(1) (a) The division may adopt rules relating to the licensing and control of the manufacture, distribution, production, prescription, administration, dispensing, conducting of research with, and performing of laboratory analysis upon controlled substances within this state. (b) The division may assess reasonable fees to defray the cost of issuing original and renewal licenses under this chapter pursuant to Section 63J-1-504. (2) (a) (i) Every person who manufactures, produces, distributes, prescribes, dispenses, administers, conducts research with, or performs laboratory analysis upon any controlled substance in Schedules I through V within this state, or who proposes to engage in manufacturing, producing, distributing, prescribing, dispensing, administering, conducting research with, or performing laboratory analysis upon controlled substances included in Schedules I through V within this state shall obtain a license issued by the division. (ii) (A) The division shall issue each license under this chapter in accordance with a two-year renewal cycle established by rule. (B) The division may by rule extend or shorten a renewal period by as much as one year to stagger the renewal cycles the division administers. (b) Persons licensed to manufacture, produce, distribute, prescribe, dispense, administer, conduct research with, or perform laboratory analysis upon controlled substances in Schedules I through V within this state may possess, manufacture, produce, distribute, prescribe, dispense, administer, conduct research with, or perform laboratory analysis upon those substances to the extent authorized by their license and in conformity with this chapter and Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances. (c) The following persons are not required to obtain a license and may lawfully possess controlled substances included in Schedules II through V under this section: (i) an agent or employee, except a sales representative, of any registered manufacturer, distributor, or dispenser of any controlled substance, if the agent or employee is acting in the usual course of the agent or employee's business or employment; however, nothing in this subsection shall be interpreted to permit an agent, employee, sales representative, or detail man to maintain an inventory of controlled substances separate from the location of the person's employer's registered and licensed place of business; (ii) a motor carrier or warehouseman, or an employee of a motor carrier or warehouseman, who possesses a controlled substance in the usual course of the person's business or employment; and (iii) an ultimate user, or a person who possesses any controlled substance pursuant to a lawful order of a practitioner. (d) The division may enact rules waiving the license requirement for certain manufacturers, producers, distributors, prescribers, dispensers, administrators, research practitioners, or laboratories performing analysis if waiving the license requirement is consistent with public health and safety. (e) A separate license is required at each principal place of business or professional practice where the applicant manufactures, produces, distributes, dispenses, conducts research with, or performs laboratory analysis upon controlled substances. (f) The division may enact rules providing for the inspection of a licensee or applicant's establishment, and may inspect the establishment according to those rules. (3) (a) (i) Upon proper application, the division shall license a qualified applicant to manufacture, produce, distribute, conduct research with, or perform laboratory analysis upon controlled substances included in Schedules I through V, unless the division determines that issuance of a license is inconsistent with the public interest. (ii) The division may not issue a license to any person to prescribe, dispense, or administer a Schedule I controlled substance except under Subsection (3)(a)(i). (iii) In determining public interest under this Subsection (3)(a), the division shall consider whether the applicant has: (A) maintained effective controls against diversion of controlled substances and any Schedule I or II substance compounded from any controlled substance into channels other than legitimate medical, scientific, or industrial channels; (B) complied with applicable state and local law; (C) been convicted under federal or state laws relating to the manufacture, distribution, or dispensing of substances; (D) past experience in the manufacture of controlled dangerous substances; (E) established effective controls against diversion; and (F) complied with any other factors that the division establishes that promote the public health and safety. (b) Licenses granted under Subsection (3)(a) do not entitle a licensee to manufacture, produce, distribute, conduct research with, or perform laboratory analysis upon controlled substances in Schedule I other than those specified in the license. (c) (i) A practitioner shall be licensed to administer, dispense, or conduct research with substances in Schedules II through V if the practitioner is authorized to administer, dispense, or conduct research under the laws of this state. (ii) The division need not require a separate license for a practitioner engaging in research with nonnarcotic controlled substances in Schedules II through V where the licensee is already licensed under this chapter in another capacity. (iii) With respect to research involving narcotic substances in Schedules II through V, or where the division by rule requires a separate license for research of nonnarcotic substances in Schedules II through V, a practitioner shall apply to the division before conducting research. (iv) Licensing for purposes of bona fide research with controlled substances by a practitioner considered qualified may be denied only on a ground specified in Subsection (4), or upon evidence that the applicant will abuse or unlawfully transfer or fail to safeguard adequately the practitioner's supply of substances against diversion from medical or scientific use. (v) A practitioner registered under federal law to conduct research in Schedule I substances may conduct research in Schedule I substances within this state upon providing the division with evidence of federal registration. (d) Compliance by a manufacturer, producer, or distributor with the provisions of federal law respecting registration, excluding fees, entitles the manufacturer, producer, or distributor to be licensed under this chapter. (e) The division shall initially license those persons who own or operate an establishment engaged in the manufacture, production, distribution, dispensation, or administration of controlled substances prior to April 3, 1980, and who are licensed by the state. (4) (a) Any license issued under Subsection (2) or (3) may be denied, suspended, placed on probation, or revoked by the division upon finding that the applicant or licensee has: (i) materially falsified any application filed or required pursuant to this chapter; (ii) been convicted of an offense under this chapter or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, an offense described in a statute previously in effect in this state that is the same or substantially similar to a violation of an offense described in this chapter or Title 76, Chapter 18, Offenses Concerning Controlled Substances, or any law of the United States, or any state, relating to any substance defined as a controlled substance; (iii) been convicted of a felony under any other law of the United States or any state within five years of the date of the issuance of the license; (iv) had a federal registration or license denied, suspended, or revoked by competent federal authority and is no longer authorized to manufacture, distribute, prescribe, or dispense controlled substances; (v) had the licensee's license suspended or revoked by competent authority of another state for violation of laws or regulations comparable to those of this state relating to the manufacture, distribution, or dispensing of controlled substances; (vi) violated any division rule that reflects adversely on the licensee's reliability and integrity with respect to controlled substances; (vii) refused inspection of records required to be maintained under this chapter by a person authorized to inspect them; or (viii) prescribed, dispensed, administered, or injected an anabolic steroid for the purpose of manipulating human hormonal structure so as to: (A) increase muscle mass, strength, or weight without medical necessity and without a written prescription by any practitioner in the course of the practitioner's professional practice; or (B) improve performance in any form of human exercise, sport, or game. (b) The division may limit revocation or suspension of a license to a particular controlled substance with respect to which grounds for revocation or suspension exist. (c) (i) Proceedings to deny, revoke, or suspend a license shall be conducted pursuant to this section and in accordance with the procedures set forth in Title 58, Chapter 1, Division of Professional Licensing Act, and conducted in conjunction with the appropriate representative committee designated by the director of the department. (ii) Nothing in this Subsection (4)(c) gives the Division of Professional Licensing exclusive authority in proceedings to deny, revoke, or suspend licenses, except where the division is designated by law to perform those functions, or, when not designated by law, is designated by the executive director of the Department of Commerce to conduct the proceedings. (d) (i) The division may suspend any license simultaneously with the institution of proceedings under this section if the division finds there is an imminent danger to the public health or safety. (ii) Suspension shall continue in effect until the conclusion of proceedings, including judicial review, unless withdrawn by the division or dissolved by a court of competent jurisdiction. (e) (i) If a license is suspended or revoked under this Subsection (4), all controlled substances owned or possessed by the licensee may be placed under seal in the discretion of the division. (ii) Disposition may not be made of substances under seal until the time for taking an appeal has lapsed, or until all appeals have been concluded, unless a court, upon application, orders the sale of perishable substances and the proceeds deposited with the court. (iii) If a revocation order becomes final, all controlled substances shall be forfeited. (f) The division shall notify promptly the Drug Enforcement Administration of all orders suspending or revoking a license and all forfeitures of controlled substances. (g) If an individual's Drug Enforcement Administration registration is denied, revoked, surrendered, or suspended, the division shall immediately suspend the individual's controlled substance license, which shall only be reinstated by the division upon reinstatement of the federal registration, unless the division has taken further administrative action under Subsection (4)(a)(iv), which would be grounds for the continued denial of the controlled substance license. (5) (a) A person licensed under Subsection (2) or (3) shall maintain records and inventories in conformance with the record keeping and inventory requirements of federal and state law and any additional rules issued by the division. (b) (i) A physician, dentist, naturopathic physician, veterinarian, practitioner, or other individual who is authorized to administer or professionally use a controlled substance, shall keep a record of the drugs received by the individual and a record of all drugs administered, dispensed, or professionally used by the individual otherwise than by a prescription. (ii) An individual using small quantities or solutions or other preparations of those drugs for local application has complied with this Subsection (5)(b) if the individual keeps a record of the quantity, character, and potency of those solutions or preparations purchased or prepared by the individual, and of the dates when purchased or prepared. (6) Controlled substances in Schedules I through V may be distributed only by a licensee and pursuant to an order form prepared in compliance with division rules or a lawful order under the rules and regulations of the United States. Renumbered and Amended by Chapter 362, 2026 General Session
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