(1) There is created within the department the Specialized Product Authority Licensing Board. (2) The commissioner shall hire three directors as employees of the department to be on the licensing board. (3) (a) The licensing board shall consist of three directors. (b) An individual is not eligible as a director of the licensing 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. (c) At least one member of the licensing board shall have experience related to public health or medicine. (4) A director serves at the pleasure of the commissioner. (5) (a) Two members of the licensing board constitute a quorum of the licensing board. (b) An action of the majority of the licensing board members when a quorum is present constitutes an action of the licensing board. (6) The licensing board shall: (a) review cannabis production establishment, medical cannabis pharmacy, and medical cannabis courier license applications; (b) review each license application for compliance with: (i) this chapter; and (ii) department rules; (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 licensing board shall hold a public hearing to review a cannabis production establishment's or medical cannabis 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 operation 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 licensing 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) The licensing 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(4). (10) (a) The licensing board shall meet as necessary to consider cannabis production establishment, medical cannabis pharmacy, and medical cannabis courier license renewal applications. (b) During the public 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 licensing board may require, for the licensing board's consideration; (ii) the licensing 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 licensing 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 licensing 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 licensing 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 licensing board for a license determination constitutes a protected record under Subsection 63G-2-305(1) or (2) if the applicant or licensee provides the licensing board with the information regarding business confidentiality required in Section 63G-2-309. (11) (a) In cooperation with the attorney general, the licensing board may investigate information received by the department indicating that a licensee is potentially engaging in anticompetitive business practices. (b) In investigating potential anticompetitive business practices under this section, the attorney general may issue civil investigative demands as set forth in Section 76-16-506. (12) (a) The licensing board shall hear all appeals related to administrative action taken under this chapter, Chapter 41, Hemp and Cannabinoid Act, and Chapter 45, Kratom Consumer Protection Act, as an informal proceeding under Title 63G, Chapter 4, Administrative Procedures Act. (b) The licensing board shall create rules for hearing appeals in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. (13) (a) The licensing board in consultation with the Compassionate Use Board described in Section
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