7 LONG TITLE
8 General Description:
9 This bill amends provisions of Title 4, Chapter 41, Hemp and Cannabinoid Act, to
10 provide clarity regarding existing and developing cannabinoids and regulate production
11 and sale.
12 Highlighted Provisions:
13 This bill:
14 ▸ defines terms;
15 ▸ allows industrial hemp producers to procure background checks through a federal
17 ▸ requires industrial hemp laboratories to demonstrate the ability to test for THC
19 ▸ identifies an unlawful act for a person to:
20 • distribute, sell, or market a product that exceeds the acceptable hemp THC
22 • transport material outside of the state that exceeds the acceptable hemp THC
23 level; or
24 • produce, sell, or use a cannabinoid product that is added to an alcoholic
25 beverage or food, enticing to children, or smokable flower;
26 ▸ allows for increased flexibility in dosage forms;
27 ▸ allows for the sale of unprocessed industrial hemp flower to an individual who is at
28 least 21 years old under certain packaging and labeling requirements; and
29 ▸ makes technical and conforming changes.
30 Money Appropriated in this Bill:
32 Other Special Clauses:
34 Utah Code Sections Affected:
36 4-41-102, as last amended by Laws of Utah 2020, Chapters 12 and 14
37 4-41-103.2, as enacted by Laws of Utah 2020, Chapter 14
38 4-41-103.4, as enacted by Laws of Utah 2020, Chapter 14
39 4-41-104, as enacted by Laws of Utah 2018, Chapter 227
40 4-41-105, as last amended by Laws of Utah 2020, Chapter 14
41 4-41-204, as enacted by Laws of Utah 2018, Chapter 446
43 4-41-107, Utah Code Annotated 1953
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#
57 (a) contains or is represented to contain naturally occurring, derivative, or synthetic
58 cannabinoids; and
59 (b) contains less than 0.3% of delta-9-THC or 0.3% each of any THC analog.
62 (5) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid identified
63 as CAS# 1972-08-03, the primary psychotropic cannabinoid in cannabis.
64 (6) "Derivative cannabinoid" means any cannabinoid that has been intentionally
65 created using a process to convert a naturally occurring cannabinoid into another cannabinoid.
66 (7) "Dosage form" means the form in which a product is produced for individual
67 dosage that is not specified as unlawful in this chapter.
69 with a concentration of less than 0.3% tetrahydrocannabinol by dry weight.
71 higher education institution to grow or cultivate industrial hemp under Subsection 4-41-103(1).
73 hemp certificate that the department issues under this chapter.
75 issues to a laboratory qualified to test industrial hemp under the state hemp production plan.
77 issues to a person for the purpose of cultivating or processing industrial hemp or an industrial
78 hemp product.
80 to a retailer who sells any industrial hemp product.
82 processing industrial hemp plants or industrial hemp parts.
83 (15) "Industrial hemp product class" means a group of industrial hemp or cannabinoid
84 products that:
85 (a) have all ingredients in common; and
86 (b) differ in dosage strength.
87 (16) "Key participant" means any individual who has access to raw hemp materials
88 within the industrial hemp facility.
90 laboratory permit that the department issues under this chapter.
92 that the department issues under this chapter.
105 not comply with this chapter, including a cannabis plant or product that contains a
106 concentration of:
107 (a) 0.3% [
108 (b) 0.3% of any THC analog or greater by dry weight.
110 under this chapter.
112 (a) an individual, partnership, association, firm, trust, limited liability company, or
113 corporation; and
114 (b) an agent or employee of an individual, partnership, association, firm, trust, limited
115 liability company, or corporation.
117 collaboration with at least one licensee to study methods of cultivating, processing, or
118 marketing industrial hemp.
120 permit that the department issues under this chapter.
122 approved by, the United States Department of Agriculture in accordance with 7 C.F.R. Chapter
124 (25) "Synthetic cannabinoid" means any cannabinoid that:
125 (a) was chemically synthesized from starting materials other than a naturally occurring
126 cannabinoid; and
127 (b) is not a derivative cannabinoid.
128 (26) "Tetrahydrocannabinol" or "THC" means a substance derived from cannabis or a
129 synthetic cannabinoid equivalent as described in Subsection 58-37-4(2)(a)(iii)(AA).
130 (27) (a) "THC analog" means a substance that is structurally or pharmacologically
131 substantially similar to, or is represented as being similar to, delta-9-THC.
132 (b) "THC analog" does not include the following substances or their naturally
133 occurring acid forms:
134 (i) cannabichromene (CBC), CAS# 20675-51-8;
135 (ii) cannabicyclol (CBL), CAS# 21366-63-2;
136 (iii) cannabidiol (CBD), CAS# 13956-29-1;
137 (iv) cannabidivarol (CBDV), CAS# 24274-48-4;
138 (v) cannabielsoin (CBE), CAS# 52025-76-0;
139 (vi) cannabigerol (CBG), CAS# 25654-31-3;
140 (vii) cannabigerovarin (CBGV), CAS# 55824-11-8;
141 (viii) cannabinol (CBN), CAS# 521-35-7;
142 (ix) cannabivarin (CBV), CAS# 33745-21-0; or
143 (x) delta-9-tetrahydrocannabivarin (THCV), CAS# 31262-37-0.
144 (28) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
145 and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)."
146 (29) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
147 amounts of delta-9 THC and tetrahydrocannabinolic acid, calculated as "total THC = delta-9
148 THC + (THCA x 0.877)."
149 Section 2. Section 4-41-103.2 is amended to read:
150 4-41-103.2. Industrial hemp producer license -- Background checks.
151 (1) The department or a licensee of the department may cultivate or process industrial
153 (2) A person seeking an industrial hemp producer license shall provide to the
155 (a) the legal description and global positioning coordinates sufficient for locating the
156 fields or greenhouses the person uses to grow industrial hemp; and
157 (b) written consent allowing a representative of the department and local law
158 enforcement to enter all premises where the person cultivates, processes, or stores industrial
159 hemp for the purpose of:
160 (i) conducting a physical inspection; or
161 (ii) ensuring compliance with the requirements of this chapter.
162 (3) An individual who has been convicted of a drug-related felony within the last 10
163 years is not eligible to obtain an industrial hemp producer license.
164 (4) The department may set a fee in accordance with Subsection 4-2-103(2) for the
165 application for an industrial hemp producer license.
166 (5) A licensee may only market industrial hemp that the licensee cultivates or
168 (6) (a) Each applicant for a license to cultivate or process industrial hemp shall submit
169 to the department, at the time of application, from each key participant:
170 (i) a fingerprint card in a form acceptable to the Department of Public Safety;
171 (ii) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
172 registration of the individual's fingerprints in the Federal Bureau of Investigation Next
173 Generation Identification System's Rap Back Service; and
174 (iii) consent to a fingerprint background check by:
175 (A) the Bureau of Criminal Identification; and
176 (B) the Federal Bureau of Investigation.
177 (b) The Bureau of Criminal Identification shall:
178 (i) check the fingerprints the applicant submits under Subsection (6)(a) against the
179 applicable state, regional, and national criminal records databases, including the Federal
180 Bureau of Investigation Next Generation Identification System;
181 (ii) report the results of the background check to the department;
182 (iii) maintain a separate file of fingerprints that applicants submit under Subsection
183 (6)(a) for search by future submissions to the local and regional criminal records databases,
184 including latent prints;
185 (iv) request that the fingerprints be retained in the Federal Bureau of Investigation Next
186 Generation Identification System's Rap Back Service for search by future submissions to
187 national criminal records databases, including the Next Generation Identification System and
188 latent prints; and
189 (v) establish a privacy risk mitigation strategy to ensure that the department only
190 receives notifications for an individual with whom the department maintains an authorizing
192 (c) The department shall:
193 (i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
194 amount that the department sets in accordance with Section 63J-1-504 for the services that the
195 Bureau of Criminal Identification or another authorized agency provides under this section; and
196 (ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
198 Section 3. Section 4-41-103.4 is amended to read:
199 4-41-103.4. Industrial hemp laboratory permit.
200 (1) The department or a laboratory permittee of the department may test industrial
201 hemp and industrial hemp products.
202 (2) The department or a laboratory permittee of the department may dispose of
203 non-compliant material.
204 (3) A laboratory seeking an industrial hemp laboratory permit shall:
205 (a) demonstrate to the department that:
206 (i) the laboratory and laboratory staff possess the professional certifications required by
207 department rule;
208 (ii) the laboratory has the ability to test industrial hemp and industrial hemp products
209 using the standards, methods, practices, and procedures required by department rule;
210 (iii) the laboratory has the ability to meet the department's minimum standards of
211 performance for detecting delta-9 tetrahydrocannabinol (THC) concentration levels and THC
212 analog concentration levels; and
213 (iv) the laboratory has a plan that complies with the department's rule for the safe
214 disposal of non-compliant material; and
215 (b) provide to the department written consent allowing a representative of the
216 department and local law enforcement to enter all premises where the laboratory tests,
217 processes, or stores industrial hemp, industrial hemp products, and non-compliant plants for the
218 purpose of:
219 (i) conducting a physical inspection; or
220 (ii) ensuring compliance with the requirements of this chapter.
221 (4) An individual who has been convicted of a drug-related felony within the last 10
222 years is not eligible to obtain a license under this chapter.
223 (5) The department may set a fee in accordance with Subsection 4-2-103(2) for the
224 application for an industrial hemp laboratory permit.
225 Section 4. Section 4-41-104 is amended to read:
226 4-41-104. Product registration required for distribution -- Application -- Fees --
228 (1) An industrial hemp product that is not registered with the department may not be
229 distributed in this state.
230 (2) A person seeking registration for an industrial hemp product shall:
231 (a) apply to the department on forms provided by the department; and
232 (b) submit an annual registration fee, determined by the department pursuant to
233 Subsection 4-2-103(2), for each industrial hemp product class the person intends to distribute
234 in this state.
235 (3) The department may conduct tests, or require test results, to ensure that any claim
236 made by an applicant about an industrial hemp product is accurate.
237 (4) Upon receipt by the department of a proper application and payment of the
238 appropriate fee, as described in Subsection (2), the department shall issue a registration to the
239 applicant allowing the applicant to distribute the registered hemp product in the state [
241 suspension or revocation for cause.
242 (5) The department shall mail, either through the postal service or electronically, forms
243 for the renewal of a registration to a registrant at least 30 days before the day on which the
244 registrant's registration expires.
245 Section 5. Section 4-41-105 is amended to read:
246 4-41-105. Unlawful acts.
247 (1) It is unlawful for a person to:
248 (a) cultivate, handle, process, or market living industrial hemp plants, viable hemp
249 seeds, leaf materials, or floral materials derived from industrial hemp without the appropriate
250 license or permit issued by the department under this chapter[
252 or cannabinoid product that is not registered with the department pursuant to Section
254 (c) distribute, sell, or market an industrial hemp or cannabinoid product that contains
255 greater than 0.3% of either total THC or a THC analog under this chapter;
256 (d) transport outside the state extracted material or final product that exceeds the
257 acceptable hemp THC level; or
258 (e) produce, sell, or use a cannabinoid product that is:
259 (i) added to a conventional food or alcoholic beverage if:
260 (A) the conventional food item is unpackaged; or
261 (B) the conventional food item contains more than 25mg of CBD per serving; or
262 (ii) marketed or manufactured to be enticing to children, as the department specifies in
263 rule in accordance with Section 4-41-204; or
264 (f) for unprocessed industrial hemp flower:
265 (i) sell industrial hemp flower to an individual younger than 21 years old; or
266 (ii) possess, except for during actual use, or sell industrial hemp flower that is not
267 packaged in accordance with Section 4-41-107.
270 regulation, or any provision of this title.
271 Section 6. Section 4-41-107 is enacted to read:
272 4-41-107. Industrial hemp flower.
273 (1) For any industrial hemp flower that an industrial hemp producer produces for sale
274 as unprocessed industrial hemp flower, the industrial hemp producer shall:
275 (a) package the industrial hemp flower in a container that:
276 (i) is tamper evident and tamper resistant;
277 (ii) does not appeal to children;
278 (iii) does not mimic a candy container;
279 (iv) is opaque; and
280 (v) complies with child-resistant effectiveness standards that the United States
281 Consumer Product Safety Commission establishes;
282 (b) include a label on the container described in Subsection (1)(a) that:
283 (i) clearly and unambiguously states that the container contains industrial hemp flower;
284 (ii) clearly displays the weight of the industrial hemp flower and the amount of total
285 THC in the labeled container;
286 (iii) does not display an image, word, or phrase that the facility knows or should know
287 appeals to children; and
288 (iv) identifies the industrial hemp producer; and
289 (c) includes a warning label that states: "WARNING: KEEP OUT OF REACH OF
290 CHILDREN. This product is for medical use only."
291 (2) For any industrial hemp flower that an industrial hemp retailer offers for sale, the
292 industrial hemp retailer shall:
293 (a) ensure that the industrial hemp flower is in a sealed and labeled container described
294 in Subsection (1);
295 (b) add a label to the container described in Subsection (1) that specifies:
296 (i) the date of purchase; and
297 (ii) the industrial hemp retailer;
298 (c) provide the purchaser with an opaque, child-resistant bag; or
299 (d) ensure that the unprocessed industrial hemp flower is registered in accordance with
300 Sections 4-41-104 and 4-41-403.
301 (3) (a) An industrial hemp producer may not produce unprocessed industrial hemp
302 flower for sale except as provided in Subsection (1).
303 (b) An industrial hemp retailer may not offer unprocessed industrial hemp flower for
304 sale except as provided in Subsection (2).
305 (c) An individual may not:
306 (i) purchase, possess, or use unprocessed industrial hemp flower if the individual is
307 younger than 21 years old;
308 (ii) purchase unprocessed industrial hemp flower for sale that is not in a sealed and
309 labeled container described in Subsections (1) and (2);
310 (iii) possess or transport industrial hemp flower in public outside of a sealed and
311 labeled container described in Subsections (1) and (2) that is contained within the bag
312 described in Subsection (2)(c); or
313 (iv) sell or purchase unprocessed industrial hemp flower that is not registered in
314 accordance with Sections 4-41-104 and 4-41-403.
315 Section 7. Section 4-41-204 is amended to read:
316 4-41-204. Department to make rules regarding cultivation and processing.
317 The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
318 Administrative Rulemaking Act:
319 (1) to ensure:
320 (a) cannabis cultivated in the state pursuant to this chapter is cultivated from
321 state-approved seed sources; and
322 (b) a private entity contracted to cultivate cannabis has sufficient security protocols;
324 (2) governing an entity that puts cannabis into a [
325 standards for health and safety[
326 (3) regarding what constitutes a product that is marketed or manufactured to be
327 enticing to children.