Utah

On March 21, 2019, Governor Herbert signed S.C.R. 7 Concurrent Resolution Urging Legal Medical Cannabis Banking, where not only does Utah state government urge the President of the United States and Congress to resolve the medical cannabis issue, but this enrolled bill also specifically states that it is in the best interest of all Utahns that Utah’s financial institutions provide banking services to support the medical cannabis industry and patients under the Utah Medical Cannabis Act.

4-41a-103 Inventory Control System

A financial institution that the Division of Finance validates, in accordance with Subsection (6):

• May only access an inventory control system for the purpose of reconciling transactions and other financial activity of cannabis production establishments, medical cannabis pharmacies, and medical cannabis couriers that use financial services that the financial institution provides;
• May only access information related to financial transactions; and
• May not access any identifying patient information.

The department may establish compatibility standards for an inventory control system by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. The department shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing requirements for aggregate or batch records regarding the planting and propagation of cannabis before being tracked in an inventory control system described in this section. The department shall ensure that the rules described in Subsection (5)(a) address recordkeeping for the amount of planted seed, number of cuttings taken, date and time of cutting and planting, number of plants established, and number of plants culled or dead.

The Division of Finance shall, in consultation with the state treasurer, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to:

• Establish a process for validating financial institutions for access to an inventory control system in accordance with Subsections (3)(c) and (6)(b).
• Establish qualifications for the validation described in Subsection (6)(a)(i)(A);
  • (ii) review applications the Division of Finance receives in accordance with the process established under Subsection (6)(a)(i);
  • (iii) validate a financial institution that meets the qualifications described in Subsection (6)(a)(i);
  • (iv) provide a list of validated financial institutions to the department and the Department of Health. (b) A financial institution that the Division of Finance validates under Subsection (6)(a):
    • (i) may only access an inventory control system for the purpose of reconciling transactions and other financial activity of cannabis production establishments, medical cannabis pharmacies, and medical cannabis couriers that use financial services that the financial institution provides;
    • (ii) may only access information related to financial transactions; and
    • (iii) may not access any identifying patient information.

26-61a-603 Payment provider for electronic medical cannabis transactions.

A cannabis production establishment, a medical cannabis pharmacy, or a prospective home delivery medical cannabis pharmacy seeking to use a payment provider shall submit to the Division of Finance and the state treasurer information regarding the payment provider the prospective licensee will use to conduct financial transactions related to medical cannabis, including:

• (a) the name and contact information of the payment provider;
• (b) the nature of the relationship between the establishment, pharmacy, or prospective pharmacy and the payment provider; and
• (c) for a prospective home delivery medical cannabis pharmacy, the processes the prospective licensee and the payment provider have in place to safely and reliably conduct financial transactions for medical cannabis shipments.

The Division of Finance shall, in consultation with the state treasurer:

• Make rules to establish standards for identifying payment providers that demonstrate the functional and Utah Code Page 54 technical ability to safely conduct financial transactions related to medical cannabis, including medical cannabis shipments;
• Review submissions the Division of Finance and the state treasurer receive under Subsection (1);
• Approve a payment provider that meets the standards described in Subsection (2)(a);
• Establish a list of approved payment providers.

Any licensed cannabis production establishment, licensed medical cannabis pharmacy, or medical cannabis courier may use a payment provider that the Division of Finance approves, in consultation with the state treasurer, to conduct transactions related to the establishment’s, pharmacy’s, or courier’s respective medical cannabis business.

If Congress passes legislation that allows a cannabis-related business to facilitate payments through or deposit funds in a financial institution, a cannabis production establishment or a medical cannabis pharmacy may facilitate payments through or deposit funds in a financial institution in addition to or instead of a payment provider that the Division of Finance approves, in consultation with the state treasurer, under this section.

Medical Cannabis Payment Providers – Utah Division of Finance