(1) 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: (A) for a licensing process that the department initiated before September 23, 2019, the department shall use the procedures in Title 63G, Chapter 6a, Utah Procurement Code, to review and rank applications for a cannabis production establishment license; and (B) for a licensing process that the department initiates after September 23, 2019, the department shall issue a license to operate a cannabis production establishment in accordance with the procedures described in Subsection (2)(a)(iii). (ii) 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. (iii) 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. (b) An applicant is eligible for a license under this section if the applicant submits to the department: (i) subject to Subsection (2)(c), a proposed name and 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) a financial or voting interest of 2% or greater in the proposed cannabis production establishment; or (B) 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 approves; (iv) a statement that the applicant will obtain and maintain a performance bond that a surety authorized to transact surety business in the state issues in an amount of at least: (A) $250,000 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 department 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 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).

(a) (i) Subject to Subsections (6), (7), (8), and (13) and to Section 4-41a-205: (A) for a licensing process that the department initiated before September 23, 2019, the department shall use the procedures in Title 63G, Chapter 6a, Utah Procurement Code, to review and rank applications for a cannabis production establishment license; and (B) for a licensing process that the department initiates after September 23, 2019, the department shall issue a license to operate a cannabis production establishment in accordance with the procedures described in Subsection (2)(a)(iii). (ii) 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. (iii) 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.

(i) Subject to Subsections (6), (7), (8), and (13) and to Section 4-41a-205: (A) for a licensing process that the department initiated before September 23, 2019, the department shall use the procedures in Title 63G, Chapter 6a, Utah Procurement Code, to review and rank applications for a cannabis production establishment license; and (B) for a licensing process that the department initiates after September 23, 2019, the department shall issue a license to operate a cannabis production establishment in accordance with the procedures described in Subsection (2)(a)(iii).

(A) for a licensing process that the department initiated before September 23, 2019, the department shall use the procedures in Title 63G, Chapter 6a, Utah Procurement Code, to review and rank applications for a cannabis production establishment license; and

(B) for a licensing process that the department initiates after September 23, 2019, the department shall issue a license to operate a cannabis production establishment in accordance with the procedures described in Subsection (2)(a)(iii).

(ii) 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.

(iii) 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.

(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.

(b) An applicant is eligible for a license under this section if the applicant submits to the department: (i) subject to Subsection (2)(c), a proposed name and 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) a financial or voting interest of 2% or greater in the proposed cannabis production establishment; or (B) 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 approves; (iv) a statement that the applicant will obtain and maintain a performance bond that a surety authorized to transact surety business in the state issues in an amount of at least: (A) $250,000 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.

(i) subject to Subsection (2)(c), a proposed name and 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) a financial or voting interest of 2% or greater in the proposed cannabis production establishment; or (B) the power to direct or cause the management or control of a proposed cannabis production establishment;

(A) a financial or voting interest of 2% or greater in the proposed cannabis production establishment; or

(B) 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 approves;

(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 approves;

(iv) a statement that the applicant will obtain and maintain a performance bond that a surety authorized to transact surety business in the state issues in an amount of at least: (A) $250,000 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;

(A) $250,000 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 department 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 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).

(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.

(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 department 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 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 department approves an application for a license under this section: (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).

(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 Subsection (4)(b), the department shall require a separate license for each type of cannabis production establishment and each location of a cannabis production establishment. (b) The department 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.

(a) Except as provided in Subsection (4)(b), the department shall require a separate license for each type of cannabis production establishment and each location of a cannabis production establishment.

(b) The department 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.

(5) If the department receives more than one application for a cannabis production establishment 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.

(6) The department 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.

(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 department 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; 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.

(a) has been convicted under state or federal law of: (i) a felony; or (ii) after December 3, 2018, a misdemeanor for drug distribution;

(i) a felony; 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) If an applicant for a cannabis production establishment license under this section holds a license under Title 4, Chapter 41, Hemp and Cannabinoid Act, or Title 26, Chapter 61a, Utah Medical Cannabis Act, the department: (a) shall consult with the Department of Health regarding the applicant if the license the applicant holds is a license under Title 26, Chapter 61a, Utah Medical Cannabis Act; and (b) may not give preference to the applicant based on the applicant's status as a holder of a license described in this Subsection (8).

(a) shall consult with the Department of Health regarding the applicant if the license the applicant holds is a license under Title 26, Chapter 61a, Utah Medical Cannabis Act; and

(b) may not give preference to the applicant based on the applicant's status as a holder of a license described in this Subsection (8).

(9) The department 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 department issues the initial license; (b) after the cannabis production establishment makes the same violation of this chapter three times; (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; or (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.

(a) if the cannabis production establishment does not begin cannabis production operations within one year after the day on which the department issues the initial license;

(b) after the cannabis production establishment makes the same violation of this chapter three times;

(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; or

(i) a felony; or

(ii) after December 3, 2018, a misdemeanor for drug distribution; or

(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.

(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 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 of the licensee's approved land use permit application in accordance with Subsection (10)(a), the department may revoke the licensee's license.

(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 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 of the licensee's approved land use permit application in accordance with Subsection (10)(a), the department 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 to issue a license under this section is plenary and is not subject to review. (b) Notwithstanding Subsection (2)(a)(i)(A), 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.

(a) The department's authority to issue a license under this section is plenary and is not subject to review.

(b) Notwithstanding Subsection (2)(a)(i)(A), 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.

(i)Title 63G, Chapter 6a, Part 16, Protests; or

(ii)Title 63G, Chapter 6a, Part 17, Procurement Appeals Board.