Representatives Seal

Fiscal Note

2nd Sub. H.B. 389 (Gray)

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.) $0 $0 $0


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
Qualified Production Enterprise Fund $0 $2,413,900 $2,413,900
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 shift Qualified Patient Enterprise Fund expenditures by $993,900 one-time in FY 2026 and $3,946,700 ongoing beginning in FY 2027 from the Department of Health and Human Services to the Department of Agriculture and Food (UDAF) from moving the medical cannabis program responsibilities in Title 26B to UDAF.


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.