This document includes House Committee Amendments incorporated into the bill on Tue, Feb 20, 2018 at 12:03 PM by lerror.
This document includes House Floor Amendments incorporated into the bill on Tue, Feb 27, 2018 at 4:09 PM by lerror.



Chief Sponsor: Brad M. Daw

Senate Sponsor: David P. Hinkins


8     General Description:
9          This bill deals with the licensing of cultivators and processors of industrial hemp and
10     the registration of industrial hemp products.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     authorizes the Department of Agriculture and Food to license a person who wishes
15     to participate in an industrial hemp research pilot program;
16          ▸     creates a process to register an industrial hemp product;
17          ▸     prohibits a person from cultivating industrial hemp without a license;
18          ▸     prohibits the distribution of an industrial hemp product without registration;
19          ▸     authorizes rulemaking authority; and
20          ▸      makes technical changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          4-41-102, as enacted by Laws of Utah 2014, Chapter 25

28          4-41-103, as last amended by Laws of Utah 2017, Chapter 345
29     ENACTS:
30          4-41-104, Utah Code Annotated 1953
31          4-41-105, Utah Code Annotated 1953

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 4-41-102 is amended to read:
35          4-41-102. Definitions.
36          For purposes of this chapter:
37          (1) "Agricultural pilot program" means a program to study the growth, cultivation, or
38     marketing of industrial hemp.
39          [(1)] (2) "Industrial hemp" means any part of a cannabis plant, whether growing or not,
40     with a concentration of less than 0.3% tetrahydrocannabinol by weight.
41          [(2)] (3) "Industrial hemp certificate" means a certificate issued by the department to a
42     higher education institution to grow or cultivate industrial hemp under Subsection 4-41-103(1).
42a      Ĥ→ (4) "Industrial hemp license" means a license issued by the department to a person for
42b     the purpose of participating in a research pilot program.
43           [
(4)] (5) ←Ĥ "Industrial hemp product" means a product derived from, or made
43a      by, processing
44     industrial hemp plants or industrial hemp parts.
45          Ĥ→ [
(5)] (6) ←Ĥ "Licensee" means an individual or business entity possessing a license
45a     issued by the
46     department under this chapter to grow, cultivate, process, or market industrial hemp or an
47     industrial hemp product.
48          Ĥ→ [
(6)] (7) ←Ĥ "Person" means:
49          (a) an individual, partnership, association, firm, trust, limited liability company, or
50     corporation; and
51          (b) an agent or employee of an individual, partnership, association, firm, trust, limited
52     liability company, or corporation.
53          Ĥ→ [
(7)] (8) ←Ĥ "Research pilot program" means a program conducted by the
53a     department in
54     collaboration with at least one licensee to study methods of cultivating, processing, or
55     marketing industrial hemp.
56          Section 2. Section 4-41-103 is amended to read:
57          4-41-103. Industrial hemp -- Agricultural and academic research.
58          (1) The department and its licensee may grow [or], cultivate, or process industrial

59     hemp for the purpose of agricultural [or], academic, or market research.
60          (2) The department shall certify a higher education institution to grow or cultivate
61     industrial hemp for the purpose of agricultural or academic research if the higher education
62     institution submits to the department:
63          (a) the location where the higher education institution intends to grow or cultivate
64     industrial hemp;
65          (b) the higher education institution's research plan; and
66          (c) the name of an employee of the higher education institution who will supervise the
67     industrial hemp growth, cultivation, and research.
68          (3) The department shall maintain a list of each industrial hemp certificate holder and
69     licensee.
70          (4) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
71     Administrative Rulemaking Act, to:
72          (a) ensure any industrial hemp project or research pilot project meets the standards of
73     an agricultural pilot project, as defined by Section 7606 of the United States Agricultural Act
74     of 2014[.];
75          (b) establish requirements for a license to participate in an industrial hemp research
76     pilot program;
77          (c) set sampling and testing procedures for industrial hemp; and
78          (d) define a class or category of an industrial hemp product that is eligible for sale,
79     transfer, or distribution to a member of the public.
80          (5) A person seeking to cultivate industrial hemp shall provide to the department:
81          (a) the legal description and global positioning coordinates sufficient for locating any
82     field or greenhouse used by the person to grow industrial hemp; and
83          (b) written consent allowing a representative of the department and local law
84     enforcement to enter all premises where industrial hemp is cultivated, processed, or stored for
85     the purpose of:
86          (i) conducting a physical inspection; or
87          (ii) ensuring compliance with the requirements of this chapter.
88          (6) The following individuals are not eligible to obtain a license under this chapter:
89          (a) an individual who has been convicted of a felony; and

90          (b) an individual who has been convicted of a drug-related misdemeanor within the last
91     10 years.
92          [(5)] (7) The department may set a fee, pursuant to Subsection 4-2-103(2), for the
93     application of an industrial hemp certificate Ĥ→ and the application for an industrial
93a     hemp license ←Ĥ .
94          Section 3. Section 4-41-104 is enacted to read:
95          4-41-104. Product registration required for distribution -- Application -- Fees --
96     Renewal.
97          (1) An industrial hemp product that is not registered with the department may not be
98     distributed in this state.
99          (2) A person seeking registration for an industrial hemp product shall:
100          (a) apply to the department on forms provided by the department; and
101          (b) submit an annual registration fee, determined by the department pursuant to
102     Subsection 4-2-103(2), for each industrial hemp product the person intends to distribute in this
103     state.
104          (3) The department may conduct tests, or require test results, to ensure that any claim
105     made by an applicant about an industrial hemp product is accurate.
106          (4) Upon receipt by the department of a proper application and payment of the
107     appropriate fee, as described in Subsection (2), the department shall issue a registration to the
108     applicant allowing the applicant to distribute the registered hemp product in the state through
109     June 30 of each year, subject to suspension or revocation for cause.
110          (5) The department shall mail, either through the postal service or electronically, forms
111     for the renewal of a registration to a registrant at least 30 days before the day on which the
112     registrant's registration expires.
113          Section 4. Section 4-41-105 is enacted to read:
114          4-41-105. Unlawful acts.
115          (1) It is unlawful for a person who is not a licensee to cultivate, handle, process, or
116     market living industrial hemp plants, viable hemp seeds, leaf materials, or floral materials
117     derived from industrial hemp.
118          (2) It is unlawful for any person to distribute or market an industrial hemp product that
119     is not registered with the department pursuant to Section 4-41-104.
119a      Ĥ→ (3) The department may seize and destroy hemp plants or products that do not comply
119b     with this chapter, including cannabis plants or products that contain a concentration of 0.3%
119c     tetrahydrocannabinol or greater by weight.
120           [
(3)] (4) ←Ĥ Nothing in this chapter authorizes any person to violate federal law,
120a      regulation, or

121     any provision of this title.

Legislative Review Note
Office of Legislative Research and General Counsel