Utah’s Limited Medical Cannabis Program
In March 2018, Gov. Gary Herbert signed both House Bill 195 and House Bill 197 into law.
House Bill 195 allows terminally ill patients a “right to try” cannabis-based products for treatment and describes the procedure for an eligible patient to receive recommendation from a physician.
Cannabis-based products, or cannabinoid products, are defined as an extract or concentrate that is obtained from cannabis, is prepared in a medicinal dosage form, and contains at least 10 units of cannabidiol for every one unit of tetrahydrocannabinol.
House Bill 197 allows for the cultivation and processing of cannabis in the state for academic or medical research and establishes a state dispensary to provide qualified terminally ill patients with medical cannabis.
Utah’s Medical Cannabis Business Opportunities
House Bill 197 defines the following medical cannabis business license types:
- A “Cannabis Producer” license is required to cultivate cannabis or process it into a medicinal dosage form.
- A “Cannabis Payment Processor” license is required to facilitate payments between a cannabis producer and an entity engaged in academic or medical research.
- A “State Dispensary” license will be required to receive and sell cannabis in a medicinal dosage form to academic research institutions, medical research institutions, or qualified patients – only one State Dispensary is to be established.
- The Utah Department of Food and Agriculture (Department) may contract with a private entity to serve as a courier for the state dispensary, delivering medical cannabinoid products to a purchaser
The Department is responsible for setting application and licensing fees, creating rules regarding cultivation, processing, and dispensing, and determining the number of licenses for Cannabis Producers and Cannabis Payment Processors. The Department is also to ensure the cultivation of cannabis in the state for academic or medical research purposes by January 1, 2019.
Get Involved in Utah’s Medical Cannabis Market
The Department is to determine an application process for the licensing of Cannabis Producers. If you’re interested in becoming a Cannabis Producer, it’s time to start preparing.
To educate yourself on the application process and start drafting the required business plans for a Cannabis Producer license, download our Utah Cannabis Business Starter Package which includes:
- An Informational Overview of Utah’s medical cannabis laws
- An Application Guide and Checklist which gives a detailed summary and checklist of all action items you’ll need to complete before submitting your application
- A Business Plan Template to help you start drafting the required plans and executive summary for your business
- A Financial Plan Template to give you and your investors a comprehensive 3-year projection of what you can possibly expect when selling cannabis