Section 4-41a-1206 - Closed-door medical cannabis pharmacy(1)(a) Subject to Subsections (1)(b) and (c), a home delivery medical cannabis pharmacy may open a single closed-door medical cannabis pharmacy.(b) A home delivery medical cannabis pharmacy may not open a closed-door medical cannabis pharmacy unless the home delivery medical cannabis pharmacy: (i) has an operating plan that includes a closed-door medical cannabis pharmacy; and(ii) obtains a license issued by the department for a closed-door medical cannabis pharmacy.(c) An entity that owns multiple home delivery medical cannabis pharmacies may open only one closed-door medical cannabis pharmacy.(d) The department may institute a fee in accordance with Section 63J-1-504 to administer this section.(2) A home delivery medical cannabis pharmacy that opens a closed-door medical cannabis pharmacy under Subsection (1) shall ensure: (a) that a pharmacy medical provider who is a licensed pharmacist:(i) is directly supervising the packaging of an order; and(ii) is present in the closed-door medical cannabis pharmacy when an order is packaged for delivery; and(b) all record keeping requirements, labeling requirements, and patient counseling requirements described in this chapter and Title 26B, Chapter 4, Part 2, Cannabinoid Research and Medical Cannabis, are satisfied before sending out an order.(3) An individual who prepares an order at a closed-door medical cannabis pharmacy under this section shall be registered as:(a) a pharmacy medical provider; or(b) a medical cannabis pharmacy agent.(4)(a) A closed-door medical cannabis pharmacy shall operate: (i) except as provided in Subsection (4)(b), in a facility that is accessible only by an individual who is a pharmacy medical provider or a medical cannabis pharmacy agent; and(ii) at a physical address in accordance with Subsection (6).(b) A closed-door medical cannabis pharmacy may authorize an individual who is at least 18 years old and is not a pharmacy medical provider or a cannabis pharmacy agent to access the closed-door medical cannabis pharmacy if the closed-door medical cannabis pharmacy:(i) tracks and monitors the individual at all times while the individual is at the closed-door medical cannabis pharmacy; and(ii) maintains a record of the individual's access, including arrival and departure.(c) A closed-door medical cannabis pharmacy shall operate in a facility that has:(i) a single, secure public entrance; and(ii) a security system with a backup power source that:(A) detects and records entry into the closed-door medical cannabis pharmacy;(B) provides notice of an unauthorized entry to law enforcement when the closed-door medical cannabis pharmacy is closed; and(C) a lock or equivalent restrictive security feature on any area where the closed-door medical cannabis pharmacy stores a cannabis product.(d) A closed-door medical cannabis pharmacy shall ensure that any cannabis or cannabis products in the closed-door medical cannabis pharmacy that are intended for home delivery are separated in a manner that is readily distinguishable from any other cannabis or cannabis product in the facility.(5) A closed-door medical cannabis pharmacy may only provide cannabis or a cannabis product to an individual through a delivery that complies with this part.(6)(a) A person may not locate a closed-door medical cannabis pharmacy:(i) within 1,000 feet of a community location; or(ii) in or within 600 feet of a district that the relevant municipality or county has zoned as primarily residential.(b) The proximity requirements described in Subsection (6)(a) shall be measured from the nearest entrance to the closed-door medical cannabis pharmacy by following the shortest route of ordinary pedestrian travel to the property boundary of the community location or residential area.(c) The licensing board may grant a waiver to reduce the proximity requirements in Subsection (6)(a) by up to 20% if the licensing board determines that it is not reasonably feasible for the applicant to site the proposed closed-door medical cannabis pharmacy without the waiver.(d) An applicant for a license under this section shall provide evidence of compliance with the proximity requirements described in Subsection (6)(a).(7) When determining where a closed-door medical cannabis pharmacy may open, the licensing board: (a) shall utilize geographic regions created by the department through rule;(b) shall prioritize allowing entities that do not have a medical cannabis pharmacy in a region to open a closed-door medical cannabis pharmacy in the region;(c) of the total amount of closed-door medical cannabis pharmacies, may allow only three closed-door medical cannabis pharmacies to operate in counties of the first and second class as described in Section 17-50-501; and(d) for determining the three closed-door medical cannabis pharmacies described in Subsection (7)(c), consider the following:(i) the history of compliance with state law and rules for all licenses issued under this chapter;(ii) the medical cannabis pharmacy's willingness to offer a variety of brands and products;(iii) the ability of the operating plan to ensure the safety and security of the community;(iv) the suitability of the proposed location and the location's ability to serve the local community; and(v) any other relevant information determined through rule.(8) A closed-door medical cannabis pharmacy may not account for more than:(a) for an entity that holds a single medical cannabis pharmacy license, the greater of: (i) 35% of the medical cannabis pharmacy's total revenue; or(ii) $2,000,000 in total revenue; or(b) for an entity that holds more than one medical cannabis pharmacy license, the greater of:(i) 35% of the total revenue of the entity's medical cannabis pharmacy that generates the most revenue; or(ii) $2,000,000 in total revenue.(9) Notwithstanding any other provision of this section, the department may issue only three closed-door medical cannabis pharmacy licenses before July 1, 2027.(10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department shall make rules to implement this section.Added by Chapter 238, 2024 General Session ,§ 4, eff. 5/1/2024.