SB 66

Enrolled Copy  S.B. 66
1Medical Cannabis Pharmacy License Amendments
  2026 GENERAL SESSION
  STATE OF UTAH
  Chief Sponsor: Evan J. Vickers
  House Sponsor: Jennifer Dailey-Provost
2
3  LONG TITLE
4  General Description:
5      This bill amends provisions related to medical cannabis pharmacies.
6  Highlighted Provisions:
7      This bill:
8      ▸ clarifies and amends provisions related to the authority of the Department of Agriculture
9  and Food to establish geographic regions for the locations of medical cannabis
10  pharmacies.
11  Money Appropriated in this Bill:
12      None
13  Other Special Clauses:
14      This bill provides a special effective date.
15  Utah Code Sections Affected:
16  AMENDS:
17      4-41a-201.1, as last amended by Laws of Utah 2025, Chapter 414
18      4-41a-1005, as last amended by Laws of Utah 2025, Chapters 114, 414
19
20  Be it enacted by the Legislature of the state of Utah:
21Section 1. Section 4-41a-201.1 is amended to read:
224-41a-201.1 . Cannabis Production Establishment and Pharmacy Licensing
23  Advisory Board -- Composition -- Duties.
24  (1) There is created within the department the Cannabis Production Establishment and
25      Pharmacy Licensing Advisory Board.
26  (2) The commissioner shall:
27      (a) appoint the members of the licensing board;
28      (b) submit the name of each individual that the commissioner appoints under Subsection
S.B. 66  Enrolled Copy
29(2)(a) to the governor for confirmation or rejection; and
30(c) if the governor rejects an appointee that the commissioner submits under Subsection
31(2)(b), appoint another individual in accordance with this Subsection (2).
32   (3)(a) Except as provided in Subsection (3)(b), the licensing board shall consist of the
33following eight members:
34(i) the following seven voting members whom the commissioner appoints:
35(A) one member of the public;
36(B) one member with knowledge and experience in the pharmaceutical or
37nutraceutical manufacturing industry;
38(C) one member representing law enforcement;
39(D) one member whom an organization representing medical cannabis patients
40recommends;
41(E) a chemist who has experience with cannabis and who is associated with a
42research university;
43(F) a pharmacist who is not associated with the medical cannabis industry; and
44(G) an accountant; and
45(ii) the commissioner or the commissioner's designee as a non-voting member, except
46to cast a deciding vote in the event of a tie.
47(b) The commissioner may appoint a ninth member to the licensing board who has a
48background in the cannabis cultivation and processing industry.
49(c) The commissioner or the commissioner's designee shall serve as the chair of the
50licensing board.
51(d) An individual is not eligible for appointment to be a member of the licensing board if
52the individual:
53(i) has any commercial or ownership interest in a cannabis production establishment,
54medical cannabis pharmacy, or medical cannabis courier;
55(ii) has an owner, officer, director, or employee whose family member holds a license
56or has an ownership interest in a cannabis production establishment, medical
57cannabis pharmacy, or medical cannabis courier; or
58(iii) is employed or contracted to lobby on behalf of any cannabis production
59establishment, medical cannabis pharmacy, or medical cannabis courier.
60   (4)(a) Except as provided in Subsection (4)(b), a voting licensing board member shall
61serve a term of four years, beginning July 1 and ending June 30.
62(b) Notwithstanding Subsection (4)(a), for the initial appointments to the licensing
  -2-
Enrolled Copy  S.B. 66
63board, the commissioner shall stagger the length of the terms of licensing board
64members to ensure that the commissioner appoints two or three licensing board
65members every two years.
66      (c) As a licensing board member's term expires:
67(i) the licensing board member is eligible for reappointment; and
68(ii) the commissioner shall make an appointment, in accordance with Subsection (2),
69for the new term before the end of the member's term.
70      (d) When a vacancy occurs on the licensing board for any reason other than the
71expiration of a licensing board member's term, the commissioner shall appoint a
72replacement to the vacant position, in accordance with Subsection (2), for the
73unexpired term.
74      (e) In making appointments, the commissioner shall ensure that no two members of the
75licensing board are employed by or represent the same company or nonprofit
76organization.
77      (f) The commissioner may remove a licensing board member for cause, neglect of duty,
78inefficiency, or malfeasance.
79  (5)(a)(i) Five members of the licensing board constitute a quorum of the licensing
80      board.
81(ii) An action of the majority of the licensing board members when a quorum is
82present constitutes an action of the licensing board.
83      (b) The department shall provide staff support to the licensing board.
84      (c) A member of the licensing board may not receive compensation or benefits for the
85member's service, but may receive per diem and travel expenses in accordance with:
86(i) Section 63A-3-106;
87(ii) Section 63A-3-107; and
88(iii) rules made by the Division of Finance in accordance with Sections 63A-3-106
89and 63A-3-107.
90  (6) The licensing board shall:
91      (a) meet as called by the chair to review cannabis production establishment, medical
92cannabis pharmacy, and medical cannabis courier license applications;
93      (b) review each license application for compliance with:
94(i) this chapter; and
95(ii) department rules;
96      (c) conduct a public hearing to consider the license application;
  -3-
 S.B. 66  Enrolled Copy
97(d) approve the department's license application forms and checklists; and
98(e) make a determination on each license application.
99   (7) The licensing board shall hold a public hearing to review a cannabis production
100establishment's or medical cannabis pharmacy's license if the establishment:
101(a) changes ownership by an interest of 20% or more;
102(b) changes or adds a location;
103(c) upgrades to a different licensing tier under department rule;
104(d) changes extraction or formulation standard operating procedures;
105(e) adds an industrial hemp processing or cultivation license to the same location as the
106cannabis production establishment's processing facility; or
107(f) as necessary based on the recommendation of the department.
108   (8) In a public hearing held under Subsection (7), the licensing board may consider the
109following in determining whether to approve a request to change pharmacy locations:
110(a) medical cannabis availability, quality, and variety;
111(b) whether geographic dispersal among licensees is sufficient to reasonably maximize
112access to the largest number of medical cannabis cardholders;
113(c) the extent to which the pharmacy can increase efficiency and reduce the cost to
114patients of medical cannabis; and
115(d) the factors listed in Subsection 4-41a-1004(7).
116   (9) [In a public hearing held pursuant to Subsection (7), the ] The licensing board may not
117approve a request to change a medical cannabis pharmacy location outside of the
118pharmacy's current region established under Subsection [4-41a-1005(1)(c)(ii)(A)]
1194-41a-1005(4).
120   (10)(a) The licensing board shall meet as necessary to consider cannabis production
121establishment, medical cannabis pharmacy, and medical cannabis courier license
122renewal applications.
123(b) During the meeting described in Subsection (10)(a):
124(i) a representative from each applicant for renewal shall:
125(A) attend in person or electronically; or
126(B) submit information before the meeting, as the licensing board may require, for
127the licensing board's consideration;
128(ii) the licensing board shall consider, for each cannabis cultivation facility seeking
129renewal, information including:
130(A) the amount of biomass the licensee produced during the current calendar year;
  -4-
 Enrolled Copy  S.B. 66
131(B) the amount of biomass the licensee projects to produce during the following
132year;
133(C) the amount of hemp waste the licensee currently holds;
134(D) the current square footage or acres of growing area the licensee uses; and
135(E) the square footage or acres of growing area the licensee projects to use in the
136following year;
137(iii) the licensing board shall consider, for each cannabis processing facility seeking
138renewal, information including:
139(A) methods and procedures for extraction;
140(B) standard operating procedures; and
141(C) a complete listing of the medical dosage forms that the licensee produces; and
142(iv) the licensing board shall consider, for each cannabis pharmacy seeking renewal,
143information including:
144(A) product availability, quality, and variety;
145(B) the pharmacy's operating procedures and practices; and
146(C) the factors listed in Subsection 4-41a-1003(1).
147      (c) Following consideration of the information provided under Subsection (10)(b), the
148licensing board may elect to approve, deny, or issue conditional approval of a
149cannabis production establishment or pharmacy license renewal application.
150      (d) The information a licensee or license applicant provides to the licensing board for a
151license determination constitutes a protected record under Subsection 63G-2-305(1)
152or (2) if the applicant or licensee provides the licensing board with the information
153regarding business confidentiality required in Section 63G-2-309.
154  (11)(a) In cooperation with the attorney general, the licensing board may investigate
155      information received by the department indicating that a licensee is potentially
156      engaging in anticompetitive business practices.
157      (b) In investigating potential anticompetitive business practices under this section, the
158attorney general may issue civil investigative demands as set forth in Section
15976-16-506.
160  (12) The department shall:
161      (a) provide staff support for the licensing board;
162      (b) assist the licensing board in conducting meetings; and
163      (c) review all submitted applications for completion and accuracy.
164Section 2. Section 4-41a-1005 is amended to read:
  -5-
 S.B. 66  Enrolled Copy
1654-41a-1005 . Maximum number of licenses -- Medical cannabis pharmacy regions.
166   (1) The licensing board shall issue up to 17 medical cannabis pharmacy licenses in
167accordance with this section including the two medical cannabis pharmacy licenses in
168accordance with Section 4-41a-1006.
169   (2)(a) The licensing board shall:
170(i) evaluate each applicant and award the license to the applicant that best
171demonstrates:
172(A) experience with establishing and successfully operating a business that
173involves complying with a regulatory environment, tracking inventory, and
174training, evaluating, and monitoring employees;
175(B) an operating plan that will best ensure the safety and security of patrons and
176the community;
177(C) positive connections to the local community;
178(D) the suitability of the proposed location and the location's accessibility for
179qualifying patients;
180(E) the extent to which the applicant can increase efficiency and reduce the cost of
181medical cannabis for patients; and
182(F) a strategic plan described in Subsection 4-41a-1004(7) that has a
183comparatively high likelihood of success; and
184(ii) when awarding a license, use the regions described in Subsection (4)(a) to ensure
185a geographic dispersal among licensees that is sufficient to reasonably maximize
186access to the largest number of medical cannabis cardholders.
187(b) In making the evaluation described in Subsection (2)(a), the licensing board may
188give increased consideration to applicants who indicate a willingness to:
189(i) site a medical cannabis pharmacy in an area or population center designated as a
190medically underserved area or population as determined by the federal Health
191Resources and Services Administration; and
192(ii) operate as a home delivery medical cannabis pharmacy that accepts electronic
193medical cannabis orders.
194   (3) The licensing board may conduct a face-to-face interview with an applicant for a license
195that the licensing board evaluates under Subsection (2).
196   (4)(a) Through rule made in accordance with Title 63G, Chapter 3, Utah Administrative
197Rulemaking Act, the department shall divide the state into at least four geographic
198regions for locating medical cannabis pharmacies.
  -6-
 Enrolled Copy  S.B. 66
199      (b) When creating regions the department shall create regions that allow for a
200geographic dispersal among licensees that is sufficient to reasonably maximize
201access to the largest number of medical cannabis cardholders.
202Section 3. Effective Date.
203  This bill takes effect:
204  (1) except as provided in Subsection (2), May 6, 2026; or
205  (2) if approved by two-thirds of all members elected to each house:
206      (a) upon approval by the governor;
207      (b) without the governor's signature, the day following the constitutional time limit of
208Utah Constitution, Article VII, Section 8; or
209      (c) in the case of a veto, the date of veto override.
  -7-