Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 161 Sixth Substitute (2019GS)

Sponsor

Sen. Escamilla, L.

Final action

Governor Signed 3/26/2019

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends a provision regarding the transportation of cannabis and cannabis products to certain facilities;
• provides for testing of cannabis at additional stages of production;
• delays a provision during the decriminalization period that requires labeling with a barcode on a blister pack containing unprocessed cannabis flower;
• amends the request for proposal requirements for a third-party electronic verification system to ensure that the provider does not have an ownership interest in a cannabis production establishment or a medical cannabis pharmacy;
• subjects appointees to the compassionate use board to Senate confirmation;
• provides an exception allowing certain medical professionals to recommend medical cannabis before qualified medical provider registration is available;
• clarifies an exception to an employment protection regarding a public employee's lawful use of medical cannabis in the context of certain positions related to federal requirements;
• requires a state or political subdivision employer to provide a written notice to an employee or prospective employee whose assignments or duties under the state's medical cannabis programs may violate federal law;
• provides that a public employee who signs a notice regarding assignments or duties that may violate federal law may not subsequently rely on state whistleblower protections to refuse to carry out an assignment or duty that may violate federal law;
• requires the Department of Human Resource Management to create and publish a form notice for public employees regarding the employees' involvement in the state's medical cannabis programs;
• prohibits a court in a custody determination from:
• considering a parent's lawful possession or use of medical cannabis any differently than the lawful possession or use of an opioid or opiate ;
• discriminating against a parent based on the parent's status in relation to the state's medical cannabis programs;

Every vote on this bill

Bill text

MEDICAL CANNABIS ACT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Luz Escamilla
House Sponsor: 
Brad M. Daw
Cosponsor:
Evan J. Vickers
LONG TITLE
General Description:
This bill amends provisions related to the Utah Medical Cannabis Act.
Highlighted Provisions:
This bill:
▸ amends a provision regarding the transportation of cannabis and cannabis products
to certain facilities;
▸ provides for testing of cannabis at additional stages of production;
▸ delays a provision during the decriminalization period that requires labeling with a
barcode on a blister pack containing unprocessed cannabis flower;
▸ amends the request for proposal requirements for a third-party electronic
verification system to ensure that the provider does not have an ownership interest
in a cannabis production establishment or a medical cannabis pharmacy;
▸ subjects appointees to the compassionate use board to Senate confirmation;
▸ provides an exception allowing certain medical professionals to recommend
medical cannabis before qualified medical provider registration is available;
 ▸ 
clarifies an exception to an employment protection regarding a public employee's
lawful use of medical cannabis in the context of certain positions related to federal
requirements;
 ▸ requires a state or political subdivision employer to provide a written notice to an
employee or prospective employee whose assignments or duties under the state's medical
cannabis programs may violate federal law;
▸ provides that a public employee who signs a notice regarding assignments or duties
that may violate federal law may not subsequently rely on state whistleblower
protections to refuse to carry out an assignment or duty that may violate federal law;
▸ requires the Department of Human Resource Management to create and publish a
form notice for public employees regarding the employees' involvement in the
state's medical cannabis programs;
 ▸ 
prohibits a court in a custody determination from:
 • 
considering a parent's lawful possession or use of medical cannabis any
differently than the lawful possession or use of an opioid or opiate
;
 • 
discriminating against a parent based on the parent's status in relation to the
state's medical cannabis programs;
▸ allows a certain insurer to issue workers' compensation insurance coverage for an
employer that is a cannabis production establishment or a medical cannabis
pharmacy;
▸ allows a certain workers' compensation insurer to issue coverage to a cannabis
production establishment or a medical cannabis pharmacy;
▸ amends the decriminalization provision to include protections for parents and legal
guardians of certain minor patients;
▸ clarifies quantity limits for possession during the decriminalization period; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
4-41a-404
, as renumbered and amended by Laws of Utah 2018, Third Special Session,
Chapter 1
4-41a-701
, as renumbered and amended by Laws of Utah 2018, Third Special Session,
Chapter 1
26-61a-102
, as renumbered and amended by Laws of Utah 2018, Third Special Session,
Chapter 1
26-61a-103
, as renumbered and amended by Laws of Utah 2018, Third Special Session,
Chapter 1
26-61a-105
, as renumbered and amended by Laws of Utah 2018, Third Special Session,
Chapter 1
26-61a-106
, as renumbered and amended by Laws of Utah 2018, Third Special Session,
Chapter 1
26-61a-111
, as renumbered and amended by Laws of Utah 2018, Third Special Session,
Chapter 1
30-3-10
, as last amended by Laws of Utah 2018, Third Special Session, Chapter 1
31A-15-103
, as last amended by Laws of Utah 2018, Chapter 319
58-37-3.7
, as last amended by Laws of Utah 2018, Third Special Session, Chapter 1
ENACTS:
4-41a-107
, Utah Code Annotated 1953
31A-22-1016
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
4-41a-107
 is enacted to read:
 4-41a-107.
Notice to prospective and current public employees.
(1) (a) A state employer or a political subdivision employer shall take the action
described in Subsection (1)(b) before:
(i) giving to a current employee an assignment or duty that arises from or directly
relates to an obligation under this chapter; or
(ii) hiring a prospective employee whose assignments or duties would include an
assignment or duty that arises from or directly relates to an obligation under this chapter.
(b) The employer described in Subsection (1)(a) shall give the employee or prospective
employee described in Subsection (1)(a) a written notice that notifies the employee or
prospective employee:
(i) that the employee's or prospective employee's job duties may require the employee
or prospective employee to engage in conduct which is in violation of the criminal laws of the
United States; and
(ii) that in accepting a job or undertaking a duty described in Subsection (1)(a),
although the employee or prospective employee is entitled to the protections of Title 67,
Chapter 21, Utah Protection of Public Employees Act, the employee may not object or refuse to
carry out an assignment or duty that may be a violation of the criminal laws of the United
States with respect to the manufacture, sale, or distribution of cannabis.
(2) The Department of Human Resource Management shall create, revise, and publish
the form of the notice described in Subsection (1).
(3) Notwithstanding Subsection 
67-21-3
(3), an employee who has signed the notice
described in Subsection (1) may not:
(a) claim in good faith that the employee's actions violate or potentially violate the laws
of the United States with respect to the manufacture, sale, or distribution of cannabis; or
(b) refuse to carry out a directive that the employee reasonably believes violates the
criminal laws of the United States with respect to the manufacture, sale, or distribution of
cannabis.
(4) An employer of an employee who has signed the notice described in Subsection (1)
may not take retaliatory action as defined in Section 
67-19a-101
 against a current employee
who refuses to sign the notice described in Subsection (1).
Section 2. Section 
4-41a-404
 is amended to read:
4-41a-404.
Cannabis, cannabis product, or medical cannabis device
transportation.
(1) (a) Only the following individuals may transport cannabis in a medicinal dosage
form, a cannabis product in a medicinal dosage form, or a medical cannabis device under this
chapter:
(i) a registered cannabis production establishment agent; or
(ii) a medical cannabis cardholder who is transporting a medical cannabis treatment that
the cardholder is authorized to possess under this chapter.
(b) Only an agent of a cannabis cultivating facility, when the agent is transporting
cannabis plants to a cannabis processing facility or an independent cannabis testing laboratory,
may transport unprocessed cannabis outside of a medicinal dosage form.
(2) Except for an individual with a valid medical cannabis card under Title 26, Chapter
61a, Utah Medical Cannabis Act, who is transporting a medical cannabis treatment shall
possess a transportation manifest that:
(a) includes a unique identifier that links the cannabis, cannabis product, or medical
cannabis device to a relevant inventory control system;
(b) includes origin and destination information for any cannabis, cannabis product, or
medical cannabis device that the individual is transporting; and
(c) identifies the departure and arrival times and locations of the individual transporting
the cannabis, cannabis product, or medical cannabis device.
(3) (a) In addition to the requirements in Subsections (1) and (2), the department may
establish by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
Act, requirements for transporting cannabis in a medicinal dosage form, a cannabis product in a
medicinal dosage form, or a medical cannabis device to ensure that the cannabis, cannabis
product, or medical cannabis device remains safe for human consumption.
(b) The transportation described in Subsection (3)(a) is limited to transportation:
(i) between a cannabis cultivation facility and:
(A) another cannabis cultivation facility; or
(B) a cannabis processing facility; and
(ii) between a cannabis processing facility and:
(A) another cannabis processing facility;
(B) an independent cannabis testing laboratory; [
or
]
(C) a medical cannabis pharmacy[
.
]
; or
(D) the state central fill medical cannabis pharmacy.
(4) (a) It is unlawful for a registered cannabis production establishment agent to make a
transport described in this section with a manifest that does not meet the requirements of this
section.
(b) Except as provided in Subsection (4)(d), an agent who violates Subsection (4)(a) is:
(i) guilty of an infraction; and
(ii) subject to a $100 fine.
(c) An individual who is guilty of a violation described in Subsection (4)(b) is not
guilty of a violation of Title 58, Chapter 37, Utah Controlled Substances Act, for the conduct
underlying the violation described in Subsection (4)(b).
(d) If the agent described in Subsection (4)(a) is transporting more cannabis, cannabis
product, or medical cannabis devices than the manifest identifies, except for a de minimis
administrative error:
(i) the penalty described in Subsection (4)(b) does not apply; and
(ii) the agent is subject to penalties under Title 58, Chapter 37, Utah Controlled
Substances Act.
(5) Nothing in this section prevents the department from taking administrative
enforcement action against a cannabis production establishment or another person for failing to
make a transport in compliance with the requirements of this section.
Section 3. Section 
4-41a-701
 is amended to read:
4-41a-701.
Cannabis and cannabis product testing.
(1) A cannabis cultivation facility may not offer any cannabis for sale to a cannabis
processing facility unless an independent cannabis testing laboratory has tested a representative
sample of the cannabis or cannabis product to determine that the presence of contaminants,
including mold, fungus, pesticides, microbial contaminants, heavy metals, or foreign material,
does not exceed an amount that is safe for human consumption.
[
(1)
] 
(2)
 A 
cannabis processing facility may not offer any cannabis or cannabis
products for sale to a medical cannabis pharmacy or the state central fill medical cannabis
pharmacy, and a
 medical cannabis pharmacy and the state central fill medical cannabis
pharmacy may not offer any cannabis or cannabis product for sale unless an independent
cannabis testing laboratory has tested a representative sample of the cannabis or cannabis
product to determine:
(a) (i) the amount of total composite tetrahydrocannabinol and cannabidiol in the
cannabis or cannabis product; and
(ii) the amount of any other cannabinoid in the cannabis or cannabis product that the
label claims the cannabis or cannabis product contains;
(b) that the presence of contaminants, including mold, fungus, pesticides, microbial
contaminants, heavy metals, or foreign material, does not exceed an amount that is safe for
human consumption; and
(c) for a cannabis product that is manufactured using a process that involves extraction
using hydrocarbons, that the cannabis product does not contain a level of a residual solvent that
is not safe for human consumption.
[
(2)
] 
(3)
 By rule, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, the department:
(a) may determine the amount of any substance described in Subsections [
(1)
] 
(2)
(b)
and (c) that is safe for human consumption; and
(b) shall establish protocols for a recall of cannabis or a cannabis product by a cannabis
production establishment.
[
(3)
] 
(4)
 The department may require testing for a toxin if:
(a) the department receives information indicating the potential presence of a toxin; or
(b) the department's inspector has reason to believe a toxin may be present based on the
inspection of a facility.
[
(4)
] 
(5)
 The department shall establish by rule, in accordance with Title 63G, Chapter
3, Utah Administrative Rulemaking Act, the standards, methods, practices, and procedures for
the testing of cannabis and cannabis products by independent cannabis testing laboratories.
[
(5)
] 
(6)
 The department may require an independent cannabis testing laboratory to
participate in a proficiency evaluation that the department conducts or that an organization that
the department approves conducts.
Section 4. Section 
26-61a-102
 is amended to read:
26-61a-102.
Definitions.
As used in this chapter:
(1) "Blister" means a plastic cavity or pocket used to contain no more than a single
dose of cannabis or a cannabis product in a blister pack.
(2) "Blister pack" means a plastic, paper, or foil package with multiple blisters each
containing no more than a single dose of cannabis or a cannabis product.
(3) "Cannabis" means marijuana.
(4) "Cannabis cultivation facility" means the same as that term is defined in Section
4-41a-102
.
(5) "Cannabis processing facility" means the same as that term is defined in Section
4-41a-102
.
(6) "Cannabis product" means a product that:
(a) is intended for human use; and
(b) contains cannabis or tetrahydrocannabinol.
(7) "Cannabis production establishment agent" means the same as that term is defined
in Section 
4-41a-102
.
(8) "Cannabis production establishment agent registration card" means the same as that
term is defined in Section 
4-41a-102
.
(9) "Community location" means a public or private school, a church, a public library,
a public playground, or a public park.
(10) "Department" means the Department of Health.
(11) "Designated caregiver" means an individual:
(a) whom an individual with a medical cannabis patient card or a medical cannabis
guardian card designates as the patient's caregiver; and
(b) who registers with the department under Section 
26-61a-202
.
(12) "Dosing parameters" means quantity, routes, and frequency of administration for a
recommended treatment of cannabis in a medicinal dosage form or a cannabis product in a
medicinal dosage form.
(13) "Independent cannabis testing laboratory" means the same as that term is defined
in Section 
4-41a-102
.
(14) "Inventory control system" means the system described in Section 
4-41a-103
.
(15) "Local health department" means the same as that term is defined in Section
26A-1-102
.
(16) "Local health department distribution agent" means an agent designated and
registered to distribute state central fill shipments under Sections 
26-61a-606
 and 
26-61a-607
.
(17) "Marijuana" means the same as that term is defined in Section 
58-37-2
.
(18) "Medical cannabis" means cannabis in a medicinal dosage form or a cannabis
product in a medicinal dosage form.
(19) "Medical cannabis card" means a medical cannabis patient card, a medical
cannabis guardian card, or a medical cannabis caregiver card.
(20) "Medical cannabis cardholder" means a holder of a medical cannabis card.
(21) "Medical cannabis caregiver card" means an official card that:
(a) the department issues to an individual whom a medical cannabis patient cardholder
or a medical cannabis guardian cardholder designates as a designated caregiver; and
(b) is connected to the electronic verification system.
(22) (a) "Medical cannabis device" means a device that an individual uses to ingest
cannabis in a medicinal dosage form or a cannabis product in a medicinal dosage form.
(b) "Medical cannabis device" does not include a device that:
(i) facilitates cannabis combustion; or
(ii) an individual uses to ingest substances other than cannabis.
(23) "Medical cannabis guardian card" means an official card that:
(a) the department issues to the parent or legal guardian of a minor with a qualifying
condition; and
(b) is connected to the electronic verification system.
(24) "Medical cannabis patient card" means an official card that:
(a) the department issues to an individual with a qualifying condition; and
(b) is connected to the electronic verification system.
(25) "Medical cannabis pharmacy" means a person that:
(a) (i) acquires or intends to acquire:
(A) cannabis in a medicinal dosage form or a cannabis product in a medicinal dosage
form from a cannabis processing facility; or
(B) a medical cannabis device; or
(ii) possesses cannabis in a medicinal dosage form, a cannabis product in a medicinal
dosage form, or a medical cannabis device; and
(b) sells or intends to sell cannabis in a medicinal dosage form, a cannabis product in a
medicinal dosage form, or a medical cannabis device to a medical cannabis cardholder.
(26) "Medical cannabis pharmacy agent" means an individual who:
(a) is an employee of a medical cannabis pharmacy; and
(b) who holds a valid medical cannabis pharmacy agent registration card.
(27) "Medical cannabis pharmacy agent registration card" means a registration card
issued by the department that authorizes an individual to act as a medical cannabis pharmacy
agent.
(28) "Medical cannabis treatment" means cannabis in a medicinal dosage form, a
cannabis product in a medicinal dosage form, or a medical cannabis device.
(29) (a) "Medicinal dosage form" means:
(i) for processed medical cannabis or a medical cannabis product, the following [
in
single dosage form
] with a specific and consistent cannabinoid content:
(A) a tablet;
(B) a capsule;
(C) a concentrated oil;
(D) a liquid suspension;
(E) a topical preparation;
(F) a transdermal preparation;
(G) a sublingual preparation;
(H) a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or
rectangular cuboid shape; or
(I) for use only after the individual's qualifying condition has failed to substantially
respond to at least two other forms described in this Subsection (29)(a)(i), a resin or wax;
(ii) for unprocessed cannabis flower, a blister pack, with each individual blister:
(A) containing a specific and consistent weight that does not exceed one gram and that
varies by no more than 10% from the stated weight; and
(B) 
after December 31, 2020,
 labeled with a barcode that provides information
connected to an inventory control system and the individual blister's content and weight; and
(iii) a form measured in grams, milligrams, or milliliters.
(b) "Medicinal dosage form" includes a portion of unprocessed cannabis flower that:
(i) the medical cannabis cardholder has recently removed from the blister pack
described in Subsection (29)(a)(ii) for use; and
(ii) does not exceed the quantity described in Subsection (29)(a)(ii).
(c) "Medicinal dosage form" does not include:
(i) any unprocessed cannabis flower outside of the blister pack, except as provided in
Subsection (29)(b); or
(ii) a process of vaporizing and inhaling concentrated cannabis by placing the cannabis
on a nail or other metal object that is heated by a flame, including a blowtorch.
(30) "Pharmacy medical provider" means the medical provider required to be on site at
a medical cannabis pharmacy under Section 
26-61a-403
.
(31) "Provisional patient card" means a card that:
(a) the department issues to a minor with a qualifying condition for whom:
(i) a qualified medical provider has recommended a medical cannabis treatment; and
(ii) the department issues a medical cannabis guardian card to the minor's parent or
legal guardian; and
(b) is connected to the electronic verification system.
(32) "Qualified medical provider" means an individual who is qualified to recommend
treatment with cannabis in a medicinal dosage form under Section 
26-61a-106
.
(33) "Qualified Distribution Enterprise Fund" means the enterprise fund created in
Section 
26-61a-110
.
(34) "Qualified Patient Enterprise Fund" means the enterprise fund created in Section
26-61a-109
.
(35) "Qualifying condition" means a condition described in Section 
26-61a-104
.
(36) "State central fill agent" means an employee of the state central fill medical
cannabis pharmacy that the department registers in accordance with Section 
26-61a-602
.
(37) "State central fill medical cannabis pharmacy" means the central fill pharmacy that
the department creates in accordance with Section 
26-61a-601
.
(38) "State central fill medical provider" means a physician or pharmacist that the state
central fill medical cannabis pharmacy employs to consult with medical cannabis cardholders
in accordance with Section 
26-61a-601
.
(39) "State central fill shipment" means a shipment of cannabis in a medicinal dosage
form, cannabis product in a medicinal dosage form, or a medical cannabis device that the state
central fill medical cannabis pharmacy prepares and ships for distribution to a medical cannabis
cardholder in a local health department.
(40) "State electronic verification system" means the system described in Section
26-61a-103
.
Section 5. Section 
26-61a-103
 is amended to read:
26-61a-103.
Electronic verification system.
(1) The Department of Agriculture and Food, the department, the Department of Public
Safety, and the Department of Technology Services shall:
(a) enter into a memorandum of understanding in order to determine the function and
operation of the state electronic verification system in accordance with Subsection (2);
(b) coordinate with the Division of Purchasing, under Title 63G, Chapter 6a, Utah
Procurement Code, to develop a request for proposals for a third-party provider to develop and
maintain the state electronic verification system in coordination with the Department of
Technology Services; and
(c) select a third-party provider who
:
(i)
 meets the requirements contained in the request for proposals issued under
Subsection (1)(b)[
.
]
; and
(ii) may not have any commercial or ownership interest in a cannabis production
establishment or a medical cannabis pharmacy.
(2) The Department of Agriculture and Food, the department, the Department of Public
Safety, and the Department of Technology Services shall ensure that, on or before March 1,
2020, the state electronic verification system described in Subsection (1):
(a) allows an individual, with the individual's qualified medical provider in the qualified
medical provider's office, to apply for a medical cannabis patient card or, if applicable, a
medical cannabis guardian card;
(b) allows an individual to apply to renew a medical cannabis patient card or a medical
cannabis guardian card in accordance with Section 
26-61a-201
;
(c) allows a qualified medical provider to:
(i) access dispensing and card status information regarding a patient:
(A) with whom the qualified medical provider has a provider-patient relationship; and
(B) for whom the qualified medical provider has recommended or is considering
recommending a medical cannabis card;
(ii) electronically recommend, during a visit with a patient, treatment with cannabis in a
medicinal dosage form or a cannabis product in a medicinal dosage form and optionally
recommend dosing parameters;
(iii) electronically renew a recommendation to a medical cannabis patient cardholder or
medical cannabis guardian cardholder:
(A) for the qualified medical provider who originally recommended a medical cannabis
treatment, as that term is defined in Section 
26-61a-102
, using telehealth services; or
(B) for a qualified medical provider who did not originally recommend the medical
cannabis treatment, during a face-to-face visit with a patient; and
(iv) at the request of a medical cannabis cardholder, initiate a state central fill shipment
in accordance with Section 
26-61a-603
;
(d) connects with:
(i) an inventory control system that a medical cannabis pharmacy and the state central
fill medical cannabis pharmacy use to track in real time and archive purchases of any cannabis
in a medicinal dosage form, cannabis product in a medicinal dosage form, or medical cannabis
device, including:
(A) the time and date of each purchase;
(B) the quantity and type of cannabis, cannabis product, or medical cannabis device
purchased;
(C) any cannabis production establishment, any medical cannabis pharmacy, or the
state central fill medical cannabis pharmacy associated with the cannabis, cannabis product, or
medical cannabis device; and
(D) the personally identifiable information of the medical cannabis cardholder who
made the purchase; and
(ii) any commercially available inventory control system that a cannabis production
establishment utilizes in accordance with Section 
4-41a-103
 to use data that the Department of
Agriculture and Food requires by rule, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, from the inventory tracking system that a licensee uses to
track and confirm compliance;
(e) provides access to:
(i) the department to the extent necessary to carry out the department's functions and
responsibilities under this chapter;
(ii) the Department of Agriculture and Food to the extent necessary to carry out the
functions and responsibilities of the Department of Agriculture and Food under Title 4, Chapter
41a, Cannabis Production Establishments; and
(iii) the Division of Occupational and Professional Licensing to the extent necessary to
carry functions and responsibilities related to the participation of the following in the
recommendation and dispensing of medical cannabis:
(A) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
(B) an advanced practice registered nurse licensed under Title 58, Chapter 31b, Nurse
Practice Act;
(C) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or
(D) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act;
(f) provides access to and interaction with the state central fill medical cannabis
pharmacy, state central fill agents, and local health department distribution agents, to facilitate
the state central fill shipment process;
(g) provides access to state or local law enforcement:
(i) during a traffic stop for the purpose of determining if the individual subject to the
traffic stop is in compliance with state medical cannabis law; or
(ii) after obtaining a warrant; and
(h) creates a record each time a person accesses the database that identifies the person
who accesses the database and the individual whose records the person accesses.
(3) The department may release de-identified data that the system collects for the
purpose of:
(a) conducting medical research; and
(b) providing the report required by Section 
26-61a-703
.
(4) The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to establish:
(a) the limitations on access to the data in the state electronic verification system as
described in this section; and
(b) standards and procedures to ensure accurate identification of an individual
requesting information or receiving information in this section.
(5) (a) Any person who knowingly and intentionally releases any information in the
state electronic verification system in violation of this section is guilty of a third degree felony.
(b) Any person who negligently or recklessly releases any information in the state
electronic verification system in violation of this section is guilty of a class C misdemeanor.
(6) (a) Any person who obtains or attempts to obtain information from the state
electronic verification system by misrepresentation or fraud is guilty of a third degree felony.
(b) Any person who obtains or attempts to obtain information from the state electronic
verification system for a purpose other than a purpose this chapter authorizes is guilty of a third
degree felony.
(7) (a) Except as provided in Subsection (7)(e), a person may not knowingly and
intentionally use, release, publish, or otherwise make available to any other person information
obtained from the state electronic verification system for any purpose other than a purpose
specified in this section.
(b) Each separate violation of this Subsection (7) is:
(i) a third degree felony; and
(ii) subject to a civil penalty not to exceed $5,000.
(c) The department shall determine a civil violation of this Subsection (7) in
accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(d) Civil penalties assessed under this Subsection (7) shall be deposited into the
General Fund.
(e) This Subsection (7) does not prohibit a person who obtains information from the
state electronic verification system under Subsection (2)(a), (c), or (f) from:
(i) including the information in the person's medical chart or file for access by a person
authorized to review the medical chart or file;
(ii) providing the information to a person in accordance with the requirements of the
Health Insurance Portability and Accountability Act of 1996; or
(iii) discussing or sharing that information on the patient with the patient.
Section 6. Section 
26-61a-105
 is amended to read:
26-61a-105.
Compassionate use board.
(1) (a) The department shall establish a compassionate use board consisting of:
(i) seven qualified medical providers that the executive director appoints 
and the
Senate confirms
:
(A) who are knowledgeable about the medicinal use of cannabis;
(B) who are physicians licensed under Title 58, Chapter 67, Utah Medical Practice Act,
or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; and
(C) whom the appropriate board certifies in the specialty of neurology, pain medicine
and pain management, medical oncology, psychiatry, infectious disease, internal medicine,
pediatrics, or gastroenterology; and
(ii) as a nonvoting member and the chair of the board, the executive director or the
director's designee.
(b) In appointing the seven qualified medical providers described in Subsection (1)(a),
the executive director shall ensure that at least two have a board certification in pediatrics.
(2) (a) Of the members of the board that the executive director first appoints:
(i) three shall serve an initial term of two years; and
(ii) the remaining members shall serve an initial term of four years.
(b) After an initial term described in Subsection (2)(a) expires:
(i) each term is four years; and
(ii) each board member is eligible for reappointment.
(c) A member of the board may serve until a successor is appointed.
(3) Four members constitute a quorum of the compassionate use board.
(4) A member of the board may receive:
(a) compensation or benefits for the member's service; and
(b) per diem and travel expenses in accordance with Section 
63A-3-106
, Section
63A-3-107
, and rules made by the Division of Finance pursuant to Sections 
63A-3-106
 and
63A-3-107
.
(5) The compassionate use board shall:
(a) review and recommend for department approval an individual described in
Subsection 
26-61a-201
(2)(a), a minor described in Subsection 
26-61a-201
(2)(c), or an
individual who is not otherwise qualified to receive a medical cannabis card to obtain a
medical cannabis card for compassionate use if:
(i) for an individual who is not otherwise qualified to receive a medical cannabis card,
the individual's qualified medical provider is actively treating the individual for an intractable 
condition that:
(A) substantially impairs the individual's quality of life; and
(B) has not, in the qualified medical provider's professional opinion, adequately
responded to conventional treatments;
(ii) the qualified medical provider:
(A) recommends that the individual or minor be allowed to use medical cannabis; and
(B) provides a letter, relevant treatment history, and notes or copies of progress notes
describing relevant treatment history including rationale for considering the use of medical
cannabis; and
(iii) the board determines that:
(A) the recommendation of the individual's qualified medical provider is justified; and
(B) based on available information, it may be in the best interests of the individual to
allow the use of medical cannabis;
(b) unless no petitions are pending:
(i) meet to receive or review compassionate use petitions at least quarterly; and
(ii) if there are more petitions than the board can receive or review during the board's
regular schedule, as often as necessary;
(c) complete a review of each petition and recommend to the department approval or
denial of the applicant for qualification for a medical cannabis card within 90 days after the day
on which the board received the petition; and
(d) report, before November 1 of each year, to the Health and Human Services Interim
Committee:
(i) the number of compassionate use recommendations the board issued during the past
year; and
(ii) the types of conditions for which the board approved compassionate use.
(6) (a) (i) The department shall review any compassionate use for which the board
recommends approval under Subsection (5)(c) to determine whether the board properly
exercised the board's discretion under this section.
(ii) If the department determines that the board properly exercised the board's
discretion in recommending approval under Subsection (5)(c), the department shall:
(A) issue the relevant medical cannabis card; and
(B) provide for the renewal of the medical cannabis card in accordance with the
recommendation of the qualified medical provider described in Subsection (5)(a).
(b) (i) If the board recommends denial under Subsection (5)(c), the individual seeking
to obtain a medical cannabis card may petition the department to review the board's decision.
(ii) If the department determines that the board's recommendation for denial under
Subsection (5)(c) was arbitrary or capricious:
(A) the department shall notify the board of the department's determination; and
(B) the board shall reconsider the board's refusal to recommend approval under this
section.
(c) In reviewing the board's recommendation for approval or denial under Subsection
(5)(c) in accordance with this Subsection (6), the department shall presume the board properly
exercised the board's discretion unless the department determines that the board's
recommendation was arbitrary or capricious.
(7) Any individually identifiable health information contained in a petition that the
board or department receives under this section is a protected record in accordance with Title
63G, Chapter 2, Government Records Access and Management Act.
(8) The compassionate use board shall annually report the board's activity to the
Cannabinoid Product Board created in Section 
26-61-201
.
Section 7. Section 
26-61a-106
 is amended to read:
26-61a-106.
 Qualified medical provider registration -- Continuing education --
Treatment recommendation.
(1) 
(a)
 [
An
] 
Except as provided in Subsection (1)(b), an
 individual may not recommend
a medical cannabis treatment unless the department registers the individual as a qualified
medical provider in accordance with this section.
(b) An individual who meets the qualifications in Subsections 
26-61a-106
(2)(a)(iii)
and (iv) may recommend a medical cannabis treatment without registering under Subsection
(1)(a) until January 1, 2021.
(2) (a) The department shall, within 15 days after the day on which the department
receives an application from an individual, register and issue a qualified medical provider
registration card to the individual if the individual:
(i) provides to the department the individual's name and address;
(ii) provides to the department a report detailing the individual's completion of the
applicable continuing education requirement described in Subsection (3);
(iii) provides to the department evidence that the individual:
(A) has the authority to write a prescription;
(B) is licensed to prescribe a controlled substance under Title 58, Chapter 37, Utah
Controlled Substances Act; and
(C) possesses the authority, in accordance with the individual's scope of practice, to
prescribe a Schedule II controlled substance;
(iv) provides to the department evidence that the individual is:
(A) an advanced practice registered nurse licensed under Title 58, Chapter 31b, Nurse
Practice Act;
(B) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act, or
Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or
(C) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act,
whose declaration of services agreement, as that term is defined in Section 
58-70a-102
,
includes the recommending of medical cannabis, and whose supervising physician is a
qualified medical provider; and
(v) pays the department a fee in an amount that:
(A) the department sets, in accordance with Section 
63J-1-504
; and
(B) does not exceed $300 for an initial registration.
(b) The department may not register an individual as a qualified medical provider if the
individual is:
(i) a pharmacy medical provider or a state central fill medical provider; or
(ii) an owner, officer, director, board member, employee, or agent of a cannabis
production establishment or a medical cannabis pharmacy.
(3) (a) An individual shall complete the continuing education described in this
Subsection (3) in the following amounts:
(i) for an individual as a condition precedent to registration, four hours; and
(ii) for a qualified medical provider as a condition precedent to renewal, four hours
every two years.
(b) In accordance with Subsection (3)(a), a qualified medical provider shall:
(i) complete continuing education:
(A) regarding the topics described in Subsection (3)(d); and
(B) offered by the department under Subsection (3)(c) or an accredited or approved
continuing education provider that the department recognizes as offering continuing education
appropriate for the recommendation of cannabis to patients; and
(ii) make a continuing education report to the department in accordance with a process
that the department establishes by rule, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, and in collaboration with the Division of Occupational and
Professional Licensing and:
(A) for an advanced practice registered nurse licensed under Title 58, Chapter 31b,
Nurse Practice Act, the Board of Nursing;
(B) for a qualified medical provider licensed under Title 58, Chapter 67, Utah Medical
Practice Act, the Physicians Licensing Board;
(C) for a qualified medical provider licensed under Title 58, Chapter 68, Utah
Osteopathic Medical Practice Act, the Osteopathic Physician and Surgeon's Licensing Board;
and
(D) for a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant
Act, the Physician Assistant Licensing Board.
(c) The department may, in consultation with the Division of Occupational and
Professional Licensing, develop the continuing education described in this Subsection (3).
(d) The continuing education described in this Subsection (3) may discuss:
(i) the provisions of this chapter;
(ii) general information about medical cannabis under federal and state law;
(iii) the latest scientific research on the endocannabinoid system and medical cannabis,
including risks and benefits;
(iv) recommendations for medical cannabis as it relates to the continuing care of a
patient in pain management, risk management, potential addiction, or palliative care; and
(v) best practices for recommending the form and dosage of medical cannabis products
based on the qualifying condition underlying a medical cannabis recommendation.
(4) (a) Except as provided in Subsection (4)(b) or (c), a qualified medical provider may
not recommend a medical cannabis treatment to more than 175 of the qualified medical
provider's patients at the same time, as determined by the number of medical cannabis cards
under the qualified medical provider's name in the state electronic verification system.
(b) Except as provided in Subsection (4)(c), a qualified medical provider may
recommend a medical cannabis treatment to up to 300 of the qualified medical provider's
patients at any given time, as determined by the number of medical cannabis cards under the
qualified medical provider's name in the state electronic verification system, if:
(i) the appropriate American medical board has certified the qualified medical provider
in the specialty of anesthesiology, gastroenterology, neurology, oncology, pain, hospice and
palliative medicine, physical medicine and rehabilitation, rheumatology, or psychiatry; or
(ii) a licensed business employs or contracts the qualified medical provider for the
specific purpose of providing hospice and palliative care.
(c) (i) Notwithstanding Subsection (4)(b), a qualified medical provider described in
Subsection (4)(b) may petition the Division of Occupational and Professional Licensing for
authorization to exceed the limit described in Subsection (4)(b) by graduating increments of
100 patients per authorization, not to exceed three authorizations.
(ii) The Division of Occupational and Professional Licensing shall grant the
authorization described in Subsection (4)(c)(i) if:
(A) the petitioning qualified medical provider pays a $100 fee;
(B) the division performs a review that includes the qualified medical provider's
medical cannabis recommendation activity in the state electronic verification system, relevant
information related to patient demand, and any patient medical records that the division
determines would assist in the division's review; and
(C) after the review described in this Subsection (4)(c)(ii), the division determines that
granting the authorization would not adversely affect public safety, adversely concentrate the
overall patient population among too few qualified medical providers, or adversely concentrate
the use of medical cannabis among the provider's patients.
(5) A qualified medical provider may recommend medical cannabis to an individual
under this chapter only in the course of a qualified medical provider-patient relationship after
the qualifying medical provider has completed and documented in the patient's medical record
a thorough assessment of the patient's condition and medical history based on the appropriate
standard of care for the patient's condition.
(6) (a) Except as provided in Subsection (6)(b), a qualified medical provider may not
advertise that the qualified medical provider recommends medical cannabis treatment.
(b) For purposes of Subsection (6)(a), the communication of the following, through a
website does not constitute advertising:
(i) a green cross;
(ii) a qualifying condition that the qualified medical provider treats; or
(iii) a scientific study regarding medical cannabis use.
(7) (a) A qualified medical provider registration card expires two years after the day on
which the department issues the card.
(b) The department shall renew a qualified medical provider's registration card if the
provider:
(i) applies for renewal;
(ii) is eligible for a qualified medical provider registration card under this section,
including maintaining an unrestricted license as described in Subsection (2)(a)(iii);
(iii) certifies to the department in a renewal application that the information in
Subsection (2)(a) is accurate or updates the information;
(iv) submits a report detailing the completion of the continuing education requirement
described in Subsection (3); and
(v) pays the department a fee in an amount that:
(A) the department sets, in accordance with Section 
63J-1-504
; and
(B) does not exceed $50 for a registration renewal.
(8) The department may revoke the registration of a qualified medical provider who
fails to maintain compliance with the requirements of this section.
(9) A qualified medical provider may not receive any compensation or benefit for the
qualified medical provider's medical cannabis treatment recommendation from:
(a) a cannabis production establishment or an owner, officer, director, board member,
employee, or agent of a cannabis production establishment;
(b) a medical cannabis pharmacy or an owner, officer, director, board member,
employee, or agent of a medical cannabis pharmacy; or
(c) a qualified medical provider or pharmacy medical provider.
Section 8. Section 
26-61a-111
 is amended to read:
26-61a-111.
Nondiscrimination for medical care or government employment --
Notice to prospective and current public employees.
(1) For purposes of medical care, including an organ or tissue transplant, a patient's
use, in accordance with this chapter, of cannabis in a medicinal dosage form or a cannabis
product in a medicinal dosage form:
(a) is considered the equivalent of the authorized use of any other medication used at
the discretion of a physician; and
(b) does not constitute the use of an illicit substance or otherwise disqualify an
individual from needed medical care.
(2) (a) Notwithstanding any other provision of law and except as provided in
Subsection (2)(b), the state or any political subdivision shall treat an employee's use of medical
cannabis in accordance with this chapter or Section 
58-37-3.7
 in the same way the state or
political subdivision treats employee use of opioids and opiates.
(b) Subsection (2)(a) does not apply where 
the
 application 
of Subsection (2)(a)
 would
jeopardize federal funding
, a federal security clearance, or any other federal background
determination required
 for the employee's position.
(3) (a) (i) A state employer or a political subdivision employer shall take the action
described in Subsection (3)(a)(ii) before:
(A) giving to a current employee an assignment or duty that arises from or directly
relates to an obligation under this chapter; or
(B) hiring a prospective employee whose assignments or duties would include an
assignment or duty that arises from or directly relates to an obligation under this chapter.
(ii) The employer described in Subsection (3)(a)(i) shall give the employee or
prospective employee described in Subsection (3)(a)(i) a written notice that notifies the
employee or prospective employee:
(A) that the employee's or prospective employee's job duties may require the employee
or prospective employee to engage in conduct which is in violation of the criminal laws of the
United States; and
(B) that in accepting a job or undertaking a duty described in Subsection (3)(a)(i),
although the employee or prospective employee is entitled to the protections of Title 67,
Chapter 21, Utah Protection of Public Employees Act, the employee may not object or refuse to
carry out an assignment or duty that may be a violation of the criminal laws of the United
States with respect to the manufacture, sale, or distribution of cannabis.
(b) The Department of Human Resource Management shall create, revise, and publish
the form of the notice described in Subsection (3)(a).
(c) Notwithstanding Subsection 
67-21-3
(3), an employee who has signed the notice
described in Subsection (3)(a) may not:
(i) claim in good faith that the employee's actions violate or potentially violate the laws
of the United States with respect to the manufacture, sale, or distribution of cannabis; or
(ii) refuse to carry out a directive that the employee reasonably believes violates the
criminal laws of the United States with respect to the manufacture, sale, or distribution of
cannabis.
(d) An employer of an employee who has signed the notice described in Subsection
(3)(a) may not take retaliatory action as defined in Section 
67-19a-101
 against a current
employee who refuses to sign the notice described in Subsection (3)(a).
Section 9. Section 
30-3-10
 is amended to read:
30-3-10.
Custody of children in case of separation or divorce -- Custody
consideration.
(1) If a married couple having one or more minor children are separated, or their
marriage is declared void or dissolved, the court shall make an order for the future care and
custody of the minor children as it considers appropriate.
(a) In determining any form of custody, including a change in custody, the court shall
consider the best interests of the child without preference for either parent solely because of the
biological sex of the parent and, among other factors the court finds relevant, the following:
(i) in accordance with Subsection (7), the past conduct and demonstrated moral
standards of each of the parties;
(ii) which parent is most likely to act in the best interest of the child, including
allowing the child frequent and continuing contact with the noncustodial parent;
(iii) the extent of bonding between the parent and child, meaning the depth, quality,
and nature of the relationship between a parent and child;
(iv) whether the parent has intentionally exposed the child to pornography or material
harmful to a minor, as defined in Section 
76-10-1201
; and
(v) those factors outlined in Section 
30-3-10.2
.
(b) There is a rebuttable presumption that joint legal custody, as defined in Section
30-3-10.1
, is in the best interest of the child, except in cases where there is:
(i) domestic violence in the home or in the presence of the child;
(ii) special physical or mental needs of a parent or child, making joint legal custody
unreasonable;
(iii) physical distance between the residences of the parents, making joint decision
making impractical in certain circumstances; or
(iv) any other factor the court considers relevant including those listed in this section
and Section 
30-3-10.2
.
(c) (i) The person who desires joint legal custody shall file a proposed parenting plan in
accordance with Sections 
30-3-10.8
 and 
30-3-10.9
.
(ii) A presumption for joint legal custody may be rebutted by a showing by a
preponderance of the evidence that it is not in the best interest of the child.
(d) A child may not be required by either party to testify unless the trier of fact
determines that extenuating circumstances exist that would necessitate the testimony of the
child be heard and there is no other reasonable method to present the child's testimony.
(e) (i) The court may inquire of the child's and take into consideration the [
the
] child's
desires regarding future custody or parent-time schedules, but the expressed desires are not
controlling and the court may determine the children's custody or parent-time otherwise.
(ii) The desires of a child 14 years of age or older shall be given added weight, but is
not the single controlling factor.
(f) (i) If an interview with a child is conducted by the court pursuant to Subsection
(1)(e), the interview shall be conducted by the judge in camera.
(ii) The prior consent of the parties may be obtained but is not necessary if the court
finds that an interview with a child is the only method to ascertain the child's desires regarding
custody.
(2) In awarding custody, the court shall consider, among other factors the court finds
relevant, which parent is most likely to act in the best interests of the child, including allowing
the child frequent and continuing contact with the noncustodial parent as the court finds
appropriate.
(3) If the court finds that one parent does not desire custody of the child, the court shall
take that evidence into consideration in determining whether to award custody to the other
parent.
(4) (a) Except as provided in Subsection (4)(b), a court may not discriminate against a
parent due to a disability, as defined in Section 
57-21-2
, in awarding custody or determining
whether a substantial change has occurred for the purpose of modifying an award of custody.
(b) The court may not consider the disability of a parent as a factor in awarding custody
or modifying an award of custody based on a determination of a substantial change in
circumstances, unless the court makes specific findings that:
(i) the disability significantly or substantially inhibits the parent's ability to provide for
the physical and emotional needs of the child at issue; and
(ii) the parent with a disability lacks sufficient human, monetary, or other resources
available to supplement the parent's ability to provide for the physical and emotional needs of
the child at issue.
(c) Nothing in this section may be construed to apply to adoption proceedings under
Title 78B, Chapter 6, Part 1, Utah Adoption Act.
(5) This section establishes neither a preference nor a presumption for or against joint
physical custody or sole physical custody, but allows the court and the family the widest
discretion to choose a parenting plan that is in the best interest of the child.
(6) When an issue before the court involves custodial responsibility in the event of a
deployment of one or both parents who are servicemembers, and the servicemember has not yet
been notified of deployment, the court shall resolve the issue based on the standards in Sections
78B-20-306
 through 
78B-20-309
.
(7) In considering the past conduct and demonstrated moral standards of each party
under Subsection (1)(a)(i) or any other factor a court finds relevant, the court may not
[
discriminate against a parent because of or otherwise consider the parent's
]:
(a) 
consider or treat a parent's
 lawful possession or use of cannabis in a medicinal
dosage form, a cannabis product in a medicinal dosage form, or a medical cannabis device, in
accordance with Title 26, Chapter 61a, Utah Medical Cannabis Act, [
except as it relates to that
parent's ability to care for a child
] 
any differently than the court would consider or treat the
lawful possession or use of an opioid or opiate
; or
(b) 
discriminate against a parent because of the parent's
 status as a:
(i) cannabis production establishment agent, as that term is defined in Section
4-41a-102;
(ii) medical cannabis pharmacy agent, as that term is defined in Section 
26-61a-102
;
(iii) state central fill agent, as that term is defined in Section 
26-61a-102
; or
(iv) medical cannabis cardholder in accordance with Title 26, Chapter 61a, Utah
Medical Cannabis Act.
Section 10. Section 
31A-15-103
 is amended to read:
31A-15-103.
Surplus lines insurance -- Unauthorized insurers.
(1) Notwithstanding Section 
31A-15-102
, when this state is the home state as defined
in Section 
31A-3-305
, a nonadmitted insurer may make an insurance contract for coverage of a
person in this state and on a risk located in this state, subject to the limitations and
requirements of this section.
(2) (a) For a contract made under this section, the insurer may, in this state:
(i) inspect the risks to be insured;
(ii) collect premiums;
(iii) adjust losses; and
(iv) do another act reasonably incidental to the contract.
(b) An act described in Subsection (2)(a) may be done through:
(i) an employee; or
(ii) an independent contractor.
(3) (a) Subsections (1) and (2) do not permit a person to solicit business in this state on
behalf of an insurer that has no certificate of authority.
(b) Insurance placed with a nonadmitted insurer shall be placed by a surplus lines
producer licensed under Chapter 23a, Insurance Marketing - Licensing Producers, Consultants,
and Reinsurance Intermediaries.
(c) The commissioner may by rule prescribe how a surplus lines producer may:
(i) pay or permit the payment, commission, or other remuneration on insurance placed
by the surplus lines producer under authority of the surplus lines producer's license to one
holding a license to act as an insurance producer; and
(ii) advertise the availability of the surplus lines producer's services in procuring, on
behalf of a person seeking insurance, a contract with a nonadmitted insurer.
(4) For a contract made under this section, a nonadmitted insurer is subject to Sections
31A-23a-402
, 
31A-23a-402.5
, and 
31A-23a-403
 and the rules adopted under those sections.
(5) A nonadmitted insurer may not issue workers' compensation insurance coverage to
an employer located in this state, except
:
(a)
 for stop loss coverage issued to an employer securing workers' compensation under
Subsection 
34A-2-201
(2)[
.
]
;
(b) a cannabis production establishment as defined in Section 
4-41a-102
; or
(c) a medical cannabis pharmacy as defined in Section 
26-61a-102
.
(6) (a) The commissioner may by rule prohibit making a contract under Subsection (1)
for a specified class of insurance if authorized insurers provide an established market for the
class in this state that is adequate and reasonably competitive.
(b) The commissioner may by rule place a restriction or a limitation on and create
special procedures for making a contract under Subsection (1) for a specified class of insurance
if:
(i) there have been abuses of placements in the class; or
(ii) the policyholders in the class, because of limited financial resources, business
experience, or knowledge, cannot protect their own interests adequately.
(c) The commissioner may prohibit an individual insurer from making a contract under
Subsection (1) and all insurance producers from dealing with the insurer if:
(i) the insurer willfully violates:
(A) this section;
(B) Section 
31A-4-102
, 
31A-23a-402
, 
31A-23a-402.5
, or 
31A-26-303
; or
(C) a rule adopted under a section listed in Subsection (6)(c)(i)(A) or (B);
(ii) the insurer fails to pay the fees and taxes specified under Section 
31A-3-301
; or
(iii) the commissioner has reason to believe that the insurer is:
(A) in an unsound condition;
(B) operated in a fraudulent, dishonest, or incompetent manner; or
(C) in violation of the law of its domicile.
(d) (i) The commissioner may issue one or more lists of nonadmitted foreign insurers
whose:
(A) solidity the commissioner doubts; or
(B) practices the commissioner considers objectionable.
(ii) The commissioner shall issue one or more lists of nonadmitted foreign insurers the
commissioner considers to be reliable and solid.
(iii) In addition to the lists described in Subsections (6)(d)(i) and (ii), the commissioner
may issue other relevant evaluations of nonadmitted insurers.
(iv) An action may not lie against the commissioner or an employee of the department
for a written or oral communication made in, or in connection with the issuance of, a list or
evaluation described in this Subsection (6)(d).
(e) A foreign nonadmitted insurer shall be listed on the commissioner's "reliable" list
only if the nonadmitted insurer:
(i) delivers a request to the commissioner to be on the list;
(ii) establishes satisfactory evidence of good reputation and financial integrity;
(iii) (A) delivers to the commissioner a copy of the nonadmitted insurer's current
annual statement certified by the insurer and, each subsequent year, delivers to the
commissioner a copy of the nonadmitted insurer's annual statement within 60 days after the day
on which the nonadmitted insurer files the annual statement with the insurance regulatory
authority where the nonadmitted insurer is domiciled; or
(B) files the nonadmitted insurer's annual statements with the National Association of
Insurance Commissioners and the nonadmitted insurer's annual statements are available
electronically from the National Association of Insurance Commissioners;
(iv) (A) is in substantial compliance with the solvency standards in Chapter 17, Part 6,
Risk-Based Capital, or maintains capital and surplus of at least $15,000,000, whichever is
greater; or
(B) in the case of any "Lloyd's" or other similar incorporated or unincorporated group
of alien individual insurers, maintains a trust fund that:
(I) shall be in an amount not less than $50,000,000 as security to its full amount for all
policyholders and creditors in the United States of each member of the group;
(II) may consist of cash, securities, or investments of substantially the same character
and quality as those which are "qualified assets" under Section 
31A-17-201
; and
(III) may include as part of this trust arrangement a letter of credit that qualifies as
acceptable security under Section 
31A-17-404.1
; and
(v) for an alien insurer not domiciled in the United States or a territory of the United
States, is listed on the Quarterly Listing of Alien Insurers maintained by the National
Association of Insurance Commissioners International Insurers Department.
(7) (a) Subject to Subsection (7)(b), a surplus lines producer may not, either knowingly
or without reasonable investigation of the financial condition and general reputation of the
insurer, place insurance under this section with:
(i) a financially unsound insurer;
(ii) an insurer engaging in unfair practices; or
(iii) an otherwise substandard insurer.
(b) A surplus line producer may place insurance under this section with an insurer
described in Subsection (7)(a) if the surplus line producer:
(i) gives the applicant notice in writing of the known deficiencies of the insurer or the
limitations on the surplus line producer's investigation; and
(ii) explains the need to place the business with that insurer.
(c) A copy of the notice described in Subsection (7)(b) shall be kept in the office of the
surplus line producer for at least five years.
(d) To be financially sound, an insurer shall satisfy standards that are comparable to
those applied under the laws of this state to an authorized insurer.
(e) An insurer on the "doubtful or objectionable" list under Subsection (6)(d) or an
insurer not on the commissioner's "reliable" list under Subsection (6)(e) is presumed
substandard.
(8) (a) A policy issued under this section shall:
(i) include a description of the subject of the insurance; and
(ii) indicate:
(A) the coverage, conditions, and term of the insurance;
(B) the premium charged the policyholder;
(C) the premium taxes to be collected from the policyholder; and
(D) the name and address of the policyholder and insurer.
(b) If the direct risk is assumed by more than one insurer, the policy shall state:
(i) the names and addresses of all insurers; and
(ii) the portion of the entire direct risk each assumes.
(c) A policy issued under this section shall have attached or affixed to the policy the
following statement: "The insurer issuing this policy does not hold a certificate of authority to
do business in this state and thus is not fully subject to regulation by the Utah insurance
commissioner. This policy receives no protection from any of the guaranty associations created
under Title 31A, Chapter 28, Guaranty Associations."
(9) Upon placing a new or renewal coverage under this section, a surplus lines
producer shall promptly deliver to the policyholder or the policyholder's agent evidence of the
insurance consisting either of:
(a) the policy as issued by the insurer; or
(b) if the policy is not available upon placing the coverage, a certificate, cover note, or
other confirmation of insurance complying with Subsection (8).
(10) If the commissioner finds it necessary to protect the interests of insureds and the
public in this state, the commissioner may by rule subject a policy issued under this section to
as much of the regulation provided by this title as is required for a comparable policy written
by an authorized foreign insurer.
(11) (a) A surplus lines transaction in this state shall be examined to determine whether
it complies with:
(i) the surplus lines tax levied under Chapter 3, Department Funding, Fees, and Taxes;
(ii) the solicitation limitations of Subsection (3);
(iii) the requirement of Subsection (3) that placement be through a surplus lines
producer;
(iv) placement limitations imposed under Subsections (6)(a), (b), and (c); and
(v) the policy form requirements of Subsections (8) and (10).
(b) The examination described in Subsection (11)(a) shall take place as soon as
practicable after the transaction. The surplus lines producer shall submit to the examiner
information necessary to conduct the examination within a period specified by rule.
(c) (i) The examination described in Subsection (11)(a) may be conducted by the
commissioner or by an advisory organization created under Section 
31A-15-111
 and authorized
by the commissioner to conduct these examinations. The commissioner is not required to
authorize an additional advisory organization to conduct an examination under this Subsection
(11)(c).
(ii) The commissioner's authorization of one or more advisory organizations to act as
examiners under this Subsection (11)(c) shall be:
(A) by rule; and
(B) evidenced by a contract, on a form provided by the commissioner, between the
authorized advisory organization and the department.
(d) (i) (A) A person conducting the examination described in Subsection (11)(a) shall
collect a stamping fee of an amount not to exceed 1% of the policy premium payable in
connection with the transaction.
(B) A stamping fee collected by the commissioner shall be deposited in the General
Fund.
(C) The commissioner shall establish a stamping fee by rule.
(ii) A stamping fee collected by an advisory organization is the property of the advisory
organization to be used in paying the expenses of the advisory organization.
(iii) Liability for paying a stamping fee is as required under Subsection 
31A-3-303
(1)
for taxes imposed under Section 
31A-3-301
.
(iv) The commissioner shall adopt a rule dealing with the payment of stamping fees. If
a stamping fee is not paid when due, the commissioner or advisory organization may impose a
penalty of 25% of the stamping fee due, plus 1-1/2% per month from the time of default until
full payment of the stamping fee.
(e) The commissioner, representatives of the department, advisory organizations,
representatives and members of advisory organizations, authorized insurers, and surplus lines
insurers are not liable for damages on account of statements, comments, or recommendations
made in good faith in connection with their duties under this Subsection (11)(e) or under
Section 
31A-15-111
.
(f) An examination conducted under this Subsection (11) and a document or materials
related to the examination are confidential.
(12) (a) For a surplus lines insurance transaction in the state entered into on or after
May 13, 2014, if an audit is required by the surplus lines insurance policy, a surplus lines
insurer:
(i) shall exercise due diligence to initiate an audit of an insured, to determine whether
additional premium is owed by the insured, by no later than six months after the expiration of
the term for which premium is paid; and
(ii) may not audit an insured more than three years after the surplus lines insurance
policy expires.
(b) A surplus lines insurer that does not comply with this Subsection (12) may not
charge or collect additional premium in excess of the premium agreed to under the surplus
lines insurance policy.
Section 11. Section 
31A-22-1016
 is enacted to read:
 31A-22-1016.
Workers' compensation coverage for medical cannabis operations.
A licensed and admitted workers' compensation insurer may issue coverage to:
(1) a cannabis production establishment as defined in Section 
4-41a-102
; or
(2) a medical cannabis pharmacy as defined in Section 
26-61a-102
.
Section 12. Section 
58-37-3.7
 is amended to read:
58-37-3.7.
Medical cannabis decriminalization.
(1) As used in this section:
(a) "Cannabis" means the same as that term is defined in Section 
26-61a-102
.
(b) "Cannabis product" means the same as that term is defined in Section 
26-61a-102
.
(c) "Medical cannabis card" means the same as that term is defined in Section
26-61a-102
.
(d) "Medical cannabis device" means the same as that term is defined in Section
26-61a-102
.
(e) "Medical cannabis pharmacy" means the same as that term is defined in Section
26-61a-102
.
(f) "Medicinal dosage form" means the same as that term is defined in Section
26-61a-102
.
(g) "Qualified medical provider" means the same as that term is defined in Section
26-61a-102
.
(h) "Qualifying condition" means the same as that term is defined in Section
26-61a-102
.
(i) "Tetrahydrocannabinol" means the same as that term is defined in Section
58-37-3.9
.
(2) Before January 1, 2021, an individual is not guilty under this chapter for the use or
possession of marijuana, tetrahydrocannabinol, or marijuana drug paraphernalia if:
(a) at the time of the arrest 
or citation
, the individual:
(i) (A) had been diagnosed with a qualifying condition; and
(B) had a pre-existing provider-patient relationship with an advanced practice
registered nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, a physician licensed
under Title 58, Chapter 67, Utah Medical Practice Act, a physician licensed under Title 58,
Chapter 68, Utah Osteopathic Medical Practice Act, or a physician assistant licensed under
Title 58, Chapter 70a, Physician Assistant Act, who believed that the individual's illness
described in Subsection (2)(a)(i)(A) could benefit from the use in question; [
or
]
(ii) for possession, was:
(A) the parent or legal guardian of an individual described in Subsection (2)(a)(i) who
is a minor; or
(B) the spouse of an individual described in Subsection (2)(a)(i); or
[
(ii)
] 
(iii)
 (A) for possession, was a medical cannabis cardholder; or
(B) for use, was a medical cannabis patient cardholder or a minor with a qualifying
condition under the supervision of a medical cannabis guardian cardholder; and
(b) the marijuana or tetrahydrocannabinol was in a medicinal dosage form in [
a
quantity described in Subsection 
26-61a-502
(2).
] 
one of the following amounts:
(i) no more than 56 grams by weight of unprocessed cannabis; or
(ii) an amount of cannabis products that contains, in total, no more than 10 grams of
total composite tetrahydrocannabinol.
(3) An individual is not guilty under this chapter for the use or possession of marijuana,
tetrahydrocannabinol, or marijuana drug paraphernalia under this chapter if:
(a) at the time of the arrest 
or citation
, the individual:
(i) was not a resident of Utah or has been a resident of Utah for less than 45 days;
(ii) had a currently valid medical cannabis card or the equivalent of a medical cannabis
card under the laws of another state, district, territory, commonwealth, or insular possession of
the United States; and
(iii) had been diagnosed with a qualifying condition as described in Section
26-61a-104
; and
(b) the marijuana or tetrahydrocannabinol is in a medicinal dosage form in a quantity
described in Subsection 
26-61a-502
(2).
Section 13. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.