Senator Evan J. Vickers proposes the following substitute bill:


1     
CANNABIDIOL PRODUCT ACT

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Evan J. Vickers

5     
House Sponsor: Brad M. Daw

6     

7     LONG TITLE
8     General Description:
9          This bill enacts and amends provisions related to cannabidiol products.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     authorizes the Department of Agriculture and Food to make rules regarding
14     cannabidiol;
15          ▸     authorizes the cultivation, production, and possession of hemp and the sale and use
16     of cannabidiol products under certain circumstances;
17          ▸     directs the Department of Agriculture and Food to issue licenses and enforce
18     operating requirements;
19          ▸     grants the Department of Agriculture and Food, the Division of Occupational and
20     Professional Licensing, the Department of Financial Institutions, and the
21     Department of Health rulemaking authority;
22          ▸     creates an exemption from sales and use tax for sales of cannabidiol products;
23          ▸     imposes a special tax on the sale of cannabidiol products;
24          ▸     creates the Cannabinoid Product Restricted Account;
25          ▸     amends provisions related to driving with a measurable metabolite of cannabinoid

26     medicine; and
27          ▸     prohibits a court from discriminating against a parent in a child custody case based
28     on the parent's legal use of a cannabidiol product.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          This bill provides a special effective date.
33          This bill provides a coordination clause.
34     Utah Code Sections Affected:
35     AMENDS:
36          4-41-101, as enacted by Laws of Utah 2014, Chapter 25
37          4-41-102, as enacted by Laws of Utah 2014, Chapter 25
38          41-6a-517, as last amended by Laws of Utah 2017, Chapter 446
39          58-37-3.6, as enacted by Laws of Utah 2017, Chapter 398
40          58-37f-203, as last amended by Laws of Utah 2015, Chapters 89 and 326
41          78A-6-508, as last amended by Laws of Utah 2014, Chapter 409
42     ENACTS:
43          4-41-201, Utah Code Annotated 1953
44          4-41-202, Utah Code Annotated 1953
45          4-41-203, Utah Code Annotated 1953
46          4-41-204, Utah Code Annotated 1953
47          4-43-101, Utah Code Annotated 1953
48          4-43-102, Utah Code Annotated 1953
49          4-43-201, Utah Code Annotated 1953
50          4-43-202, Utah Code Annotated 1953
51          4-43-203, Utah Code Annotated 1953
52          4-43-301, Utah Code Annotated 1953
53          4-43-401, Utah Code Annotated 1953
54          4-43-402, Utah Code Annotated 1953
55          4-43-501, Utah Code Annotated 1953
56          4-43-502, Utah Code Annotated 1953

57          4-43-503, Utah Code Annotated 1953
58          4-43-601, Utah Code Annotated 1953
59          4-43-602, Utah Code Annotated 1953
60          4-43-701, Utah Code Annotated 1953
61          4-43-702, Utah Code Annotated 1953
62          4-43-703, Utah Code Annotated 1953
63          4-43-801, Utah Code Annotated 1953
64          26-62-101, Utah Code Annotated 1953
65          26-62-102, Utah Code Annotated 1953
66          26-62-103, Utah Code Annotated 1953
67          26-62-201, Utah Code Annotated 1953
68          26-62-202, Utah Code Annotated 1953
69          58-67-808, Utah Code Annotated 1953
70          58-68-808, Utah Code Annotated 1953
71          58-88-101, Utah Code Annotated 1953
72          58-88-102, Utah Code Annotated 1953
73          58-88-103, Utah Code Annotated 1953
74          58-88-104, Utah Code Annotated 1953
75          59-12-104.8, Utah Code Annotated 1953
76          59-29-101, Utah Code Annotated 1953
77          59-29-102, Utah Code Annotated 1953
78          59-29-103, Utah Code Annotated 1953
79          59-29-104, Utah Code Annotated 1953
80          59-29-105, Utah Code Annotated 1953
81          59-29-106, Utah Code Annotated 1953
82          59-29-107, Utah Code Annotated 1953
83          59-29-108, Utah Code Annotated 1953
84     Utah Code Sections Affected by Coordination Clause:
85          58-37f-203, as last amended by Laws of Utah 2015, Chapters 89 and 326
86     

87     Be it enacted by the Legislature of the state of Utah:

88          Section 1. Section 4-41-101 is amended to read:
89     
CHAPTER 41. HEMP AND CANNABIDIOL ACT

90     
Part 1. Industrial Hemp Research

91          4-41-101. Title.
92          (1) This chapter is known as the "Hemp and Cannabidiol Act."
93          (2) This part is known as "Industrial Hemp Research [Act]."
94          Section 2. Section 4-41-102 is amended to read:
95          4-41-102. Definitions.
96          For purposes of this chapter:
97          (1) "Cannabidiol product" means a chemical compound extracted from a hemp product
98     that:
99          (a) is processed into a medicinal dosage form; and
100          (b) contains less than 0.3% tetrahydrocannabinol by weight before processing and no
101     more than a 10:1 ratio of cannabidiol to tetrahydrocannabinol after processing.
102          [(1)] (2) "Industrial hemp" means any part of a cannabis plant, whether growing or not,
103     with a concentration of less than 0.3% tetrahydrocannabinol by weight.
104          [(2)] (3) "Industrial hemp certificate" means a certificate issued by the department to a
105     higher education institution to grow or cultivate industrial hemp under Subsection 4-41-103(1).
106          (4) "Medicinal dosage form" means the same as that term is defined in Section
107     26-62-102.
108          Section 3. Section 4-41-201 is enacted to read:
109     
Part 2. Cannabidiol Product Act

110          4-41-201. Title.
111          This part is known as "Cannabidiol Product Act."
112          Section 4. Section 4-41-202 is enacted to read:
113          4-41-202. Cannabidiol sales and use authorized.
114          (1) The sale or use of a cannabidiol product is prohibited:
115          (a) except as provided in this chapter;
116          (b) except as provided in Title 26, Chapter 56, Hemp Extract Registration Act; or
117          (c) unless the product is approved by the United States Food and Drug Administration.
118          (2) The department shall keep a list of registered cannabidiol products that the

119     department has determined, pursuant to Section 4-41-203, are safe for human consumption.
120          (3) A person may sell or use a cannabidiol product that is in the list of registered
121     cannabidiol products described in Subsection (2).
122          Section 5. Section 4-41-203 is enacted to read:
123          4-41-203. Standards for registration.
124          (1) The department shall determine by rule, made in accordance with Title 63G,
125     Chapter 3, Utah Administrative Rulemaking Act, standards for a registered cannabidiol
126     product, including standards for:
127          (a) testing to ensure the product is safe for human consumption;
128          (b) accurate labeling; and
129          (c) any other issue the department considers necessary.
130          (2) The department shall set a fee for a registered cannabidiol product, in accordance
131     with Section 4-2-103.
132          (3) The fee described in Subsection (2) may be paid by a producer, manufacturer, or
133     distributor of a cannabidiol product, but a cannibidiol product may not be registered with the
134     department until the fee is paid.
135          (4) The department shall set an administrative fine, larger than the fee described in
136     Subsection (2), for a person who sells a cannabidiol product that is not registered by the
137     department.
138          Section 6. Section 4-41-204 is enacted to read:
139          4-41-204. Department duties.
140          (1) The department shall work with the state's federal congressional delegation and
141     relevant federal agencies to seek a federal waiver from the Controlled Substances Act, in
142     whatever form that waiver may take, for a cannabidiol product produced in:
143          (a) compliance with the rules established pursuant to Subsection 4-41-203(1); or
144          (b) another state with similarly stringent rules, as determined by the department, to the
145     rules established pursuant to Subsection 4-41-203(1).
146          (2) The department shall report to the Legislature:
147          (a) on the rules established pursuant to Subsection 4-41-203(1) by October 31, 2018;
148     and
149          (b) in the event the department is successful in procuring a federal waiver.

150          (3) The department may seize and destroy any cannabidiol product offered for sale in
151     this state from a person that is not registered with the department.
152          (4) The department shall assess the fine described in Subsection 4-41-203(4) against
153     any person who offers an unregistered cannabidiol product for sale in this state.
154          Section 7. Section 4-43-101 is enacted to read:
155     
CHAPTER 43. CANNABIDIOL PRODUCERS

156     
Part 1. General Provisions

157          4-43-101. Title.
158          This chapter is known as "Cannabidiol Producers."
159          Section 8. Section 4-43-102 is enacted to read:
160          4-43-102. Definitions.
161          As used in this chapter:
162          (1) "Agent" means an employee or independent contractor of an entity.
163          (2) "Cannabidiol laboratory" means a person that:
164          (a) conducts a chemical or other analysis of a cannabidiol product; or
165          (b) possesses a cannabidiol product with the intent to conduct a chemical or other
166     analysis of the cannabidiol product.
167          (3) "Cannabidiol processor" means a person that:
168          (a) manufactures a hemp-grade product into a cannabidiol product;
169          (b) purchases or possesses a hemp-grade product with the intent to manufacture a
170     cannabidiol product; or
171          (c) sells or intends to sell a cannabidiol product to a cannabidiol-qualified pharmacy.
172          (4) "Cannabidiol product" means the same as that term is defined in Section 4-41-102.
173          (5) "Cannabidiol-qualified pharmacy" means a facility that:
174          (a) sells a cannabidiol product at retail to a patient with a written recommendation from
175     the patient's physician; and
176          (b) complies with any rules issued by the Division of Professional Licensing under
177     Section 58-88-104.
178          (6) "Cannabinoid Product Restricted Account" means the account created in Section
179     4-43-801.
180          (7) "Hemp cultivator" means a person licensed by the department to grow hemp.

181          (8) "Medical dosage form" means the same as that term is defined in Section
182     26-62-102.
183          (9) "Physician" means the same as that term is defined in Section 26-62-102.
184          Section 9. Section 4-43-201 is enacted to read:
185     
Part 2. Cannabidiol Producer License

186          4-43-201. Cannabidiol processor -- Cannabidiol laboratory -- License -- Renewal.
187          (1) A person may not act as a cannabidiol processor or a cannabidiol laboratory
188     without a cannabidiol producer license issued by the department in accordance with this
189     chapter.
190          (2) A person may submit an application to the department for a cannabidiol producer
191     license of the class of:
192          (a) cannabidiol processor; or
193          (b) cannabidiol laboratory.
194          (3) An applicant for a license described in Subsection (2) shall submit to the
195     department:
196          (a) an application in a form determined by the department that includes information
197     required by the department by rule made in accordance with Title 63G, Chapter 3, Utah
198     Administrative Rulemaking Act;
199          (b) a bond, as required by Section 4-43-203, for each license for which the person
200     applies;
201          (c) an application fee established by the department, in accordance with Section
202     63J-1-504, in an amount equal to the amount necessary to cover the department's cost to
203     implement this chapter; and
204          (d) an operating plan that complies with minimum operating standards determined by
205     the department by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
206     Rulemaking Act, that includes a plan for:
207          (i) security;
208          (ii) a cannabidiol processor:
209          (A) cannabidiol extraction; and
210          (B) processing technique; and
211          (iii) a cannabidiol laboratory:

212          (A) testing method; and
213          (B) testing capability.
214          (4) The department shall require a separate license and separate license fee for each
215     physical location of a cannabidiol processor and cannabidiol laboratory.
216          (5) The department may not issue a license to operate a hemp cultivator or a hemp
217     producer to a person:
218          (a) that holds a license for or has an ownership interest in a cannabidiol-qualified
219     pharmacy in the state; or
220          (b) that otherwise has an interest in a cannabidiol-qualified pharmacy, as determined by
221     the department.
222          (6) The department may not issue a license to operate a cannabidiol laboratory to a
223     person:
224          (a) that holds a license for or has an ownership interest in a cannabidiol-qualified
225     pharmacy, a cannabidiol processor, or a hemp cultivator in the state; or
226          (b) that otherwise has an interest in a cannabidiol-qualified pharmacy, a cannabidiol
227     processor, or a hemp cultivator as determined by the department.
228          (7) The department may establish additional application criteria and procedures by rule
229     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
230          Section 10. Section 4-43-202 is enacted to read:
231          4-43-202. Renewal.
232          Except as provided in Subsection (2), the department shall renew the license of a
233     cannabidiol processor or cannabidiol laboratory licensed under Section 4-43-201 every two
234     years if, at the time of renewal:
235          (1) the cannabidiol processor or cannabidiol laboratory meets the requirements of
236     Section 4-43-201; and
237          (2) the cannabidiol processor or cannabidiol laboratory pays the department a license
238     renewal fee in an amount determined by the department in accordance with Section 63J-1-504.
239          Section 11. Section 4-43-203 is enacted to read:
240          4-43-203. Bond required for license.
241          (1) A cannabidiol processor or cannabidiol laboratory licensed under Section 4-43-201
242     shall post a $100,000 cash bond or surety bond, payable to the department.

243          (2) A cannabidiol processor or cannabidiol laboratory licensed under Section 4-43-201
244     shall maintain the bond described in Subsection (1) for as long as the processor or laboratory
245     continues to operate.
246          (3) The department shall require a bond posted under this section to be:
247          (a) in a form approved by the attorney general; and
248          (b) conditioned upon the cannabidiol processor or cannabidiol laboratory's compliance
249     with this chapter.
250          (4) If a bond described in Subsection (1) is canceled due to a processor's or laboratory's
251     negligence, the department may assess the producer or laboratory a $300 reinstatement fee.
252          (5) A processor or laboratory may not withdraw any part of a bond posted under
253     Subsection (1):
254          (a) during the period when the license is in effect; or
255          (b) while a license revocation proceeding is pending against the processor or
256     laboratory.
257          (6) A processor or laboratory forfeits a bond posted under Subsection (1) if the
258     processor's or laboratory's license is revoked.
259          (7) The department may, without revoking a license, make a claim against a bond
260     posted under Subsection (1) for money the processor or laboratory owes the department under
261     this chapter.
262          Section 12. Section 4-43-301 is enacted to read:
263     
Part 3. Hemp Producer Agents

264          4-43-301. Cannabidiol processor and laboratory agents.
265          (1) A cannabidiol processor or cannabidiol laboratory licensed under Section 4-43-201
266     shall maintain a current list of each agent of the cannabidiol processor or cannabidiol
267     laboratory.
268          (2) A cannabidiol processor or cannabidiol laboratory shall submit the list described in
269     Subsection (1) to the department before:
270          (a) January 1 of each year; and
271          (b) July 1 of each year.
272          (3) The department may audit the list described in Subsection (1) at any time, at
273     random, in order to determine that the list is accurate.

274          (4) A cannabidiol processor or cannabidiol laboratory is guilty of an infraction if the
275     cannabidiol processor or cannabidiol laboratory fails to maintain an accurate list of each agent
276     of the cannabidiol processor or cannabidiol laboratory in accordance with this section.
277          Section 13. Section 4-43-401 is enacted to read:
278     
Part 4. Cannabidiol Processor or Cannabidiol Laboratory

279     
General Operating Requirements

280          4-43-401. Cannabidiol processor or cannabidiol laboratory -- General operating
281     requirements.
282          (1) (a) A cannabidiol processor or cannabidiol laboratory shall operate in accordance
283     with the operating plan provided to the department under Section 4-43-201.
284          (b) A cannabidiol processor or cannabidiol laboratory shall notify the department
285     within 30 days of any change in the cannabidiol processor or cannabidiol laboratory operation
286     plan.
287          (c) The department shall review a cannabidiol processor's or cannabidiol laboratory's
288     operating plan for compliance with state law and administrative rules.
289          (d) A cannabidiol processor or cannabidiol laboratory may not operate under an
290     operating plan until the operating plan is reviewed and approved by the department under
291     Subsection (1)(c).
292          (2) The department shall establish physical facility standards for a cannabidiol
293     processor or cannabidiol laboratory by rule made in accordance with Title 63G, Chapter 3,
294     Utah Administrative Rulemaking Act.
295          Section 14. Section 4-43-402 is enacted to read:
296          4-43-402. Cannabidiol processor or cannabidiol laboratory -- Inspection by
297     department.
298          (1) Subject to Subsection (2), the department shall inspect the records and facility of a
299     cannabidiol processor or cannabidiol laboratory in order to determine if the cannabidiol
300     processor or cannabidiol laboratory complies with the requirements of this chapter.
301          (2) The department may inspect the records and facility of a cannabidiol processor or
302     cannabidiol laboratory:
303          (a) as many as four times per year, scheduled or unscheduled; and
304          (b) if the department has reason to believe that the cannabidiol processor or

305     cannabidiol laboratory has violated the law, at any time, scheduled or unscheduled.
306          Section 15. Section 4-43-501 is enacted to read:
307     
Part 5. Cannabidiol Processor Operating Requirements

308          4-43-501. Cannabidiol processor -- Operating requirements.
309          (1) A cannabidiol processor shall ensure that a cannabidiol product that the cannabidiol
310     processor sells or provides to a cannabidiol-qualified pharmacy complies with the requirements
311     of this part.
312          (2) A cannabidiol processor shall operate in a facility with a carbon filtration system
313     for air output.
314          (3) The department shall establish, by rule made in accordance with Title 63G, Chapter
315     3, Utah Administrative Rulemaking Act, physical facility standards for a cannabidiol processor.
316          Section 16. Section 4-43-502 is enacted to read:
317          4-43-502. Cannabidiol product.
318          A cannabidiol processor may only produce a cannabidiol product in a medicinal dosage
319     form.
320          Section 17. Section 4-43-503 is enacted to read:
321          4-43-503. Cannabidiol medicine -- Labeling and packaging.
322          (1) A cannabidiol processor shall ensure that any cannabidiol product that the
323     cannabidiol processor distributes to a cannabidiol-qualified pharmacy has a label or package
324     that:
325          (a) clearly displays the cannabidiol profile of the product; and
326          (b) has a unique batch identifier that identifies the unique manufacturing process when
327     the cannabidiol product was manufactured.
328          (2) In addition to Subsection (1), the department shall establish, by rule made in
329     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, labeling and
330     packaging standards for a cannabidiol product produced by a cannabidiol processor.
331          Section 18. Section 4-43-601 is enacted to read:
332     
Part 6. Cannabidiol Laboratory Operating Requirements

333          4-43-601. Hemp and cannabidiol product testing.
334          (1) A cannabidiol laboratory may not operate unless the cannabidiol laboratory is
335     capable of accurately testing a cannabidiol product as described in this section.

336          (2) A cannabidiol laboratory shall, before cannabidiol is offered for sale at a
337     cannabidiol-qualified pharmacy, test the cannabidiol as described in this section.
338          (3) A cannabidiol laboratory shall determine if a cannabidiol product contains, in an
339     amount that is harmful to human health:
340          (a) mold;
341          (b) fungus;
342          (c) pesticides;
343          (d) other microbial contaminants; or
344          (e) another harmful substance identified by the department under Subsection (5).
345          (4) For a cannabidiol product that is manufactured using a process that involves
346     extraction using hydrocarbons, a cannabidiol laboratory shall test the cannabidiol product for
347     residual solvents.
348          (5) The department shall determine by rule made in accordance with Title 63G,
349     Chapter 3, Utah Administrative Rulemaking Act:
350          (a) the amount of substances described in Subsection (3) and the amount of residual
351     solvents that are safe for human consumption;
352          (b) additional cannabidiol testing that a cannabidiol laboratory is required to perform;
353     and
354          (c) minimum standards for a cannabidiol laboratory's testing methods and procedures.
355          Section 19. Section 4-43-602 is enacted to read:
356          4-43-602. Reporting -- Inspections.
357          (1) A cannabidiol laboratory shall report the results of each product test to the
358     department.
359          (2) A cannabidiol laboratory shall determine if the results of a lab test indicate that a
360     cannabidiol product batch is unsafe for human consumption.
361          (3) If a cannabidiol laboratory makes a determination described in Subsection (2), the
362     cannabidiol laboratory may not release the batch to a cannabidiol processor or a
363     cannabidiol-qualified pharmacy until the department has an opportunity to respond to the
364     cannabidiol laboratory within a period of time determined by the department.
365          (4) (a) If the department determines that a cannabidiol product batch is unsafe for
366     human consumption, the department shall destroy the product batch.

367          (b) If the department determines that a cannabidiol product batch was not cultivated in
368     accordance with this title, the department may seize, embargo, or destroy the cannabidiol
369     product batch.
370          (5) The department shall establish, by rule made in accordance with Title 63G, Chapter
371     3, Utah Administrative Rulemaking Act, the amount of time that a cannabidiol laboratory is
372     required to hold a batch under Subsection (3).
373          (6) The department may conduct a test to:
374          (a) determine the accuracy of a cannabidiol laboratory's:
375          (i) cannabidiol product test results; or
376          (ii) analytical method; or
377          (b) validate a cannabidiol laboratory's testing methods.
378          Section 20. Section 4-43-701 is enacted to read:
379     
Part 7. Enforcement

380          4-43-701. Enforcement -- Fine -- Citation.
381          (1) The department may, for a violation of this chapter by a cannabidiol prossessor or
382     cannabidiol laboratory:
383          (a) revoke a license;
384          (b) refuse to renew a license;
385          (c) assess an administrative penalty; or
386          (d) take any other appropriate administrative action.
387          (2) The department shall deposit an administrative penalty imposed under this section
388     into the Cannabinoid Product Restricted Account established in Section 4-43-801.
389          (3) (a) The department may take an action described in Subsection (3)(b) if the
390     department concludes, upon inspection or investigation, that:
391          (i) the person has violated the provisions of this chapter or a rule made under this
392     chapter; or
393          (ii) the person prepared a cannabidiol product batch in a manner, or such that the batch
394     contains a substance, that poses a threat to human health.
395          (b) If the department makes the determination about a person described in Subsection
396     (3)(a)(i), the department shall:
397          (i) issue the person a citation in writing;

398          (ii) attempt to negotiate a stipulated settlement; or
399          (iii) direct the person to appear before an adjudicative proceeding conducted under
400     Title 63G, Chapter 4, Administrative Procedures Act.
401          (c) If the department makes the determination about a person described in Subsection
402     (3)(a)(ii), the department may:
403          (i) seize, embargo, or destroy a hemp or cannabidiol product batch; and
404          (ii) direct the person to appear before an adjudicative proceeding conducted under Title
405     63G, Chapter 4, Administrative Procedures Act.
406          (4) The department may, for a person subject to an uncontested citation, a stipulated
407     settlement, or a finding of a violation in an adjudicative proceeding under this section:
408          (a) assess the person a fine in an amount determined by the department in accordance
409     with Section 63J-1-504; or
410          (b) order the person to cease and desist from the action that creates a violation.
411          (5) The department may not revoke a license issued pursuant to this chapter via a
412     citation.
413          (6) If, within 15 calendar days after the day on which a department serves a citation for
414     a violation of this chapter, the person that is the subject of the citation fails to request a hearing
415     to contest the citation, the citation becomes the basis of the department's final order.
416          (7) The department may, for a person that fails to comply with a citation under this
417     section:
418          (a) refuse to issue or renew the person's license; or
419          (b) suspend, revoke, or place on probation the person's license.
420          Section 21. Section 4-43-702 is enacted to read:
421          4-43-702. Report to the Legislature.
422          The department shall report, each year before November 1, to the Health and Human
423     Services Interim Committee, on the department's administration and enforcement of this
424     chapter.
425          Section 22. Section 4-43-703 is enacted to read:
426          4-43-703. Fees -- Deposit into Cannabinoid Product Restricted Account.
427          The department shall deposit fees the department collects under this chapter into the
428     Cannabinoid Product Restricted Account created in Section 4-43-801.

429          Section 23. Section 4-43-801 is enacted to read:
430          4-43-801. Cannabinoid Product Restricted Account -- Creation.
431          (1) There is created in the General Fund a restricted account known as the
432     "Cannabinoid Product Restricted Account."
433          (2) The account created in this section is funded from:
434          (a) money deposited by the State Tax Commission under Title 59, Chapter 29,
435     Cannabidiol Product Tax Act;
436          (b) money deposited into the account by the Department of Agriculture and Food under
437     Title 4, Chapter 43, Cannabidiol Producers;
438          (c) appropriations made to the account by the Legislature; and
439          (d) the interest described in Subsection (3).
440          (3) Interest earned on the account is deposited into the account.
441          (4) The money in the account may only be used to fund, upon appropriation:
442          (a) the cost of state regulation of cannabidiol products under:
443          (i) Title 4, Chapter 43, Cannabidiol Producers;
444          (ii) Title 26, Chapter 62, Cannabidiol Product Act;
445          (iii) Title 59, Chapter 29, Cannabidiol Product Tax Act; and
446          (b) the cost to the state for investigation and enforcement related to cannabinoid
447     products.
448          (5) Subject to appropriation and available funds in the restricted account, at the end of
449     fiscal year 2020 and fiscal year 2021, the director of the Division of Finance shall transfer into
450     the General Fund from the Cannabinoid Product Restricted Account an amount equal to the
451     General Fund appropriation in fiscal year 2018 and fiscal year 2019, respectively, to implement
452     the programs described in Subsection (4).
453          Section 24. Section 26-62-101 is enacted to read:
454     
CHAPTER 62. CANNABIDIOL PRODUCT ACT

455     
Part 1. General Provisions

456          26-62-101. Title.
457          This chapter is known as the "Cannabidiol Product Act."
458          Section 25. Section 26-62-102 is enacted to read:
459          26-62-102. Definitions.

460          (1) "Agent" means an employee or independent contractor of an entity.
461          (2) "Cannabidiol laboratory" means the same as that term is defined in Section
462     4-43-102.
463          (3) "Cannabidiol product" means the same as that term is defined in Section 4-41-102.
464          (4) "Cannabidiol-qualified pharmacy" means the same as that term is defined in
465     Section 4-43-102.
466          (5) "Cannabinoid Product Restricted Account" means the account created in Section
467     4-43-801.
468          (6) "Medicinal dosage form" means a qualifying dosage form for a cannabidiol product
469     under Section 26-62-103.
470          (7) "Physician" means an individual who is licensed to practice:
471          (a) medicine, under Title 58, Chapter 67, Utah Medical Practice Act; or
472          (b) osteopathic medicine, under Title 58, Chapter 68, Utah Osteopathic Medical
473     Practice Act.
474          Section 26. Section 26-62-103 is enacted to read:
475          26-62-103. Medicinal dosage form.
476          (1) For the purpose of this chapter, any of the following is a qualifying medicinal
477     dosage form for a cannabidiol product:
478          (a) a tablet;
479          (b) a capsule;
480          (c) a concentrated oil;
481          (d) a liquid suspension;
482          (e) a transdermal preparation; and
483          (f) a sublingual preparation.
484          (2) A patient may not purchase, use, or possess a cannabidiol product unless the
485     cannabidiol product is prepared in a medicinal dosage form.
486          (3) A cannabidiol-qualified pharmacy may not purchase, possess, or sell a cannabidiol
487     product unless the cannabidiol product is prepared in a medicinal dosage form.
488          (4) The department may recommend that the Legislature approve the use of an
489     additional medicinal dosage form.
490          Section 27. Section 26-62-201 is enacted to read:

491     
Part 2. Miscellaneous

492          26-62-201. Insurance coverage.
493          An insurance carrier, third-party administrator, or employer is not required to provide
494     reimbursement for treatment of an individual with a cannabinoid product under this chapter.
495          Section 28. Section 26-62-202 is enacted to read:
496          26-62-202. Rules -- Report to the Legislature.
497          (1) The department shall make rules regarding data to be:
498          (a) collected by a physician who recommends a cannabinoid product to a patient; and
499          (b) reported to the department.
500          (2) The department shall, before November 1 each year, report to the Health and
501     Human Services Interim Committee on the department's administration and enforcement of this
502     chapter.
503          Section 29. Section 41-6a-517 is amended to read:
504          41-6a-517. Definitions -- Driving with any measurable controlled substance in the
505     body -- Penalties -- Arrest without warrant.
506          (1) As used in this section:
507          (a) "Controlled substance" means the same as that term is defined in Section 58-37-2.
508          (b) "Practitioner" means the same as that term is defined in Section 58-37-2.
509          (c) "Prescribe" means the same as that term is defined in Section 58-37-2.
510          (d) "Prescription" means the same as that term is defined in Section 58-37-2.
511          (2) In cases not amounting to a violation of Section 41-6a-502, a person may not
512     operate or be in actual physical control of a motor vehicle within this state if the person has any
513     measurable controlled substance or metabolite of a controlled substance in the person's body.
514          (3) It is an affirmative defense to prosecution under this section that the controlled
515     substance was:
516          (a) involuntarily ingested by the accused;
517          (b) prescribed by a practitioner for use by the accused or recommended by a physician
518     for use by the accused; or
519          (c) otherwise legally ingested.
520          (4) (a) A person convicted of a violation of Subsection (2) is guilty of a class B
521     misdemeanor.

522          (b) A person who violates this section is subject to conviction and sentencing under
523     both this section and any applicable offense under Section 58-37-8.
524          (5) A peace officer may, without a warrant, arrest a person for a violation of this
525     section when the officer has probable cause to believe the violation has occurred, although not
526     in the officer's presence, and if the officer has probable cause to believe that the violation was
527     committed by the person.
528          (6) The Driver License Division shall, if the person is 21 years of age or older on the
529     date of arrest:
530          (a) suspend, for a period of 120 days, the driver license of a person convicted under
531     Subsection (2) of an offense committed on or after July 1, 2009; or
532          (b) revoke, for a period of two years, the driver license of a person if:
533          (i) the person has a prior conviction as defined under Subsection 41-6a-501(2); and
534          (ii) the current violation under Subsection (2) is committed on or after July 1, 2009,
535     and within a period of 10 years after the date of the prior violation.
536          (7) The Driver License Division shall, if the person is 19 years of age or older but
537     under 21 years of age on the date of arrest:
538          (a) suspend, until the person is 21 years of age or for a period of one year, whichever is
539     longer, the driver license of a person convicted under Subsection (2) of an offense committed
540     on or after July 1, 2011; or
541          (b) revoke, until the person is 21 years of age or for a period of two years, whichever is
542     longer, the driver license of a person if:
543          (i) the person has a prior conviction as defined under Subsection 41-6a-501(2); and
544          (ii) the current violation under Subsection (2) is committed on or after July 1, 2009,
545     and within a period of 10 years after the date of the prior violation.
546          (8) The Driver License Division shall, if the person is under 19 years of age on the date
547     of arrest:
548          (a) suspend, until the person is 21 years of age, the driver license of a person convicted
549     under Subsection (2) of an offense committed on or after July 1, 2009; or
550          (b) revoke, until the person is 21 years of age, the driver license of a person if:
551          (i) the person has a prior conviction as defined under Subsection 41-6a-501(2); and
552          (ii) the current violation under Subsection (2) is committed on or after July 1, 2009,

553     and within a period of 10 years after the date of the prior violation.
554          (9) The Driver License Division shall subtract from any suspension or revocation
555     period the number of days for which a license was previously suspended under Section
556     53-3-223 or 53-3-231, if the previous suspension was based on the same occurrence upon
557     which the record of conviction is based.
558          (10) The Driver License Division shall:
559          (a) deny, suspend, or revoke a person's license for the denial and suspension periods in
560     effect prior to July 1, 2009, for a conviction of a violation under Subsection (2) that was
561     committed prior to July 1, 2009; or
562          (b) deny, suspend, or revoke the operator's license of a person for the denial,
563     suspension, or revocation periods in effect from July 1, 2009, through June 30, 2011, if:
564          (i) the person was 20 years of age or older but under 21 years of age at the time of
565     arrest; and
566          (ii) the conviction under Subsection (2) is for an offense that was committed on or after
567     July 1, 2009, and prior to July 1, 2011.
568          (11) A court that reported a conviction of a violation of this section for a violation that
569     occurred on or after July 1, 2009, to the Driver License Division may shorten the suspension
570     period imposed under Subsection (7)(a) or (8)(a) prior to completion of the suspension period
571     if the person:
572          (a) completes at least six months of the license suspension;
573          (b) completes a screening;
574          (c) completes an assessment, if it is found appropriate by a screening under Subsection
575     (11)(b);
576          (d) completes substance abuse treatment if it is found appropriate by the assessment
577     under Subsection (11)(c);
578          (e) completes an educational series if substance abuse treatment is not required by the
579     assessment under Subsection (11)(c) or the court does not order substance abuse treatment;
580          (f) has not been convicted of a violation of any motor vehicle law in which the person
581     was involved as the operator of the vehicle during the suspension period imposed under
582     Subsection (7)(a) or (8)(a);
583          (g) has complied with all the terms of the person's probation or all orders of the court if

584     not ordered to probation; and
585          (h) (i) is 18 years of age or older and provides a sworn statement to the court that the
586     person has not consumed a controlled substance not prescribed by a practitioner for use by the
587     person or unlawfully consumed alcohol during the suspension period imposed under
588     Subsection (7)(a) or (8)(a); or
589          (ii) is under 18 years of age and has the person's parent or legal guardian provide an
590     affidavit or other sworn statement to the court certifying that to the parent or legal guardian's
591     knowledge the person has not consumed a controlled substance not prescribed by a practitioner
592     for use by the person or unlawfully consumed alcohol during the suspension period imposed
593     under Subsection (7)(a) or (8)(a).
594          (12) If the court shortens a person's license suspension period in accordance with the
595     requirements of Subsection (11), the court shall forward the order shortening the person's
596     license suspension period prior to the completion of the suspension period imposed under
597     Subsection (7)(a) or (8)(a) to the Driver License Division.
598          (13) (a) The court shall notify the Driver License Division if a person fails to:
599          (i) complete all court ordered screening and assessment, educational series, and
600     substance abuse treatment; or
601          (ii) pay all fines and fees, including fees for restitution and treatment costs.
602          (b) Upon receiving the notification, the division shall suspend the person's driving
603     privilege in accordance with Subsections 53-3-221(2) and (3).
604          (14) The court:
605          (a) shall order supervised probation in accordance with Section 41-6a-507 for a person
606     convicted under Subsection (2); and
607          (b) may order a person convicted under Subsection (2) to participate in a 24-7 sobriety
608     program as defined in Section 41-6a-515.5 if the person is 21 years of age or older.
609          (15) (a) A court that reported a conviction of a violation of this section to the Driver
610     License Division may shorten the suspension period imposed under Subsection (6) before
611     completion of the suspension period if the person is participating in or has successfully
612     completed a 24-7 sobriety program as defined in Section 41-6a-515.5.
613          (b) If the court shortens a person's license suspension period in accordance with the
614     requirements of this Subsection (15), the court shall forward to the Driver License Division the

615     order shortening the person's suspension period.
616          (c) The court shall notify the Driver License Division if a person fails to complete all
617     requirements of a 24-7 sobriety program.
618          (d) Upon receiving the notification described in Subsection (15)(c), the division shall
619     suspend the person's driving privilege in accordance with Subsections 53-3-221(2) and (3).
620          Section 30. Section 58-37-3.6 is amended to read:
621          58-37-3.6. Exemption for possession or distribution of a cannabinoid product or
622     expanded cannabinoid product pursuant to an approved study.
623          (1) As used in this section:
624          (a) "Cannabidiol product" means the same as that term is defined in Section 4-41-102.
625          [(a)] (b) "Cannabinoid product" means a product intended for human ingestion that:
626          (i) contains an extract or concentrate that is obtained from cannabis;
627          (ii) is prepared in a medicinal dosage form; and
628          (iii) contains at least 10 units of cannabidiol for every one unit of tetrahydrocannabinol.
629          [(b)] (c) "Cannabis" means any part of the plant cannabis sativa, whether growing or
630     not.
631          [(c)] (d) "Drug paraphernalia" means the same as that term is defined in Section
632     58-37a-3.
633          [(d)] (e) "Expanded cannabinoid product" means a product intended for human
634     ingestion that:
635          (i) contains an extract or concentrate that is obtained from cannabis;
636          (ii) is prepared in a medicinal dosage form; and
637          (iii) contains less than 10 units of cannabidiol for every one unit of
638     tetrahydrocannabinol.
639          [(e)] (f) "Medicinal dosage form" means:
640          (i) a tablet;
641          (ii) a capsule;
642          (iii) a concentrated oil;
643          (iv) a liquid suspension;
644          (v) a transdermal preparation; or
645          (vi) a sublingual preparation.

646          [(f)] (g) "Tetrahydrocannabinol" means a substance derived from cannabis that meets
647     the description in Subsection 58-37-4(2)(a)(iii)(AA).
648          (2) Notwithstanding any other provision of this chapter[,]:
649          (a) an individual who possesses or distributes a cannabinoid product or an expanded
650     cannabinoid product is not subject to the penalties described in this title for the possession or
651     distribution of marijuana or tetrahydrocannabinol to the extent that the individual's possession
652     or distribution of the cannabinoid product or expanded cannabinoid product complies with
653     Title 26, Chapter 61, Cannabinoid Research Act[.];
654          (b) an individual who grows, processes, possesses, transports, or distributes
655     cannabidiol for medicinal use or a hemp-grade product that is intended to be processed into
656     cannabidiol for medicinal use, is not subject to the penalties described in this title to the extent
657     that the individual's growth, processing, possession, transportation, or distribution of the
658     cannabidiol or hemp-grade product is in compliance with Title 4, Chapter 43, Cannabidiol
659     Producers; and
660          (c) a person who processes, possesses, or sells cannabidiol is not subject to the
661     penalties described in this title if:
662          (i) the person is a cannabidiol-qualified pharmacy; or
663          (ii) the person is an individual whose physician has recommended use of the
664     cannabidiol and the individual purchased the cannabidiol from a cannabidiol-qualified
665     pharmacy.
666          Section 31. Section 58-37f-203 is amended to read:
667          58-37f-203. Submission, collection, and maintenance of data.
668          (1) (a) The division shall implement on a statewide basis, including non-resident
669     pharmacies as defined in Section 58-17b-102, the following two options for a pharmacist to
670     submit information:
671          (i) real-time submission of the information required to be submitted under this part to
672     the controlled substance database; and
673          (ii) 24-hour daily or next business day, whichever is later, batch submission of the
674     information required to be submitted under this part to the controlled substance database.
675          (b) (i) On and after January 1, 2016, a pharmacist shall comply with either:
676          (A) the submission time requirements established by the division under Subsection

677     (1)(a)(i); or
678          (B) the submission time requirements established by the division under Subsection
679     (1)(a)(ii).
680          (ii) Prior to January 1, 2016, a pharmacist may submit information using either option
681     under this Subsection (1).
682          (c) The division shall comply with Title 63G, Chapter 6a, Utah Procurement Code.
683          (2) (a) The pharmacist in charge of the drug outlet where a controlled substance is
684     dispensed shall submit the data described in this section to the division:
685          (i) in accordance with the requirements of this section;
686          (ii) in accordance with the procedures established by the division; and
687          (iii) in the format established by the division.
688          (b) A dispensing medical practitioner licensed under Chapter 17b, Part 8, Dispensing
689     Medical Practitioner and Dispensing Medical Practitioner Clinic Pharmacy, shall comply with
690     the provisions of this section and the dispensing medical practitioner shall assume the duties of
691     the pharmacist under this chapter.
692          (3) The pharmacist described in Subsection (2) shall, for each controlled substance
693     dispensed by a pharmacist under the pharmacist's supervision other than those dispensed for an
694     inpatient at a health care facility, submit to the division the following information:
695          (a) the name of the prescribing practitioner;
696          (b) the date of the prescription;
697          (c) the date the prescription was filled;
698          (d) the name of the individual for whom the prescription was written;
699          (e) positive identification of the individual receiving the prescription, including the
700     type of identification and any identifying numbers on the identification;
701          (f) the name of the controlled substance;
702          (g) the quantity of the controlled substance prescribed;
703          (h) the strength of the controlled substance;
704          (i) the quantity of the controlled substance dispensed;
705          (j) the dosage quantity and frequency as prescribed;
706          (k) the name of the drug outlet dispensing the controlled substance; [and]
707          (l) the name of the pharmacist dispensing the controlled substance[.]; and

708          (m) in the case of a cannabidiol-qualified pharmacy dispensing a cannabidiol product:
709          (i) the name of the recommending physician;
710          (ii) the date of the recommendation;
711          (iii) the date the recommendation was filled by the cannabidiol-qualfied pharmacy;
712          (iv) the name of the individual for whom the recommendation was written; and
713          (v) any other information the division requires by rule, made in accordance with Title
714     63G, Chapter 3, Utah Administrative Rulemaking Act.
715          (4) An individual whose records are in the database may obtain those records upon
716     submission of a written request to the division.
717          (5) (a) A patient whose record is in the database may contact the division in writing to
718     request correction of any of the patient's database information that is incorrect. The patient
719     shall provide a postal address for the division's response.
720          (b) The division shall grant or deny the request within 30 days from receipt of the
721     request and shall advise the requesting patient of its decision by mail postmarked within 35
722     days of receipt of the request.
723          (c) If the division denies a request under this Subsection (5) or does not respond within
724     35 days, the patient may submit an appeal to the Department of Commerce, within 60 days
725     after the postmark date of the patient's letter making a request for a correction under this
726     Subsection (5).
727          (6) The division shall make rules, in accordance with Title 63G, Chapter 3, Utah
728     Administrative Rulemaking Act, to establish submission requirements under this part,
729     including the electronic format in which the information required under this section shall be
730     submitted to the division.
731          (7) The division shall ensure that the database system records and maintains for
732     reference:
733          (a) the identification of each individual who requests or receives information from the
734     database;
735          (b) the information provided to each individual; and
736          (c) the date and time that the information is requested or provided.
737          Section 32. Section 58-67-808 is enacted to read:
738          58-67-808. Recommendation of cannabidiol products.

739          (1) (a) A physician may recommend the use of a cannabidiol product to a patient.
740          (b) A physician who recommends a cannabinoid product to a patient shall:
741          (i) consult the controlled substance database before recommending cannabinoid to a
742     patient to determine if the patient is abusing cannabinoid products;
743          (ii) report an adverse event experienced by a patient related to the patient's cannabinoid
744     product use to the Department of Health; and
745          (iii) report other data on cannabinoid products required by Section 26-62-202.
746          (2) It is not a breach of the applicable standard of care for a physician to recommend
747     treatment with a cannabidiol product to an individual under this section.
748          (3) A physician who recommends treatment with a cannabidiol product to an
749     individual under this section may not, solely based on that recommendation, be subject to:
750          (a) civil liability;
751          (b) criminal liability; or
752          (c) licensure sanctions under this title.
753          Section 33. Section 58-68-808 is enacted to read:
754          58-68-808. Recommendation of cannibidiol products.
755          (1) (a) A physician may recommend the use of a cannbidiol product to a patient.
756          (b) A physician who recommends a cannabinoid product to a patient shall:
757          (i) consult the controlled substance database before recommending cannabinoid to a
758     patient to determine if the patient is abusing cannabinoid products;
759          (ii) report an adverse event experienced by a patient related to the patient's cannabinoid
760     product use to the Department of Health; and
761          (iii) report other data on cannabinoid products required by Section 26-62-202.
762          (2) It is not a breach of the applicable standard of care for a physician to recommend
763     treatment with a cannabidiol product to an individual under this section.
764          (3) A physician who recommends treatment with a cannabidiol product to an
765     individual under this section may not, solely based on that recommendation, be subject to:
766          (a) civil liability;
767          (b) criminal liability; or
768          (c) licensure sanctions under this title.
769          Section 34. Section 58-88-101 is enacted to read:

770     
CHAPTER 88. CANNABIDIOL-QUALIFIED PHARMACIES

771     
Part 1. General Provisions

772          58-88-101. Title.
773          This chapter is known as "Cannabidiol-Qualified Pharmacies."
774          Section 35. Section 58-88-102 is enacted to read:
775          58-88-102. Definitions.
776          As used in this chapter:
777          (1) "Cannabidiol-qualified pharmacy" means a pharmacy that sells cannabidiol at retail
778     to a patient with a written recommendation from the patient's physician.
779          (2) "Physician" means an individual who is licensed to practice:
780          (a) medicine, under Title 58, Chapter 67, Utah Medical Practice Act; or
781          (b) osteopathic medicine, under Title 58, Chapter 68, Utah Osteopathic Medical
782     Practice Act.
783          Section 36. Section 58-88-103 is enacted to read:
784          58-88-103. Cannabidiol-qualified pharmacy requirements.
785          (1) A pharmacy licensed in this state may become a cannabidiol-qualified pharmacy if
786     it:
787          (a) registers with the division, on a form and in a manner prescribed by the division;
788     and
789          (b) complies with all rules issued by the division under Section 58-88-104.
790          (2) A cannabidiol-qualified pharmacy may sell a cannabidiol product to a patient if the
791     patient produces a written recommendation from the patient's physician.
792          Section 37. Section 58-88-104 is enacted to read:
793          58-88-104. Division to make rules -- Study.
794          (1) A pharmacy that seeks to sell cannabidiol at retail shall do so in accordance with
795     rules established by the division.
796          (2) The division shall make rules, in accordance with Title 63G, Chapter 3, Utah
797     Administrative Rulemaking Act, governing:
798          (a) the requirements for a pharmacy to become a cannabidiol-qualified pharmacy,
799     including:
800          (i) the manner in which a pharmacy registers with the division to become a

801     cannabidiol-qualified pharmacy;
802          (ii) requirements for the division to accept or reject a pharmacy's registration as a
803     cannabidiol-qualified pharmacy;
804          (iii) the class of pharmacy that may become a cannabidiol-qualified pharmacy; and
805          (iv) any other requirements the division considers reasonably necessary to implement
806     its duties under this chapter; and
807          (b) the manner in which a pharmacy may sell cannabidiol at retail.
808          (3) The department shall prepare a de-identified set of data based on records described
809     in Section 58-37f-203(m) and make the set of data available to researchers at a higher
810     education institution for the purpose of the use of cannabidiol.
811          Section 38. Section 59-12-104.8 is enacted to read:
812          59-12-104.8. Exemption from sales tax for cannabinoid products.
813          (1) As used in this section:
814          (a) "Cannabidiol product" means the same as that term is defined in Section 4-41-102.
815          (b) "Cannabidiol-qualified pharmacy" means the same as that term is defined in
816     Section 58-88-102.
817          (2) In addition to the exemptions described in Section 59-12-104, the sale by a
818     cannabinoid-qualified pharmacy of a cannabidiol product is not subject to the taxes imposed by
819     this chapter.
820          Section 39. Section 59-29-101 is enacted to read:
821     
CHAPTER 29. CANNABIDIOL PRODUCT TAX ACT

822     
Part 1. General Provisions

823          59-29-101. Title.
824          This chapter is known as the "Cannabidiol Product Tax Act."
825          Section 40. Section 59-29-102 is enacted to read:
826          59-29-102. Definitions.
827          As used in this chapter:
828          (1) "Cannabidiol product" means the same as that term is defined in Section 4-41-102.
829          (2) "Cannabidiol-qualified pharmacy" means the same as that term is defined in
830     Section 58-88-102.
831          (3) "Cannabinoid Product Restricted Account" means the account created in Section

832     4-43-801.
833          Section 41. Section 59-29-103 is enacted to read:
834          59-29-103. Imposition of tax -- Rate -- Administration.
835          (1) There is imposed a tax on the retail purchaser of a cannabidiol product at a
836     cannabidiol-qualified pharmacy in the state in an amount equal to 5.77% of amounts paid or
837     charged for the cannabidiol product.
838          (2) The commission shall administer, collect, and enforce the tax authorized under this
839     chapter in accordance with the provisions of Chapter 1, General Taxation Policies, and Chapter
840     12, Sales and Use Tax Act.
841          Section 42. Section 59-29-104 is enacted to read:
842          59-29-104. Collection of tax.
843          A cannabidiol-qualified pharmacy shall:
844          (1) collect the tax imposed by Section 59-29-103 from a cannabidiol product
845     purchaser; and
846          (2) file a return with the commission and pay the tax calculated on the return to the
847     commission:
848          (a) quarterly on or before the last day of the month immediately following the last day
849     of the previous calendar quarter if:
850          (i) the cannabidiol-qualified pharmacy is required to file a quarterly sales and use tax
851     return with the commission under Section 59-12-107; or
852          (ii) the cannabidiol-qualified pharmacy is not required to file a sales and use tax return
853     with the commission under Chapter 12, Sales and Use Tax Act; or
854          (b) monthly on or before the last day of the month immediately following the last day
855     of the previous calendar month if the cannabidiol-qualified pharmacy is required to file a
856     monthly sales and use tax return with the commission under Section 59-12-108.
857          Section 43. Section 59-29-105 is enacted to read:
858          59-29-105. Deposit of tax revenue.
859          The commission shall deposit revenues generated by the tax imposed by this chapter
860     into the Cannabinoid Product Restricted Account created in Section 4-43-801.
861          Section 44. Section 59-29-106 is enacted to read:
862          59-29-106. Records.

863          (1) A cannabidiol-qualified pharmacy shall maintain any record typically considered
864     necessary to determine the amount of tax that the pharmacy is required to remit to the
865     commission under this chapter.
866          (2) The commission may require a cannabidiol-qualified pharmacy to keep any record
867     the commission reasonably considers necessary to constitute sufficient evidence of the amount
868     of tax the cannabidiol-qualified pharmacy is required to remit to the commission under this
869     chapter:
870          (a) by notice served upon the cannabidiol-qualified pharmacy; or
871          (b) by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
872     Rulemaking Act.
873          (3) Upon notice by the commission, a cannabidiol-qualified pharmacy shall open the
874     pharmacy's records for examination by the commission.
875          Section 45. Section 59-29-107 is enacted to read:
876          59-29-107. Rulemaking authority.
877          The commission may make rules in accordance with Title 63G, Chapter 3, Utah
878     Administrative Rulemaking Act, to:
879          (1) implement the tax imposed by this chapter; and
880          (2) enforce payment of the tax imposed by this chapter.
881          Section 46. Section 59-29-108 is enacted to read:
882          59-29-108. Penalties and interest.
883          A cannabidiol-qualified pharmacy that fails to comply with any provision of this
884     chapter is subject to penalties and interest as provided in Sections 59-1-401 and 59-1-402.
885          Section 47. Section 78A-6-508 is amended to read:
886          78A-6-508. Evidence of grounds for termination.
887          (1) In determining whether a parent or parents have abandoned a child, it is prima facie
888     evidence of abandonment that the parent or parents:
889          (a) although having legal custody of the child, have surrendered physical custody of the
890     child, and for a period of six months following the surrender have not manifested to the child
891     or to the person having the physical custody of the child a firm intention to resume physical
892     custody or to make arrangements for the care of the child;
893          (b) have failed to communicate with the child by mail, telephone, or otherwise for six

894     months;
895          (c) failed to have shown the normal interest of a natural parent, without just cause; or
896          (d) have abandoned an infant, as described in Subsection 78A-6-316(1).
897          (2) In determining whether a parent or parents are unfit or have neglected a child the
898     court shall consider, but is not limited to, the following circumstances, conduct, or conditions:
899          (a) emotional illness, mental illness, or mental deficiency of the parent that renders the
900     parent unable to care for the immediate and continuing physical or emotional needs of the child
901     for extended periods of time;
902          (b) conduct toward a child of a physically, emotionally, or sexually cruel or abusive
903     nature;
904          (c) habitual or excessive use of intoxicating liquors, controlled substances, or
905     dangerous drugs that render the parent unable to care for the child;
906          (d) repeated or continuous failure to provide the child with adequate food, clothing,
907     shelter, education, or other care necessary for the child's physical, mental, and emotional health
908     and development by a parent or parents who are capable of providing that care;
909          (e) whether the parent is incarcerated as a result of conviction of a felony, and the
910     sentence is of such length that the child will be deprived of a normal home for more than one
911     year;
912          (f) a history of violent behavior; or
913          (g) whether the parent has intentionally exposed the child to pornography or material
914     harmful to a minor, as defined in Section 76-10-1201.
915          (3) Notwithstanding Subsection (2)(c), the court may not discriminate against a parent
916     because of the parent's possession or consumption of a cannabidiol product, in accordance with
917     Title 26, Chapter 62, Cannabidiol Product Act.
918          [(3)] (4) A parent who, legitimately practicing the parent's religious beliefs, does not
919     provide specified medical treatment for a child is not, for that reason alone, a negligent or unfit
920     parent.
921          [(4)] (5) (a) Notwithstanding Subsection (2), a parent may not be considered neglectful
922     or unfit because of a health care decision made for a child by the child's parent unless the state
923     or other party to the proceeding shows, by clear and convincing evidence, that the health care
924     decision is not reasonable and informed.

925          (b) Nothing in Subsection [(4)] (5)(a) may prohibit a parent from exercising the right to
926     obtain a second health care opinion.
927          [(5)] (6) If a child has been placed in the custody of the division and the parent or
928     parents fail to comply substantially with the terms and conditions of a plan within six months
929     after the date on which the child was placed or the plan was commenced, whichever occurs
930     later, that failure to comply is evidence of failure of parental adjustment.
931          [(6)] (7) The following circumstances constitute prima facie evidence of unfitness:
932          (a) sexual abuse, sexual exploitation, injury, or death of a sibling of the child, or of any
933     child, due to known or substantiated abuse or neglect by the parent or parents;
934          (b) conviction of a crime, if the facts surrounding the crime are of such a nature as to
935     indicate the unfitness of the parent to provide adequate care to the extent necessary for the
936     child's physical, mental, or emotional health and development;
937          (c) a single incident of life-threatening or gravely disabling injury to or disfigurement
938     of the child;
939          (d) the parent has committed, aided, abetted, attempted, conspired, or solicited to
940     commit murder or manslaughter of a child or child abuse homicide; or
941          (e) the parent intentionally, knowingly, or recklessly causes the death of another parent
942     of the child, without legal justification.
943          Section 48. Contingent effective date.
944          (1) Except as provided in Subsection (2), this bill takes effect on May 8, 2018.
945          (2) The following sections take effect on July 1, 2019 or the day on which the
946     Department of Agriculture and Food receives a federal waiver as described in Section
947     4-41-204, whichever comes first:
948          (a) Section 4-43-101;
949          (b) Section 4-43-102;
950          (c) Section 4-43-201;
951          (d) Section 4-43-202;
952          (e) Section 4-43-203;
953          (f) Section 4-43-301;
954          (g) Section 4-43-401;
955          (h) Section 4-43-402;

956          (i) Section 4-43-501;
957          (j) Section 4-43-502;
958          (k) Section 4-43-503;
959          (l) Section 4-43-601;
960          (m) Section 4-43-602;
961          (n) Section 4-43-701;
962          (o) Section 4-43-702;
963          (p) Section 4-43-703;
964          (q) Section 4-43-801;
965          (r) Section 26-62-101;
966          (s) Section 26-62-102;
967          (t) Section 26-62-103;
968          (u) Section 26-62-201;
969          (v) Section 26-62-202;
970          (w) Section 41-6a-517;
971          (x) Section 58-37-3.6;
972          (y) Section 58-37f-203;
973          (z) Section 58-67-808;
974          (aa) Section 58-68-808;
975          (bb) Section 58-88-101;
976          (cc) Section 58-88-102;
977          (dd) Section 58-88-103;
978          (ee) Section 58-88-104;
979          (ff) Section 59-12-104.8;
980          (gg) Section 59-29-101;
981          (hh) Section 59-29-102;
982          (ii) Section 59-29-103;
983          (jj) Section 59-29-104;
984          (kk) Section 59-29-105;
985          (ll) Section 59-29-106;
986          (mm) Section 59-29-107;

987          (nn) Section 59-29-108; and
988          (oo) Section 78A-6-508.
989          Section 49. Coordinating S.B. 130 with H.B. 158 -- Substantive and technical
990     amendments.
991           If this S.B. 130 and H.B. 158, Controlled Substance Database Revisions, both pass and
992     become law, it is the intent of the Legislature that the Office of Legislative Research and
993     General Counsel shall prepare the Utah Code database for publication on July 1, 2019, by
994     amending Subsection 58-37f-203(3) to read:
995          "(3)(a) The pharmacist-in-charge and the pharmacist described in Subsection (2) shall,
996     for each controlled substance dispensed by a pharmacist under the pharmacist's supervision
997     other than those dispensed for an inpatient at a health care facility, submit to the division any
998     type of information or data field established by the division by rule in accordance with
999     Subsection (6).
1000          (b) The pharmacist described in Subsection (2) shall, in the case of a
1001     cannabidiol-qualified pharmacy dispensing a cannabidiol product, submit the following
1002     information to the division:
1003          (i) the name of the recommending physician;
1004          (ii) the date of the recommendation;
1005          (iii) the date the recommendation was filled by the cannabidiol-qualified pharmacy;
1006          (iv) the name of the individual for whom the recommendation was written; and
1007          (v) any other information the division requires by rule, made in accordance with Title
1008     63G, Chapter 3, Utah Administrative Rulemaking Act."
1009          Section 50. Coordinating S.B. 130 with H.B. 197 -- Substantive and technical
1010     amendments.
1011           If this S.B. 130 and H.B. 197, Cannabis Cultivation Amendments, both pass and
1012     become law, it is the intent of the Legislature that the Office of Legislative Research and
1013     General Counsel shall prepare the Utah Code database for publication by not enacting Title 7,
1014     Chapter 26, Cannabis Payment Processor.