HB 389: Cannabis Amendments - Utah

Substitute #4 → Enrolled · 7 edits · Mar 25, 2026

MODERATE

This bill transfers control of the medical cannabis program from the Department of Health to the Department of Agriculture and Food, moves the program's funding to the General Fund, and updates definitions to clarify the distinction between industrial hemp and medical cannabis. It also introduces new requirements for industrial hemp retailers to verify customer age and mandates video surveillance for these retailers starting in 2026.

Scope change

The bill significantly shifts the administrative oversight of the medical cannabis program from the Department of Health and Human Services to the Department of Agriculture and Food, while simultaneously moving the program's funding source from an enterprise fund to the state's General Fund.

SCOPE

Transfers authority over the medical cannabis program and the Qualified Patient Enterprise Fund from the Department of Health and Human Services to the Department of Agriculture and Food.

FISCAL

Moves the Qualified Patient Enterprise Fund to the General Fund and allows the Department of Health to use those funds during a transition period ending January 1, 2027.

REQUIREMENT

Requires industrial hemp retailers to check identification to ensure purchasers are at least 21 years old.

Mandates that industrial hemp retailers maintain a tamper-proof video surveillance system storing records for at least 45 days, effective January 1, 2026.

DEFINITION

Updates definitions to clarify that 'cannabis' means marijuana and 'medical cannabis' includes low THC products, while distinguishing them from industrial hemp products.

ELIGIBILITY

Allows medical cannabis processors to produce and sell low THC products (less than 0.3% THC) without needing a separate license.

ENFORCEMENT

Amends penalties and enforcement procedures, including specific fines for individuals and administrative actions for businesses.

Substitute #3 → Substitute #4 · 7 edits

MODERATE

This bill updates Utah's cannabis and hemp regulations by clarifying definitions of synthetic cannabinoids, requiring ID checks for hemp retailers selling THC-containing products, and adjusting the Qualified Patient Enterprise Fund to support the new licensing board. It also expands the licensing board's powers to hear appeals and adds funding for medical cannabis research.

Scope change

The bill expands the scope of regulation to explicitly include specific synthetic cannabinoids (like THCP and HHC) as non-compliant materials and clarifies that industrial hemp retailers must verify age for products containing THC or THC analogs.

DEFINITION

Added specific synthetic cannabinoids (THCP, THCP, THC acetate, HHC, and HHC) to the list of 'non-compliant materials' that cannot be sold or distributed.

REQUIREMENT

Clarified that industrial hemp retailers must check ID for any product containing THC or a THC analog to ensure the buyer is at least 21, rather than just checking for 'cannabinoid products'.

Revised the definition of 'Artificially derived cannabinoid' to clarify that decarboxylation without a chemical catalyst does not create an artificially derived cannabinoid.

FISCAL

Modified the Qualified Patient Enterprise Fund to allow the Department of Agriculture and Food to use $1,250,000 for the Center for Medical Cannabis Research and to fund the new Specialized Product Authority Licensing Board.

Added a specific appropriation of $1,250,000 to the Center for Medical Cannabis Research from the Qualified Patient Enterprise Fund.

ENFORCEMENT

Expanded the licensing board's duties to include hearing all appeals related to cannabis, hemp, and kratom administrative actions.

TIMELINE

Extended the waiver period for terminal illness patients from 180 days to 180 days (no change in duration, but clarified the petition process).

Substitute #2 → Substitute #3 · 9 edits

MAJOR

This bill transitions medical cannabis oversight from the Department of Health and Human Services to the Department of Agriculture and Food, reorganizes the licensing board into an independent agency, and introduces new rules for hemp retailers and low-THC products. It also updates definitions to clarify what constitutes a 'cannabis product' versus a 'hemp product' and expands the list of qualifying conditions for medical cannabis access.

Scope change

The bill significantly broadens the scope by adding specific regulations for industrial hemp retailers and low-THC products, while shifting the administrative scope of medical cannabis from health services to agriculture.

FISCAL

Transfers control of the Qualified Patient Enterprise Fund from the Department of Health and Human Services to the Department of Agriculture and Food.

REQUIREMENT

Requires industrial hemp retailers to check IDs to ensure customers are at least 21 and mandates video surveillance systems for these retailers.

Reconstitutes the licensing board by renaming it the 'Specialized Product Authority Licensing Board' and changing its composition to include three appointed directors as employees of the department.

Updates the definition of 'cannabis product' to require a total THC concentration of 0.3% or greater, effectively separating low-THC hemp products from regulated cannabis products.

DEFINITION

Adds new definitions for 'cannabinoid product' (low THC items) and 'low THC product' to distinguish them from traditional cannabis products.

ELIGIBILITY

Allows medical cannabis processors to create and sell products with less than 0.3% THC content (low THC products) and permits pharmacies to sell these items.

Expands the list of qualifying conditions for medical cannabis access to include autism, rare diseases, and specific pain conditions.

Allows recommending medical providers to issue medical cannabis recommendations via virtual visits for specific patient groups, such as those on hospice or in assisted living facilities.

ENFORCEMENT

Adds requirements for medical cannabis pharmacies to provide terpene profiles at the point of sale and prohibits the sale of products resembling cigarettes.

Substitute #1 → Substitute #2 · 8 edits

MODERATE

This bill amends Utah's medical cannabis laws to streamline licensing by exempting processors from separate hemp licenses, reorganizes oversight under a new 'Specialized Product Authority Licensing Board,' and shifts administrative funding to the Department of Agriculture and Food. It also introduces stricter labeling requirements for child safety, expands low-THC product availability, and allows patients to obtain cards via virtual visits.

Scope change

The bill expands the scope of the medical cannabis program by allowing pharmacies to sell low-THC products and permitting virtual patient card applications, while shifting administrative oversight from the Department of Health to the Department of Agriculture and Food.

FISCAL

Control of the Qualified Patient Enterprise Fund was moved from the Department of Health to the Department of Agriculture and Food (UDAF).

DEFINITION

The Cannabis Production Establishment and Pharmacy Licensing Advisory Board was renamed to the Specialized Product Authority Licensing Board, and its membership structure was reconstituted.

ELIGIBILITY

Medical cannabis processors are now exempt from obtaining a separate license to process cannabinoid (hemp) products.

Patients can now obtain a medical cannabis patient card through a virtual visit with a recommending medical provider.

Medical cannabis pharmacies are now authorized to sell low-THC products (products with less than 0.3% THC).

REQUIREMENT

New labeling requirements mandate warnings about lung injury for vaping and inhalation, and updated warnings for pregnant or breastfeeding women.

Operating plans for cannabis cultivation facilities now include specific limits on indoor square footage and outdoor acreage.

TIMELINE

The bill's effective date is set for May 6, 2026.

Introduced → Substitute #1 · 6 edits

MODERATE

This bill transfers control of the medical cannabis program from the Department of Health and Human Services to the Department of Agriculture and Food, reorganizes the licensing board into a new 'Specialized Product Authority Licensing Board' with a mix of appointed directors and public members, and introduces new provisions for low-THC products and virtual patient card recommendations. The changes aim to centralize administrative oversight, streamline licensing, and expand access for patients while maintaining strict safety and compliance standards.

Scope change

The bill significantly shifts the administrative scope by moving primary regulatory authority from the Department of Health and Human Services to the Department of Agriculture and Food, while also expanding the scope of products allowed under the program to include low-THC items.

FISCAL

Transfers control of the Qualified Patient Enterprise Fund from the Department of Health and Human Services to the Department of Agriculture and Food.

REQUIREMENT

Allows recommending medical providers to issue medical cannabis patient cards through virtual visits for specific patient groups (e.g., hospice, nursing home residents) or if a prior face-to-face visit occurred.

ELIGIBILITY

Permits medical cannabis processors to manufacture and pharmacies to sell 'low THC products' containing less than 0.3% THC, distinguishing them from recreational hemp products.

DEFINITION

Renames the 'Cannabis Production Establishment and Pharmacy Licensing Advisory Board' to the 'Specialized Product Authority Licensing Board' and reconstitutes its membership structure.

ENFORCEMENT

Updates enforcement mechanisms to include letters of concern and clarifies fine structures for violations of the new chapter.

TIMELINE

Establishes a transition period from May 6, 2026, to January 1, 2027, during which the Department of Health and Human Services may assist the new lead agency.

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