Representatives Seal

Fiscal Note

H.B. 389

2026 General Session

Medical Cannabis Amendments

by Dailey-Provost, Jennifer

Senate Seal
General, Income Tax, and Uniform School FundsJR4-4-101
OngoingOne-timeTotal
Net GF/ITF/USF (rev.-exp.) $(3,946,700) $(993,900) $(4,940,600)
State GovernmentUCA 36-12-13(2)(c)
Revenues FY2026 FY2027 FY2028
Qualified Production Enterprise Fund $0 $2,413,900 $2,413,900
Total Revenues $0 $2,413,900 $2,413,900

Enactment of this legislation could increase revenue to the Qualified Patient Enterprise Fund by $2,413,900 ongoing beginning in FY 2027 from authorizing the collection of a uniform transaction fee on medical cannabis sales.

Expenditures FY2026 FY2027 FY2028
Dedicated Credits Revenue $0 $(1,532,800) $(1,532,800)
Dedicated Credits Revenue, One-time $(993,900) $0 $0
General Fund $0 $3,946,700 $3,946,700
General Fund, One-time $993,900 $0 $0
Total Expenditures $0 $2,413,900 $2,413,900

Enactment of this legislation could increase expenditures by the Department of Agriculture and Food by $2,413,900 annually beginning in FY 2027 from the Qualified Production Enterprise Fund for staff and enforcement in the specialized product division. Enactment could also cost HHS $993,900 one-time in FY 2026 and $3,946,700 ongoing beginning in FY 2027 from the General Fund due to changing the source of funding for the medical cannabis program responsibilities delegated to HHS under Title 26B. Expenditures from the Qualified Patient Enterprise Fund would be reduced proportionately.

FY2026 FY2027 FY2028
Net All Funds (rev-exp) $0 $0 $0
Local GovernmentUCA 36-12-13(2)(c)

Enactment of this legislation likely will not result in direct, measurable costs for local governments.

Individuals & BusinessesUCA 36-12-13(2)(c)

Enactment of this legislation could cost medical cannabis patients $2,413,900 ongoing beginning in FY 2027 from paying an additional uniform transaction fee on medical cannabis purchases.

Regulatory ImpactUCA 36-12-13(2)(d)

Enactment of this legislation likely will not change the regulatory burden for Utah residents or businesses.

Performance EvaluationJR1-4-601

This bill does not create a new program or significantly expand an existing program.

Notes on Notes

Fiscal notes estimate the direct costs or revenues of enacting a bill. The Legislature uses them to balance the budget. They do not measure a bill's benefits or non-fiscal impacts like opportunity costs, wait times, or inconvenience. A fiscal note is not an appropriation. The Legislature decides appropriations separately.

2026/02/03 08:48, Lead Analyst Lacey Moore, Attorney: Williams, C.