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Seventh Substitute H.B. 105

This document includes House Floor Amendments incorporated into the bill on Mon, Mar 3, 2014 at 4:48 PM by jeyring. --> This document includes Senate Committee Amendments incorporated into the bill on Thu, Mar 6, 2014 at 1:52 PM by lpoole. -->

Representative Gage Froerer proposes the following substitute bill:


             1     
PLANT EXTRACT AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gage Froerer

             5     
Senate Sponsor: Stephen H. Urquhart

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes amendments to the Utah Code related to hemp.
             10      Highlighted Provisions:
             11          This bill:
             12          .    permits the Department of Agriculture and a department-certified higher education
             13      institution to grow industrial hemp for the purpose of agricultural or academic
             14      research;
             15          .    exempts an individual with intractable epilepsy who uses or possesses hemp extract,
             16      and complies with other requirements, from the penalties related to possession or
             17      use of the hemp extract under the Controlled Substances Act;
             18          .    exempts an individual who possesses hemp extract and administers the hemp
             19      extract to a minor with intractable epilepsy from the penalties related to
             20      administering the hemp extract to a minor under the Controlled Substances Act;
             21          .    requires the Department of Health to issue a hemp extract registration card to an
             22      individual who meets certain requirements;
             23          .    requires a neurologist signing a statement that an individual or minor could benefit
             24      from treatment with hemp extract to keep a record of the neurologist's evaluation
             25      and transmit the record to the Department of Health;


             26          .    requires the Department of Health to maintain a database of neurologist evaluations;
             27      H. [ and ]
             27a          . repeals certain provisions on July 1, 2016; and .H
             28          .    makes technical and conforming amendments.
             29      Money Appropriated in this Bill:
             30          None
             31      Other Special Clauses:
             32          This bill takes effect on July 1, 2014.
             33      Utah Code Sections Affected:
             33a      H. AMENDS:
             33b          63I-1-226, as last amended by Laws of Utah 2013, Chapters 32, 60, and 195
             33c      63I-1-258, as last amended by Laws of Utah 2013, Chapters 55, 87, 222, 278, and 351 .H
             34      ENACTS:
             35           4-41-101 , Utah Code Annotated 1953
             36           4-41-102 , Utah Code Annotated 1953
             37           4-41-103 , Utah Code Annotated 1953
             38           26-55-101 , Utah Code Annotated 1953
             39           26-55-102 , Utah Code Annotated 1953
             40           26-55-103 , Utah Code Annotated 1953
             41           58-37-4.3 , Utah Code Annotated 1953
             42     
             43      Be it enacted by the Legislature of the state of Utah:
             44          Section 1. Section 4-41-101 is enacted to read:
             45     
CHAPTER 41. INDUSTRIAL HEMP RESEARCH ACT

             46          4-41-101. Title.
             47          This chapter is known as the "Industrial Hemp Research Act."
             48          Section 2. Section 4-41-102 is enacted to read:
             49          4-41-102. Definitions.
             50          For purposes of this chapter:
             51          (1) "Industrial hemp" means any part of a cannabis plant, whether growing or not, with
             52      a concentration of less than 0.3% tetrahydrocannabinol by weight.
             53          (2) "Industrial hemp certificate" means a certificate issued by the department to a
             54      higher education institution to grow or cultivate industrial hemp under Subsection 4-41-103 (1).
             55          Section 3. Section 4-41-103 is enacted to read:
             56          4-41-103. Industrial hemp -- Agricultural and academic research.


             57          (1) The department may grow or cultivate industrial hemp for the purpose of
             58      agricultural or academic research.
             59          (2) The department shall certify a higher education institution to grow or cultivate
             60      industrial hemp for the purpose of agricultural or academic research if the higher education
             61      institution submits to the department:
             62          (a) the location where the higher education institution intends to grow or cultivate
             63      industrial hemp;
             64          (b) the higher education institution's research plan; and
             65          (c) the name of an employee of the higher education institution who will supervise the
             66      industrial hemp growth, cultivation, and research.
             67          (3) The department shall maintain a list of each industrial hemp certificate holder.
             68          (4) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
             69      Administrative Rulemaking Act, to ensure any industrial hemp project meets the standards of
             70      an agricultural pilot project, as defined by Section 7606 of the U.S. Agricultural Act of 2014.
             71          Section 4. Section 26-55-101 is enacted to read:
             72     
CHAPTER 55. HEMP EXTRACT REGISTRATION ACT

             73          26-55-101. Title.
             74          This chapter is known as the "Hemp Extract Registration Act."
             75          Section 5. Section 26-55-102 is enacted to read:
             76          26-55-102. Definitions.
             77          As used in this chapter:
             78          (1) "Hemp extract" is as defined in Section 58-37-4.3 .
             79          (2) "Hemp extract registration card" means a card issued by the department under
             80      Subsection 26-55-103 (1) or (2).
             81          (3) "Intractable epilepsy" means epilepsy that, as determined by a neurologist, does not
             82      respond to three or more treatment options overseen by the neurologist.
             83          (4) "Neurologist" means an individual who is licensed under Title 58, Chapter 67, Utah
             84      Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act, that is
             85      board certified in neurology.
             86          (5) "Parent" means a parent or legal guardian of a minor who is responsible for the
             87      minor's medical care.


             88          (6) "Registrant" means an individual to whom the department issues a hemp extract
             89      registration card under Subsection 26-55-103 (1) or (2).
             90          Section 6. Section 26-55-103 is enacted to read:
             91          26-55-103. Hemp extract registration card.
             92          (1) The department shall issue a hemp extract registration card to an individual who:
             93          (a) is at least 18 years of age;
             94          (b) is a Utah resident;
             95          (c) provides the department with a statement signed by a neurologist that indicates that
             96      the individual:
             97          (i) suffers from intractable epilepsy; and
             98          (ii) may benefit from treatment with hemp extract;
             99          (d) pays the department a fee in an amount established by the department under
             100      Subsection (5); and
             101          (e) submits an application to the department, on a form created by the department, that
             102      contains:
             103          (i) the individual's name and address;
             104          (ii) a copy of the individual's valid photo identification; and
             105          (iii) any other information the department considers necessary to implement this
             106      chapter.
             107          (2) The department shall issue a hemp extract registration card to a parent who:
             108          (a) is at least 18 years of age;
             109          (b) is a Utah resident;
             110          (c) provides the department with a statement signed by a neurologist that indicates that
             111      a minor in the parent's care:
             112          (i) suffers from intractable epilepsy; and
             113          (ii) may benefit from treatment with hemp extract;
             114          (d) pays the department a fee in an amount established by the department under
             115      Subsection (5); and
             116          (e) submits an application to the department, on a form created by the department, that
             117      contains:
             118          (i) the parent's name and address;


             119          (ii) the minor's name;
             120          (iii) a copy of the parent's valid photo identification; and
             121          (iv) any other information the department considers necessary to implement this
             122      chapter.
             123          (3) The department shall maintain a record of:
             124          (a) the name of each registrant; and
             125          (b) the name of each minor receiving care from a registrant.
             126          (4) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
             127      Administrative Rulemaking Act, to S. :
             127a      (a) .S establish the information an applicant is required to provide
             128      to the department under Subsections (1)(e)(iii) and (2)(e)(iv) S. [ . ] ; and
             128a      (b)    designate the laboratory accreditation standard described in Subsection
             128b      58-37-4.3(2)(c)(iii). .S
             129          (5) The department shall establish fees in accordance with Section 63J-1-504 that are
             130      no greater than the amount necessary to cover the cost the department incurs to implement this
             131      chapter.
             132          (6) The registration cards issued under Subsections (1) and (2) are:
             133          (a) valid for one year; and
             134          (b) renewable, if, at the time of renewal, the registrant meets the requirements of either
             135      Subsection (1) or (2).
             136          (7) The neurologist who signs the statement described in Subsections (1)(c) or (2)(c)
             137      shall:
             138          (a) keep a record of the neurologist's evaluation and observation of a patient who is a
             139      registrant or minor under a registrant's care, including the patient's response to hemp extract;
             140      and
             141          (b) transmit the record described in Subsection (7)(a) to the department.
             142          (8) The department shall:
             143          (a) maintain a database of the records described in Subsection (7); and
             144          (b) treat the records as identifiable health data, as defined in Section 26-3-1 .
             145          (9) The department may share the records described in Subsection (8) with a higher
             146      education institution for the purpose of studying hemp extract.
             147          Section 7. Section 58-37-4.3 is enacted to read:
             148          58-37-4.3. Exemption for use or possession of hemp extract.
             149          (1) As used in this section, "hemp extract" means an extract from a cannabis plant, or a


             150      mixture or preparation containing cannabis plant material, that:
             151          (a) is composed of less than 0.3% tetrahydrocannabinol by weight;
             152          (b) is composed of at least 15% cannabidiol by weight; and
             153          (c) contains no other psychoactive substance.
             154          (2) Notwithstanding any other provision of this chapter, an individual who possesses or
             155      uses hemp extract is not subject to the penalties described in this chapter for possession or use
             156      of the hemp extract if the individual:
             157          (a) possesses or uses the hemp extract only to treat intractable epilepsy, as defined in
             158      Section 26-55-102 ;
             159          (b) originally obtained the hemp extract from a sealed container with a label indicating
             160      the hemp extract's place of origin, and a number that corresponds with a certificate of analysis;
             161          (c) possesses, in close proximity to the hemp extract, a certificate of analysis that:
             162          (i) has a number that corresponds with the number on the label described in Subsection
             163      (2)(b);
             164          (ii) indicates the hemp extract's ingredients, including its percentages of
             165      tetrahydrocannabinol and cannabidiol by weight;
             166          (iii) is created by a laboratory that S. [ is approved ] meets an accreditation standard
             166a      designated .S by the Department of Health; and
             167          (iv) is transmitted by the laboratory to the Department of Health; and
             168          (d) has a current hemp extract registration card issued by the Department of Health
             169      under Section 26-55-103 .
             170          (3) Notwithstanding any other provision of this chapter, an individual who possesses
             171      hemp extract lawfully under Subsection (2) and administers hemp extract to a minor is not
             172      subject to the penalties described in this chapter for administering the hemp extract to the
             173      minor if:
             174          (a) the individual is the minor's parent or legal guardian; and
             175          (b) the individual is registered with the Department of Health as the minor's parent
             176      under Section 26-55-103 .
             176a      H. Section 8. Section 63I-1-226 is amended to read:
             176b           63I-1-226.   Repeal dates, Title 26.
             176c           (1) Title 26, Chapter 9f, Utah Digital Health Service Commission Act, is repealed
             176d      July 1, 2015.
             176e          (2) Section 26-10-11 is repealed July 1, 2015.
             176f          (3) Section 26-18-12, Expansion of 340B drug pricing programs, is repealed
             176g      July 1, 2013.


             176h          (4) Section 26-21-23, Licensing of non-Medicaid nursing care facility beds, is repealed
             176i      July 1, 2018.
             176j          (5) Section 26-21-211 is repealed July 1, 2013.
             176k          (6) Title 26, Chapter 33a, Utah Health Data Authority Act, is repealed July 1, 2014.
             176l          (7) Title 26, Chapter 36a, Hospital Provider Assessment Act, is repealed July 1, 2016.
             176m          (8) Section 26-38-2.5 is repealed July 1, 2017.
             176n          (9) Section 26-38-2.6 is repealed July 1, 2017.
             176o          (10) Title 26, Chapter 55, Hemp Extract Registration Act, is repealed July 1, 2016.
             176p          Section 9. Section 63I-1-258 is amended to read:
             176q           63I-1-258.   Repeal dates, Title 58.
             176r          (1) Title 58, Chapter 13, Health Care Providers Immunity from Liability Act, is
             176s      repealed July 1, 2016.
             176t          (2) Title 58, Chapter 15, Health Facility Administrator Act, is repealed July 1, 2015.
             176u          (3) Section 58-17b-309.5 is repealed July 1, 2015.
             176v          (4) Title 58, Chapter 20a, Environmental Health Scientist Act, is repealed July 1, 2018.
             176w          (5) Section 58-37-4.3 is repealed July 1, 2016.
             176x          [(5)] (6) Title 58, Chapter 40, Recreational Therapy Practice Act, is repealed
             176y      July 1, 2023.
             176z          [(6)] (7) Title 58, Chapter 41, Speech-language Pathology and Audiology Licensing
             176aa      Act, is repealed July 1, 2019.
             176ab          [(7)] (8) Title 58, Chapter 42a, Occupational Therapy Practice Act, is repealed
             176ac      July 1, 2015.
             176ad          [(8)] (9) Title 58, Chapter 46a, Hearing Instrument Specialist Licensing Act, is
             176ae      repealed July 1, 2023.
             176af          [(9)] (10) Title 58, Chapter 47b, Massage Therapy Practice Act, is repealed
             176ag      July 1, 2014.
             176ah          [(10)] (11) Section 58-69-302.5 is repealed on July 1, 2015.
             176ai          [(11)] (12) Title 58, Chapter 72, Acupuncture Licensing Act, is repealed
             176aj      July 1, 2017. .H
             177          Section
H. [ 8 ] 10 .H . Effective date.
             178          This bill takes effect on July 1, 2014.





Legislative Review Note
    as of 3-3-14 12:38 PM


    The Utah Legislature's Joint Rule 4-2-402 requires legislative general counsel to place a
legislative review note on legislation. The Legislative Management Committee has further
directed legislative general counsel to include legal analysis in the legislative review note only
if legislative general counsel determines there is a high probability that a court would declare
the legislation to be unconstitutional under the Utah Constitution, the United States
Constitution, or both. As explained in the legal analysis below, legislative general counsel has
determined, based on applicable state and federal constitutional language and current
interpretations of that language in state and federal court case law, that this legislation has a
high probability of being declared unconstitutional by a court.
    This bill: (1) defines hemp extract as an extract of the cannabis plant or a mixture
containing cannabis plant material that contains less than 0.3% tetrahydrocannabinol by weight
and contains no other psychoactive substance; (2) gives the Utah Department of Health the
authority to issue registration cards to individuals who, based on a statement from a physician,
could benefit from treatment by hemp extract or to individuals caring for a minor who, based
on a statement from a physician, could benefit from treatment by hemp extract; (3) allows a
registered individual to use or possess hemp extract; and (4) allows a registered individual to
administer hemp extract to a minor.
    The federal Controlled Substances Act defines "marihuana" as "all parts of the plant
Cannabis sativa L., whether growing or not," and only exempts a compound or other mixture
made from the "mature stalks" or sterilized seeds of the plant. 21 U.S.C. § 802(16) (2014).
The act lists marihuana as a controlled substance and makes it illegal to possess a controlled
substance without a prescription, or to possess a controlled substance with intent to distribute
the substance. Id. at §§ 841, 844.
    Under the Supremacy Clause in the U.S. Constitution, the U.S. Supreme Court has
"long recognized that state laws that conflict with federal law are without effect." Altira Group
v. Good, 555 U.S. 70 (2008). Federal law limits preemption under the federal Controlled
Substances Act to those cases where a "positive conflict" exists between the Act and a state
law, such that it is impossible for a party to comply with both state and federal requirements.
See 21 U.S.C. § 903; Sprietsma v. Mercury Marine, 537 U.S. 51, 64 (2002).
    Under the definition used in this bill, substances that meet the bill's definition of hemp
extract need not be made exclusively from the mature stalks or sterilized seeds of the cannabis
plant, and therefore are likely to be considered "marihuana" under the federal Controlled
Substances Act. Any substance that meets the federal Controlled Substances Act's definition of
marihuana will trigger the possession and distribution prohibitions contained in the Act. An
individual possessing or using hemp extract or administering hemp extract to a minor likely
could not comply with the provisions of this bill without also violating federal law, creating a
positive conflict with the bill and federal law. That positive conflict results in a high
probability that a court will hold that the bill is preempted by federal law and unconstitutional
under the Supremacy Clause.

Office of Legislative Research and General Counsel


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