Auditors who reviewed Utah’s medical cannabis program say the licensing body for the industry operates largely as “a rubber stamp” on oversight questions.
Their review calls, broadly, for more action to standardize how inspections are handled and more specific language on how to categorize infractions in a bid to better gauge compliance by cannabis producers with state laws. The report from the Office of the Legislative Auditor General, released Tuesday, further suggests that Utah lawmakers potentially take a look at the issue.
“The Legislature could consider reevaluating the roles and responsibilities of the Cannabis Production Establishment and Pharmacy Licensing Advisory Board to facilitate clearer expectations and effective duties,” the report says. The cannabis advisory board — focus of much of the audit — oversees licensing of cannabis producers in Utah.
The audit didn’t identify any specific issues, problems or abuses that have emerged among cannabis growers, retailers or others involved in the industry. Proposition 2, approved by Utah voters in 2018, led to legalization of medical marijuana in Utah and rules allowing for cultivation of cannabis in Utah by eight producers. However, the audit seemed to make a call for more rigorous review and reporting by the seven-member cannabis advisory board when taking action.
“Based on observations, documentation review and the fact that the licensing board unanimously approved 99% of the actions brought before it, we believe this board is largely a rubber stamp on licensing oversight. To address this concern, we recommend that the licensing board establish a formal decision-making framework for all licensing determinations to ensure transparency and consistency,” reads the audit.
From 2021 to 2025, the audit said, the board has never denied a license request.
Inaction, the audit warns, raises the specter of unequal treatment of license holders and limits on efforts to “mitigate risk” in the cannabis industry, though it didn’t specify potential risks.
In his written response, Utah Department of Agriculture and Food Commissioner Kelly Pehrson expressed agreement with the audit’s findings and said moves are afoot to comply with the report’s recommendations. Pehrson’s department is also involved in regulation of the cannabis industry, and he was designated as the point person to respond to the audit.
“The Utah Department of Agriculture and Food is committed to ensuring the Medical Cannabis Program provides safe, regulated access to medical cannabis for qualifying patients while maintaining robust oversight to ensure public and patient safety,” Pehrson wrote.
Moves to standardize inspection procedures, better categorize infractions by cannabis producers by severity and create rubrics to guide decision-making in licensing — the key recommendations — are in the works, he said.
Pehrson also said his department has already launched talks with Utah lawmakers to amend the state’s cannabis laws. “These amendments are intended to focus the (licensing) board’s oversight on the most critical areas, which will facilitate clearer expectations and more effective duties as recommended by the audit,” Pehrson wrote.
Aside from the eight cannabis cultivators in Utah, there are 16 cannabis processors, which include some of the cultivators, according to Utah Department of Health and Human Services records. The records identify 14 pharmacies in Utah that provide medical cannabis.
There are 104,686 patients in Utah with medical cannabis cards, more than 90,000 of them issued to help address persistent pain issues, according to the Utah Department of Health and Human Services’ October report on the industry.