. (3) (a) The licensing board shall consist of three directors. (b) An individual is not eligible as a director of the licensing 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. (c) At least one member of the licensing board shall have experience related to public health or medicine. (4) A director serves at the pleasure of the commissioner. (5) (a) Two members of the licensing board constitute a quorum of the licensing board. (b) An action of the majority of the licensing board members when a quorum is present constitutes an action of the licensing board. (6) The licensing board shall: (a) review cannabis production establishment, medical cannabis pharmacy, and medical cannabis courier 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 licensing board shall hold a public hearing to review a cannabis production establishment's or medical cannabis pharmacy'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 operation to the same location as the cannabis production establishment's processing facility; or (f) as necessary based on the recommendation of the department. (8) In a public hearing held under Subsection (7), the licensing board may consider the following in determining whether to approve a request to change pharmacy locations: (a) medical cannabis availability, quality, and variety; (b) whether geographic dispersal among licensees is sufficient to reasonably maximize access to the largest number of medical cannabis cardholders; (c) the extent to which the pharmacy can increase efficiency and reduce the cost to patients of medical cannabis; and (d) the factors listed in Subsection 4-41a-1004(7). (9) The licensing board may not approve a request to change a medical cannabis pharmacy location outside of the pharmacy's current region established under Subsection 4-41a-1005(4). (10) (a) The licensing board shall meet as necessary to consider cannabis production establishment, medical cannabis pharmacy, and medical cannabis courier license renewal applications. (b) During the public meeting described in Subsection (10)(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 licensing board may require, for the licensing board's consideration; (ii) the licensing 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; (iii) the licensing 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; and (iv) the licensing board shall consider, for each cannabis pharmacy seeking renewal, information including: (A) product availability, quality, and variety; (B) the pharmacy's operating procedures and practices; and (C) the factors listed in Subsection 4-41a-1003(1). (c) Following consideration of the information provided under Subsection (10)(b), the licensing board may elect to approve, deny, or issue conditional approval of a cannabis production establishment or pharmacy license renewal application. (d) The information a licensee or license applicant provides to the licensing board for a license determination constitutes a protected record under Subsection 63G-2-305(1) or (2) if the applicant or licensee provides the licensing board with the information regarding business confidentiality required in Section 63G-2-309. (11) (a) In cooperation with the attorney general, the licensing board may investigate information received by the department indicating that a licensee is potentially engaging in anticompetitive business practices. (b) In investigating potential anticompetitive business practices under this section, the attorney general may issue civil investigative demands as set forth in Section 76-16-506. (12) (a) The licensing board shall hear all appeals related to administrative action taken under this chapter, Chapter 41, Hemp and Cannabinoid Act, and Chapter 45, Kratom Consumer Protection Act, as an informal proceeding under Title 63G, Chapter 4, Administrative Procedures Act. (b) The licensing board shall create rules for hearing appeals in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. (13) (a) The licensing board in consultation with the Compassionate Use Board described in Section 4-41a-112 shall provide recommendations, if any, to the Medical Cannabis Governance Structure Working Group regarding additional conditions to be added to the qualifying conditions list described in Section 26B-4-203. (b) The licensing board shall create a process that allows the public to suggest conditions that should be recommended to the Legislature for inclusion on the qualifying conditions list. (14) For rules made under this chapter, the department shall collaborate with the licensing board when making the rules. (15) The licensing board shall supervise and assist the department in carrying out the duties described in Title 26B, Chapter 4, Part 2, Cannabinoid Research and Medical Cannabis. (16) Except as required by this chapter to hold a public meeting or hearing, the licensing board is not subject to Title 52, Chapter 4, Open and Public Meetings Act. Amended by Chapter 421, 2026 General Session

Utah Code § 4-41a-202 Cannabis production establishment owners and directors -- Criminal background checks.

4-41a-202. Cannabis production establishment owners and directors -- Criminal background checks. (1) Each applicant for a license as a cannabis production establishment shall submit to the department, at the time of application, from each individual who has a financial or voting interest of 10% or greater in the applicant or who has the power to direct or cause the management or control of the applicant: (a) a fingerprint card in a form acceptable to the Department of Public Safety; (b) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the registration of the individual's fingerprints in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service; and (c) consent to a fingerprint background check by: (i) the Utah Bureau of Criminal Identification; and (ii) the Federal Bureau of Investigation. (2) The Bureau of Criminal Identification shall: (a) check the fingerprints the applicant submits under Subsection (1) against the applicable state, regional, and national criminal records databases, including the Federal Bureau of Investigation Next Generation Identification System; (b) report the results of the background check to the department; (c) maintain a separate file of fingerprints that applicants submit under Subsection (1) for search by future submissions to the local and regional criminal records databases, including latent prints; (d) request that the fingerprints be retained in the Federal Bureau of Investigation Next Generation Identification System's Rap Back Service for search by future submissions to national criminal records databases, including the Next Generation Identification System and latent prints; and (e) establish a privacy risk mitigation strategy to ensure that the department only receives notifications for an individual with whom the department maintains an authorizing relationship. (3) The department shall: (a) assess an individual who submits fingerprints under Subsection (1) a fee in an amount that the department sets in accordance with Section 63J-1-504 for the services that the Bureau of Criminal Identification or another authorized agency provides under this section; and (b) remit the fee described in Subsection (3)(a) to the Bureau of Criminal Identification. Amended by Chapter 217, 2024 General Session

Utah Code § 4-41a-203 Renewal.

4-41a-203. Renewal. The department shall renew a license issued under Section 4-41a-201 every year if: (1) the licensee meets the requirements of Section 4-41a-201 at the time of renewal; (2) the board does not identify: (a) a significant failure of compliance with this chapter or department rules in the review described in Section 4-41a-201.1; or (b) grounds for revocation described in Subsections 4-41a-201(9)(b) through (g); (3) the licensee pays the department a license renewal fee in an amount that, subject to Subsection 4-41a-104(5), the department sets in accordance with Section 63J-1-504; and (4) if the cannabis production establishment changes the operating plan described in Section 4-41a-204 that the department or licensing board approved under Subsection 4-41a-201(2)(b)(iii), the department approves the new operating plan. Amended by Chapter 290, 2022 General Session Amended by Chapter 350, 2021 General Session

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: (a) a description of the physical characteristics of each proposed facility, 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); (i) for an independent cannabis testing laboratory, the information described in Subsection (4); and (j) for a cannabis production establishment located in an industrial zone, a plan to reduce odor created by the cannabis production establishment that: (i) meets local ordinance nuisance laws; and (ii) identifies: (A) operations and materials that generate odors; and (B) equipment, operations, or materials the cannabis production establishment will use to mitigate odor emissions, including plans to maintain equipment. (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 plant food 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 three separate locations. (ii) If the department authorizes multiple locations under Subsection (2)(f)(i): (A) the multiple cannabis cultivation facility locations combined may not exceed the cultivation limitations described in this Subsection (2); and (B) the cannabis cultivation facility shall pay a $15,000 fee for each location after the second location. (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 implemented by a local land use authority under Title 10, Chapter 20, Municipal Land Use, Development, and Management Act, or Title 17, Chapter 79, County Land Use, Development, and Management Act, regarding the availability of outdoor cultivation in an industrial zone. Amended by Chapter 421, 2026 General Session

Utah Code § 4-41a-204.1 Odor control recommendations.

4-41a-204.1. Odor control recommendations. (1) As used in this section, "objectionable odor" means pollution of the ambient air beyond the property line of a facility consisting of an odor that, considering the odor's characteristics, intensity, frequency, and duration: (a) is, or can reasonably be expected to be, injurious to public health or welfare; or (b) unreasonably interferes with the enjoyment of life or the use of a person's property that is exposed to the odor. (2) (a) Before January 1, 2026, the department shall provide a report with recommendations to the Medical Cannabis Governance Structure Working Group created in Section 36-12-8.2 regarding objectionable odor control standards for cannabis production establishments. (b) The department shall: (i) work with a cannabis production establishment to monitor odor emitted by the cannabis production establishment; and (ii) consult with each county and municipality that currently has a cannabis production establishment sited within the county or municipality's boundaries regarding potential standards for the maximum amounts of objectionable odors emitted by a cannabis production establishment. (c) A cannabis production establishment shall provide information related to the cannabis production establishment's odor emissions to the department upon request. (d) The report shall include an analysis regarding: (i) potential standards for measurement of objectionable odors related to cannabis production and distinct levels of odor tolerability; (ii) the feasibility of setting a universal odor control standard; (iii) the feasibility of enforcing odor control standards; (iv) cost incurred by a cannabis production establishment to comply with potential odor control standards; (v) interests of other businesses and community members affected by objectionable odor; and (vi) other information the department deems relevant. (3) The department shall examine odor control regulation from other locales. (4) The department may collaborate with other state agencies when creating the recommendations. Enacted by Chapter 128, 2025 General Session

Utah Code § 4-41a-205 Number of licenses -- Cannabis cultivation facilities.

4-41a-205. Number of licenses -- Cannabis cultivation facilities. (1) Except as provided in Subsection (2)(a), the department shall issue at least five but not more than eight licenses to operate a cannabis cultivation facility. (2) (a) The department may issue a number of licenses to operate a cannabis cultivation facility that, in addition to the licenses described in Subsection (1), does not cause the total number of licenses to exceed 15 if the department determines, in consultation with the Department of Health and Human Services 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. (b) If the recipient of one of the initial licenses described in Subsection (1) ceases operations for any reason or otherwise abandons the license, the department may but is not required to grant the vacant license to another applicant based on an analysis as described in Subsection (2)(a). (3) If there are more qualified applicants than the number of available licenses for cannabis cultivation facilities under Subsections (1) and (2), the department shall evaluate the applicants and award the limited number of licenses described in Subsections (1) and (2) to the applicants that best demonstrate: (a) experience with establishing and successfully operating a business that involves: (i) complying with a regulatory environment; (ii) tracking inventory; and (iii) 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; and (d) the extent to which the applicant can increase efficiency and reduce the cost to patients of medical cannabis. (4) The department may conduct a face-to-face interview with an applicant for a license that the department evaluates under Subsection (3). (5) The licensing board may not issue more than 18 tier one cannabis processing facility licenses. Amended by Chapter 414, 2025 General Session
Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title4/Chapter41A/4-41a-P2.html?v=C4-41a-P2_2018120320181203Fetched: 10/26/2026

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