1     
HEMP AMENDMENTS

2     
2021 FIRST SPECIAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: David P. Hinkins

5     
House Sponsor: Jennifer Dailey-Provost

6     

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
16     system;
17          ▸     identifies an unlawful act for a person to:
18               •     distribute, sell, or market a product that exceeds the acceptable hemp THC
19     level;
20               •     transport material outside of the state that exceeds the acceptable hemp THC
21     level; or
22               •     produce, sell, or use a cannabinoid product that is added to food other than a
23     dietary supplement, added to an alcoholic beverage, or enticing to children;
24          ▸     allows for increased flexibility in dosage forms;
25          ▸     provides for registration of a product class rather than individual products; and
26          ▸     makes technical and conforming changes.
27     Money Appropriated in this Bill:
28          None
29     Other Special Clauses:
30          This bill provides a special effective date.
31     Utah Code Sections Affected:
32     AMENDS:
33          4-41-102, as last amended by Laws of Utah 2020, Chapters 12 and 14
34          4-41-103.2, as enacted by Laws of Utah 2020, Chapter 14
35          4-41-104, as enacted by Laws of Utah 2018, Chapter 227
36          4-41-105, as last amended by Laws of Utah 2020, Chapter 14
37          4-41-204, as enacted by Laws of Utah 2018, Chapter 446
38     

39     Be it enacted by the Legislature of the state of Utah:
40          Section 1. Section 4-41-102 is amended to read:
41          4-41-102. Definitions.
42          As used in this chapter:
43          (1) "Acceptable hemp THC level" means total tetrahydrocannabinol concentration of
44     not more than 0.3% on a dry weight basis if laboratory testing confirms a result within a
45     measurement of uncertainty that includes the total tetrahydrocannabinol concentration of 0.3%.
46          (2) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 3556-78-3.
47          (3) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS#
48     1244-58-2.
49          [(1)] (4) "Cannabinoid product" means [a chemical compound extracted from a hemp]
50     any product that:
51          [(a) is processed into a medicinal dosage form; and]
52          [(b) contains less than 0.3% tetrahydrocannabinol by dry weight.]
53          (a) contains or is represented to contain naturally occurring, derivative, or synthetic
54     cannabinoids; and
55          (b) does not contain more than the acceptable hemp THC level.
56          (5) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid identified
57     as CAS# 1972-08-03, the primary psychotropic cannabinoid in cannabis.
58          (6) "Derivative cannabinoid" means any cannabinoid that has been intentionally
59     created using a process to convert a naturally occurring cannabinoid into another cannabinoid.
60          (7) (a) "Dosage form" means the form in which a product is produced for individual
61     dosage that is not specified as unlawful in this chapter.
62          (b) "Dosage form" does not include industrial hemp flower.
63          [(2)] (8) "Industrial hemp" means any part of a cannabis plant, whether growing or not,
64     with a concentration of less than 0.3% tetrahydrocannabinol by dry weight.
65          [(3)] (9) "Industrial hemp certificate" means a certificate that the department issues to a
66     higher education institution to grow or cultivate industrial hemp under Subsection 4-41-103(1).
67          [(4)] (10) "Industrial hemp certificate holder" means a person possessing an industrial
68     hemp certificate that the department issues under this chapter.
69          [(5)] (11) "Industrial hemp laboratory permit" means a permit that the department
70     issues to a laboratory qualified to test industrial hemp under the state hemp production plan.
71          [(6)] (12) "Industrial hemp producer license" means a license that the department
72     issues to a person for the purpose of cultivating or processing industrial hemp or an industrial
73     hemp product.
74          [(7)] (13) "Industrial hemp retailer permit" means a permit that the department issues
75     to a retailer who sells any industrial hemp product.
76          [(8)] (14) "Industrial hemp product" means a product derived from, or made by,
77     processing industrial hemp plants or industrial hemp parts.
78          (15) "Industrial hemp product class" means a group of industrial hemp or cannabinoid
79     products that have ingredients in common, as established by the department under Section
80     4-41-204.
81          (16) "Key participant" means any individual who has access to raw hemp materials
82     within the industrial hemp facility.
83          [(9)] (17) "Laboratory permittee" means a person possessing an industrial hemp
84     laboratory permit that the department issues under this chapter.
85          [(10)] (18) "Licensee" means a person possessing an industrial hemp producer license
86     that the department issues under this chapter.
87          [(11) "Medicinal dosage form" means:]
88          [(a) a tablet;]
89          [(b) a capsule;]
90          [(c) a concentrated oil;]
91          [(d) a liquid suspension;]
92          [(e) a sublingual preparation;]
93          [(f) a topical preparation;]
94          [(g) a transdermal preparation;]
95          [(h) a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or
96     rectangular cuboid shape; or]
97          [(i) other preparations that the department approves.]
98          [(12)] (19) "Non-compliant material" means a hemp plant or hemp product that does
99     not comply with this chapter, including a cannabis plant or product that contains a
100     concentration of 0.3% [tetrahydrocannabinol] total THC or greater by dry weight.
101          [(13)] (20) "Permittee" means a person possessing a permit that the department issues
102     under this chapter.
103          [(14)] (21) "Person" means:
104          (a) an individual, partnership, association, firm, trust, limited liability company, or
105     corporation; and
106          (b) an agent or employee of an individual, partnership, association, firm, trust, limited
107     liability company, or corporation.
108          [(15)] (22) "Research pilot program" means a program conducted by the department in
109     collaboration with at least one licensee to study methods of cultivating, processing, or
110     marketing industrial hemp.
111          [(16)] (23) "Retailer permittee" means a person possessing an industrial hemp retailer
112     permit that the department issues under this chapter.
113          [(17)] (24) "State hemp production plan" means a plan submitted by the state to, and
114     approved by, the United States Department of Agriculture in accordance with 7 C.F.R. Chapter
115     990.
116          (25) "Synthetic cannabinoid" means any cannabinoid that:
117          (a) was chemically synthesized from starting materials other than a naturally occurring
118     cannabinoid; and
119          (b) is not a derivative cannabinoid.
120          (26) "Tetrahydrocannabinol" or "THC" means a substance derived from cannabis or a
121     synthetic cannabinoid equivalent as described in Subsection 58-37-4(2)(a)(iii)(AA).
122          (27) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
123     and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)."
124          (28) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
125     amounts of delta-9 THC and tetrahydrocannabinolic acid, calculated as "total THC = delta-9
126     THC + (THCA x 0.877)."
127          Section 2. Section 4-41-103.2 is amended to read:
128          4-41-103.2. Industrial hemp producer license.
129          (1) The department or a licensee of the department may cultivate or process industrial
130     hemp.
131          (2) A person seeking an industrial hemp producer license shall provide to the
132     department:
133          (a) the legal description and global positioning coordinates sufficient for locating the
134     fields or greenhouses the person uses to grow industrial hemp; and
135          (b) written consent allowing a representative of the department and local law
136     enforcement to enter all premises where the person cultivates, processes, or stores industrial
137     hemp for the purpose of:
138          (i) conducting a physical inspection; or
139          (ii) ensuring compliance with the requirements of this chapter.
140          (3) An individual who has been convicted of a drug-related felony within the last 10
141     years is not eligible to obtain an industrial hemp producer license.
142          (4) The department may set a fee in accordance with Subsection 4-2-103(2) for the
143     application for an industrial hemp producer license.
144          (5) A licensee may only market industrial hemp that the licensee cultivates or
145     processes.
146          (6) (a) Each applicant for a license to cultivate or process industrial hemp shall submit
147     to the department, at the time of application, from each key participant:
148          (i) a fingerprint card in a form acceptable to the Department of Public Safety;
149          (ii) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
150     registration of the individual's fingerprints in the Federal Bureau of Investigation Next
151     Generation Identification System's Rap Back Service; and
152          (iii) consent to a fingerprint background check by:
153          (A) the Bureau of Criminal Identification; and
154          (B) the Federal Bureau of Investigation.
155          (b) The Bureau of Criminal Identification shall:
156          (i) check the fingerprints the applicant submits under Subsection (6)(a) against the
157     applicable state, regional, and national criminal records databases, including the Federal
158     Bureau of Investigation Next Generation Identification System;
159          (ii) report the results of the background check to the department;
160          (iii) maintain a separate file of fingerprints that applicants submit under Subsection
161     (6)(a) for search by future submissions to the local and regional criminal records databases,
162     including latent prints;
163          (iv) request that the fingerprints be retained in the Federal Bureau of Investigation Next
164     Generation Identification System's Rap Back Service for search by future submissions to
165     national criminal records databases, including the Next Generation Identification System and
166     latent prints; and
167          (v) establish a privacy risk mitigation strategy to ensure that the department only
168     receives notifications for an individual with whom the department maintains an authorizing
169     relationship.
170          (c) The department shall:
171          (i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
172     amount that the department sets in accordance with Section 63J-1-504 for the services that the
173     Bureau of Criminal Identification or another authorized agency provides under this section; and
174          (ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
175     Identification.
176          Section 3. Section 4-41-104 is amended to read:
177          4-41-104. Product registration required for distribution -- Application -- Fees --
178     Renewal.
179          (1) An industrial hemp product that is not registered with the department may not be
180     distributed in this state.
181          (2) A person seeking registration for an industrial hemp product shall:
182          (a) apply to the department on forms provided by the department; and
183          (b) submit an annual registration fee, determined by the department pursuant to
184     Subsection 4-2-103(2), for each industrial hemp product class the person intends to distribute
185     in this state.
186          (3) The department may conduct tests, or require test results, to ensure that any claim
187     made by an applicant about an industrial hemp product is accurate.
188          (4) Upon receipt by the department of a proper application and payment of the
189     appropriate fee, as described in Subsection (2), the department shall issue a registration to the
190     applicant allowing the applicant to distribute the registered hemp product in the state [through
191     June 30 of each year] for one year from the date of the payment of the fee, subject to
192     suspension or revocation for cause.
193          (5) The department shall mail, either through the postal service or electronically, forms
194     for the renewal of a registration to a registrant at least 30 days before the day on which the
195     registrant's registration expires.
196          Section 4. Section 4-41-105 is amended to read:
197          4-41-105. Unlawful acts.
198          (1) It is unlawful for a person to:
199          (a) cultivate, handle, process, or market living industrial hemp plants, viable hemp
200     seeds, leaf materials, or floral materials derived from industrial hemp without the appropriate
201     license or permit issued by the department under this chapter[.];
202          [(2)] (b) [It is unlawful for any person to] distribute, sell, or market an industrial hemp
203     or cannabinoid product that is not registered with the department pursuant to Section
204     4-41-104[.];
205          (c) distribute, sell, or market an industrial hemp or cannabinoid product that contains
206     greater than the acceptable hemp THC level;
207          (d) transport outside the state extracted material or final product that exceeds the
208     acceptable hemp THC level;
209          (e) produce, sell, or use a cannabinoid product that is:
210          (i) added to a conventional food unless the product is marketed and sold as a dietary
211     supplement, as that term is defined in 21 U.S.C. Sec. 321;
212          (ii) added to an alcoholic beverage; or
213          (iii) marketed or manufactured to be enticing to children, as the department specifies in
214     rule in accordance with Section 4-41-204; or
215          (f) distribute, sell, or use industrial hemp flower.
216          [(3)] (2) The department may seize and destroy non-compliant material.
217          [(4)] (3) Nothing in this chapter authorizes any person to violate federal law,
218     regulation, or any provision of this title.
219          Section 5. Section 4-41-204 is amended to read:
220          4-41-204. Department to make rules regarding cultivation and processing.
221          The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
222     Administrative Rulemaking Act:
223          (1) to ensure:
224          (a) cannabis cultivated in the state pursuant to this chapter is cultivated from
225     state-approved seed sources; and
226          (b) a private entity contracted to cultivate cannabis has sufficient security protocols;
227     [and]
228          (2) governing an entity that puts cannabis into a [medicinal] dosage form, including
229     standards for health and safety[.];
230          (3) regarding what constitutes a product that is marketed or manufactured to be
231     enticing to children; and
232          (4) to establish industrial hemp product classes or the characteristics that constitute an
233     industrial hemp product class in a way that reduces product registration fees and streamlines
234     the product registration process.
235          Section 6. Effective date.
236          If approved by two-thirds of all the members elected to each house, this bill takes effect
237     upon approval by the governor, or the day following the constitutional time limit of Utah
238     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
239     the date of veto override.