1     
HEMP REGULATION AMENDMENTS

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: David P. Hinkins

5     
House Sponsor: Jennifer Dailey-Provost

6     

7     LONG TITLE
8     Committee Note:
9          The Natural Resources, Agriculture, and Environment Interim Committee
10     recommended this bill.
11               Legislative Vote:     16 voting for     0 voting against     3 absent
12     General Description:
13          This bill amends provisions of Title 4, Chapter 41, Hemp and Cannabinoid Act, to
14     provide clarity regarding existing and developing cannabinoids and regulate production
15     and sale.
16     Highlighted Provisions:
17          This bill:
18          ▸     defines terms;
19          ▸     allows industrial hemp producers to procure background checks through a federal
20     system;
21          ▸     requires industrial hemp laboratories to demonstrate the ability to test for delta-8
22     tetrahydrocannabinol;
23          ▸     identifies an unlawful act for a person to:
24               •     distribute, sell, or market a product that exceeds the acceptable hemp THC
25     level;
26               •     sell a psychoactive cannabinoid;
27               •     transport material outside of the state that exceeds the acceptable hemp THC

28     level; or
29               •     produce, sell, or use a cannabinoid product that is added to an alcoholic
30     beverage or food, enticing to children, or smokable flower;
31          ▸     allows for increased flexibility in dosage forms; and
32          ▸     makes technical and conforming changes.
33     Money Appropriated in this Bill:
34          None
35     Other Special Clauses:
36          None
37     Utah Code Sections Affected:
38     AMENDS:
39          4-41-102, as last amended by Laws of Utah 2020, Chapters 12 and 14
40          4-41-103.2, as enacted by Laws of Utah 2020, Chapter 14
41          4-41-103.4, as enacted by Laws of Utah 2020, Chapter 14
42          4-41-105, as last amended by Laws of Utah 2020, Chapter 14
43          4-41-204, as enacted by Laws of Utah 2018, Chapter 446
44     

45     Be it enacted by the Legislature of the state of Utah:
46          Section 1. Section 4-41-102 is amended to read:
47          4-41-102. Definitions.
48          As used in this chapter:
49          (1) "Acceptable hemp THC level" means total tetrahydrocannabinol concentration of
50     not more than 0.3% on a dry weight basis if laboratory testing confirms a result within a
51     measurement of uncertainty that includes the total tetrahydrocannabinol concentration of 0.3%.
52          (2) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 3556-78-3.
53          (3) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS#
54     1244-58-2.
55          [(1)] (4) "Cannabinoid product" means a chemical compound extracted from a hemp
56     product or any cannabinoid extracted from any naturally occurring biomass that:
57          (a) is processed into a [medicinal] dosage form; and
58          (b) contains less than:

59          (i) 0.3% tetrahydrocannabinol by dry weight[.]; or
60          (ii) 0.3% delta-8 tetrahydrocannabinol by dry weight.
61          (5) "Delta-8 tetrahydrocannabinol" or "delta-8 THC" means the cannabinoid identified
62     as CAS# 5957-75-5, having a lower psychotropic potency than delta-9 THC.
63          (6) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid identified
64     as CAS# 1972-08-03, the primary psychotropic cannabinoid in cannabis.
65          (7) "Derivative cannabinoid" means any cannabinoid that has been intentionally
66     created using a process to convert a naturally occurring cannabinoid into another cannabinoid.
67          (8) "Dosage form" means the form in which a product is produced for individual
68     dosage that is not specified as unlawful in this chapter.
69          [(2)] (9) "Industrial hemp" means any part of a cannabis plant, whether growing or not,
70     with a concentration of less than 0.3% tetrahydrocannabinol by dry weight.
71          [(3)] (10) "Industrial hemp certificate" means a certificate that the department issues to
72     a higher education institution to grow or cultivate industrial hemp under Subsection
73     4-41-103(1).
74          [(4)] (11) "Industrial hemp certificate holder" means a person possessing an industrial
75     hemp certificate that the department issues under this chapter.
76          [(5)] (12) "Industrial hemp laboratory permit" means a permit that the department
77     issues to a laboratory qualified to test industrial hemp under the state hemp production plan.
78          [(6)] (13) "Industrial hemp producer license" means a license that the department
79     issues to a person for the purpose of cultivating or processing industrial hemp or an industrial
80     hemp product.
81          [(7)] (14) "Industrial hemp retailer permit" means a permit that the department issues
82     to a retailer who sells any industrial hemp product.
83          [(8)] (15) "Industrial hemp product" means a product derived from, or made by,
84     processing industrial hemp plants or industrial hemp parts.
85          (16) (a) "Key participant" means any person who has a financial interest in the business
86     entity, including members of a limited liability company, a sole proprietor, partners in a
87     partnership, and incorporators or directors of a corporation.
88          (b) "Key participant" also includes:
89          (i) an individual at an executive level, including a chief executive officer, chief

90     operating officer, or chief financial officer; and
91          (ii) an operation manager, site manager, or any employee who may present a risk of
92     diversion.
93          [(9)] (17) "Laboratory permittee" means a person possessing an industrial hemp
94     laboratory permit that the department issues under this chapter.
95          [(10)] (18) "Licensee" means a person possessing an industrial hemp producer license
96     that the department issues under this chapter.
97          [(11) "Medicinal dosage form" means:]
98          [(a) a tablet;]
99          [(b) a capsule;]
100          [(c) a concentrated oil;]
101          [(d) a liquid suspension;]
102          [(e) a sublingual preparation;]
103          [(f) a topical preparation;]
104          [(g) a transdermal preparation;]
105          [(h) a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or
106     rectangular cuboid shape; or]
107          [(i) other preparations that the department approves.]
108          [(12)] (19) "Non-compliant material" means a hemp plant or hemp product that does
109     not comply with this chapter, including a cannabis plant or product that contains a
110     concentration of:
111          (a) 0.3% tetrahydrocannabinol or greater by dry weight[.]; or
112          (b) 0.3% delta-8-tetrahydrocannabinol or greater by dry weight.
113          [(13)] (20) "Permittee" means a person possessing a permit that the department issues
114     under this chapter.
115          [(14)] (21) "Person" means:
116          (a) an individual, partnership, association, firm, trust, limited liability company, or
117     corporation; and
118          (b) an agent or employee of an individual, partnership, association, firm, trust, limited
119     liability company, or corporation.
120          [(15)] (22) "Research pilot program" means a program conducted by the department in

121     collaboration with at least one licensee to study methods of cultivating, processing, or
122     marketing industrial hemp.
123          [(16)] (23) "Retailer permittee" means a person possessing an industrial hemp retailer
124     permit that the department issues under this chapter.
125          [(17)] (24) "State hemp production plan" means a plan submitted by the state to, and
126     approved by, the United States Department of Agriculture in accordance with 7 C.F.R. Chapter
127     990.
128          (25) "Synthetic cannabinoid" means any cannabinoid that:
129          (a) was chemically synthesized from starting materials other than a naturally occurring
130     cannabinoid; and
131          (b) is not a derivative cannabinoid.
132          (26) "Tetrahydrocannabinol" or "THC" means a substance derived from cannabis or a
133     synthetic cannabinoid equivalent as described in Subsection 58-37-4(2)(a)(iii)(AA).
134          (27) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
135     and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)."
136          (28) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
137     amounts of delta-9 THC and tetrahydrocannabinolic acid, calculated as "total THC = delta-9
138     THC + (THCA x 0.977)."
139          Section 2. Section 4-41-103.2 is amended to read:
140          4-41-103.2. Industrial hemp producer license -- Background checks.
141          (1) The department or a licensee of the department may cultivate or process industrial
142     hemp.
143          (2) A person seeking an industrial hemp producer license shall provide to the
144     department:
145          (a) the legal description and global positioning coordinates sufficient for locating the
146     fields or greenhouses the person uses to grow industrial hemp; and
147          (b) written consent allowing a representative of the department and local law
148     enforcement to enter all premises where the person cultivates, processes, or stores industrial
149     hemp for the purpose of:
150          (i) conducting a physical inspection; or
151          (ii) ensuring compliance with the requirements of this chapter.

152          (3) An individual who has been convicted of a drug-related felony within the last 10
153     years is not eligible to obtain an industrial hemp producer license.
154          (4) The department may set a fee in accordance with Subsection 4-2-103(2) for the
155     application for an industrial hemp producer license.
156          (5) A licensee may only market industrial hemp that the licensee cultivates or
157     processes.
158          (6) (a) Each applicant for a license to cultivate or process industrial hemp shall submit
159     to the department, at the time of application, from each key participant:
160          (i) a fingerprint card in a form acceptable to the Department of Public Safety;
161          (ii) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
162     registration of the individual's fingerprints in the Federal Bureau of Investigation Next
163     Generation Identification System's Rap Back Service; and
164          (iii) consent to a fingerprint background check by:
165          (A) the Bureau of Criminal Identification; and
166          (B) the Federal Bureau of Investigation.
167          (b) The Bureau of Criminal Identification shall:
168          (i) check the fingerprints the applicant submits under Subsection (6)(a) against the
169     applicable state, regional, and national criminal records databases, including the Federal
170     Bureau of Investigation Next Generation Identification System;
171          (ii) report the results of the background check to the department;
172          (iii) maintain a separate file of fingerprints that applicants submit under Subsection
173     (6)(a) for search by future submissions to the local and regional criminal records databases,
174     including latent prints;
175          (iv) request that the fingerprints be retained in the Federal Bureau of Investigation Next
176     Generation Identification System's Rap Back Service for search by future submissions to
177     national criminal records databases, including the Next Generation Identification System and
178     latent prints; and
179          (v) establish a privacy risk mitigation strategy to ensure that the department only
180     receives notifications for an individual with whom the department maintains an authorizing
181     relationship.
182          (c) The department shall:

183          (i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
184     amount that the department sets in accordance with Section 63J-1-504 for the services that the
185     Bureau of Criminal Identification or another authorized agency provides under this section; and
186          (ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
187     Identification.
188          Section 3. Section 4-41-103.4 is amended to read:
189          4-41-103.4. Industrial hemp laboratory permit.
190          (1) The department or a laboratory permittee of the department may test industrial
191     hemp and industrial hemp products.
192          (2) The department or a laboratory permittee of the department may dispose of
193     non-compliant material.
194          (3) A laboratory seeking an industrial hemp laboratory permit shall:
195          (a) demonstrate to the department that:
196          (i) the laboratory and laboratory staff possess the professional certifications required by
197     department rule;
198          (ii) the laboratory has the ability to test industrial hemp and industrial hemp products
199     using the standards, methods, practices, and procedures required by department rule;
200          (iii) the laboratory has the ability to meet the department's minimum standards of
201     performance for detecting delta-9 tetrahydrocannabinol (THC) concentration levels and delta-8
202     tetrahydrocannabinol concentration levels; and
203          (iv) the laboratory has a plan that complies with the department's rule for the safe
204     disposal of non-compliant material; and
205          (b) provide to the department written consent allowing a representative of the
206     department and local law enforcement to enter all premises where the laboratory tests,
207     processes, or stores industrial hemp, industrial hemp products, and non-compliant plants for the
208     purpose of:
209          (i) conducting a physical inspection; or
210          (ii) ensuring compliance with the requirements of this chapter.
211          (4) An individual who has been convicted of a drug-related felony within the last 10
212     years is not eligible to obtain a license under this chapter.
213          (5) The department may set a fee in accordance with Subsection 4-2-103(2) for the

214     application for an industrial hemp laboratory permit.
215          Section 4. Section 4-41-105 is amended to read:
216          4-41-105. Unlawful acts.
217          (1) It is unlawful for a person to:
218          (a) cultivate, handle, process, or market living industrial hemp plants, viable hemp
219     seeds, leaf materials, or floral materials derived from industrial hemp without the appropriate
220     license or permit issued by the department under this chapter[.];
221          [(2)] (b) [It is unlawful for any person to] distribute, sell, or market an industrial hemp
222     product that is not registered with the department pursuant to Section 4-41-104[.];
223          (c) distribute, sell, or market a product that contains greater than 0.3% of either total
224     THC or delta-8 THC under this chapter;
225          (d) sell a cannabinoid identified by the department as psychoactive under this chapter;
226          (e) transport outside the state extracted material or final product that exceeds the
227     acceptable hemp THC level; or
228          (f) produce, sell, or use a cannabinoid product that is:
229          (i) added to a conventional food or alcoholic beverage;
230          (ii) marketed or manufactured to be enticing to children; or
231          (iii) smokable flower.
232          [(3)] (2) The department may seize and destroy non-compliant material.
233          [(4)] (3) Nothing in this chapter authorizes any person to violate federal law,
234     regulation, or any provision of this title.
235          Section 5. Section 4-41-204 is amended to read:
236          4-41-204. Department to make rules regarding cultivation and processing.
237          The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
238     Administrative Rulemaking Act:
239          (1) to ensure:
240          (a) cannabis cultivated in the state pursuant to this chapter is cultivated from
241     state-approved seed sources; and
242          (b) a private entity contracted to cultivate cannabis has sufficient security protocols;
243     and
244          (2) governing an entity that puts cannabis into a [medicinal] dosage form, including

245     standards for health and safety.