1. (1) A person applying for a cannabis production establishment license or license renewal shall submit to the department for the department's review a proposed operating plan that complies with this section and that includes:

   1. (a) a description of the physical characteristics of each proposed facility, including a floor plan and an architectural elevation;

   2. (b) a description of the credentials and experience of:

      1. (i) each officer, director, and owner of the proposed cannabis production establishment; and
      2. (ii) any highly skilled or experienced prospective employee;
   3. (c) the cannabis production establishment's employee training standards;
   4. (d) a security plan;
   5. (e) a description of the cannabis production establishment's inventory control system, including a description of how the inventory control system is compatible with the state electronic verification system described in Section 26B-4-202;
   6. (f) storage protocols, both short- and long-term, to ensure that cannabis is stored in a manner that is sanitary and preserves the integrity of the cannabis;
   7. (g) for a cannabis cultivation facility, the information described in Subsection (2);
   8. (h) for a cannabis processing facility, the information described in Subsection (3);
   9. (i) for an independent cannabis testing laboratory, the information described in Subsection (4); and

   10. (j) for a cannabis production establishment located in an industrial zone, a plan to reduce odor created by the cannabis production establishment that:

       1. (i) meets local ordinance nuisance laws; and

       2. (ii) identifies:

          1. (A) operations and materials that generate odors; and
          2. (B) equipment, operations, or materials the cannabis production establishment will use to mitigate odor emissions, including plans to maintain equipment.

2. (2)

   1. (a) A cannabis cultivation facility shall ensure that the facility's operating plan includes the facility's intended:

      1. (i) cannabis cultivation practices, including the facility's intended pesticide use and plant food use; and
      2. (ii) subject to Subsection (2)(b), acreage or square footage under cultivation and anticipated cannabis yield.

   2. (b) Except as provided in Subsection (2)(c)(i) or (c)(ii), a cannabis cultivation facility may not:

      1. (i) for a facility that cultivates cannabis only indoors, use more than 100,000 total square feet of cultivation space;
      2. (ii) for a facility that cultivates cannabis only outdoors, use more than four acres for cultivation; and
      3. (iii) for a facility that cultivates cannabis through a combination of indoor and outdoor cultivation, use more combined indoor square footage and outdoor acreage than allowed under the department's formula described in Subsection (2)(e).

   3. (c)

      1. (i) Each licensee may apply to the department for:

         1. (A) a one-time, permanent increase of up to 20% of the limitation on the cannabis cultivation facility's cultivation space; or
         2. (B) a short-term increase, not to exceed 12 months, of up to 40% of the limitation on the cannabis cultivation facility's cultivation space.

      2. (ii) After conducting a review equivalent to the review described in Subsection 4-41a-205(2)(a), if the department determines that additional cultivation is needed, the department may:

         1. (A) grant the one-time, permanent increase described in Subsection (2)(c)(i)(A); or
         2. (B) grant the short-term increase described in Subsection (2)(c)(i)(B).
   4. (d) If a licensee describes an intended acreage or square footage under cultivation under Subsection (2)(a)(ii) that is less than the limitation described in Subsection (2)(b), the licensee may not cultivate more than the licensee's identified intended acreage or square footage under cultivation.

   5. (e) The department shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establish a formula for combined usage of indoor and outdoor cultivation that:

      1. (i) does not exceed, in estimated cultivation yield, the aggregate limitations described in Subsection (2)(b)(i) or (ii); and
      2. (ii) allows a cannabis cultivation facility to operate both indoors and outdoors.

   6. (f)

      1. (i) The department may authorize a cannabis cultivation facility to operate at no more than three separate locations.

      2. (ii) If the department authorizes multiple locations under Subsection (2)(f)(i):

         1. (A) the multiple cannabis cultivation facility locations combined may not exceed the cultivation limitations described in this Subsection (2); and
         2. (B) the cannabis cultivation facility shall pay a $15,000 fee for each location after the second location.

3. (3) A cannabis processing facility's operating plan shall include the facility's intended cannabis processing practices, including the cannabis processing facility's intended:

   1. (a) offered variety of cannabis product;
   2. (b) cannabinoid extraction method;
   3. (c) cannabinoid extraction equipment;
   4. (d) processing equipment;
   5. (e) processing techniques; and
   6. (f) sanitation and manufacturing safety procedures for items for human consumption.

4. (4) An independent cannabis testing laboratory's operating plan shall include the laboratory's intended:

   1. (a) cannabis and cannabis product testing capability;
   2. (b) cannabis and cannabis product testing equipment; and
   3. (c) testing methods, standards, practices, and procedures for testing cannabis and cannabis products.
5. (5) Notwithstanding an applicant's proposed operating plan, a cannabis production establishment is subject to land use regulations implemented by a local land use authority under Title 10, Chapter 20, Municipal Land Use, Development, and Management Act, or Title 17, Chapter 79, County Land Use, Development, and Management Act, regarding the availability of outdoor cultivation in an industrial zone.

Amended by Chapter 421, 2026 General Session