Representatives Seal

Fiscal Note

3rd Sub. H.B. 389 (Cherry)

2026 General Session

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
Dedicated Credits Revenue $0 $43,400 $43,400
Dedicated Credits Revenue, One-time $0 $35,000 $0
Qualified Production Enterprise Fund $0 $2,413,900 $2,413,900
Total Revenues $0 $2,492,300 $2,457,300

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. Enactment of this legislation could also increase Dedicated Credit revenue to the Attorney General's Office by $35,000 one-time and by $43,400 ongoing beginning in FY 2027 to accommodate moving programs across agencies and to support the expanded responsibilities of the Specialized Product Authority Licensing Board.


Expenditures FY2026 FY2027 FY2028
Dedicated Credits Revenue $0 $43,400 $43,400
Dedicated Credits Revenue, One-time $0 $35,000 $0
Qualified Production Enterprise Fund $0 $2,413,900 $2,413,900
Total Expenditures $0 $2,492,300 $2,457,300

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, legal services, and enforcement in the specialized product division. Enactment could also shift Qualified Patient Enterprise Fund expenditures by $1,646,400 one-time in FY 2026 and $4,599,200 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. Enactment of this legislation could also increase Dedicated Credit expenditures by the Attorney General's Office by $35,000 one-time and by $43,400 ongoing beginning in FY 2027 to accommodate moving programs across agencies and to support the expanded responsibilities of the Specialized Product Authority Licensing Board


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.