Section 4-41a-201.1 - Cannabis Production Establishment and Pharmacy Licensing Advisory Board - Composition - Duties(1) There is created within the department the Cannabis Production Establishment and Pharmacy Licensing Advisory Board.(2) The commissioner shall: (a) appoint the members of the board;(b) submit the name of each individual that the commissioner appoints under Subsection (2)(a) to the governor for confirmation or rejection; and(c) if the governor rejects an appointee that the commissioner submits under Subsection (2)(b), appoint another individual in accordance with this Subsection (2).(3)(a) Except as provided in Subsection (3)(c), the board shall consist of the following eight members:(i) the following seven voting members whom the commissioner appoints: (A) one member of the public;(B) one member with knowledge and experience in the pharmaceutical or nutraceutical manufacturing industry;(C) one member representing law enforcement;(D) one member whom an organization representing medical cannabis patients recommends;(E) a chemist who has experience with cannabis and who is associated with a research university;(F) a pharmacist who is not associated with the medical cannabis industry; and(ii) the commissioner or the commissioner's designee as a non-voting member, except to cast a deciding vote in the event of a tie.(b) The commissioner may appoint a ninth member to the board who has a background in the cannabis cultivation and processing industry.(c) The commissioner or the commissioner's designee shall serve as the chair of the board.(d) An individual is not eligible for appointment to be a member of the board if the individual: (i) has any commercial or ownership interest in a cannabis production establishment, medical cannabis pharmacy, or medical cannabis courier;(ii) has an owner, officer, director, or employee whose family member holds a license or has an ownership interest in a cannabis production establishment, medical cannabis pharmacy, or medical cannabis courier; or(iii) is employed or contracted to lobby on behalf of any cannabis production establishment, medical cannabis pharmacy, or medical cannabis courier.(4)(a) Except as provided in Subsection (4)(b), a voting board member shall serve a term of four years, beginning July 1 and ending June 30.(b) Notwithstanding Subsection (4)(a), for the initial appointments to the board, the commissioner shall stagger the length of the terms of board members to ensure that the commissioner appoints two or three board members every two years.(c) As a board member's term expires: (i) the board member is eligible for reappointment; and(ii) the commissioner shall make an appointment, in accordance with Subsection (2), for the new term before the end of the member's term.(d) When a vacancy occurs on the board for any reason other than the expiration of a board member's term, the commissioner shall appoint a replacement to the vacant position, in accordance with Subsection (2), for the unexpired term.(e) In making appointments, the commissioner shall ensure that no two members of the board are employed by or represent the same company or nonprofit organization.(f) The commissioner may remove a board member for cause, neglect of duty, inefficiency, or malfeasance.(5)(a)(i) Five members of the board constitute a quorum of the board.(ii) An action of the majority of the board members when a quorum is present constitutes an action of the board.(b) The department shall provide staff support to the board.(c) A member of the board may not receive compensation or benefits for the member's service, but may receive per diem and travel expenses in accordance with: (ii) Section 63A-3-107; and(iii) rules made by the Division of Finance in accordance with Sections 63A-3-106 and 63A-3-107.(6) The board shall: (a) meet as called by the chair to review cannabis production establishment and pharmacy license applications;(b) review each license application for compliance with:(c) conduct a public hearing to consider the license application;(d) approve the department's license application forms and checklists; and(e) make a determination on each license application.(7) The board shall hold a public hearing to review a cannabis production establishment's or pharmacy's license if the establishment: (a) changes ownership by an interest of 20% or more;(b) changes or adds a location;(c) upgrades to a different licensing tier under department rule;(d) changes extraction or formulation standard operating procedures;(e) adds an industrial hemp processing or cultivation license to the same location as the cannabis production establishment's processing facility; or(f) as necessary based on the recommendation of the department.(8) In a public hearing held under Subsection (7), the board may consider the following in determining whether to approve a request to change pharmacy locations:(a) medical cannabis availability, quality, and variety;(b) whether geographic dispersal among licensees is sufficient to reasonably maximize access to the largest number of medical cannabis cardholders;(c) the extent to which the pharmacy can increase efficiency and reduce the cost to patients of medical cannabis; and(d) the factors listed in Subsection 4-41a-1004(7).(9) In a public hearing held pursuant to Subsection (7), the board may not approve a request to change a medical cannabis pharmacy location outside of the pharmacy's current region established under Subsection 4-41a-1005(1)(c)(ii)(A).(10)(a) The board shall meet annually in December to consider cannabis production establishment and pharmacy license renewal applications.(b) During the meeting described in Subsection (10)(a):(i) a representative from each applicant for renewal shall:(A) attend in person or electronically; or(B) submit information before the meeting, as the board may require, for the board's consideration;(ii) the board shall consider, for each cannabis cultivation facility seeking renewal, information including: (A) the amount of biomass the licensee produced during the current calendar year;(B) the amount of biomass the licensee projects to produce during the following year;(C) the amount of hemp waste the licensee currently holds;(D) the current square footage or acres of growing area the licensee uses; and(E) the square footage or acres of growing area the licensee projects to use in the following year;(iii) the board shall consider, for each cannabis processing facility seeking renewal, information including: (A) methods and procedures for extraction;(B) standard operating procedures; and(C) a complete listing of the medical dosage forms that the licensee produces; and(iv) the board shall consider, for each cannabis pharmacy seeking renewal, information including: (A) product availability, quality, and variety;(B) the pharmacy's operating procedures and practices; and(C) the factors listed in Subsection 4-41a-1003(1).(c) Following consideration of the information provided under Subsection (10)(b), the board may elect to approve, deny, or issue conditional approval of a cannabis production establishment or pharmacy license renewal application.(d) The information a licensee or license applicant provides to the board for a license determination constitutes a protected record under Subsection 63G-2-305(1) or (2) if the applicant or licensee provides the board with the information regarding business confidentiality required in Section 63G-2-309.(11) In cooperation with the attorney general, the board may investigate information received by the department indicating that a licensee is potentially engaging in anticompetitive business practices.Amended by Chapter 217, 2024 General Session ,§ 3, eff. 5/1/2024.Added by Chapter 350, 2021 General Session ,§ 3, eff. 3/17/2021.