1     
HEMP AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jennifer Dailey-Provost

5     
Senate Sponsor: Evan J. Vickers

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to hemp.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     modifies definitions;
14          ▸     allows the Department of Agriculture and Food (department) to require the
15     registration of non-cannabinoid hemp products;
16          ▸     creates an industrial hemp producer registration process;
17          ▸     prohibits the sale of a cannabinoid product that contains THC or a THC analog to an
18     individual who is not at least 21 years old;
19          ▸     allows a cannabinoid processor to produce products that may not be sold in the
20     state;
21          ▸     requires a warning label to be added to all cannabinoid products that are designed to
22     be inhaled;
23          ▸     expands the authority of the department to keep certain fines;
24          ▸     authorizes rulemaking for the department:
25               •     to test a cannabinoid processor's cannabinoid at the processor's expense; and
26               •     to ban or limit the presence of a substance if the department receives a
27     recommendation from the public health authority; and
28          ▸     makes technical changes.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          4-41-102, as last amended by Laws of Utah 2022, Chapters 74, 290
36          4-41-103.1, as last amended by Laws of Utah 2022, Chapter 74
37          4-41-103.2, as last amended by Laws of Utah 2022, Chapter 74
38          4-41-103.3, as last amended by Laws of Utah 2022, Chapter 290
39          4-41-103.4, as last amended by Laws of Utah 2022, Chapter 290
40          4-41-104, as last amended by Laws of Utah 2022, Chapter 74
41          4-41-105, as last amended by Laws of Utah 2022, Chapters 74, 290 and last amended
42     by Coordination Clause, Laws of Utah 2022, Chapter 74
43          4-41-106, as last amended by Laws of Utah 2022, Chapter 74
44          4-41-402, as last amended by Laws of Utah 2022, Chapter 290
45          4-41-403, as last amended by Laws of Utah 2022, Chapter 74
46     ENACTS:
47          4-41-103.5, Utah Code Annotated 1953
48     

49     Be it enacted by the Legislature of the state of Utah:
50          Section 1. Section 4-41-102 is amended to read:
51          4-41-102. Definitions.
52          As used in this chapter:
53          (1) "Adulterant" means any poisonous or deleterious substance in a quantity that may
54     be injurious to human health, including:
55          (a) pesticides;
56          (b) heavy metals;
57          (c) solvents;
58          (d) microbial life;
59          (e) artificially derived cannabinoids;
60          (f) toxins; or
61          (g) foreign matter.
62          (2) (a) "Artificially derived cannabinoid" means a chemical substance that is created by
63     a chemical reaction that changes the molecular structure of any chemical substances derived
64     from the cannabis plant.
65          (b) "Artificially derived cannabinoid" does not include:
66          (i) a naturally occurring chemical substance that is separated from the cannabis plant
67     by a chemical or mechanical extraction process; or
68          (ii) cannabinoids that are produced by decarboxylation from a naturally occurring
69     cannabinoid acid without the use of a chemical catalyst.
70          (3) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 13956-29-1.
71          [(2)] (4) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS#
72     1244-58-2.
73          (5) "Cannabinoid processor license" means a license that the department issues to a
74     person for the purpose of processing a cannabinoid product.
75          [(3)] (6) "Cannabinoid product" means a product that:
76          (a) contains or is represented to contain one or more naturally occurring cannabinoids;
77     [and]
78          (b) contains less than the cannabinoid product THC level, by dry weight; [and]
79          (c) [after December 1, 2022,] contains a combined amount of total THC and any THC
80     analog that does not exceed 10% of the total cannabinoid content[.]; and
81          (d) does not exceed a total of THC and any THC analog that is greater than:
82          (i) 5 milligrams per serving; and
83          (ii) 150 milligrams per package.
84          (7) "Cannabinoid product class" means a group of cannabinoid products that:
85          (a) have all ingredients in common; and
86          (b) are produced by or for the same company.
87          [(4)] (8) "Cannabinoid product THC level" means a combined concentration of total
88     THC and any THC analog of less than 0.3% on a dry weight basis if laboratory testing confirms
89     a result within a measurement of uncertainty that includes the combined concentration of 0.3%.
90          [(5)] (9) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid
91     identified as CAS# 1972-08-3, the primary psychotropic cannabinoid in cannabis.
92          [(6) "Derivative cannabinoid" means any cannabinoid that has been intentionally
93     created using a process to convert one cannabinoid into another.]
94          [(7) "Dosage form" means the form in which a product is produced for individual
95     dosage and that is not specified as unlawful in this chapter.]
96          [(8)] (10) "Industrial hemp" means any part of a cannabis plant, whether growing or
97     not, with a concentration of less than 0.3% tetrahydrocannabinol by dry weight.
98          [(9)] (11) "Industrial hemp laboratory permit" means a permit that the department
99     issues to a laboratory qualified to test industrial hemp [under the state hemp production plan].
100          [(10)] (12) "Industrial hemp producer [license] registration" means a [license]
101     registration that the department issues to a person for the purpose of processing industrial hemp
102     or an industrial hemp product.
103          [(11)] (13) "Industrial hemp retailer permit" means a permit that the department issues
104     to a retailer who sells any viable industrial hemp [product] seed or cannabinoid product.
105          [(12)] (14) (a) "Industrial hemp product" means a product [derived from, or made by,]
106     made by processing industrial hemp plants or industrial hemp parts.
107          (b) "Industrial hemp product" does not include cannabinoid material.
108          (15) "Key participant" means any of the following:
109          (a) a licensee;
110          (b) an operation manager;
111          (c) a site manager; or
112          (d) an employee who has access to any industrial hemp material with a THC
113     concentration above 0.3%.
114          [(13) "Industrial hemp product class" means a group of cannabinoid products:]
115          [(a) that have all ingredients in common; and]
116          [(b) are produced by or for the same company.]
117          [(14) (a) "Key participant" means any person who has a financial interest in the
118     business entity, including members of a limited liability company, a sole proprietor, partners in
119     a partnership, and incorporators or directors of a corporation.]
120          [(b) "Key participant" includes an:]
121          [(i) individual at an executive level, including a chief executive officer, chief operating
122     officer, or chief financial officer; and]
123          [(ii) operation manager, site manager, or any employee who may present a risk of
124     diversion.]
125          [(15)] (16) "Laboratory permittee" means a person possessing an industrial hemp
126     laboratory permit that the department issues under this chapter.
127          [(16)] (17) "Licensee" means a person possessing [an industrial hemp producer] a
128     cannabinoid processor license that the department issues under this chapter.
129          [(17)] (18) "Non-compliant material" means:
130          (a) a hemp plant that does not comply with this chapter, including a cannabis plant
131     with a concentration of 0.3% tetrahydrocannabinol or greater by dry weight; and
132          (b) a cannabinoid product, chemical, or compound with a concentration that exceeds
133     the cannabinoid product THC level.
134          [(18)] (19) "Permittee" means a person possessing a permit that the department issues
135     under this chapter.
136          [(19)] (20) "Person" means:
137          (a) an individual, partnership, association, firm, trust, limited liability company, or
138     corporation; and
139          (b) an agent or employee of an individual, partnership, association, firm, trust, limited
140     liability company, or corporation.
141          [(20)] (21) "Retailer permittee" means a person possessing an industrial hemp retailer
142     permit that the department issues under this chapter.
143          [(21) "Synthetic cannabinoid" means any cannabinoid that:]
144          [(a) was chemically synthesized from starting materials other than a naturally occurring
145     cannabinoid; and]
146          [(b) is not a derivative cannabinoid.]
147          (22) "Tetrahydrocannabinol" or "THC" means a delta-9-tetrahydrocannabinol, the
148     cannabinoid identified as CAS# 1972-08-3.
149          (23) (a) "THC analog" means a substance that is structurally or pharmacologically
150     substantially similar to, or is represented as being similar to, delta-9-THC.
151          (b) "THC analog" does not include the following substances or the naturally occurring
152     acid forms of the following substances:
153          (i) cannabichromene (CBC), the cannabinoid identified as CAS# 20675-51-8;
154          (ii) cannabicyclol (CBL), the cannabinoid identified as CAS# 21366-63-2;
155          (iii) cannabidiol (CBD), the cannabinoid identified as CAS# 13956-29-1;
156          (iv) cannabidivarol (CBDV), the cannabinoid identified as CAS# 24274-48-4;
157          (v) cannabielsoin (CBE), the cannabinoid identified as CAS# 52025-76-0;
158          (vi) cannabigerol (CBG), the cannabinoid identified as CAS# 25654-31-3;
159          (vii) cannabigerovarin (CBGV), the cannabinoid identified as CAS# 55824-11-8;
160          (viii) cannabinol (CBN), the cannabinoid identified as CAS# 521-35-7;
161          (ix) cannabivarin (CBV), the cannabinoid identified as CAS# 33745-21-0; or
162          (x) delta-9-tetrahydrocannabivarin (THCV), the cannabinoid identified as CAS#
163     31262-37-0.
164          (24) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
165     and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)".
166          (25) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
167     amounts of delta-9-THC, tertrahydrocannabinolic acid, calculated as "total THC = delta-9-THC
168     + (THCA x 0.877)".
169          Section 2. Section 4-41-103.1 is amended to read:
170          4-41-103.1. Authority to regulate production, sale, and testing of cannabinoid
171     products and industrial hemp.
172          (1) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
173     Administrative Rulemaking Act, to:
174          (a) establish requirements for [an industrial hemp producer] a cannabinoid processor
175     license to process [industrial hemp] cannabinoid products;
176          (b) establish requirements for an industrial hemp retailer permit to market or sell
177     industrial hemp products; [and]
178          (c) establish the standards, methods, practices, and procedures a laboratory must use to
179     qualify for a permit to test industrial hemp and [industrial hemp] cannabinoid products and to
180     dispose of non-compliant material[.]; and
181          (d) establish requirements for registration of processors of non-cannabinoid industrial
182     hemp products.
183          (2) The department shall maintain a list of each licensee and permittee.
184          Section 3. Section 4-41-103.2 is amended to read:
185          4-41-103.2. Cannabinoid processor license.
186          (1) The department or a licensee of the department may process [industrial hemp] a
187     cannabinoid product.
188          (2) A person seeking [an industrial hemp producer] a cannabinoid processor license
189     shall provide to the department:
190          (a) the legal description and global positioning coordinates sufficient for locating the
191     facility the person uses to process industrial hemp; and
192          (b) written consent allowing a representative of the department and local law
193     enforcement to enter all premises where the person processes or stores industrial hemp for the
194     purpose of:
195          (i) conducting a physical inspection; or
196          (ii) ensuring compliance with the requirements of this chapter.
197          (3) An individual who has been convicted of a drug-related felony within the last 10
198     years is not eligible to obtain [an industrial hemp producer] a cannabinoid processor license.
199          (4) The department may set a fee in accordance with Subsection 4-2-103(2) for the
200     application for [an industrial hemp producer] a cannabinoid processor license.
201          (5) A licensee may only market [industrial hemp] a cannabinoid product that the
202     licensee [cultivates or] processes.
203          (6) (a) Each applicant for a license to process [industrial hemp] cannabinoid products
204     shall submit to the department, at the time of application, from each key participant:
205          (i) a fingerprint card in a form acceptable to the Department of Public Safety;
206          (ii) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
207     registration of the individual's fingerprints in the Federal Bureau of Investigation Next
208     Generation Identification System's Rap Back Service; and
209          (iii) consent to a fingerprint background check by:
210          (A) the Bureau of Criminal Identification; and
211          (B) the Federal Bureau of Investigation.
212          (b) The Bureau of Criminal Identification shall:
213          (i) check the fingerprints the applicant submits under Subsection (6)(a) against the
214     applicable state, regional, and national criminal records databases, including the Federal
215     Bureau of Investigation Next Generation Identification System;
216          (ii) report the results of the background check to the department;
217          (iii) maintain a separate file of fingerprints that applicants submit under Subsection
218     (6)(a) for search by future submissions to the local and regional criminal records databases,
219     including latent prints;
220          (iv) request that the fingerprints be retained in the Federal Bureau of Investigation Next
221     Generation Identification System's Rap Back Service for search by future submissions to
222     national criminal records databases, including the Next Generation Identification System and
223     latent prints; and
224          (v) establish a privacy risk mitigation strategy to ensure that the department only
225     receives notifications for an individual with whom the department maintains an authorizing
226     relationship.
227          (c) The department shall:
228          (i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
229     amount that the department sets in accordance with Section 63J-1-504 for the services that the
230     Bureau of Criminal Identification or another authorized agency provides under this section; and
231          (ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
232     Identification.
233          Section 4. Section 4-41-103.3 is amended to read:
234          4-41-103.3. Industrial hemp retailer permit.
235          (1) Except as provided in Subsection (4), a retailer permittee of the department may
236     market or sell [industrial hemp products] a cannabinoid product or a viable industrial hemp
237     seed.
238          (2) A person seeking an industrial hemp retailer permit shall provide to the department:
239          (a) the name of the person that is seeking to market or sell [an industrial hemp product]
240     a cannabinoid product or a viable industrial hemp seed;
241          (b) the address of each location where [the industrial hemp product] a cannabinoid
242     product or a viable industrial hemp seed will be sold; and
243          (c) written consent allowing a representative of the department to enter all premises
244     where the person is selling [an industrial hemp product] a cannabinoid product or a viable
245     industrial hemp seed for the purpose of:
246          (i) conducting a physical inspection; or
247          (ii) ensuring compliance with the requirements of this chapter.
248          (3) The department may set a fee in accordance with Subsection 4-2-103(2) for the
249     application for an industrial hemp retailer permit.
250          (4) Any marketing for [an industrial hemp product] a cannabinoid product or a viable
251     industrial hemp seed shall include a notice to consumers that the product is hemp and is not
252     cannabis or medical cannabis, as those terms are defined in Section 26-61a-102.
253          Section 5. Section 4-41-103.4 is amended to read:
254          4-41-103.4. Industrial hemp laboratory permit.
255          (1) The department or a laboratory permittee of the department may test industrial
256     hemp and [industrial hemp] cannabinoid products.
257          (2) The department or a laboratory permittee of the department may dispose of
258     non-compliant material.
259          (3) A laboratory seeking an industrial hemp laboratory permit shall:
260          (a) demonstrate to the department that:
261          (i) the laboratory and laboratory staff possess the professional certifications required by
262     department rule;
263          (ii) the laboratory has the ability to test industrial hemp and industrial hemp products
264     using the standards, methods, practices, and procedures required by department rule;
265          (iii) the laboratory has the ability to meet the department's minimum standards of
266     performance for detecting concentration levels of THC and any cannabinoid known to be
267     present; and
268          (iv) the laboratory has a plan that complies with the department's rule for the safe
269     disposal of non-compliant material; and
270          (b) provide to the department written consent allowing a representative of the
271     department and local law enforcement to enter all premises where the laboratory tests,
272     processes, or stores industrial hemp, industrial hemp products, and non-compliant plants for the
273     purpose of:
274          (i) conducting a physical inspection; or
275          (ii) ensuring compliance with the requirements of this chapter.
276          (4) An individual who has been convicted of a drug-related felony within the last 10
277     years is not eligible to obtain a license under this chapter.
278          (5) The department may set a fee in accordance with Subsection 4-2-103(2) for the
279     application for an industrial hemp laboratory permit.
280          Section 6. Section 4-41-103.5 is enacted to read:
281          4-41-103.5. Industrial hemp producer registration -- Limitation on industrial
282     hemp product use.
283          (1) A person may produce an industrial hemp product if the person has registered with
284     the department as an industrial hemp producer.
285          (2) A person seeking to register under Subsection (1) shall provide to the department:
286          (a) the name of the person that is seeking to produce an industrial hemp product;
287          (b) the address of each location where the industrial hemp product will be
288     manufactured; and
289          (c) written consent allowing a representative of the department to enter any premise
290     where the person is manufacturing industrial hemp product for:
291          (i) conducting a physical inspection; or
292          (ii) ensuring compliance with the requirements of this chapter.
293          (3) An industrial hemp product or byproduct may not be used for production of a
294     cannabinoid product.
295          Section 7. Section 4-41-104 is amended to read:
296          4-41-104. Product registration required for distribution -- Application -- Fees --
297     Renewal.
298          (1) [An industrial hemp] A cannabinoid product class or cannabinoid product that is
299     not registered with the department may not be distributed in this state.
300          (2) A person seeking registration for [an industrial hemp] a cannabinoid product class
301     or cannabinoid product shall:
302          (a) apply to the department on forms provided by the department; and
303          (b) submit an annual registration fee, determined by the department pursuant to
304     Subsection 4-2-103(2), for each [industrial hemp] cannabinoid product class or cannabinoid
305     product the person intends to distribute in this state.
306          (3) The department may conduct tests, or require test results, to ensure that any claim
307     made by an applicant about [an industrial hemp] a cannabinoid product class or cannabinoid
308     product is accurate.
309          (4) Upon receipt by the department of a proper application and payment of the
310     appropriate fee, as described in Subsection (2), the department shall issue a registration to the
311     applicant allowing the applicant to distribute the registered [industrial hemp] cannabinoid
312     product class or cannabinoid product in the state for one year from the date of the payment of
313     the fee, subject to suspension or revocation for cause.
314          (5) The department shall mail, either through the postal service or electronically, forms
315     for the renewal of a registration to a registrant at least 30 days before the day on which the
316     registrant's registration expires.
317          Section 8. Section 4-41-105 is amended to read:
318          4-41-105. Unlawful acts.
319          (1) It is unlawful for a person to handle, process, or market living industrial hemp
320     plants, viable hemp seeds, leaf materials, or floral materials derived from industrial hemp
321     without the appropriate license or permit issued by the department under this chapter.
322          (2) It is unlawful for any person to:
323          (a) distribute, sell, or market [an industrial hemp product or] a cannabinoid product
324     that is:
325          (i) not registered with the department under Section 4-41-104; or
326          (ii) noncompliant material;
327          (b) transport into or out of the state extracted material or final product that contains
328     0.3% or more of total THC; [or]
329          (c) [produce, sell,] sell or use a cannabinoid product that is:
330          (i) added to a conventional food or beverage, as the department further defines in rules
331     described in Section 4-41-403;
332          (ii) marketed or manufactured to be enticing to children, as further defined in rules
333     described in Section 4-41-403; or
334          (iii) smokable flower[.]; or
335          (d) knowingly or intentionally sell or give a cannabinoid product that contains THC or
336     a THC analog in the course of business to an individual who is not at least 21 years old.
337          (3) The department may seize and destroy non-compliant material.
338          (4) Nothing in this chapter authorizes any person to violate federal law, regulation, or
339     any provision of this title.
340          Section 9. Section 4-41-106 is amended to read:
341          4-41-106. Enforcement -- Fine -- Citation.
342          (1) If a person violates this part, the department may:
343          (a) revoke the person's license or permit;
344          (b) decline to renew the person's license or permit; or
345          (c) assess the person a civil penalty that the department establishes in accordance with
346     Section 4-2-304.
347          (2) Except for a fine that the department assesses for an [unlicensed processor or
348     unregistered product] unlicensed processor, an unregistered product, or the sale of a
349     cannabinoid product to an individual younger than 21 years old, the department shall deposit a
350     penalty imposed under this section into the General Fund.
351          (3) The department may take an action described in Subsection (4) if the department
352     concludes, upon investigation, that a person has violated this chapter, a rule made under this
353     chapter, or an order issued under this chapter.
354          (4) If the department makes the conclusion described in Subsection (3), the department
355     shall:
356          (a) issue the person a written administrative citation;
357          (b) attempt to negotiate a stipulated settlement;
358          (c) seize, embargo, or destroy the industrial hemp batch or unregistered product;
359          (d) order the person to cease the violation; and
360          (e) if a stipulated settlement cannot be reached, conduct an adjudicative proceeding
361     under Title 63G, Chapter 4, Administrative Procedures Act.
362          (5) The department may, for a person, other than an individual, that is subject to an
363     uncontested citation, a stipulated settlement, or a finding of a violation in an adjudicative
364     proceeding under this section, for a fine amount not already specified in law, assess the person
365     a fine of up to $5,000 per violation, in accordance with a fine schedule that the department
366     establishes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
367     Act.
368          (6) The department may not revoke [an industrial hemp producer's] a cannabinoid
369     processor license, an industrial hemp retailer's permit, or an industrial hemp laboratory permit
370     without first giving the person the opportunity to appear before an adjudicative proceeding
371     conducted under Title 63G, Chapter 4, Administrative Procedures Act.
372          (7) If, within 30 calendar days after the day on which a department serves a citation for
373     a violation of this chapter, the person that is the subject of the citation fails to request a hearing
374     to contest the citation, the citation becomes the department's final order.
375          (8) The department may, for a person who fails to comply with a citation under this
376     section:
377          (a) refuse to issue or renew the person's [producer] processor license, retailer permit, or
378     laboratory permit; or
379          (b) suspend, revoke, or place on probation the person's [producer] processor license,
380     retailer permit, or laboratory permit.
381          Section 10. Section 4-41-402 is amended to read:
382          4-41-402. Cannabinoid sales and use authorized.
383          (1) The sale or use of a cannabinoid product is prohibited:
384          (a) except as provided in this chapter; or
385          (b) unless the United States Food and Drug Administration approves the product.
386          (2) The department shall keep a list of registered cannabinoid products that the
387     department has determined, in accordance with Section 4-41-403, are safe for human
388     consumption.
389          (3) (a) A person may sell or use a cannabinoid product that is in the list of registered
390     cannabinoid products described in Subsection (2).
391          (b) An individual may use cannabidiol or a cannabidiol product that is not in the list of
392     registered cannabinoid products described in Subsection (2) if:
393          (i) the individual purchased the product outside the state; and
394          (ii) the product's contents do not violate Title 58, Chapter 37, Utah Controlled
395     Substances Act.
396          (4) Any marketing for a cannabinoid product shall include a notice to consumers that
397     the product is hemp or CBD and is not cannabis or medical cannabis, as those terms are
398     defined in Section 26-61a-102.
399          (5) A cannabinoid product that is designed to be inhaled shall include a warning on the
400     label regarding the possible health effects of inhaling cannabinoid products.
401          Section 11. Section 4-41-403 is amended to read:
402          4-41-403. Standards for registration.
403          (1) (a) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
404     Administrative Rulemaking Act:
405          (i) to determine standards for a registered cannabinoid product, including standards for:
406          (A) testing to ensure the product is safe for human consumption; and
407          (B) accurate labeling;
408          (ii) governing an entity that manufactures cannabinoid products, including standards
409     for health and safety;
410          (iii) to determine when and how a cannabinoid processor's cannabinoid must be tested
411     by the department at the expense of the cannabinoid processor;
412          [(iii)] (iv) regarding what constitutes:
413          (A) a conventional food or beverage; and
414          (B) a product that is marketed or manufactured to be enticing to children; and
415          [(iv)] (v) regarding any other issue the department considers necessary for the safe
416     production and sale of cannabinoid products.
417          (b) Notwithstanding Subsection (1)(a), the department may not prohibit a sugar coating
418     on a cannabinoid product to mask the product's taste, subject to the limitations described in
419     Subsection [(1)(a)(iii) or (iv)] (1)(a)(iv) or (v).
420          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
421     department may make rules to immediately ban or limit the presence of any substance in a
422     cannabinoid product after receiving a recommendation to do so from a public health authority
423     as defined in Section 26B-1-102.
424          [(2)] (3) The department shall set a fee for a registered cannabinoid product, in
425     accordance with Section 4-2-103.
426          [(3)] (4) (a) A producer, manufacturer, or distributor of a cannabinoid product may pay
427     the fee described in Subsection [(2)] (3).
428          (b) A cannabinoid product may not be registered with the department until the fee
429     described in Subsection [(2)] (3) is paid.
430          [(4)] (5) The department shall set an administrative fine, larger than the fee described
431     in Subsection [(2)] (3), for a person who sells a cannabinoid product that is not registered by
432     the department.