Utah

Utah Gearing Up for Medical Cannabis Pharmacy Applications

The Utah Cannabis Association will be hosting a meeting with the Department of Health on October 1, 2019 to discuss the licensing requirements for medical cannabis pharmacy as the regulator will release an RFP for applicants the week of October 7, 2019. The state will permit up to 14 licensed medical pharmacies to operate with eight (8) pharmacies opening by March 1, 2020, and the remaining six (6) pharmacies opening by July 1, 2020.

Utah’s Center for Medical Cannabis published a fact sheet for medical cannabis pharmacy applicants, which outlines the state’s scoring criteria. The department will be evaluating applicants based on experience, the operating plan, local connections, ability to keep costs low and the overall strategic plan. Applicants that are willing to provide home delivery and use the state-authorized payment processors will be given extra points.

Utah’s legislature changed the structure of the medical cannabis program drastically last week through the enactment of S.B. 1002. The bill will become law if it is signed by Governor Herbert. The amendments removed the state central fill medical cannabis pharmacy, which would have required medical cannabis pharmacies to deliver medical cannabis products to a state health department for pick-up by patients. The legislation also increased the number of authorized pharmacies from 7 to 14; approved home delivery by medical cannabis pharmacies; and authorized delivery licenses by July 1, 2020.

Under the existing medical cannabis program, each medical cannabis pharmacy must employ a state-licensed pharmacist and a state-licensed physician who are registered Pharmacy Medical Providers. Pharmacies must provide patients with a phone number to reach the Pharmacy Medical Provider with questions about dosing recommendations and other drug-related issues.

The state has been gearing up for the opening of medical cannabis pharmacies by issuing RFPs for cultivators and processors. Utah received 81 applications for medical cannabis cultivators. Utah awarded only eight (8) out of ten (10) available licenses in order to avoid the overproduction of cannabis in the state. Utah’s regulators stated that half of the following awardees currently have businesses in the state while the other half have ties to local communities.

  • Dragonfly Greenhouse

  • Harvest of Utah

  • Oakbridge Greenhouses

  • Standard Wellness Utah

  • True North of Utah

  • Tryke Companies Utah

  • Wholesome Ag.

  • Zion Cultivars

In order to meet the March deadline, Utah will need to quickly decide the awardees for medical cannabis pharmacy licenses. Applicants that have available real estate may have the upper hand in the evaluation process for Phase 1. The deadlines for creating Utah’s medical cannabis ecosystem are tight. However, Utah appears to be handling the challenge in an organized and disciplined manner.

Utah's Cultivation License Scoring Methodology Favors Well Capitalized, Successful Businesses

The Utah Department of Health’s application window for medical cannabis cultivators opened on May 31, 2019, and applications may be submitted through July 1, 2019. Utah’s applications process is unique in that it is scoring methodology favors applicants that can articulate a strong business plan and demonstrate access to capital and the know how to harvest medical cannabis by the first quarter of 2020.

Utah voters approved Ballot Proposition 2 in November 2018 to legalize medical marijuana. The Utah legislation enacted the Utah Medical Cannabis Act in December 2018, which replaced the Ballot Proposition 2. The Medical Cannabis Act mandates the implementation of the medical cannabis industry by March 1, 2020. Opening the application window for medical cannabis cultivators is the first step in this process.

Below are four things to know about the application process in order to obtain one of the ten available licenses.

  • Forty percent (40%) of the score is based on whether the applicant can demonstrate a strong business plan and show that it can harvest medical cannabis by March 2020. Applicants must show how they will become operational and make money given the size of Utah’s medical cannabis market. This includes disclosing pricing models, sales and marketing plans, cultivation analysis, and a project timeline for producing a harvest between January 1, 2020, and March 1, 2020.

  • The timeline for producing the first quarter harvest will require applicants to build an indoor cultivation facility. The state is limiting the facilities to 100,000 square feet. The expense of building, staffing, and implementing operations within the required timeline will limit the potential licensees to those who can demonstrate they have access to the capital, know-how and track record for execution.

  • Utah’s application scoring methodology takes a broader approach to social equity, which accounts for 15% of the overall points. Applicants must describe how they have positively impacted a local community, and if they obtain a license, how they will build a positive connection with the community in which it is based. This open-ended approach may produce creative and positive solutions for local communities.

  • Utah’s emphasis on a business’ long-term viability is further reflected in the fact that the state will allow out of state investors to own and operate the cultivation facilities. In response to questions by bidders, the DOH indicated “[a]lthough the initial rule discussions included language of Utah residency. We are working to have that removed. At this time the State of Utah is not excluding non-residents of Utah.”

Free Cannabis Legislative Tracker For 20 States: Access THC, Hemp And CBD Bills

Access our free legislative trackers for Arizona, California, Colorado, Connecticut, Florida, Illinois, Kentucky, Massachusetts, Maine, Michigan, Missouri, North Dakota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Tennessee, Utah and Washington. Review and access the cannabis & hemp bills introduced by the State Legislatures in the 2019-2020 session. The trackers include a summary description of the legislation, status and link to the full legislative text. The legislative trackers will be updated on a weekly basis.

Free Cannabis Legislative Tracker For 20 States: Access THC, Hemp And CBD Bills

Access our free legislative trackers for Arizona, California, Colorado, Connecticut, Florida, Illinois, Kentucky, Massachusetts, Maine, Michigan, Missouri, North Dakota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Tennessee, Utah and Washington. Review and access the cannabis & hemp bills introduced by the State Legislatures in the 2019-2020 session. The trackers include a summary description of the legislation, status and link to the full legislative text. The legislative trackers will be updated on a weekly basis.

Regulating CBD Like Cannabis: Utah and New Mexico Pass Legislation Upping CBD Requirements

The Utah and New Mexico Legislatures passed commercial hemp legislation this week that include provisions that regulate CBD products like cannabis. If signed by the states’ governors, the legislation will become law. The recent legislation might foreshadow a national trend as states’ amend hemp legislation to conform with the 2018 Farm Bill. Requiring CBD products that are intended for human consumption to meet standards that are similar to cannabis products will help the industry achieve a certain level of credibility that it desperately needs. We believe that CBD manufacturers and product companies should consider using cannabis best practices when manufacturing and testing products as well as developing labels. These practices can help a company differentiate a CBD product from others, and obtain a competitive advantage as states move to more robust standards.

Utah’s Hemp and Cannabinoid Act Amendments. directs the state’s Department of Agriculture to adopt rules to create a licensing program for the commercial hemp industry including growers, cultivators, processors and those marketing hemp or hemp products. The bill also requires the Department to adopt regulations governing the registration of cannabinoid products that are intended for human consumption with the Department, and to set standards for the testing and accurate labeling of CBD products. The bill defines cannabinoid products as a hemp product that is processed into a medicinal dosage that contains less than 0.3% THC.

The New Mexico Hemp Manufacturing Act specifically requires the licensing of manufacturers that are performing hemp extraction, processing or engaging in other manufacturing activities. Engaging in these activities without obtaining the appropriate license could result in a Schedule 1 criminal charge. New Mexico’s legislation provides a robust regulatory framework to ensure the safety, sanitation and security of the finished product.

CBD businesses that are transporting CBD products to these states or over the internet should seek guidance on how the new registration regimes impact these activities. Not following the rules could lead to the seizure or destruction of CBD products as well as possible criminal charges.

Utah Passes Legislation to Create Commercial Hemp Industry and Regulate CBD Products

The Utah Legislature voted to create a commercial hemp industry by unanimously passing the Hemp and Cannabinoid Act Amendments. The bill will be presented by Governor Herbert, and it will become law upon his signature. The bill directs the Department of Agriculture and Food to establish a licensing and oversight program for a commercial hemp industry. Like the 2018 Farm Bill, the legislation prohibits a person who has been convicted of a drug related felony from obtaining a license.

The Department is also directed to adopt rules that govern the registration and sale of CBD products in Utah including testing and labeling requirements. Although the Department will be responsible for overseeing this market, the amendment removes the Department’s authority to seize and destroy non-registered CBD products.

Free Cannabis Legislative Tracker For 20 States: Access THC, Hemp And CBD Bills

Access our free legislative trackers for Arizona, California, Colorado, Connecticut, Florida, Illinois, Kentucky, Massachusetts, Maine, Michigan, Missouri, North Dakota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Tennessee, Utah and Washington. Review and access the cannabis & hemp bills introduced by the State Legislatures in the 2019-2020 session. The trackers include a summary description of the legislation, status and link to the full legislative text. The legislative trackers will be updated on a weekly basis.

Cannabis Regulatory Meeting Tracker 03/04/2019: 15 Meetings Today in California, Colorado, Nevada, Massachusetts, Michigan, North Dakota, Pennsylvania and Utah

There are fifteen (15) meetings today in California, Colorado, Nevada, Massachusetts, Michigan, North Dakota, Pennsylvania, and Utah. The big meeting today is in Colorado. Colorado’s House Finance Committee will hold a hearing on a bill that will allow publicly traded companies to own licensed cannabis companies.

California: City Of San Rafael: Authorizing Cannabis Businesses
California: West Hollywood: Ordinance Related To Temporary Cannabis Uses
Colorado Legislature: House Finance: HB19-1090: Publicly Licensed Marijuana Companies
Colorado: Denver Special Issues Marijuana
Nevada Legislature: Senate Health And Human Services: SB228 Revises Provisions Relating To Marijuana And Industrial Hemp. (BDR 54-180)
Massachusetts: Lowell Planning Board Site Plan Review: Marijuana Cultivation Facility
Massachusetts: City Of Lunenburg: Recreational Marijuana Regulations
Massachusetts: City Of Northampton: Community Outreach Meeting: Marijuana Product Manufacturer
Michigan: Village Of Douglas: Amendments To Medical Marihuana Regulations Related To Camera Storage
Michigan: City Of Reed: Proposed Ordinance To Prohibit Marihuana Establishments
North Dakota Legislature: Senate Agriculture: SB 2184 Relating To The Definition Of Allied Health Care Professional And Health Care Provider With Respect To Workers' Compensation Claims And Benefits.
Pennsylvania: Manor Township: Ordinance On Marijuana Possession
Pennsylvania: City Of Philadelphia: Referenda On Adult Use Cannabis Legalization
Utah Legislature: House Business And Labor Committee: SCR007 - Concurrent Resolution Urging Legal Medical Cannabis Banking
Utah Legislature: House Health And Human Services Committee: SB0161S03 - Medical Cannabis Act Amendments

Free Cannabis Legislative Tracker For 20 States: Access 440 THC, Hemp And CBD Bills

Access our free legislative trackers for Arizona, California, Colorado, Connecticut, Florida, Illinois, Kentucky, Massachusetts, Maine, Michigan, Missouri, North Dakota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Tennessee, Utah and Washington. Review and access the cannabis & hemp bills introduced by the State Legislatures in the 2019-2020 session. The trackers include a summary description of the legislation, status and link to the full legislative text. The legislative trackers will be updated on a weekly basis.

Free Cannabis Legislative Tracker For 20 States: Access 425 THC, Hemp And CBD Bills

Access our free legislative trackers for Arizona, California, Colorado, Connecticut, Florida, Kentucky, Massachusetts, Maine, Missouri, North Dakota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Tennessee, Utah and Washington. Review and access the cannabis & hemp bills introduced by the State Legislatures in the 2019-2020 session. The trackers include a summary description of the legislation, status and link to the full legislative text. The legislative trackers will be updated on a weekly basis.