Medical Cannabis Pharmacy License

Utah Code tit. 4, ch. 4-41a, pt. 4-41a-P10

in effect

Utah Code § 4-41a-1001 Medical cannabis pharmacy -- License -- Eligibility.

4-41a-1001. Medical cannabis pharmacy -- License -- Eligibility. (1) A person may not: (a) operate as a medical cannabis pharmacy without a license that the department issues under this part; (b) obtain a medical cannabis pharmacy license if obtaining the license would cause the person to exceed the pharmacy ownership limit; (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 (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) (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. (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. (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 address where the applicant will operate the medical cannabis pharmacy; (ii) the name and address of an individual who: (A) for a publicly traded company, has a financial or voting interest of 10% or greater in the proposed medical cannabis pharmacy; (B) for a privately held company, a financial or voting interest in the proposed medical cannabis pharmacy; or (C) has the power to direct or cause the management or control of a proposed medical cannabis pharmacy; (iii) for each application that the applicant submits to the department, a statement from the applicant that the applicant will obtain and maintain: (A) a performance bond in the amount of $100,000 issued by a surety authorized to transact surety business in the state; or (B) a liquid cash account in the amount of $100,000 with a financial institution; (iv) an operating plan that: (A) complies with Section 4-41a-1004; (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 (C) the department approves; (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 medical cannabis pharmacy: (A) within 200 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 medical cannabis pharmacy 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 department determines that it is not reasonably feasible for the applicant to site the proposed medical cannabis pharmacy 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). (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). (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. (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) (a) After an entity has been selected for a medical cannabis pharmacy license under this section, the department shall: (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; (ii) notify the Department of Public Safety of the license approval and the names of each individual described in Subsection (2)(b)(ii); and (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. (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): (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. (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: (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; (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 an individual described in Subsection (2)(b)(ii) 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 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; (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 (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) (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. (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) (a) The licensing board's authority to issue a license under this section is plenary and is not subject to review. (b) Notwithstanding Subsection (2), 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. (10) (a) A medical cannabis pharmacy license is not transferrable or assignable. (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. (c) If the ownership of a medical cannabis pharmacy changes by 50% or more: (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); (ii) within 60 days of the submission of the application, the licensing board shall: (A) conduct an application review; and (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 (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. Amended by Chapter 483, 2026 General Session

Utah Code § 4-41a-1002 Medical cannabis pharmacy owners and directors -- Criminal background checks.

4-41a-1002. Medical cannabis pharmacy owners and directors -- Criminal background checks. (1) Each applicant to whom the department issues a notice of intent to award a license to operate as a medical cannabis pharmacy shall submit, before the department may award the license, 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 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. Renumbered and Amended by Chapter 273, 2023 General Session Renumbered and Amended by Chapter 307, 2023 General Session Amended by Chapter 307, 2023 General Session, (Coordination Clause) Amended by Chapter 317, 2023 General Session

Utah Code § 4-41a-1003 Renewal -- Notice of available license.

4-41a-1003. Renewal -- Notice of available license. (1) (a) The department shall renew a license issued under this part every year if, at the time of renewal: (i) the licensee meets the requirements of Section 4-41a-1001; (ii) the licensee pays the department a license renewal fee in an amount that, subject to Subsection 4-41a-1004(5), the department sets in accordance with Section 63J-1-504; and (iii) if the medical cannabis pharmacy changes the operating plan described in Section 4-41a-1004 that the department approved under Subsection 4-41a-1001(2)(b)(iv), the department approves the new operating plan. (b) A license fee for a medical cannabis pharmacy located in a county of the third, fourth, fifth, or sixth class shall be 50% less than what is charged for other medical cannabis pharmacies. (2) (a) If a licensed medical cannabis pharmacy abandons the medical cannabis pharmacy's license, the department shall publish notice of an available license, for the geographic area in which the medical cannabis pharmacy license is available, as a class A notice under Section 63G-30-102, for at least seven days. (b) The department may establish criteria, in collaboration with the Division of Professional Licensing and the Board of Pharmacy and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to identify the medical cannabis pharmacy actions that constitute abandonment of a medical cannabis pharmacy license. (3) If the department has not completed the necessary processes to make a determination on a license renewal under Subsections (1)(a) and (c) before the expiration of a license, the department may issue a conditional medical cannabis pharmacy license to a licensed medical cannabis pharmacy that has applied for license renewal under this section and paid the fee described in Subsection (1)(b). Amended by Chapter 114, 2025 General Session

Utah Code § 4-41a-1004 Operating plan.

4-41a-1004. Operating plan. A person applying for a medical cannabis pharmacy license shall submit to the department a proposed operation plan for the medical cannabis pharmacy that includes: (1) a description of the physical characteristics of the proposed facility, including a floor plan and an architectural elevation; (2) a description of the credentials and experience of: (a) each officer, director, or owner of the proposed medical cannabis pharmacy; and (b) any highly skilled or experienced prospective employee; (3) the medical cannabis pharmacy's employee training standards; (4) a security plan; (5) a description of the medical cannabis pharmacy's inventory control system, including a plan to make the inventory control system compatible with the state electronic verification system; (6) 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; and (7) a description of the proposed medical cannabis pharmacy's strategic plan for opening the medical cannabis pharmacy, including gauging appropriate timing based on: (a) the supply of medical cannabis and medical cannabis products, in consultation with the department; and (b) the quantity and condition of the population of medical cannabis cardholders, in consultation with the Department of Health and Human Services. Renumbered and Amended by Chapter 273, 2023 General Session Renumbered and Amended by Chapter 307, 2023 General Session Amended by Chapter 307, 2023 General Session, (Coordination Clause)

Utah Code § 4-41a-1005 Maximum number of licenses -- Medical cannabis pharmacy regions.

4-41a-1005. Maximum number of licenses -- Medical cannabis pharmacy regions. (1) The licensing board shall issue up to 17 medical cannabis pharmacy licenses in accordance with this section including the two medical cannabis pharmacy licenses in accordance with Section 4-41a-1006. (2) (a) The licensing board shall: (i) evaluate each applicant and award the license to the applicant that best demonstrates: (A) experience with establishing and successfully operating a business that involves complying with a regulatory environment, tracking inventory, and 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; (D) the suitability of the proposed location and the location's accessibility for qualifying patients; (E) the extent to which the applicant can increase efficiency and reduce the cost of medical cannabis for patients; and (F) a strategic plan described in Subsection 4-41a-1004(7) that has a comparatively high likelihood of success; and (ii) when awarding a license, use the regions described in Subsection (4)(a) to ensure a geographic dispersal among licensees that is sufficient to reasonably maximize access to the largest number of medical cannabis cardholders. (b) In making the evaluation described in Subsection (2)(a), the licensing board may give increased consideration to applicants who indicate a willingness to: (i) site a medical cannabis pharmacy in an area or population center designated as a medically underserved area or population as determined by the federal Health Resources and Services Administration; and (ii) operate as a home delivery medical cannabis pharmacy that accepts electronic medical cannabis orders. (3) The licensing board may conduct a face-to-face interview with an applicant for a license that the licensing board evaluates under Subsection (2). (4) (a) Through rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department shall divide the state into at least four geographic regions for locating medical cannabis pharmacies. (b) When creating regions the department shall create regions that allow for a geographic dispersal among licensees that is sufficient to reasonably maximize access to the largest number of medical cannabis cardholders. Amended by Chapter 481, 2026 General Session

Utah Code § 4-41a-1006 Independent medical cannabis licenses.

4-41a-1006. Independent medical cannabis licenses. (1) (a) Subject to the requirements of Subsection (3) and the criteria established for obtaining a medical cannabis pharmacy license under this chapter, the licensing board shall: (i) before January 1, 2026, select one entity to receive a medical cannabis pharmacy license; and (ii) before January 1, 2027, but not before January 1, 2026, select one entity to receive a medical cannabis pharmacy license. (b) When selecting entities under this section, if there is a conflict between the criteria established for obtaining a medical cannabis pharmacy license under the other sections of this chapter and this section, this section controls. (2) For the license described in Subsection (1)(a)(ii), the licensing board may not select an entity: (a) that owns any interest in or operates a medical cannabis production establishment; or (b) that is owned, partially or entirely, or operated by a medical cannabis production establishment. (3) The licensing board: (a) may not select an entity to receive a license under this section if the entity owns a financial interest in a medical cannabis pharmacy or is owned by an entity that owns a financial interest in a medical cannabis pharmacy; and (b) shall select an entity that will site a medical cannabis pharmacy license issued under this section in an area: (i) designated as a medically underserved area as determined by the federal Health Resources and Services Administration; and (ii) located in a county of the third, fourth, fifth, or sixth class. (4) A license described in this section may not be transferred to another entity unless that entity meets the requirements of Subsections (2) and (3) that the transferring entity met when obtaining the license. (5) Notwithstanding Subsection (4), for a license described in Subsection (1)(a)(i), an applicant shall commit to not alienating or otherwise transferring control of the license or of the entity that holds the license to another person for at least 15 years from the day the license is issued under this chapter. (6) The department shall provide regular updates to the Medical Cannabis Governance Structure Working Group created in Section 36-12-8.2 regarding the application and selection process for licenses issued under this section. Enacted by Chapter 114, 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-P10.html?v=C4-41a-P10_2023050320230701Fetched: 10/26/2026