Licensing needed in utah for cbd oil

Industrial Hemp and Medical Cannabis Division

The Utah Industrial Hemp and Medical Cannabis Division ensures safety, compliance and equity to the industrial hemp industry by monitoring Utah’s cultivators, processors and retail establishments. This program ensures consumer safety and product integrity by approving products prior to entering the Utah market and verifying through inspections that safety and label standards are met.

Important news:

  • An Update for Industrial Hemp Cultivators: As per H.B. 385 Hemp and CBD Amendments, the Utah Department of Agriculture and Food (UDAF) will no longer be responsible for regulating and licensing hemp cultivators in Utah. All interested cultivators will need to apply for and obtain a USDA license. The requirements for processing, product and retail licenses will not be changing. UDAF will be holding a webinar to explain this transition, the requirements of the USDA program and how to apply for a USDA license. A webinar recording will be made available as soon as possible. Please email [email protected] or call (202) 720-2491 with any questions.
  • To sell industrial hemp products, including CBD, hemp fiber, hemp seed oil, etc., Utah retailers must register for and maintain an Industrial Hemp Retail Permit. Click here for more information.
  • Industrial Hemp Laws and Rules
  • Hemp Grower Licenses
  • Hemp Processor Licenses
  • Hemp Laboratory Licenses
  • Hemp Product Registration

Additional Information:

Hemp Retail Permits

The Utah Agricultural Code and Hemp & Cannabinoid Act was updated earlier this year to include a required industrial hemp retailer permit. Utah Code 4-41-1-103.3 and Utah Administrative Rule 68-33 outlines the requirements and standards for permit.

All retail establishments who market and sell industrial hemp products to include hemp fiber, hemp seed oil, or products containing a cannabinoid, including CBD, must apply for and maintain a current permit with the Utah Department of Agriculture and Food (UDAF).

To apply for a permit click this link .

The permit is $50 per calendar year.

Our inspectors will have an increased presence through the retail environment to ensure compliance with this new requirement. As a reminder, all industrial hemp products marketed, displayed and sold in the state of Utah must be registered with UDAF. Attached is an information flyer to better assist with applicable laws and administrative rules governing the sale and marketing of industrial hemp products.

To update your Retail Permit please fill out this form .

Here are the directions as well to finding the application:

– Online Services
– License/Permit Renew
– New License/ Permit Application
– Scroll Down Select 8003

Licensed Processor Reports and Information

R68-25-7. Required Reports

1) A licensee shall submit a completed Production Report on a form provided by the department by December 31st.
2) A licensee shall submit a report of the results of the research as set forth in the research plan by December 31st.
3) The failure to submit a timely completed form may result in the denial of a renewal license.

Click here to file a Production Report .

R68-25-12-2 Transportation of Industrial Hemp Material

An industrial hemp transportation permit is required for each day and each vehicle used to move industrial hemp or industrial hemp products.
Click here to apply for a Transportation Permit .

To update your license please fill out this form .

  • Industrial Hemp Cultivators and Processors Can sell Industrial Hemp Waste to a Medical Cultivator and Individuals can cultivate and process industrial hemp if they are licensed by the Department.
  • A certificate of sale is required for each transfer of “Industrial Hemp Waste” to a Medical Cannabis Cultivator.
  • Please Review all informational material below before submitting a Certificate of Sale Application.

Example “Certificate of Sale” Application – Use example to gather all required information

Hemp Waste Certificate of Sale Application – Allow 10 Business Days for Form to be processed

Industrial Hemp Transportation Permit Information

Fill out this application to log the transportation of hemp material.

A response will be sent as a virtual hemp transportation permit, which allows a permit holder the ability to transfer industrial hemp products on public roads in Utah.

A licensee shall not sell or transfer living plants, viable plants, viable seeds, leaf material, or floral material to any person not licensed by the department or to any person outside the state who is not authorized by the laws of that state. R68-24-9 (1) An industrial hemp transportation permit is required for each day and each vehicle used to move industrial hemp raw material. R68-25-12 (2) and R68-24-8 (3)

Valid purposes of transportation include; purchase or sale of hemp material, sample submissions, movement between storage locations, and conferences, educational purposes, or conventions.

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Industrial Hemp FAQs

What is Industrial Hemp?

Cannabis Sativa L. that has less than 0.3% THC. Industrial hemp products include, but are not limited to CBD products, hemp fiber, hemp seed oil, etc.

What is Medical Marijuana?

Marijuana is cannabis that contains over 0.3% THC.

How are they the same and how are they different?

Industrial hemp and medical cannabis come from the same plant genus. This is similar to the difference between sweet corn and field corn, while both are corn, the purposes are different. Both industrial hemp and medical cannabis products look similar and contain many of the same chemical compounds, however, the concentration of compounds in the two plant species can be vastly different. The legal difference is the amount of Tetrahydrocannabinol (THC) the plant contains. If the cannabis plant contains more than 0.3% THC it is considered medical cannabis or marijuana.

Why is the Department of Agriculture and Food Involved?

The Utah Department of Agriculture and Food was identified as the department in the best position to provide regulatory oversight for the identification, cultivation, processing, testing, and distribution of hemp-based products.

Can I Buy CBD products in Utah?

The purpose of the law is to make sure the product being sold is free from harmful contaminants and matches the label requirements. The Department has established rules for the sale and purchase of CBD oil in the state. CBD oil registered with the Department, meeting all testing, labeling and other requirements as established by rule, may be purchased in Utah.

Complaint Form

Please fill out this form if you have questions or concerns regarding growers, processors, retail establishments, or products of industrial hemp. If you choose to remain anonymous it may be difficult to collect enough information to begin an investigation or follow-up. Once a complaint is submitted, the UDAF Cannabis Program staff will evaluate your complaint to determine if sufficient information exists to proceed.

Utah Marijuana Business Licenses

Status: In Utah, registered qualified patients can possess and use medical marijuana. State licensed entities may cultivate, process and dispense medical marijuana.

CBD Program Medical Program Recreational Program Are Applications Open?
Legal Legal Not legal Open until 2024 for Processor Licenses

Download our Application Guide to learn about the application process for a marijuana business license.

Educate yourself on how to run a dispensary, processing, or cultivation facility with our business plan templates.

Will your application secure a license? Start preparing for your marijuana business today with our Marijuana Business Starter Package.

Number of Utah Marijuana Business Licenses Licenses Available

Dispensaries Cultivation Manufacturing/Processing Transportation
14 8 TBD

Every state has different marijuana laws- they are regulated by state, not federal law. Some states allow marijuana for recreational and medical use, some states only allow medical use, and some only allow certain low THC products for medical use. Most states limit the number of licenses they will grant and the window to apply for them. Getting licenced is never simple- there are very specific requirements and guidelines that differ by state and its usually highly competitive, which is why most successful applicants work with consultants like Dispensary Permits to help guide them. We highly advise you read the guidelines below thoroughly and then consider working with a consultant or using our templates and guides.
You can read the full text of the Utah Marijuana Business Licenses law at: https://www.le.utah.gov

Utah Medical Cannabis Cultivation License Guidelines

A cannabis cultivation license is required to grow, possess, and sell cannabis to cannabis production establishments or cannabis dispensaries.

  • A $10,000 non-refundable application fee is required with application submission. If a license is awarded, the successful cannabis cultivation facility will be required to pay a $100,000 licensing fee. Applicants must obtain a performance bond of at least $250,000 with a surety authorized to transact surety business in the state.
  • Applications for cultivation licenses were accepted from May 31, 2019 until July 1, 2019. On July 19, 2019, the Department issued 8 licenses to top-scoring applicants.
  • The Department may issue additional licenses if the Department determines it is necessary in order to provide an adequate supply, quality, or variety of medical cannabis to medical cannabis card holders in Utah, as long as the total number of cultivation licenses in the state does not exceed 15.
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RECOMMENDED UTAH MARIJUANA BUSINESS PLANS FOR MARIJUANA PRODUCER APPLICATION:

Utah Medical Cannabis Processor License Guidelines

A cannabis processing license is required to acquire cannabis from a cannabis production establishment, manufacture it into a cannabis product, and sell the cannabis product to a cannabis dispensary. There are two different tiers of processing licenses interested parties may apply for:

A Tier 1 Processor License allows the licensee to receive cannabis from a licensed cannabis cultivation facility or to accept THC or THC byproducts from a Utah licensed cannabis processing facility or industrial hemp processor to then process, manufacture, dry, cure, package, and label cannabis and cannabis products for sale or transfer to another cannabis processing facility or a medical cannabis pharmacy. If awarded a license, a license fee of $100,000.00 must be paid within 30 days.

A Tier 2 Processor License allows the licensee to receive cannabis from a licensed cannabis cultivation facility or a cannabis processing facility to package and label cannabis and cannabis products for sale or transfer to another cannabis processing facility, a medical cannabis pharmacy, or the state central fill medical cannabis pharmacy. If awarded a license, a license fee of $35,000.00 must be paid within 30 days.

  • A $1,250 non-refundable application fee is required with application submission. Applicants must obtain a performance bond of at least $50,000 with a surety authorized to transact surety business in the state.
  • The Utah Department of Health released aRequest for Applications(RFA) for medical cannabis processors on August 23, 2019. As outlined by the RFA, the Department will accept applications for processors until August 23, 2024.
  • The state has not specified a limit on the number of processing licenses to be issued.

RECOMMENDED UTAH MARIJUANA BUSINESS PLANS FOR MARIJUANA PROCESSOR APPLICATION:

Utah Medical Cannabis Pharmacy License Guidelines

A medical cannabis pharmacy (dispensary) license is required to acquire medical cannabis or medical cannabis products from a cannabis production establishment and sell medical cannabis or medical cannabis products to medical cannabis card holders in Utah. A Medical Cannabis Pharmacy must have a pharmacist on site at all times.

  • The non-refundable application and license fee for a dispensary license is to be determined by the Department of Health. Applicants for a dispensary license must obtain and maintain a performance bond of at least $125,000 with a surety authorized to transact surety business in the state.
  • The Utah Department of Health released aRequest for Applications(RFA) for medical cannabis pharmacies on October 25, 2019. As outlined by the RFA, the Department will accept applications for processors until December 2, 2019.
  • The Department of Health may issue 14 medical cannabis pharmacy licenses in the state. The Department may issue additional pharmacy licenses if the Department determines it is necessary to properly service registered patients throughout the state.
  • The department will issue eight licenses to an initial group of medical cannabis pharmacies to open as early as March 1, 2020 and six to a second group of medical cannabis pharmacies to open up as early as July 1, 2020. During the application review process, the department will decide which medical cannabis pharmacies fall into the initial group and which fall into the second group. The department must complete the process of issuing all 14 licenses no later than July 1, 2020.
  • To address the needs of rural residents, home delivery may be authorized as part of a pharmacy’s license to deliver medical cannabis shipments to a medical cannabis cardholder’s home.

RECOMMENDED UTAH MARIJUANA BUSINESS PLANS FOR MARIJUANA DISPENSARY APPLICATION:

The History of Utah Marijuana Business Licenses Marijuana

The 2018 Utah Legislature passed five bills involving cannabis. On March 19, 2018, Governor Gary Herbert signed House Bill 302 into law to allow for an industrial hemp research pilot program within the state of Utah. The Department of Agriculture and Food is tasked with the licensing and regulation of the pilot program.

On March 20, 2018, Gov. Herbert signed House Bill 195 and House Bill 197 into law. House Bill 195 allows terminally ill people a “right to try” medical cannabis-based treatment and describes the procedure for an eligible patient to receive recommendation from a physician. House Bill 197 allows for 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. The Utah Department of Agriculture and Food is tasked with regulating the program.

On March 23, 2018, the Governor also signed Senate Bill 130 into law, otherwise known as the Cannabidiol Product Act, which allows for cannabidiol (CBD) products extracted from hemp containing less than .3% THC and no more than a 10:1 ratio of CBD to THC after processing. The bill also establishes a state-regulated system for the production and sale of CBD products.

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On November 6, 2018, Proposition 2 was passed by Utah voters to legalize medical marijuana and establish a state-regulated dispensing system. However, on December 3, 2018, legislators voted to pass the Utah Medical Cannabis Act to replace Proposition 2. The Utah Medical Cannabis Act was drafted as a “compromise bill” for those who opposed Proposition 2. In regards to marijuana business, the new medical marijuana law will mainly affect the licensing of dispensaries, replacing them with state government-run cannabis “pharmacies”.

On May 31, 2019, the Department of Agriculture released Emergency Rules and Request for Proposals for Medical Cannabis Cultivation Licenses. Applications were accepted until July 1, 2019. On July 19, 2019, the department selected 8 companies out of the 81 applicants to award the licenses to. The department was authorized to award up to 10 licenses but chose to hand out only eight to avoid an overabundance of cannabis.

On August 23, 2019, the Utah Department of Health released a Request for Applications (RFA) for medical cannabis processors. As outlined by the RFA, the Department will accept applications for processors until August 23, 2024.

On September 16, 2019, Utah held a special legislative session and lawmakers passed SB 1002 to make fixes to the state’s medical cannabis program. The bill includes the following changes:

  • Abolishes the original plan of having a state-run medical cannabis pharmacy (dispensary) system for the medical cannabis program. Instead, the Department of Health will license 14 privately-run pharmacies (dispensaries) with the possibility of licensing more if the Department deems it necessary.
  • Reduces the number of medical cannabis cultivation licenses allowed in the state from no more than 10 to no more than 8, as 8 licenses have been issued.
  • Tasks the state with creating a portal to facilitate online requests for cannabis and it will allow for electronic payment processing between dispensaries and the patients.
  • Provides more protection from prosecution for registered medical cannabis patients.
  • Increases the supply a patient may receive from a 14-day supply to 30-day supply.
  • Prohibits state lawmakers from having a financial interest in a cannabis cultivation or pharmacy until 2023

On October 25, 2019, the Utah Department of Health released a Request for Applications for medical cannabis pharmacy licenses. The state will accept applications through December 2, 2019.

Qualifying Medical Conditions: HIV or acquired immune deficiency syndrome; Alzheimer’s disease; ALS; cancer; cachexia; persistent nausea that is not significantly responsive to traditional treatment, except for nausea related to: pregnancy, cannabis-induced cyclical vomiting syndrome, or cannabinoid hyperemesis syndrome; Crohn’s disease or ulcerative colitis; epilepsy or debilitating seizures; multiple sclerosis or persistent and debilitating muscle spasms; PTSD; autism; a terminal illness when the patient’s remaining life expectancy is less than six month; a condition resulting in the individual receiving hospice care; a rare condition or disease; pain lasting longer than two weeks that is not adequately managed despite treatment attempts using conventional medications other than opioids or opiates or physical interventions; a condition that the compassionate use board approves on an individual, case-by-case basis.

Regulating Department: The Utah Department of Health has authority over medical cannabis pharmacies and registering medical cannabis patients and providers; The Utah Department of Agriculture and Food has authority over cannabis cultivation and processing.

Program Timeline:
May 3, 2019 – Emergency rules for the medical cannabis grower rule went into effect
May 15, 2019 – Medical cannabis growers rules published: 30 day comment period begins
May 31, 2019 – Request for Proposals period for Cannabis Cultivation Licenses open
July 1, 2019 – Request for Proposals period for Cannabis Cultivation Licenses closes
July 19, 2019 – Cannabis Cultivation Licenses to 8 companies
August 23, 2019 – Request for Proposals period for Cannabis Processor Licenses open
September 16, 2019 – SB 1002 passed by lawmakers
March 1, 2020
– The Utah Department of Health (UDOH) to issue medical cannabis cards to patients, register medical providers who wish to recommend medical cannabis treatment for their patients, and license medical cannabis pharmacies.
August 23, 2019 – Request for Proposals period for Cannabis Processor Licenses close