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Ninth Substitute H.B. 105

Senator John L. Valentine 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      Cosponsors:
             7      Rebecca Chavez-Houck
             8      Jerry B. Anderson
             9      Susan Duckworth
             10      Brian M. Greene
             11      Richard A. Greenwood
             12      Keith GroverLynn N. Hemingway
John Knotwell
Ronda Rudd Menlove
Jim Nielson
Curtis Oda
Lee B. Perry
Jeremy A. PetersonDixon M. Pitcher
Marie H. Poulson
Marc K. Roberts
Ryan D. Wilcox
Larry B. Wiley              13     
             14      LONG TITLE
             15      General Description:
             16          This bill makes amendments to the Utah Code related to hemp.
             17      Highlighted Provisions:
             18          This bill:
             19          .    permits the Department of Agriculture and a department-certified higher education
             20      institution to grow industrial hemp for the purpose of agricultural or academic
             21      research;
             22          .    exempts an individual with intractable epilepsy who uses or possesses hemp extract,
             23      and complies with other requirements, from the penalties related to possession or
             24      use of the hemp extract under the Controlled Substances Act;


             25          .    exempts an individual who possesses hemp extract and administers the hemp
             26      extract to a minor with intractable epilepsy from the penalties related to
             27      administering the hemp extract to a minor under the Controlled Substances Act;
             28          .    requires the Department of Health to issue a hemp extract registration card to an
             29      individual who meets certain requirements;
             30          .    requires a neurologist signing a statement that an individual or minor could benefit
             31      from treatment with hemp extract to keep a record of the neurologist's evaluation
             32      and transmit the record to the Department of Health;
             33          .    requires the Department of Health to maintain a database of neurologist evaluations;
             34          .    repeals certain provisions on July 1, 2016; and
             35          .    makes technical and conforming amendments.
             36      Money Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          This bill takes effect on July 1, 2014.
             40      Utah Code Sections Affected:
             41      AMENDS:
             42           63I-1-226 , as last amended by Laws of Utah 2013, Chapters 32, 60, and 195
             43           63I-1-258 , as last amended by Laws of Utah 2013, Chapters 55, 87, 222, 278, and 351
             44      ENACTS:
             45           4-41-101 , Utah Code Annotated 1953
             46           4-41-102 , Utah Code Annotated 1953
             47           4-41-103 , Utah Code Annotated 1953
             48           26-55-101 , Utah Code Annotated 1953
             49           26-55-102 , Utah Code Annotated 1953
             50           26-55-103 , Utah Code Annotated 1953
             51           58-37-4.3 , Utah Code Annotated 1953
             52     
             53      Be it enacted by the Legislature of the state of Utah:
             54          Section 1. Section 4-41-101 is enacted to read:
             55     
CHAPTER 41. INDUSTRIAL HEMP RESEARCH ACT


             56          4-41-101. Title.
             57          This chapter is known as the "Industrial Hemp Research Act."
             58          Section 2. Section 4-41-102 is enacted to read:
             59          4-41-102. Definitions.
             60          For purposes of this chapter:
             61          (1) "Industrial hemp" means any part of a cannabis plant, whether growing or not, with
             62      a concentration of less than 0.3% tetrahydrocannabinol by weight.
             63          (2) "Industrial hemp certificate" means a certificate issued by the department to a
             64      higher education institution to grow or cultivate industrial hemp under Subsection 4-41-103 (1).
             65          Section 3. Section 4-41-103 is enacted to read:
             66          4-41-103. Industrial hemp -- Agricultural and academic research.
             67          (1) The department may grow or cultivate industrial hemp for the purpose of
             68      agricultural or academic research.
             69          (2) The department shall certify a higher education institution to grow or cultivate
             70      industrial hemp for the purpose of agricultural or academic research if the higher education
             71      institution submits to the department:
             72          (a) the location where the higher education institution intends to grow or cultivate
             73      industrial hemp;
             74          (b) the higher education institution's research plan; and
             75          (c) the name of an employee of the higher education institution who will supervise the
             76      industrial hemp growth, cultivation, and research.
             77          (3) The department shall maintain a list of each industrial hemp certificate holder.
             78          (4) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
             79      Administrative Rulemaking Act, to ensure any industrial hemp project meets the standards of
             80      an agricultural pilot project, as defined by Section 7606 of the U.S. Agricultural Act of 2014.
             81          Section 4. Section 26-55-101 is enacted to read:
             82     
CHAPTER 55. HEMP EXTRACT REGISTRATION ACT

             83          26-55-101. Title.
             84          This chapter is known as the "Hemp Extract Registration Act."
             85          Section 5. Section 26-55-102 is enacted to read:
             86          26-55-102. Definitions.


             87          As used in this chapter:
             88          (1) "Hemp extract" is as defined in Section 58-37-4.3 .
             89          (2) "Hemp extract registration card" means a card issued by the department under
             90      Subsection 26-55-103 (1) or (2).
             91          (3) "Intractable epilepsy" means epilepsy that, as determined by a neurologist, does not
             92      respond to three or more treatment options overseen by the neurologist.
             93          (4) "Neurologist" means an individual who is licensed under Title 58, Chapter 67, Utah
             94      Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act, that is
             95      board certified in neurology.
             96          (5) "Parent" means a parent or legal guardian of a minor who is responsible for the
             97      minor's medical care.
             98          (6) "Registrant" means an individual to whom the department issues a hemp extract
             99      registration card under Subsection 26-55-103 (1) or (2).
             100          Section 6. Section 26-55-103 is enacted to read:
             101          26-55-103. Hemp extract registration card.
             102          (1) The department shall issue a hemp extract registration card to an individual who:
             103          (a) is at least 18 years of age;
             104          (b) is a Utah resident;
             105          (c) provides the department with a statement signed by a neurologist that:
             106          (i) indicates that the individual:
             107          (A) suffers from intractable epilepsy; and
             108          (B) may benefit from treatment with hemp extract; and
             109          (ii) is consistent with a record from the neurologist, concerning the individual,
             110      contained in the database described in Subsection (8);
             111          (d) pays the department a fee in an amount established by the department under
             112      Subsection (5); and
             113          (e) submits an application to the department, on a form created by the department, that
             114      contains:
             115          (i) the individual's name and address;
             116          (ii) a copy of the individual's valid photo identification; and
             117          (iii) any other information the department considers necessary to implement this


             118      chapter.
             119          (2) The department shall issue a hemp extract registration card to a parent who:
             120          (a) is at least 18 years of age;
             121          (b) is a Utah resident;
             122          (c) provides the department with a statement signed by a neurologist that:
             123          (i) indicates that a minor in the parent's care:
             124          (A) suffers from intractable epilepsy; and
             125          (B) may benefit from treatment with hemp extract; and
             126          (ii) is consistent with a record from the neurologist, concerning the minor, contained in
             127      the database described in Subsection (8);
             128          (d) pays the department a fee in an amount established by the department under
             129      Subsection (5); and
             130          (e) submits an application to the department, on a form created by the department, that
             131      contains:
             132          (i) the parent's name and address;
             133          (ii) the minor's name;
             134          (iii) a copy of the parent's valid photo identification; and
             135          (iv) any other information the department considers necessary to implement this
             136      chapter.
             137          (3) The department shall maintain a record of:
             138          (a) the name of each registrant; and
             139          (b) the name of each minor receiving care from a registrant.
             140          (4) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
             141      Administrative Rulemaking Act, to:
             142          (a) establish the information an applicant is required to provide to the department under
             143      Subsections (1)(e)(iii) and (2)(e)(iv); and
             144          (b) establish, in accordance with recommendations from the Department of Public
             145      Safety, the form and content of the hemp extract registration card.
             146          (5) The department shall establish fees in accordance with Section 63J-1-504 that are
             147      no greater than the amount necessary to cover the cost the department incurs to implement this
             148      chapter.


             149          (6) The registration cards issued under Subsections (1) and (2) are:
             150          (a) valid for one year; and
             151          (b) renewable, if, at the time of renewal, the registrant meets the requirements of either
             152      Subsection (1) or (2).
             153          (7) The neurologist who signs the statement described in Subsections (1)(c) or (2)(c)
             154      shall:
             155          (a) keep a record of the neurologist's evaluation and observation of a patient who is a
             156      registrant or minor under a registrant's care, including the patient's response to hemp extract;
             157      and
             158          (b) transmit the record described in Subsection (7)(a) to the department.
             159          (8) The department shall:
             160          (a) maintain a database of the records described in Subsection (7); and
             161          (b) treat the records as identifiable health data, as defined in Section 26-3-1 .
             162          (9) The department may share the records described in Subsection (8) with a higher
             163      education institution for the purpose of studying hemp extract.
             164          Section 7. Section 58-37-4.3 is enacted to read:
             165          58-37-4.3. Exemption for use or possession of hemp extract.
             166          (1) As used in this section, "hemp extract" means an extract from a cannabis plant, or a
             167      mixture or preparation containing cannabis plant material, that:
             168          (a) is composed of less than 0.3% tetrahydrocannabinol by weight;
             169          (b) is composed of at least 15% cannabidiol by weight; and
             170          (c) contains no other psychoactive substance.
             171          (2) Notwithstanding any other provision of this chapter, an individual who possesses or
             172      uses hemp extract is not subject to the penalties described in this chapter for possession or use
             173      of the hemp extract if the individual:
             174          (a) possesses or uses the hemp extract only to treat intractable epilepsy, as defined in
             175      Section 26-55-102 ;
             176          (b) originally obtained the hemp extract from a sealed container with a label indicating
             177      the hemp extract's place of origin, and a number that corresponds with a certificate of analysis;
             178          (c) possesses, in close proximity to the hemp extract, a certificate of analysis that:
             179          (i) has a number that corresponds with the number on the label described in Subsection


             180      (2)(b);
             181          (ii) indicates the hemp extract's ingredients, including its percentages of
             182      tetrahydrocannabinol and cannabidiol by weight;
             183          (iii) is created by a laboratory that is:
             184          (A) not affiliated with the producer or the hemp extract; and
             185          (B) licensed in the state where the hemp extract was produced; and
             186          (iv) is transmitted by the laboratory to the Department of Health; and
             187          (d) has a current hemp extract registration card issued by the Department of Health
             188      under Section 26-55-103 .
             189          (3) Notwithstanding any other provision of this chapter, an individual who possesses
             190      hemp extract lawfully under Subsection (2) and administers hemp extract to a minor is not
             191      subject to the penalties described in this chapter for administering the hemp extract to the
             192      minor if:
             193          (a) the individual is the minor's parent or legal guardian; and
             194          (b) the individual is registered with the Department of Health as the minor's parent
             195      under Section 26-55-103 .
             196          Section 8. Section 63I-1-226 is amended to read:
             197           63I-1-226. Repeal dates, Title 26.
             198          (1) Title 26, Chapter 9f, Utah Digital Health Service Commission Act, is repealed July
             199      1, 2015.
             200          (2) Section 26-10-11 is repealed July 1, 2015.
             201          (3) Section 26-18-12 , Expansion of 340B drug pricing programs, is repealed July 1,
             202      2013.
             203          (4) Section 26-21-23 , Licensing of non-Medicaid nursing care facility beds, is repealed
             204      July 1, 2018.
             205          (5) Section 26-21-211 is repealed July 1, 2013.
             206          (6) Title 26, Chapter 33a, Utah Health Data Authority Act, is repealed July 1, 2014.
             207          (7) Title 26, Chapter 36a, Hospital Provider Assessment Act, is repealed July 1, 2016.
             208          (8) Section 26-38-2.5 is repealed July 1, 2017.
             209          (9) Section 26-38-2.6 is repealed July 1, 2017.
             210          (10) Title 26, Chapter 55, Hemp Extract Registration Act, is repealed July 1, 2016.


             211          Section 9. Section 63I-1-258 is amended to read:
             212           63I-1-258. Repeal dates, Title 58.
             213          (1) Title 58, Chapter 13, Health Care Providers Immunity from Liability Act, is
             214      repealed July 1, 2016.
             215          (2) Title 58, Chapter 15, Health Facility Administrator Act, is repealed July 1, 2015.
             216          (3) Section 58-17b-309.5 is repealed July 1, 2015.
             217          (4) Title 58, Chapter 20a, Environmental Health Scientist Act, is repealed July 1, 2018.
             218          (5) Section 58-37-4.3 is repealed July 1, 2016.
             219          [(5)] (6) Title 58, Chapter 40, Recreational Therapy Practice Act, is repealed July 1,
             220      2023.
             221          [(6)] (7) Title 58, Chapter 41, Speech-language Pathology and Audiology Licensing
             222      Act, is repealed July 1, 2019.
             223          [(7)] (8) Title 58, Chapter 42a, Occupational Therapy Practice Act, is repealed July 1,
             224      2015.
             225          [(8)] (9) Title 58, Chapter 46a, Hearing Instrument Specialist Licensing Act, is
             226      repealed July 1, 2023.
             227          [(9)] (10) Title 58, Chapter 47b, Massage Therapy Practice Act, is repealed July 1,
             228      2014.
             229          [(10)] (11) Section 58-69-302.5 is repealed on July 1, 2015.
             230          [(11)] (12) Title 58, Chapter 72, Acupuncture Licensing Act, is repealed July 1, 2017.
             231          Section 10. Effective date.
             232          This bill takes effect on July 1, 2014.




Legislative Review Note
    as of 3-10-14 4:42 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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