This document includes House Committee Amendments incorporated into the bill on Thu, Jan 25, 2024 at 11:22 AM by housengrossing.
This document includes House Floor Amendments incorporated into the bill on Tue, Feb 6, 2024 at 2:44 PM by housengrossing.
1 2
3
4
5
6
7 LONG TITLE
8 Ĥ→ [
9 The Natural Resources, Agriculture, and Environment Interim Committee
10 recommended this bill.
11 Legislative Vote: 14 voting for 0 voting against 5 absent
12 General Description:
13 This bill modifies and enacts provisions related to industrial hemp.
14 Highlighted Provisions:
15 This bill:
16 ▸ defines terms;
17 ▸ modifies serving size requirements;
18 ▸ modifies provisions to allow the transportation of transportable industrial hemp
19 concentrate under certain circumstances;
20 ▸ repeals provisions related to the industrial hemp laboratory permit;
21 ▸ repeals provisions related to the registration fee of a cannabinoid product;
22 ▸ allows a local health department to notify the Department of Agriculture and Food
23 regarding violations related to cannabinoid products;
24 ▸ exempts a sale of a cannabinoid product from sales and use tax;
25 ▸ enacts the Cannabinoid Product Licensing and Tax Act;
26 ▸ authorizes the State Tax Commission to disclose to the Department of Agriculture
27 information related to retailers that are licensed to sell and collect tax on a sale of a
28 cannabinoid product;
29 ▸ creates a grant program to encourage the production of industrial hemp products;
30 ▸ requires law enforcement to conduct underage buying investigations regarding the
31 sale of cannabinoid products that contain THC or a THC analog; and
32 ▸ makes technical changes.
33 Money Appropriated in this Bill:
34 None
35 Other Special Clauses:
36 This bill provides a special effective date.
37 Utah Code Sections Affected:
38 AMENDS:
39 4-41-102, as last amended by Laws of Utah 2023, Chapter 146
40 4-41-103.1, as last amended by Laws of Utah 2023, Chapter 146
41 4-41-103.4, as last amended by Laws of Utah 2023, Chapter 146
42 4-41-104, as last amended by Laws of Utah 2023, Chapter 146
43 4-41-105, as last amended by Laws of Utah 2023, Chapter 146
44 4-41-106, as last amended by Laws of Utah 2023, Chapter 146
45 4-41-403, as last amended by Laws of Utah 2023, Chapter 146
46 26A-1-114, as last amended by Laws of Utah 2023, Chapters 90, 327
47 58-37-2, as last amended by Laws of Utah 2022, Chapters 165, 415
48 58-37-3.6, as last amended by Laws of Utah 2023, Chapter 329
49 59-1-306, as last amended by Laws of Utah 2020, Chapter 294
50 59-1-403, as last amended by Laws of Utah 2023, Chapters 21, 52, 86, 259, and 329
51 59-12-104, as last amended by Laws of Utah 2023, Chapters 213, 518
52 77-39-101, as last amended by Laws of Utah 2021, Chapter 291
53 ENACTS:
54 59-31-101, Utah Code Annotated 1953
55 59-31-201, Utah Code Annotated 1953
56 59-31-202, Utah Code Annotated 1953
57 59-31-203, Utah Code Annotated 1953
58 59-31-301, Utah Code Annotated 1953
59 59-31-302, Utah Code Annotated 1953
60 59-31-401, Utah Code Annotated 1953
61 59-31-402, Utah Code Annotated 1953
62 63N-3-1301, Utah Code Annotated 1953
63 63N-3-1302, Utah Code Annotated 1953
64
65 Be it enacted by the Legislature of the state of Utah:
66 Section 1. Section 4-41-102 is amended to read:
67 4-41-102. Definitions.
68 As used in this chapter:
69 (1) "Adulterant" means any poisonous or deleterious substance in a quantity that may
70 be injurious to human health, including:
71 (a) pesticides;
72 (b) heavy metals;
73 (c) solvents;
74 (d) microbial life;
75 (e) artificially derived cannabinoids;
76 (f) toxins; or
77 (g) foreign matter.
78 (2) (a) "Artificially derived cannabinoid" means a chemical substance that is created by
79 a chemical reaction that changes the molecular structure of any chemical substances derived
80 from the cannabis plant.
81 (b) "Artificially derived cannabinoid" does not include:
82 (i) a naturally occurring chemical substance that is separated from the cannabis plant
83 by a chemical or mechanical extraction process; or
84 (ii) cannabinoids that are produced by decarboxylation from a naturally occurring
85 cannabinoid acid without the use of a chemical catalyst.
86 (3) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 13956-29-1.
87 (4) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS#
88 1244-58-2.
89 (5) "Cannabinoid processor license" means a license that the department issues to a
90 person for the purpose of processing a cannabinoid product.
91 (6) "Cannabinoid product" means a product that:
92 (a) contains or is represented to contain one or more naturally occurring cannabinoids;
93 (b) contains less than the cannabinoid product THC level, by dry weight;
94 (c) contains a combined amount of total THC and any THC analog that does not
95 exceed 10% of the total cannabinoid content; [
96 (d) does not exceed a total of THC and any THC analog that is greater than:
97 (i) 5 milligrams per serving; and
98 (ii) 150 milligrams per package[
99 (e) unless the product is in an oil based suspension, has a serving size that:
100 (i) is an integer; and
101 (ii) is a discrete unit of the cannabinoid product.
102 (7) "Cannabinoid product class" means a group of cannabinoid products that:
103 (a) have all ingredients in common; and
104 (b) are produced by or for the same company.
105 (8) "Cannabinoid product THC level" means a combined concentration of total THC
106 and any THC analog of less than 0.3% on a dry weight basis if laboratory testing confirms a
107 result within a measurement of uncertainty that includes the combined concentration of 0.3%.
108 (9) "Cannabis" means the same as that term is defined in Section 26B-4-201.
109 [
110 identified as CAS# 1972-08-3, the primary psychotropic cannabinoid in cannabis.
111 [
112 not, with a concentration of less than 0.3% tetrahydrocannabinol by dry weight.
113 [
114
115 (12) "Industrial hemp producer registration" means a registration that the department
116 issues to a person for the purpose of processing industrial hemp or an industrial hemp product.
117 (13) "Industrial hemp retailer permit" means a permit that the department issues to a
118 retailer who sells any viable industrial hemp seed or cannabinoid product.
119 (14) (a) "Industrial hemp product" means a product made by processing industrial
120 hemp plants or industrial hemp parts.
121 (b) "Industrial hemp product" does not include cannabinoid material.
122 (15) "Key participant" means any of the following:
123 (a) a licensee;
124 (b) an operation manager;
125 (c) a site manager; or
126 (d) an employee who has access to any industrial hemp material with a THC
127 concentration above 0.3%.
128 [
129
130 [
131 the department issues under this chapter.
132 [
133 (a) a hemp plant that does not comply with this chapter, including a cannabis plant
134 with a concentration of 0.3% tetrahydrocannabinol or greater by dry weight; and
135 (b) a cannabinoid product, chemical, or compound with a concentration that exceeds
136 the cannabinoid product THC level.
137 [
138 under this chapter.
139 [
140 (a) an individual, partnership, association, firm, trust, limited liability company, or
141 corporation; and
142 (b) an agent or employee of an individual, partnership, association, firm, trust, limited
143 liability company, or corporation.
144 [
145 permit that the department issues under this chapter.
146 [
147 the cannabinoid identified as CAS# 1972-08-3.
148 [
149 pharmacologically substantially similar to, or is represented as being similar to, delta-9-THC.
150 (b) "THC analog" does not include the following substances or the naturally occurring
151 acid forms of the following substances:
152 (i) cannabichromene (CBC), the cannabinoid identified as CAS# 20675-51-8;
153 (ii) cannabicyclol (CBL), the cannabinoid identified as CAS# 21366-63-2;
154 (iii) cannabidiol (CBD), the cannabinoid identified as CAS# 13956-29-1;
155 (iv) cannabidivarol (CBDV), the cannabinoid identified as CAS# 24274-48-4;
156 (v) cannabielsoin (CBE), the cannabinoid identified as CAS# 52025-76-0;
157 (vi) cannabigerol (CBG), the cannabinoid identified as CAS# 25654-31-3;
158 (vii) cannabigerovarin (CBGV), the cannabinoid identified as CAS# 55824-11-8;
159 (viii) cannabinol (CBN), the cannabinoid identified as CAS# 521-35-7;
160 (ix) cannabivarin (CBV), the cannabinoid identified as CAS# 33745-21-0; or
161 (x) delta-9-tetrahydrocannabivarin (THCV), the cannabinoid identified as CAS#
162 31262-37-0.
163 [
164 cannabidiol and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)".
165 [
166 determined amounts of delta-9-THC, tertrahydrocannabinolic acid, calculated as "total THC =
167 delta-9-THC + (THCA x 0.877)".
168 (25) "Transportable industrial hemp concentrate" means any amount of a natural
169 cannabinoid in a purified state that:
170 (a) is the product of any chemical or physical process applied to naturally occurring
171 biomass that concentrates or isolates the cannabinoids contained in the biomass;
172 (b) is derived from a cannabis plant that, based on sampling that was collected no more
173 than 30 days before the day on which the cannabis plant was harvested, contains a combined
174 concentration of total THC and any THC analog of less than 0.3% on a dry weight basis;
175 (c) has a THC and THC analog concentration total that is less than 20% when
176 concentrated from the cannabis plant to the purified state; and
177 (d) is intended to be processed into a cannabinoid product.
178 Section 2. Section 4-41-103.1 is amended to read:
179 4-41-103.1. Authority to regulate production, sale, and testing of cannabinoid
180 products and industrial hemp -- Information sharing with the State Tax Commission.
181 (1) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
182 Administrative Rulemaking Act, to:
183 (a) establish requirements for a cannabinoid processor license to process cannabinoid
184 products;
185 (b) establish requirements for an industrial hemp retailer permit to market or sell
186 industrial hemp products;
187 (c) establish the standards, methods, practices, and procedures a laboratory must use
188 [
189 (i) testing industrial hemp, transportable industrial hemp concentrate, and cannabinoid
190 products; and [
191 (ii) disposing of non-compliant material; [
192 (d) establish requirements for registration of processors of non-cannabinoid industrial
193 hemp products[
194 (e) establish standards for transporting transportable industrial hemp concentrate into
195 and out of the state.
196 (2) The department shall maintain a list of each licensee and permittee.
197 (3) Ĥ→ [
197a Tax Commission:
198 (a) a regularly updated list of every retailer permittee that sells a cannabinoid product;
199 (b) any information obtained by the department regarding a person who is not a retailer
200 permittee and is selling a cannabinoid product; and
201 (c) the tax identification number:
202 (i) for a retailer permittee described in Subsection (3)(a); and
203 (ii) a person described in Subsection (3)(b).
204 Section 3. Section 4-41-103.4 is amended to read:
205 4-41-103.4. Industrial hemp laboratory testing.
206 (1) The department or a laboratory [
207 test industrial hemp and cannabinoid products.
208 (2) The department or a laboratory [
209 dispose of non-compliant material.
210 [
211 [
212 [
213
214 [
215
216 [
217
218
219 [
220
221 [
222
223
224
225 [
226 [
227 [
228
229 [
230
231 Section 4. Section 4-41-104 is amended to read:
232 4-41-104. Product registration required for distribution -- Application -- Fees --
233 Renewal.
234 (1) A cannabinoid product class or cannabinoid product that is not registered with the
235 department may not be distributed in this state.
236 (2) A person seeking registration for a cannabinoid product class or cannabinoid
237 product shall[
238 registration for each cannabinoid product class or cannabinoid product the person intends to
239 distribute in the state.
240 [
241
242
243 (3) The department may conduct tests, or require test results, to ensure that any claim
244 made by an applicant about a cannabinoid product class or cannabinoid product is accurate.
245 (4) Upon receipt by the department of a proper application [
246
247 applicant allowing the applicant to distribute the registered cannabinoid product class or
248 cannabinoid product in the state for one year from the date [
249 the application is approved, subject to suspension or revocation for cause.
250 (5) The department shall mail, either through the postal service or electronically, forms
251 for the renewal of a registration to a registrant at least 30 days before the day on which the
252 registrant's registration expires.
253 Section 5. Section 4-41-105 is amended to read:
254 4-41-105. Unlawful acts.
255 (1) It is unlawful for a person to handle, process, or market living industrial hemp
256 plants, viable hemp seeds, leaf materials, or floral materials derived from industrial hemp
257 without the appropriate license or permit issued by the department under this chapter.
258 (2) (a) It is unlawful for any person to:
259 [
260 [
261 [
262 [
263 extracted material or final product that contains 0.3% or more of total THC and any THC
264 analog;
265 [
266 [
267 rules described in Section 4-41-403;
268 [
269 rules described in Section 4-41-403; or
270 [
271 [
272 THC or a THC analog in the course of business to an individual who is not at least 21 years
273 old.
274 (b) A person may transport transportable industrial hemp concentrate if the person:
275 (i) complies with rules created by the department under Section 4-41-103.1 related to
276 transportable industrial hemp concentrate; and
277 (ii) (A) has an industrial hemp producer registration; or
278 (B) the equivalent to an industrial hemp producer registration from another state.
279 (3) The department may seize and destroy non-compliant material.
280 (4) Nothing in this chapter authorizes any person to violate federal law, regulation, or
281 any provision of this title.
282 Section 6. Section 4-41-106 is amended to read:
283 4-41-106. Enforcement -- Fine -- Citation.
284 (1) If a person violates this part, the department may:
285 (a) revoke the person's license or permit;
286 (b) decline to renew the person's license or permit; or
287 (c) assess the person a civil penalty that the department establishes in accordance with
288 Section 4-2-304.
289 (2) Except for a fine that the department assesses for an unlicensed processor, an
290 unregistered product, or the sale of a cannabinoid product to an individual younger than 21
291 years old, the department shall deposit a penalty imposed under this section into the General
292 Fund.
293 (3) The department may take an action described in Subsection (4) if the department
294 concludes, upon investigation, that a person has violated this chapter, a rule made under this
295 chapter, or an order issued under this chapter.
296 (4) If the department makes the conclusion described in Subsection (3), the department
297 shall:
298 (a) issue the person a written administrative citation;
299 (b) attempt to negotiate a stipulated settlement;
300 (c) seize, embargo, or destroy the industrial hemp batch or unregistered product;
301 (d) order the person to cease the violation; and
302 (e) if a stipulated settlement cannot be reached, conduct an adjudicative proceeding
303 under Title 63G, Chapter 4, Administrative Procedures Act.
304 (5) The department may, for a person, other than an individual, that is subject to an
305 uncontested citation, a stipulated settlement, or a finding of a violation in an adjudicative
306 proceeding under this section, for a fine amount not already specified in law, assess the person
307 a fine of up to $5,000 per violation, in accordance with a fine schedule that the department
308 establishes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
309 Act.
310 (6) The department may not revoke a cannabinoid processor license[
311 hemp retailer's permit[
312 the opportunity to appear before an adjudicative proceeding conducted under Title 63G,
313 Chapter 4, Administrative Procedures Act.
314 (7) If, within 30 calendar days after the day on which a department serves a citation for
315 a violation of this chapter, the person that is the subject of the citation fails to request a hearing
316 to contest the citation, the citation becomes the department's final order.
317 (8) The department may, for a person who fails to comply with a citation under this
318 section:
319 (a) refuse to issue or renew the person's processor license[
320
321 (b) suspend, revoke, or place on probation the person's processor license[
322 permit[
323 Section 7. Section 4-41-403 is amended to read:
324 4-41-403. Standards for registration.
325 (1) (a) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
326 Administrative Rulemaking Act:
327 (i) to determine standards for a registered cannabinoid product, including standards for:
328 (A) testing to ensure the product is safe for human consumption; and
329 (B) accurate labeling;
330 (ii) governing an entity that manufactures cannabinoid products, including standards
331 for health and safety;
332 (iii) to determine when and how a cannabinoid processor's cannabinoid must be tested
333 by the department at the expense of the cannabinoid processor;
334 (iv) regarding what constitutes:
335 (A) a conventional food or beverage; and
336 (B) a product that is marketed or manufactured to be enticing to children; [
337 (v) regarding any other issue the department considers necessary for the safe
338 production and sale of cannabinoid products[
339 (vi) for a cannabinoid product that is not in an oil based suspension, prohibiting a
340 serving size that is less than the full portion of a discrete unit of the cannabinoid product.
341 (b) Notwithstanding Subsection (1)(a), the department may not prohibit a sugar coating
342 on a cannabinoid product to mask the product's taste, subject to the limitations described in
343 Subsection (1)(a)(iv) or (v).
344 (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
345 department may make rules to immediately ban or limit the presence of any substance in a
346 cannabinoid product after receiving a recommendation to do so from a public health authority
347 as defined in Section 26B-1-102.
348 [
349
350 [
351
352 [
353
354 [
355
356 that is not registered by the department.
357 Section 8. Section 26A-1-114 is amended to read:
358 26A-1-114. Powers and duties of departments.
359 (1) Subject to Subsections (7), (8), and (11), a local health department may:
360 (a) subject to the provisions in Section 26A-1-108, enforce state laws, local ordinances,
361 department rules, and local health department standards and regulations relating to public
362 health and sanitation, including the plumbing code administered by the Division of
363 Professional Licensing under Title 15A, Chapter 1, Part 2, State Construction Code
364 Administration Act, and under Title 26B, Chapter 7, Part 4, General Sanitation and Food
365 Safety, in all incorporated and unincorporated areas served by the local health department;
366 (b) establish, maintain, and enforce isolation and quarantine, and exercise physical
367 control over property and over individuals as the local health department finds necessary for
368 the protection of the public health;
369 (c) establish and maintain medical, environmental, occupational, and other laboratory
370 services considered necessary or proper for the protection of the public health;
371 (d) establish and operate reasonable health programs or measures not in conflict with
372 state law which:
373 (i) are necessary or desirable for the promotion or protection of the public health and
374 the control of disease; or
375 (ii) may be necessary to ameliorate the major risk factors associated with the major
376 causes of injury, sickness, death, and disability in the state;
377 (e) close theaters, schools, and other public places and prohibit gatherings of people
378 when necessary to protect the public health;
379 (f) abate nuisances or eliminate sources of filth and infectious and communicable
380 diseases affecting the public health and bill the owner or other person in charge of the premises
381 upon which this nuisance occurs for the cost of abatement;
382 (g) make necessary sanitary and health investigations and inspections on the local
383 health department's own initiative or in cooperation with the Department of Health and Human
384 Services or the Department of Environmental Quality, or both, as to any matters affecting the
385 public health;
386 (h) pursuant to county ordinance or interlocal agreement:
387 (i) establish and collect appropriate fees for the performance of services and operation
388 of authorized or required programs and duties;
389 (ii) accept, use, and administer all federal, state, or private donations or grants of funds,
390 property, services, or materials for public health purposes; and
391 (iii) make agreements not in conflict with state law which are conditional to receiving a
392 donation or grant;
393 (i) prepare, publish, and disseminate information necessary to inform and advise the
394 public concerning:
395 (i) the health and wellness of the population, specific hazards, and risk factors that may
396 adversely affect the health and wellness of the population; and
397 (ii) specific activities individuals and institutions can engage in to promote and protect
398 the health and wellness of the population;
399 (j) investigate the causes of morbidity and mortality;
400 (k) issue notices and orders necessary to carry out this part;
401 (l) conduct studies to identify injury problems, establish injury control systems,
402 develop standards for the correction and prevention of future occurrences, and provide public
403 information and instruction to special high risk groups;
404 (m) cooperate with boards created under Section 19-1-106 to enforce laws and rules
405 within the jurisdiction of the boards;
406 (n) cooperate with the state health department, the Department of Corrections, the
407 Administrative Office of the Courts, the Division of Juvenile Justice and Youth Services, and
408 the Crime Victim Reparations Board to conduct testing for HIV infection of alleged sexual
409 offenders, convicted sexual offenders, and any victims of a sexual offense;
410 (o) investigate suspected bioterrorism and disease pursuant to Section 26B-7-321;
411 [
412 (p) provide public health assistance in response to a national, state, or local emergency,
413 a public health emergency as defined in Section 26B-7-301, or a declaration by the President of
414 the United States or other federal official requesting public health-related activities[
415 (q) when conducting routine inspections of businesses regulated by the local health
416 department, notify the Department of Agriculture and Food of a potential violation of Title 4,
417 Chapter 41, Hemp and Cannabinoid Act.
418 (2) The local health department shall:
419 (a) establish programs or measures to promote and protect the health and general
420 wellness of the people within the boundaries of the local health department;
421 (b) investigate infectious and other diseases of public health importance and implement
422 measures to control the causes of epidemic and communicable diseases and other conditions
423 significantly affecting the public health which may include involuntary testing of alleged sexual
424 offenders for the HIV infection pursuant to Section 53-10-802 and voluntary testing of victims
425 of sexual offenses for HIV infection pursuant to Section 53-10-803;
426 (c) cooperate with the department in matters pertaining to the public health and in the
427 administration of state health laws; and
428 (d) coordinate implementation of environmental programs to maximize efficient use of
429 resources by developing with the Department of Environmental Quality a Comprehensive
430 Environmental Service Delivery Plan which:
431 (i) recognizes that the Department of Environmental Quality and local health
432 departments are the foundation for providing environmental health programs in the state;
433 (ii) delineates the responsibilities of the department and each local health department
434 for the efficient delivery of environmental programs using federal, state, and local authorities,
435 responsibilities, and resources;
436 (iii) provides for the delegation of authority and pass through of funding to local health
437 departments for environmental programs, to the extent allowed by applicable law, identified in
438 the plan, and requested by the local health department; and
439 (iv) is reviewed and updated annually.
440 (3) The local health department has the following duties regarding public and private
441 schools within the local health department's boundaries:
442 (a) enforce all ordinances, standards, and regulations pertaining to the public health of
443 persons attending public and private schools;
444 (b) exclude from school attendance any person, including teachers, who is suffering
445 from any communicable or infectious disease, whether acute or chronic, if the person is likely
446 to convey the disease to those in attendance; and
447 (c) (i) make regular inspections of the health-related condition of all school buildings
448 and premises;
449 (ii) report the inspections on forms furnished by the department to those responsible for
450 the condition and provide instructions for correction of any conditions that impair or endanger
451 the health or life of those attending the schools; and
452 (iii) provide a copy of the report to the department at the time the report is made.
453 (4) If those responsible for the health-related condition of the school buildings and
454 premises do not carry out any instructions for corrections provided in a report in Subsection
455 (3)(c), the local health board shall cause the conditions to be corrected at the expense of the
456 persons responsible.
457 (5) The local health department may exercise incidental authority as necessary to carry
458 out the provisions and purposes of this part.
459 (6) Nothing in this part may be construed to authorize a local health department to
460 enforce an ordinance, rule, or regulation requiring the installation or maintenance of a carbon
461 monoxide detector in a residential dwelling against anyone other than the occupant of the
462 dwelling.
463 (7) (a) Except as provided in Subsection (7)(c), a local health department may not
464 declare a public health emergency or issue an order of constraint until the local health
465 department has provided notice of the proposed action to the chief executive officer of the
466 relevant county no later than 24 hours before the local health department issues the order or
467 declaration.
468 (b) The local health department:
469 (i) shall provide the notice required by Subsection (7)(a) using the best available
470 method under the circumstances as determined by the local health department;
471 (ii) may provide the notice required by Subsection (7)(a) in electronic format; and
472 (iii) shall provide the notice in written form, if practicable.
473 (c) (i) Notwithstanding Subsection (7)(a), a local health department may declare a
474 public health emergency or issue an order of constraint without approval of the chief executive
475 officer of the relevant county if the passage of time necessary to obtain approval of the chief
476 executive officer of the relevant county as required in Subsection (7)(a) would substantially
477 increase the likelihood of loss of life due to an imminent threat.
478 (ii) If a local health department declares a public health emergency or issues an order
479 of constraint as described in Subsection (7)(c)(i), the local health department shall notify the
480 chief executive officer of the relevant county before issuing the order of constraint.
481 (iii) The chief executive officer of the relevant county may terminate a declaration of a
482 public health emergency or an order of constraint issued as described in Subsection (7)(c)(i)
483 within 72 hours of declaration of the public health emergency or issuance of the order of
484 constraint.
485 (d) (i) The relevant county governing body may at any time terminate a public health
486 emergency or an order of constraint issued by the local health department by majority vote of
487 the county governing body in response to a declared public health emergency.
488 (ii) A vote by the relevant county governing body to terminate a public health
489 emergency or an order of constraint as described in Subsection (7)(d)(i) is not subject to veto
490 by the relevant chief executive officer.
491 (8) (a) Except as provided in Subsection (8)(b), a public health emergency declared by
492 a local health department expires at the earliest of:
493 (i) the local health department or the chief executive officer of the relevant county
494 finding that the threat or danger has passed or the public health emergency reduced to the
495 extent that emergency conditions no longer exist;
496 (ii) 30 days after the date on which the local health department declared the public
497 health emergency; or
498 (iii) the day on which the public health emergency is terminated by majority vote of the
499 county governing body.
500 (b) (i) The relevant county legislative body, by majority vote, may extend a public
501 health emergency for a time period designated by the county legislative body.
502 (ii) If the county legislative body extends a public health emergency as described in
503 Subsection (8)(b)(i), the public health emergency expires on the date designated by the county
504 legislative body.
505 (c) Except as provided in Subsection (8)(d), if a public health emergency declared by a
506 local health department expires as described in Subsection (8)(a), the local health department
507 may not declare a public health emergency for the same illness or occurrence that precipitated
508 the previous public health emergency declaration.
509 (d) (i) Notwithstanding Subsection (8)(c), subject to Subsection (8)(f), if the local
510 health department finds that exigent circumstances exist, after providing notice to the county
511 legislative body, the department may declare a new public health emergency for the same
512 illness or occurrence that precipitated a previous public health emergency declaration.
513 (ii) A public health emergency declared as described in Subsection (8)(d)(i) expires in
514 accordance with Subsection (8)(a) or (b).
515 (e) For a public health emergency declared by a local health department under this
516 chapter or under Title 26B, Chapter 7, Part 3, Treatment, Isolation, and Quarantine Procedures
517 for Communicable Diseases, the Legislature may terminate by joint resolution a public health
518 emergency that was declared based on exigent circumstances or that has been in effect for more
519 than 30 days.
520 (f) If the Legislature or county legislative body terminates a public health emergency
521 declared due to exigent circumstances as described in Subsection (8)(d)(i), the local health
522 department may not declare a new public health emergency for the same illness, occurrence, or
523 exigent circumstances.
524 (9) (a) During a public health emergency declared under this chapter or under Title
525 26B, Chapter 7, Part 3, Treatment, Isolation, and Quarantine Procedures for Communicable
526 Diseases:
527 (i) except as provided in Subsection (9)(b), a local health department may not issue an
528 order of constraint without approval of the chief executive officer of the relevant county;
529 (ii) the Legislature may at any time terminate by joint resolution an order of constraint
530 issued by a local health department in response to a declared public health emergency that has
531 been in effect for more than 30 days; and
532 (iii) a county governing body may at any time terminate by majority vote of the
533 governing body an order of constraint issued by a local health department in response to a
534 declared public health emergency.
535 (b) (i) Notwithstanding Subsection (9)(a)(i), a local health department may issue an
536 order of constraint without approval of the chief executive officer of the relevant county if the
537 passage of time necessary to obtain approval of the chief executive officer of the relevant
538 county as required in Subsection (9)(a)(i) would substantially increase the likelihood of loss of
539 life due to an imminent threat.
540 (ii) If a local health department issues an order of constraint as described in Subsection
541 (9)(b), the local health department shall notify the chief executive officer of the relevant county
542 before issuing the order of constraint.
543 (iii) The chief executive officer of the relevant county may terminate an order of
544 constraint issued as described in Subsection (9)(b) within 72 hours of issuance of the order of
545 constraint.
546 (c) (i) For a local health department that serves more than one county, the approval
547 described in Subsection (9)(a)(i) is required for the chief executive officer for which the order
548 of constraint is applicable.
549 (ii) For a local health department that serves more than one county, a county governing
550 body may only terminate an order of constraint as described in Subsection (9)(a)(iii) for the
551 county served by the county governing body.
552 (10) (a) During a public health emergency declared as described in this title:
553 (i) the department or a local health department may not impose an order of constraint
554 on a religious gathering that is more restrictive than an order of constraint that applies to any
555 other relevantly similar gathering; and
556 (ii) an individual, while acting or purporting to act within the course and scope of the
557 individual's official department or local health department capacity, may not:
558 (A) prevent a religious gathering that is held in a manner consistent with any order of
559 constraint issued pursuant to this title; or
560 (B) impose a penalty for a previous religious gathering that was held in a manner
561 consistent with any order of constraint issued pursuant to this title.
562 (b) Upon proper grounds, a court of competent jurisdiction may grant an injunction to
563 prevent the violation of this Subsection (10).
564 (c) During a public health emergency declared as described in this title, the department
565 or a local health department shall not issue a public health order or impose or implement a
566 regulation that substantially burdens an individual's exercise of religion unless the department
567 or local health department demonstrates that the application of the burden to the individual:
568 (i) is in furtherance of a compelling government interest; and
569 (ii) is the least restrictive means of furthering that compelling government interest.
570 (d) Notwithstanding Subsections (8)(a) and (c), the department or a local health
571 department shall allow reasonable accommodations for an individual to perform or participate
572 in a religious practice or rite.
573 (11) An order of constraint issued by a local health department pursuant to a declared
574 public health emergency does not apply to a facility, property, or area owned or leased by the
575 state, including the capitol hill complex, as that term is defined in Section 63C-9-102.
576 (12) A local health department may not:
577 (a) require a person to obtain an inspection, license, or permit from the local health
578 department to engage in a practice described in Subsection 58-11a-304(5); or
579 (b) prevent or limit a person's ability to engage in a practice described in Subsection
580 58-11a-304(5) by:
581 (i) requiring the person to engage in the practice at a specific location or at a particular
582 type of facility or location; or
583 (ii) enforcing a regulation applicable to a facility or location where the person chooses
584 to engage in the practice.
585 Section 9. Section 58-37-2 is amended to read:
586 58-37-2. Definitions.
587 (1) As used in this chapter:
588 (a) "Administer" means the direct application of a controlled substance, whether by
589 injection, inhalation, ingestion, or any other means, to the body of a patient or research subject
590 by:
591 (i) a practitioner or, in the practitioner's presence, by the practitioner's authorized agent;
592 or
593 (ii) the patient or research subject at the direction and in the presence of the
594 practitioner.
595 (b) "Agent" means an authorized person who acts on behalf of or at the direction of a
596 manufacturer, distributor, or practitioner but does not include a motor carrier, public
597 warehouseman, or employee of any of them.
598 (c) "Consumption" means ingesting or having any measurable amount of a controlled
599 substance in a person's body, but this Subsection (1)(c) does not include the metabolite of a
600 controlled substance.
601 (d) "Continuing criminal enterprise" means any individual, sole proprietorship,
602 partnership, corporation, business trust, association, or other legal entity, and any union or
603 groups of individuals associated in fact although not a legal entity, and includes illicit as well
604 as licit entities created or maintained for the purpose of engaging in conduct which constitutes
605 the commission of episodes of activity made unlawful by Chapter 37, Utah Controlled
606 Substances Act, Chapter 37a, Utah Drug Paraphernalia Act, Chapter 37b, Imitation Controlled
607 Substances Act, Chapter 37c, Utah Controlled Substance Precursor Act, or Chapter 37d,
608 Clandestine Drug Lab Act, which episodes are not isolated, but have the same or similar
609 purposes, results, participants, victims, methods of commission, or otherwise are interrelated
610 by distinguishing characteristics. Taken together, the episodes shall demonstrate continuing
611 unlawful conduct and be related either to each other or to the enterprise.
612 (e) "Control" means to add, remove, or change the placement of a drug, substance, or
613 immediate precursor under Section 58-37-3.
614 (f) (i) "Controlled substance" means a drug or substance:
615 (A) included in Schedules I, II, III, IV, or V of Section 58-37-4;
616 (B) included in Schedules I, II, III, IV, or V of the federal Controlled Substances Act,
617 Title II, P.L. 91-513;
618 (C) that is a controlled substance analog; or
619 (D) listed in Section 58-37-4.2.
620 (ii) "Controlled substance" does not include:
621 (A) distilled spirits, wine, or malt beverages, as those terms are defined in Title 32B,
622 Alcoholic Beverage Control Act;
623 (B) any drug intended for lawful use in the diagnosis, cure, mitigation, treatment, or
624 prevention of disease in human or other animals, which contains ephedrine, pseudoephedrine,
625 norpseudoephedrine, or phenylpropanolamine if the drug is lawfully purchased, sold,
626 transferred, or furnished as an over-the-counter medication without prescription; or
627 (C) dietary supplements, vitamins, minerals, herbs, or other similar substances
628 including concentrates or extracts, which:
629 (I) are not otherwise regulated by law; and
630 (II) may contain naturally occurring amounts of chemical or substances listed in this
631 chapter, or in rules adopted pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking
632 Act.
633 (g) (i) "Controlled substance analog" means:
634 (A) a substance the chemical structure of which is substantially similar to the chemical
635 structure of a controlled substance listed in Schedules I and II of Section 58-37-4, a substance
636 listed in Section 58-37-4.2, or in Schedules I and II of the federal Controlled Substances Act,
637 Title II, P.L. 91-513;
638 (B) a substance which has a stimulant, depressant, or hallucinogenic effect on the
639 central nervous system substantially similar to the stimulant, depressant, or hallucinogenic
640 effect on the central nervous system of controlled substances listed in Schedules I and II of
641 Section 58-37-4, substances listed in Section 58-37-4.2, or substances listed in Schedules I and
642 II of the federal Controlled Substances Act, Title II, P.L. 91-513; or
643 (C) A substance which, with respect to a particular individual, is represented or
644 intended to have a stimulant, depressant, or hallucinogenic effect on the central nervous system
645 substantially similar to the stimulant, depressant, or hallucinogenic effect on the central
646 nervous system of controlled substances listed in Schedules I and II of Section 58-37-4,
647 substances listed in Section 58-37-4.2, or substances listed in Schedules I and II of the federal
648 Controlled Substances Act, Title II, P.L. 91-513.
649 (ii) "Controlled substance analog" does not include:
650 (A) a controlled substance currently scheduled in Schedules I through V of Section
651 58-37-4;
652 (B) a substance for which there is an approved new drug application;
653 (C) a substance with respect to which an exemption is in effect for investigational use
654 by a particular person under Section 505 of the Food, Drug, and Cosmetic Act, 21 U.S.C. 355,
655 to the extent the conduct with respect to the substance is permitted by the exemption;
656 (D) any substance to the extent not intended for human consumption before an
657 exemption takes effect with respect to the substance;
658 (E) any drug intended for lawful use in the diagnosis, cure, mitigation, treatment, or
659 prevention of disease in man or other animals, which contains ephedrine, pseudoephedrine,
660 norpseudoephedrine, or phenylpropanolamine if the drug is lawfully purchased, sold,
661 transferred, or furnished as an over-the-counter medication without prescription; or
662 (F) dietary supplements, vitamins, minerals, herbs, or other similar substances
663 including concentrates or extracts, which are not otherwise regulated by law, which may
664 contain naturally occurring amounts of chemical or substances listed in this chapter, or in rules
665 adopted pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
666 (h) (i) "Conviction" means a determination of guilt by verdict, whether jury or bench,
667 or plea, whether guilty or no contest, for any offense proscribed by:
668 (A) Chapter 37, Utah Controlled Substances Act;
669 (B) Chapter 37a, Utah Drug Paraphernalia Act;
670 (C) Chapter 37b, Imitation Controlled Substances Act;
671 (D) Chapter 37c, Utah Controlled Substance Precursor Act; or
672 (E) Chapter 37d, Clandestine Drug Lab Act; or
673 (ii) for any offense under the laws of the United States and any other state which, if
674 committed in this state, would be an offense under:
675 (A) Chapter 37, Utah Controlled Substances Act;
676 (B) Chapter 37a, Utah Drug Paraphernalia Act;
677 (C) Chapter 37b, Imitation Controlled Substances Act;
678 (D) Chapter 37c, Utah Controlled Substance Precursor Act; or
679 (E) Chapter 37d, Clandestine Drug Lab Act.
680 (i) "Counterfeit substance" means:
681 (i) any controlled substance or container or labeling of any controlled substance that:
682 (A) without authorization bears the trademark, trade name, or other identifying mark,
683 imprint, number, device, or any likeness of them, of a manufacturer, distributor, or dispenser
684 other than the person or persons who in fact manufactured, distributed, or dispensed the
685 substance which falsely purports to be a controlled substance distributed by any other
686 manufacturer, distributor, or dispenser; and
687 (B) a reasonable person would believe to be a controlled substance distributed by an
688 authorized manufacturer, distributor, or dispenser based on the appearance of the substance as
689 described under Subsection (1)(i)(i)(A) or the appearance of the container of that controlled
690 substance; or
691 (ii) any substance other than under Subsection (1)(i)(i) that:
692 (A) is falsely represented to be any legally or illegally manufactured controlled
693 substance; and
694 (B) a reasonable person would believe to be a legal or illegal controlled substance.
695 (j) "Deliver" or "delivery" means the actual, constructive, or attempted transfer of a
696 controlled substance or a listed chemical, whether or not an agency relationship exists.
697 (k) "Department" means the Department of Commerce.
698 (l) "Depressant or stimulant substance" means:
699 (i) a drug which contains any quantity of barbituric acid or any of the salts of barbituric
700 acid;
701 (ii) a drug which contains any quantity of:
702 (A) amphetamine or any of its optical isomers;
703 (B) any salt of amphetamine or any salt of an optical isomer of amphetamine; or
704 (C) any substance which the Secretary of Health and Human Services or the Attorney
705 General of the United States after investigation has found and by regulation designated
706 habit-forming because of its stimulant effect on the central nervous system;
707 (iii) lysergic acid diethylamide; or
708 (iv) any drug which contains any quantity of a substance which the Secretary of Health
709 and Human Services or the Attorney General of the United States after investigation has found
710 to have, and by regulation designated as having, a potential for abuse because of its depressant
711 or stimulant effect on the central nervous system or its hallucinogenic effect.
712 (m) "Dispense" means the delivery of a controlled substance by a pharmacist to an
713 ultimate user pursuant to the lawful order or prescription of a practitioner, and includes
714 distributing to, leaving with, giving away, or disposing of that substance as well as the
715 packaging, labeling, or compounding necessary to prepare the substance for delivery.
716 (n) "Dispenser" means a pharmacist who dispenses a controlled substance.
717 (o) "Distribute" means to deliver other than by administering or dispensing a controlled
718 substance or a listed chemical.
719 (p) "Distributor" means a person who distributes controlled substances.
720 (q) "Division" means the Division of Professional Licensing created in Section
721 58-1-103.
722 (r) (i) "Drug" means:
723 (A) a substance recognized in the official United States Pharmacopoeia, Official
724 Homeopathic Pharmacopoeia of the United States, or Official National Formulary, or any
725 supplement to any of them, intended for use in the diagnosis, cure, mitigation, treatment, or
726 prevention of disease in humans or animals;
727 (B) a substance that is required by any applicable federal or state law or rule to be
728 dispensed by prescription only or is restricted to administration by practitioners only;
729 (C) a substance other than food intended to affect the structure or any function of the
730 body of humans or other animals; and
731 (D) substances intended for use as a component of any substance specified in
732 Subsections (1)(r)(i)(A), (B), and (C).
733 (ii) "Drug" does not include dietary supplements.
734 (s) "Drug dependent person" means any individual who unlawfully and habitually uses
735 any controlled substance to endanger the public morals, health, safety, or welfare, or who is so
736 dependent upon the use of controlled substances as to have lost the power of self-control with
737 reference to the individual's dependency.
738 (t) "Food" means:
739 (i) any nutrient or substance of plant, mineral, or animal origin other than a drug as
740 specified in this chapter, and normally ingested by human beings; and
741 (ii) foods for special dietary uses as exist by reason of a physical, physiological,
742 pathological, or other condition including but not limited to the conditions of disease,
743 convalescence, pregnancy, lactation, allergy, hypersensitivity to food, underweight, and
744 overweight; uses for supplying a particular dietary need which exist by reason of age including
745 but not limited to the ages of infancy and childbirth, and also uses for supplementing and for
746 fortifying the ordinary or unusual diet with any vitamin, mineral, or other dietary property for
747 use of a food. Any particular use of a food is a special dietary use regardless of the nutritional
748 purposes.
749 (u) "Immediate precursor" means a substance which the Attorney General of the United
750 States has found to be, and by regulation designated as being, the principal compound used or
751 produced primarily for use in the manufacture of a controlled substance, or which is an
752 immediate chemical intermediary used or likely to be used in the manufacture of a controlled
753 substance, the control of which is necessary to prevent, curtail, or limit the manufacture of the
754 controlled substance.
755 (v) "Indian" means a member of an Indian tribe.
756 (w) "Indian religion" means any religion:
757 (i) the origin and interpretation of which is from within a traditional Indian culture or
758 community; and
759 (ii) which is practiced by Indians.
760 (x) "Indian tribe" means any tribe, band, nation, pueblo, or other organized group or
761 community of Indians, including any Alaska Native village, which is legally recognized as
762 eligible for and is consistent with the special programs, services, and entitlements provided by
763 the United States to Indians because of their status as Indians.
764 (y) "Manufacture" means the production, preparation, propagation, compounding, or
765 processing of a controlled substance, either directly or indirectly by extraction from substances
766 of natural origin, or independently by means of chemical synthesis or by a combination of
767 extraction and chemical synthesis.
768 (z) "Manufacturer" includes any person who packages, repackages, or labels any
769 container of any controlled substance, except pharmacists who dispense or compound
770 prescription orders for delivery to the ultimate consumer.
771 (aa) (i) "Marijuana" means all species of the genus cannabis and all parts of the genus,
772 whether growing or not, including:
773 (A) seeds;
774 (B) resin extracted from any part of the plant, including the resin extracted from the
775 mature stalks;
776 (C) every compound, manufacture, salt, derivative, mixture, or preparation of the plant,
777 seeds, or resin;
778 (D) any synthetic equivalents of the substances contained in the plant cannabis sativa
779 or any other species of the genus cannabis which are chemically indistinguishable and
780 pharmacologically active; and
781 (E) any component part or cannabinoid extracted or isolated from the plant, including
782 extracted or isolated tetrahydrocannabinols.
783 (ii) "Marijuana" does not include:
784 (A) the mature stalks of the plant;
785 (B) fiber produced from the stalks;
786 (C) oil or cake made from the seeds of the plant;
787 (D) except as provided in Subsection (1)(aa)(i), any other compound, manufacture,
788 salt, derivative, mixture, or preparation of the mature stalks, fiber, oil or cake;
789 (E) the sterilized seed of the plant which is incapable of germination; [
790 (F) any compound, mixture, or preparation approved by the federal Food and Drug
791 Administration under the federal Food, Drug, and Cosmetic Act, 21 U.S.C. Sec. 301 et seq.
792 that is not listed in a schedule of controlled substances in Section 58-37-4 or in the federal
793 Controlled Substances Act, Title II, P.L. 91-513[
794 (G) transportable industrial hemp concentrate as that term is defined in Section
795 4-41-102.
796 (bb) "Money" means officially issued coin and currency of the United States or any
797 foreign country.
798 (cc) "Narcotic drug" means any of the following, whether produced directly or
799 indirectly by extraction from substances of vegetable origin, or independently by means of
800 chemical synthesis, or by a combination of extraction and chemical synthesis:
801 (i) opium, coca leaves, and opiates;
802 (ii) a compound, manufacture, salt, derivative, or preparation of opium, coca leaves, or
803 opiates;
804 (iii) opium poppy and poppy straw; or
805 (iv) a substance, and any compound, manufacture, salt, derivative, or preparation of the
806 substance, which is chemically identical with any of the substances referred to in Subsection
807 (1)(cc)(i), (ii), or (iii), except narcotic drug does not include decocainized coca leaves or
808 extracts of coca leaves which do not contain cocaine or ecgonine.
809 (dd) "Negotiable instrument" means documents, containing an unconditional promise
810 to pay a sum of money, which are legally transferable to another party by endorsement or
811 delivery.
812 (ee) "Opiate" means any drug or other substance having an addiction-forming or
813 addiction-sustaining liability similar to morphine or being capable of conversion into a drug
814 having addiction-forming or addiction-sustaining liability.
815 (ff) "Opium poppy" means the plant of the species papaver somniferum L., except the
816 seeds of the plant.
817 (gg) "Person" means any corporation, association, partnership, trust, other institution or
818 entity or one or more individuals.
819 (hh) "Poppy straw" means all parts, except the seeds, of the opium poppy, after
820 mowing.
821 (ii) "Possession" or "use" means the joint or individual ownership, control, occupancy,
822 holding, retaining, belonging, maintaining, or the application, inhalation, swallowing, injection,
823 or consumption, as distinguished from distribution, of controlled substances and includes
824 individual, joint, or group possession or use of controlled substances. For a person to be a
825 possessor or user of a controlled substance, it is not required that the person be shown to have
826 individually possessed, used, or controlled the substance, but it is sufficient if it is shown that
827 the person jointly participated with one or more persons in the use, possession, or control of
828 any substances with knowledge that the activity was occurring, or the controlled substance is
829 found in a place or under circumstances indicating that the person had the ability and the intent
830 to exercise dominion and control over it.
831 (jj) "Practitioner" means a physician, dentist, naturopathic physician, veterinarian,
832 pharmacist, scientific investigator, pharmacy, hospital, or other person licensed, registered, or
833 otherwise permitted to distribute, dispense, conduct research with respect to, administer, or use
834 in teaching or chemical analysis a controlled substance in the course of professional practice or
835 research in this state.
836 (kk) "Prescribe" means to issue a prescription:
837 (i) orally or in writing; or
838 (ii) by telephone, facsimile transmission, computer, or other electronic means of
839 communication as defined by division rule.
840 (ll) "Prescription" means an order issued:
841 (i) by a licensed practitioner, in the course of that practitioner's professional practice or
842 by collaborative pharmacy practice agreement; and
843 (ii) for a controlled substance or other prescription drug or device for use by a patient
844 or an animal.
845 (mm) "Production" means the manufacture, planting, cultivation, growing, or
846 harvesting of a controlled substance.
847 (nn) "Securities" means any stocks, bonds, notes, or other evidences of debt or of
848 property.
849 (oo) "State" means the state of Utah.
850 (pp) "Ultimate user" means any person who lawfully possesses a controlled substance
851 for the person's own use, for the use of a member of the person's household, or for
852 administration to an animal owned by the person or a member of the person's household.
853 (2) If a term used in this chapter is not defined, the definition and terms of Title 76,
854 Utah Criminal Code, shall apply.
855 Section 10. Section 58-37-3.6 is amended to read:
856 58-37-3.6. Exemption for possession or distribution of a cannabinoid product,
857 expanded cannabinoid product, or transportable industrial hemp concentrate.
858 (1) As used in this section:
859 (a) "Cannabinoid product" means a product intended for human ingestion that:
860 (i) contains an extract or concentrate that is obtained from cannabis;
861 (ii) is prepared in a medicinal dosage form; and
862 (iii) contains at least 10 units of cannabidiol for every one unit of tetrahydrocannabinol.
863 (b) "Cannabis" means any part of the plant cannabis sativa, whether growing or not.
864 (c) "Drug paraphernalia" means the same as that term is defined in Section 58-37a-3.
865 (d) "Expanded cannabinoid product" means a product intended for human ingestion
866 that:
867 (i) contains an extract or concentrate that is obtained from cannabis;
868 (ii) is prepared in a medicinal dosage form; and
869 (iii) contains less than 10 units of cannabidiol for every one unit of
870 tetrahydrocannabinol.
871 (e) "Hemp cannabinoid product" means a product that:
872 (i) contains or is represented to contain one or more naturally occurring cannabinoids;
873 (ii) contains less than the cannabinoid product THC level, by dry weight;
874 (iii) contains a combined amount of total THC and any THC analog that does not
875 exceed 10% of the total cannabinoid content;
876 (iv) does not exceed a total of THC and any THC analog that is greater than five
877 milligrams per serving and 150 milligrams per package; and
878 (v) unless the product is in an oil based suspension, has a serving size that is an integer.
879 (f) "Transportable industrial hemp concentrate" means any amount of a natural
880 cannabinoid in a purified state that:
881 (i) is the product of any chemical or physical process applied to naturally occurring
882 biomass that concentrates or isolates the cannabinoids contained in the biomass;
883 (ii) is derived from a cannabis plant that, based on sampling that was collected no more
884 than 30 days before the day on which the cannabis plant was harvested, contains a combined
885 concentration of total THC and any THC analog of less than 0.3% on a dry weight basis; and
886 (iii) has a THC and THC analog concentration total less than 20% when concentrated
887 from the cannabis plant to the purified state.
888 [
889 (i) a tablet;
890 (ii) a capsule;
891 (iii) a concentrated oil;
892 (iv) a liquid suspension;
893 (v) a transdermal preparation; or
894 (vi) a sublingual preparation.
895 [
896 the description in Subsection 58-37-4(2)(a)(iii)(AA).
897 (2) Notwithstanding any other provision of this chapter an individual who possesses or
898 distributes a cannabinoid product or an expanded cannabinoid product is not subject to the
899 penalties described in this title for the possession or distribution of marijuana or
900 tetrahydrocannabinol to the extent that the individual's possession or distribution of the
901 cannabinoid product or expanded cannabinoid product complies with Title 26B, Chapter 4,
902 Part 2, Cannabinoid Research and Medical Cannabis.
903 (3) Notwithstanding any other provision of this chapter, a person who possesses and
904 distributes transportable industrial hemp concentrate is not subject to the penalties described in
905 this chapter for the possession or distribution of transportable industrial hemp concentrate if the
906 transportable industrial hemp concentrate is handled in accordance with the rules established
907 under Subsection 4-41-103.1(1)(e) or is destroyed.
908 Section 11. Section 59-1-306 is amended to read:
909 59-1-306. Definition -- State Tax Commission Administrative Charge Account --
910 Amount of administrative charge -- Deposit of revenue into the restricted account --
911 Interest deposited into General Fund -- Expenditure of money deposited into the
912 restricted account.
913 (1) As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge
914 the commission administers under:
915 (a) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
916 (b) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
917 (c) Section 19-6-714;
918 (d) Section 19-6-805;
919 (e) Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax
920 Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act;
921 (f) Section 59-27-105;
922 (g) Chapter 31, Cannabinoid Licensing and Tax Act;
923 [
924 [
925 Charges.
926 (2) There is created a restricted account within the General Fund known as the "State
927 Tax Commission Administrative Charge Account."
928 (3) Subject to the other provisions of this section, the restricted account shall consist of
929 administrative charges the commission retains and deposits in accordance with this section.
930 (4) For purposes of this section, the administrative charge is a percentage of [
931 revenue the commission collects from each qualifying tax, fee, or charge of not to exceed the
932 lesser of:
933 (a) 1.5%; or
934 (b) an equal percentage of [
935 qualifying tax, fee, or charge sufficient to cover the cost to the commission of administering the
936 qualifying taxes, fees, or charges.
937 (5) The commission shall deposit an administrative charge into the restricted account.
938 (6) Interest earned on the restricted account shall be deposited into the General Fund.
939 (7) The commission shall expend money appropriated by the Legislature to the
940 commission from the restricted account to administer qualifying taxes, fees, or charges.
941 Section 12. Section 59-1-403 is amended to read:
942 59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
943 (1) As used in this section:
944 (a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
945 (i) the commission administers under:
946 (A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax Act;
947 (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
948 (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
949 (D) Section 19-6-805;
950 (E) Section 63H-1-205; or
951 (F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges;
952 and
953 (ii) with respect to which the commission distributes the revenue collected from the
954 tax, fee, or charge to a qualifying jurisdiction.
955 (b) "Qualifying jurisdiction" means:
956 (i) a county, city, town, or metro township;
957 (ii) the military installation development authority created in Section 63H-1-201; or
958 (iii) the Utah Inland Port Authority created in Section 11-58-201.
959 (2) (a) Any of the following may not divulge or make known in any manner any
960 information gained by that person from any return filed with the commission:
961 (i) a tax commissioner;
962 (ii) an agent, clerk, or other officer or employee of the commission; or
963 (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
964 town.
965 (b) An official charged with the custody of a return filed with the commission is not
966 required to produce the return or evidence of anything contained in the return in any action or
967 proceeding in any court, except:
968 (i) in accordance with judicial order;
969 (ii) on behalf of the commission in any action or proceeding under:
970 (A) this title; or
971 (B) other law under which persons are required to file returns with the commission;
972 (iii) on behalf of the commission in any action or proceeding to which the commission
973 is a party; or
974 (iv) on behalf of any party to any action or proceeding under this title if the report or
975 facts shown by the return are directly involved in the action or proceeding.
976 (c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
977 admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
978 pertinent to the action or proceeding.
979 (3) This section does not prohibit:
980 (a) a person or that person's duly authorized representative from receiving a copy of
981 any return or report filed in connection with that person's own tax;
982 (b) the publication of statistics as long as the statistics are classified to prevent the
983 identification of particular reports or returns; and
984 (c) the inspection by the attorney general or other legal representative of the state of the
985 report or return of any taxpayer:
986 (i) who brings action to set aside or review a tax based on the report or return;
987 (ii) against whom an action or proceeding is contemplated or has been instituted under
988 this title; or
989 (iii) against whom the state has an unsatisfied money judgment.
990 (4) (a) Notwithstanding Subsection (2) and for purposes of administration, the
991 commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
992 Rulemaking Act, provide for a reciprocal exchange of information with:
993 (i) the United States Internal Revenue Service; or
994 (ii) the revenue service of any other state.
995 (b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
996 corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
997 Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
998 other written statements with the federal government, any other state, any of the political
999 subdivisions of another state, or any political subdivision of this state, except as limited by
1000 Sections 59-12-209 and 59-12-210, if the political subdivision, other state, or the federal
1001 government grant substantially similar privileges to this state.
1002 (c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
1003 corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
1004 Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
1005 identity and other information of taxpayers who have failed to file tax returns or to pay any tax
1006 due.
1007 (d) Notwithstanding Subsection (2), the commission shall provide to the director of the
1008 Division of Environmental Response and Remediation, as defined in Section 19-6-402, as
1009 requested by the director of the Division of Environmental Response and Remediation, any
1010 records, returns, or other information filed with the commission under Chapter 13, Motor and
1011 Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program
1012 participation fee.
1013 (e) Notwithstanding Subsection (2), at the request of any person the commission shall
1014 provide that person sales and purchase volume data reported to the commission on a report,
1015 return, or other information filed with the commission under:
1016 (i) Chapter 13, Part 2, Motor Fuel; or
1017 (ii) Chapter 13, Part 4, Aviation Fuel.
1018 (f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
1019 as defined in Section 59-22-202, the commission shall report to the manufacturer:
1020 (i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
1021 manufacturer and reported to the commission for the previous calendar year under Section
1022 59-14-407; and
1023 (ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
1024 manufacturer for which a tax refund was granted during the previous calendar year under
1025 Section 59-14-401 and reported to the commission under Subsection 59-14-401(1)(a)(v).
1026 (g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
1027 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
1028 from selling cigarettes to consumers within the state under Subsection 59-14-210(2).
1029 (h) Notwithstanding Subsection (2), the commission may:
1030 (i) provide to the Division of Consumer Protection within the Department of
1031 Commerce and the attorney general data:
1032 (A) reported to the commission under Section 59-14-212; or
1033 (B) related to a violation under Section 59-14-211; and
1034 (ii) upon request, provide to any person data reported to the commission under
1035 Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
1036 (i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
1037 of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of
1038 Planning and Budget, provide to the committee or office the total amount of revenues collected
1039 by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
1040 specified by the committee or office.
1041 (j) Notwithstanding Subsection (2), the commission shall make the directory required
1042 by Section 59-14-603 available for public inspection.
1043 (k) Notwithstanding Subsection (2), the commission may share information with
1044 federal, state, or local agencies as provided in Subsection 59-14-606(3).
1045 (l) (i) Notwithstanding Subsection (2), the commission shall provide the Office of
1046 Recovery Services within the Department of Health and Human Services any relevant
1047 information obtained from a return filed under Chapter 10, Individual Income Tax Act,
1048 regarding a taxpayer who has become obligated to the Office of Recovery Services.
1049 (ii) The information described in Subsection (4)(l)(i) may be provided by the Office of
1050 Recovery Services to any other state's child support collection agency involved in enforcing
1051 that support obligation.
1052 (m) (i) Notwithstanding Subsection (2), upon request from the state court
1053 administrator, the commission shall provide to the state court administrator, the name, address,
1054 telephone number, county of residence, and social security number on resident returns filed
1055 under Chapter 10, Individual Income Tax Act.
1056 (ii) The state court administrator may use the information described in Subsection
1057 (4)(m)(i) only as a source list for the master jury list described in Section 78B-1-106.
1058 (n) (i) As used in this Subsection (4)(n):
1059 (A) "GO Utah office" means the Governor's Office of Economic Opportunity created in
1060 Section 63N-1a-301.
1061 (B) "Income tax information" means information gained by the commission that is
1062 required to be attached to or included in a return filed with the commission under Chapter 7,
1063 Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
1064 (C) "Other tax information" means information gained by the commission that is
1065 required to be attached to or included in a return filed with the commission except for a return
1066 filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
1067 Income Tax Act.
1068 (D) "Tax information" means income tax information or other tax information.
1069 (ii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
1070 (4)(n)(ii)(B) or (C), the commission shall at the request of the GO Utah office provide to the
1071 GO Utah office all income tax information.
1072 (B) For purposes of a request for income tax information made under Subsection
1073 (4)(n)(ii)(A), the GO Utah office may not request and the commission may not provide to the
1074 GO Utah office a person's address, name, social security number, or taxpayer identification
1075 number.
1076 (C) In providing income tax information to the GO Utah office, the commission shall
1077 in all instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
1078 (iii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
1079 (4)(n)(iii)(B), the commission shall at the request of the GO Utah office provide to the GO
1080 Utah office other tax information.
1081 (B) Before providing other tax information to the GO Utah office, the commission
1082 shall redact or remove any name, address, social security number, or taxpayer identification
1083 number.
1084 (iv) The GO Utah office may provide tax information received from the commission in
1085 accordance with this Subsection (4)(n) only:
1086 (A) as a fiscal estimate, fiscal note information, or statistical information; and
1087 (B) if the tax information is classified to prevent the identification of a particular
1088 return.
1089 (v) (A) A person may not request tax information from the GO Utah office under Title
1090 63G, Chapter 2, Government Records Access and Management Act, or this section, if the GO
1091 Utah office received the tax information from the commission in accordance with this
1092 Subsection (4)(n).
1093 (B) The GO Utah office may not provide to a person that requests tax information in
1094 accordance with Subsection (4)(n)(v)(A) any tax information other than the tax information the
1095 GO Utah office provides in accordance with Subsection (4)(n)(iv).
1096 (o) Notwithstanding Subsection (2), the commission may provide to the governing
1097 board of the agreement or a taxing official of another state, the District of Columbia, the United
1098 States, or a territory of the United States:
1099 (i) the following relating to an agreement sales and use tax:
1100 (A) information contained in a return filed with the commission;
1101 (B) information contained in a report filed with the commission;
1102 (C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
1103 (D) a document filed with the commission; or
1104 (ii) a report of an audit or investigation made with respect to an agreement sales and
1105 use tax.
1106 (p) Notwithstanding Subsection (2), the commission may provide information
1107 concerning a taxpayer's state income tax return or state income tax withholding information to
1108 the Driver License Division if the Driver License Division:
1109 (i) requests the information; and
1110 (ii) provides the commission with a signed release form from the taxpayer allowing the
1111 Driver License Division access to the information.
1112 (q) Notwithstanding Subsection (2), the commission shall provide to the Utah
1113 Communications Authority, or a division of the Utah Communications Authority, the
1114 information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
1115 63H-7a-502.
1116 (r) Notwithstanding Subsection (2), the commission shall provide to the Utah
1117 Educational Savings Plan information related to a resident or nonresident individual's
1118 contribution to a Utah Educational Savings Plan account as designated on the resident or
1119 nonresident's individual income tax return as provided under Section 59-10-1313.
1120 (s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
1121 Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility worker with
1122 the Department of Health and Human Services or its designee with the adjusted gross income
1123 of an individual if:
1124 (i) an eligibility worker with the Department of Health and Human Services or its
1125 designee requests the information from the commission; and
1126 (ii) the eligibility worker has complied with the identity verification and consent
1127 provisions of Sections 26B-3-106 and 26B-3-903.
1128 (t) Notwithstanding Subsection (2), the commission may provide to a county, as
1129 determined by the commission, information declared on an individual income tax return in
1130 accordance with Section 59-10-103.1 that relates to eligibility to claim a residential exemption
1131 authorized under Section 59-2-103.
1132 (u) Notwithstanding Subsection (2), the commission shall provide a report regarding
1133 any access line provider that is over 90 days delinquent in payment to the commission of
1134 amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid Wireless
1135 Telecommunications Service Charges, to the board of the Utah Communications Authority
1136 created in Section 63H-7a-201.
1137 (v) Notwithstanding Subsection (2), the commission shall provide the Department of
1138 Environmental Quality a report on the amount of tax paid by a radioactive waste facility for the
1139 previous calendar year under Section 59-24-103.5.
1140 (w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
1141 Department of Workforce Services any information received under Chapter 10, Part 4,
1142 Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.
1143 (x) Notwithstanding Subsection (2), the commission may provide the Public Service
1144 Commission or the Division of Public Utilities information related to a seller that collects and
1145 remits to the commission a charge described in Subsection 69-2-405(2), including the seller's
1146 identity and the number of charges described in Subsection 69-2-405(2) that the seller collects.
1147 (y) (i) Notwithstanding Subsection (2), the commission shall provide to each qualifying
1148 jurisdiction the collection data necessary to verify the revenue collected by the commission for
1149 a distributed tax, fee, or charge collected within the qualifying jurisdiction.
1150 (ii) In addition to the information provided under Subsection (4)(y)(i), the commission
1151 shall provide a qualifying jurisdiction with copies of returns and other information relating to a
1152 distributed tax, fee, or charge collected within the qualifying jurisdiction.
1153 (iii) (A) To obtain the information described in Subsection (4)(y)(ii), the chief
1154 executive officer or the chief executive officer's designee of the qualifying jurisdiction shall
1155 submit a written request to the commission that states the specific information sought and how
1156 the qualifying jurisdiction intends to use the information.
1157 (B) The information described in Subsection (4)(y)(ii) is available only in official
1158 matters of the qualifying jurisdiction.
1159 (iv) Information that a qualifying jurisdiction receives in response to a request under
1160 this subsection is:
1161 (A) classified as a private record under Title 63G, Chapter 2, Government Records
1162 Access and Management Act; and
1163 (B) subject to the confidentiality requirements of this section.
1164 (z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
1165 Beverage Services Commission, upon request, with taxpayer status information related to state
1166 tax obligations necessary to comply with the requirements described in Section 32B-1-203.
1167 (aa) Notwithstanding Subsection (2), the commission shall inform the Department of
1168 Workforce Services, as soon as practicable, whether an individual claimed and is entitled to
1169 claim a federal earned income tax credit for the year requested by the Department of Workforce
1170 Services if:
1171 (i) the Department of Workforce Services requests this information; and
1172 (ii) the commission has received the information release described in Section
1173 35A-9-604.
1174 (bb) (i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
1175 the administrator or the administrator's agent, as those terms are defined in Section 67-4a-102.
1176 (ii) (A) Notwithstanding Subsection (2), upon request from the unclaimed property
1177 administrator and to the extent allowed under federal law, the commission shall provide the
1178 unclaimed property administrator the name, address, telephone number, county of residence,
1179 and social security number or federal employer identification number on any return filed under
1180 Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
1181 (B) The unclaimed property administrator may use the information described in
1182 Subsection (4)(aa)(ii)(A) only for the purpose of returning unclaimed property to the property's
1183 owner in accordance with Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.
1184 (iii) The unclaimed property administrator is subject to the confidentiality provisions of
1185 this section with respect to any information the unclaimed property administrator receives
1186 under this Subsection (4)(aa).
1187 (cc) Notwithstanding Subsection (2), the commission may provide the Department of
1188 Agriculture and Food with information from a return filed in accordance with Chapter 31,
1189 Cannabinoid Licensing and Tax Act.
1190 (5) (a) Each report and return shall be preserved for at least three years.
1191 (b) After the three-year period provided in Subsection (5)(a) the commission may
1192 destroy a report or return.
1193 (6) (a) Any individual who violates this section is guilty of a class A misdemeanor.
1194 (b) If the individual described in Subsection (6)(a) is an officer or employee of the
1195 state, the individual shall be dismissed from office and be disqualified from holding public
1196 office in this state for a period of five years thereafter.
1197 (c) Notwithstanding Subsection (6)(a) or (b), the GO Utah office, when requesting
1198 information in accordance with Subsection (4)(n)(iii), or an individual who requests
1199 information in accordance with Subsection (4)(n)(v):
1200 (i) is not guilty of a class A misdemeanor; and
1201 (ii) is not subject to:
1202 (A) dismissal from office in accordance with Subsection (6)(b); or
1203 (B) disqualification from holding public office in accordance with Subsection (6)(b).
1204 (d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
1205 Office of the Legislative Auditor General in accordance with Title 36, Chapter 12, Legislative
1206 Organization, an individual described in Subsection (2):
1207 (i) is not guilty of a class A misdemeanor; and
1208 (ii) is not subject to:
1209 (A) dismissal from office in accordance with Subsection (6)(b); or
1210 (B) disqualification from holding public office in accordance with Subsection (6)(b).
1211 (7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
1212 Section 13. Section 59-12-104 is amended to read:
1213 59-12-104. Exemptions.
1214 Exemptions from the taxes imposed by this chapter are as follows:
1215 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1216 under Chapter 13, Motor and Special Fuel Tax Act;
1217 (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
1218 subdivisions; however, this exemption does not apply to sales of:
1219 (a) construction materials except:
1220 (i) construction materials purchased by or on behalf of institutions of the public
1221 education system as defined in Utah Constitution, Article X, Section 2, provided the
1222 construction materials are clearly identified and segregated and installed or converted to real
1223 property which is owned by institutions of the public education system; and
1224 (ii) construction materials purchased by the state, its institutions, or its political
1225 subdivisions which are installed or converted to real property by employees of the state, its
1226 institutions, or its political subdivisions; or
1227 (b) tangible personal property in connection with the construction, operation,
1228 maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
1229 providing additional project capacity, as defined in Section 11-13-103;
1230 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
1231 (i) the proceeds of each sale do not exceed $1; and
1232 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
1233 the cost of the item described in Subsection (3)(b) as goods consumed; and
1234 (b) Subsection (3)(a) applies to:
1235 (i) food and food ingredients; or
1236 (ii) prepared food;
1237 (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
1238 (i) alcoholic beverages;
1239 (ii) food and food ingredients; or
1240 (iii) prepared food;
1241 (b) sales of tangible personal property or a product transferred electronically:
1242 (i) to a passenger;
1243 (ii) by a commercial airline carrier; and
1244 (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
1245 (c) services related to Subsection (4)(a) or (b);
1246 (5) sales of parts and equipment for installation in an aircraft operated by a common
1247 carrier in interstate or foreign commerce;
1248 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
1249 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1250 exhibitor, distributor, or commercial television or radio broadcaster;
1251 (7) (a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
1252 cleaning or washing of tangible personal property if the cleaning or washing of the tangible
1253 personal property is not assisted cleaning or washing of tangible personal property;
1254 (b) if a seller that sells at the same business location assisted cleaning or washing of
1255 tangible personal property and cleaning or washing of tangible personal property that is not
1256 assisted cleaning or washing of tangible personal property, the exemption described in
1257 Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
1258 or washing of the tangible personal property; and
1259 (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
1260 Utah Administrative Rulemaking Act, the commission may make rules:
1261 (i) governing the circumstances under which sales are at the same business location;
1262 and
1263 (ii) establishing the procedures and requirements for a seller to separately account for
1264 sales of assisted cleaning or washing of tangible personal property;
1265 (8) sales made to or by religious or charitable institutions in the conduct of their regular
1266 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
1267 fulfilled;
1268 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
1269 this state if:
1270 (a) the sale is not from the vehicle's lessor to the vehicle's lessee;
1271 (b) the vehicle is not registered in this state; and
1272 (c) (i) the vehicle is not used in this state; or
1273 (ii) the vehicle is used in this state:
1274 (A) if the vehicle is not used to conduct business, for a time period that does not
1275 exceed the longer of:
1276 (I) 30 days in any calendar year; or
1277 (II) the time period necessary to transport the vehicle to the borders of this state; or
1278 (B) if the vehicle is used to conduct business, for the time period necessary to transport
1279 the vehicle to the borders of this state;
1280 (10) (a) amounts paid for an item described in Subsection (10)(b) if:
1281 (i) the item is intended for human use; and
1282 (ii) (A) a prescription was issued for the item; or
1283 (B) the item was purchased by a hospital or other medical facility; and
1284 (b) (i) Subsection (10)(a) applies to:
1285 (A) a drug;
1286 (B) a syringe; or
1287 (C) a stoma supply; and
1288 (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1289 commission may by rule define the terms:
1290 (A) "syringe"; or
1291 (B) "stoma supply";
1292 (11) purchases or leases exempt under Section 19-12-201;
1293 (12) (a) sales of an item described in Subsection (12)(c) served by:
1294 (i) the following if the item described in Subsection (12)(c) is not available to the
1295 general public:
1296 (A) a church; or
1297 (B) a charitable institution; or
1298 (ii) an institution of higher education if:
1299 (A) the item described in Subsection (12)(c) is not available to the general public; or
1300 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
1301 offered by the institution of higher education; or
1302 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
1303 (i) a medical facility; or
1304 (ii) a nursing facility; and
1305 (c) Subsections (12)(a) and (b) apply to:
1306 (i) food and food ingredients;
1307 (ii) prepared food; or
1308 (iii) alcoholic beverages;
1309 (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
1310 or a product transferred electronically by a person:
1311 (i) regardless of the number of transactions involving the sale of that tangible personal
1312 property or product transferred electronically by that person; and
1313 (ii) not regularly engaged in the business of selling that type of tangible personal
1314 property or product transferred electronically;
1315 (b) this Subsection (13) does not apply if:
1316 (i) the sale is one of a series of sales of a character to indicate that the person is
1317 regularly engaged in the business of selling that type of tangible personal property or product
1318 transferred electronically;
1319 (ii) the person holds that person out as regularly engaged in the business of selling that
1320 type of tangible personal property or product transferred electronically;
1321 (iii) the person sells an item of tangible personal property or product transferred
1322 electronically that the person purchased as a sale that is exempt under Subsection (25); or
1323 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
1324 this state in which case the tax is based upon:
1325 (A) the bill of sale, lease agreement, or other written evidence of value of the vehicle or
1326 vessel being sold; or
1327 (B) in the absence of a bill of sale, lease agreement, or other written evidence of value,
1328 the fair market value of the vehicle or vessel being sold at the time of the sale as determined by
1329 the commission; and
1330 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1331 commission shall make rules establishing the circumstances under which:
1332 (i) a person is regularly engaged in the business of selling a type of tangible personal
1333 property or product transferred electronically;
1334 (ii) a sale of tangible personal property or a product transferred electronically is one of
1335 a series of sales of a character to indicate that a person is regularly engaged in the business of
1336 selling that type of tangible personal property or product transferred electronically; or
1337 (iii) a person holds that person out as regularly engaged in the business of selling a type
1338 of tangible personal property or product transferred electronically;
1339 (14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1340 operating repair or replacement parts, or materials, except for office equipment or office
1341 supplies, by:
1342 (a) a manufacturing facility that:
1343 (i) is located in the state; and
1344 (ii) uses or consumes the machinery, equipment, normal operating repair or
1345 replacement parts, or materials:
1346 (A) in the manufacturing process to manufacture an item sold as tangible personal
1347 property, as the commission may define that phrase in accordance with Title 63G, Chapter 3,
1348 Utah Administrative Rulemaking Act; or
1349 (B) for a scrap recycler, to process an item sold as tangible personal property, as the
1350 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
1351 Administrative Rulemaking Act;
1352 (b) an establishment, as the commission defines that term in accordance with Title
1353 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
1354 (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
1355 Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal
1356 Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the
1357 2002 North American Industry Classification System of the federal Executive Office of the
1358 President, Office of Management and Budget;
1359 (ii) is located in the state; and
1360 (iii) uses or consumes the machinery, equipment, normal operating repair or
1361 replacement parts, or materials in:
1362 (A) the production process to produce an item sold as tangible personal property, as the
1363 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
1364 Administrative Rulemaking Act;
1365 (B) research and development, as the commission may define that phrase in accordance
1366 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1367 (C) transporting, storing, or managing tailings, overburden, or similar waste materials
1368 produced from mining;
1369 (D) developing or maintaining a road, tunnel, excavation, or similar feature used in
1370 mining; or
1371 (E) preventing, controlling, or reducing dust or other pollutants from mining; or
1372 (c) an establishment, as the commission defines that term in accordance with Title
1373 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
1374 (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
1375 American Industry Classification System of the federal Executive Office of the President,
1376 Office of Management and Budget;
1377 (ii) is located in the state; and
1378 (iii) uses or consumes the machinery, equipment, normal operating repair or
1379 replacement parts, or materials in the operation of the web search portal;
1380 (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
1381 (i) tooling;
1382 (ii) special tooling;
1383 (iii) support equipment;
1384 (iv) special test equipment; or
1385 (v) parts used in the repairs or renovations of tooling or equipment described in
1386 Subsections (15)(a)(i) through (iv); and
1387 (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1388 (i) the tooling, equipment, or parts are used or consumed exclusively in the
1389 performance of any aerospace or electronics industry contract with the United States
1390 government or any subcontract under that contract; and
1391 (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1392 title to the tooling, equipment, or parts is vested in the United States government as evidenced
1393 by:
1394 (A) a government identification tag placed on the tooling, equipment, or parts; or
1395 (B) listing on a government-approved property record if placing a government
1396 identification tag on the tooling, equipment, or parts is impractical;
1397 (16) sales of newspapers or newspaper subscriptions;
1398 (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
1399 product transferred electronically traded in as full or part payment of the purchase price, except
1400 that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
1401 trade-ins are limited to other vehicles only, and the tax is based upon:
1402 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
1403 vehicle being traded in; or
1404 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
1405 fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
1406 commission; and
1407 (b) Subsection (17)(a) does not apply to the following items of tangible personal
1408 property or products transferred electronically traded in as full or part payment of the purchase
1409 price:
1410 (i) money;
1411 (ii) electricity;
1412 (iii) water;
1413 (iv) gas; or
1414 (v) steam;
1415 (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
1416 or a product transferred electronically used or consumed primarily and directly in farming
1417 operations, regardless of whether the tangible personal property or product transferred
1418 electronically:
1419 (A) becomes part of real estate; or
1420 (B) is installed by a farmer, contractor, or subcontractor; or
1421 (ii) sales of parts used in the repairs or renovations of tangible personal property or a
1422 product transferred electronically if the tangible personal property or product transferred
1423 electronically is exempt under Subsection (18)(a)(i); and
1424 (b) amounts paid or charged for the following are subject to the taxes imposed by this
1425 chapter:
1426 (i) (A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
1427 supplies if used in a manner that is incidental to farming; and
1428 (B) tangible personal property that is considered to be used in a manner that is
1429 incidental to farming includes:
1430 (I) hand tools; or
1431 (II) maintenance and janitorial equipment and supplies;
1432 (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1433 transferred electronically if the tangible personal property or product transferred electronically
1434 is used in an activity other than farming; and
1435 (B) tangible personal property or a product transferred electronically that is considered
1436 to be used in an activity other than farming includes:
1437 (I) office equipment and supplies; or
1438 (II) equipment and supplies used in:
1439 (Aa) the sale or distribution of farm products;
1440 (Bb) research; or
1441 (Cc) transportation; or
1442 (iii) a vehicle required to be registered by the laws of this state during the period
1443 ending two years after the date of the vehicle's purchase;
1444 (19) sales of hay;
1445 (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
1446 garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1447 garden, farm, or other agricultural produce is sold by:
1448 (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1449 agricultural produce;
1450 (b) an employee of the producer described in Subsection (20)(a); or
1451 (c) a member of the immediate family of the producer described in Subsection (20)(a);
1452 (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
1453 under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1454 (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1455 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1456 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1457 manufacturer, processor, wholesaler, or retailer;
1458 (23) a product stored in the state for resale;
1459 (24) (a) purchases of a product if:
1460 (i) the product is:
1461 (A) purchased outside of this state;
1462 (B) brought into this state:
1463 (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1464 (II) by a nonresident person who is not living or working in this state at the time of the
1465 purchase;
1466 (C) used for the personal use or enjoyment of the nonresident person described in
1467 Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
1468 (D) not used in conducting business in this state; and
1469 (ii) for:
1470 (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
1471 the product for a purpose for which the product is designed occurs outside of this state;
1472 (B) a boat, the boat is registered outside of this state; or
1473 (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1474 outside of this state;
1475 (b) the exemption provided for in Subsection (24)(a) does not apply to:
1476 (i) a lease or rental of a product; or
1477 (ii) a sale of a vehicle exempt under Subsection (33); and
1478 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1479 purposes of Subsection (24)(a), the commission may by rule define what constitutes the
1480 following:
1481 (i) conducting business in this state if that phrase has the same meaning in this
1482 Subsection (24) as in Subsection (63);
1483 (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
1484 as in Subsection (63); or
1485 (iii) a purpose for which a product is designed if that phrase has the same meaning in
1486 this Subsection (24) as in Subsection (63);
1487 (25) a product purchased for resale in the regular course of business, either in its
1488 original form or as an ingredient or component part of a manufactured or compounded product;
1489 (26) a product upon which a sales or use tax was paid to some other state, or one of its
1490 subdivisions, except that the state shall be paid any difference between the tax paid and the tax
1491 imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
1492 the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
1493 Act;
1494 (27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a
1495 person for use in compounding a service taxable under the subsections;
1496 (28) purchases made in accordance with the special supplemental nutrition program for
1497 women, infants, and children established in 42 U.S.C. Sec. 1786;
1498 (29) sales or leases of rolls, rollers, refractory brick, electric motors, or other
1499 replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
1500 3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
1501 the President, Office of Management and Budget;
1502 (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1503 Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
1504 (a) not registered in this state; and
1505 (b) (i) not used in this state; or
1506 (ii) used in this state:
1507 (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
1508 time period that does not exceed the longer of:
1509 (I) 30 days in any calendar year; or
1510 (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
1511 the borders of this state; or
1512 (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
1513 period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
1514 state;
1515 (31) sales of aircraft manufactured in Utah;
1516 (32) amounts paid for the purchase of telecommunications service for purposes of
1517 providing telecommunications service;
1518 (33) sales, leases, or uses of the following:
1519 (a) a vehicle by an authorized carrier; or
1520 (b) tangible personal property that is installed on a vehicle:
1521 (i) sold or leased to or used by an authorized carrier; and
1522 (ii) before the vehicle is placed in service for the first time;
1523 (34) (a) 45% of the sales price of any new manufactured home; and
1524 (b) 100% of the sales price of any used manufactured home;
1525 (35) sales relating to schools and fundraising sales;
1526 (36) sales or rentals of durable medical equipment if:
1527 (a) a person presents a prescription for the durable medical equipment; and
1528 (b) the durable medical equipment is used for home use only;
1529 (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
1530 Section 72-11-102; and
1531 (b) the commission shall by rule determine the method for calculating sales exempt
1532 under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
1533 (38) sales to a ski resort of:
1534 (a) snowmaking equipment;
1535 (b) ski slope grooming equipment;
1536 (c) passenger ropeways as defined in Section 72-11-102; or
1537 (d) parts used in the repairs or renovations of equipment or passenger ropeways
1538 described in Subsections (38)(a) through (c);
1539 (39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal,
1540 fuel oil, or other fuels for industrial use;
1541 (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
1542 amusement, entertainment, or recreation an unassisted amusement device as defined in Section
1543 59-12-102;
1544 (b) if a seller that sells or rents at the same business location the right to use or operate
1545 for amusement, entertainment, or recreation one or more unassisted amusement devices and
1546 one or more assisted amusement devices, the exemption described in Subsection (40)(a)
1547 applies if the seller separately accounts for the sales or rentals of the right to use or operate for
1548 amusement, entertainment, or recreation for the assisted amusement devices; and
1549 (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
1550 Utah Administrative Rulemaking Act, the commission may make rules:
1551 (i) governing the circumstances under which sales are at the same business location;
1552 and
1553 (ii) establishing the procedures and requirements for a seller to separately account for
1554 the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
1555 assisted amusement devices;
1556 (41) (a) sales of photocopies by:
1557 (i) a governmental entity; or
1558 (ii) an entity within the state system of public education, including:
1559 (A) a school; or
1560 (B) the State Board of Education; or
1561 (b) sales of publications by a governmental entity;
1562 (42) amounts paid for admission to an athletic event at an institution of higher
1563 education that is subject to the provisions of Title IX of the Education Amendments of 1972,
1564 20 U.S.C. Sec. 1681 et seq.;
1565 (43) (a) sales made to or by:
1566 (i) an area agency on aging; or
1567 (ii) a senior citizen center owned by a county, city, or town; or
1568 (b) sales made by a senior citizen center that contracts with an area agency on aging;
1569 (44) sales or leases of semiconductor fabricating, processing, research, or development
1570 materials regardless of whether the semiconductor fabricating, processing, research, or
1571 development materials:
1572 (a) actually come into contact with a semiconductor; or
1573 (b) ultimately become incorporated into real property;
1574 (45) an amount paid by or charged to a purchaser for accommodations and services
1575 described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section
1576 59-12-104.2;
1577 (46) the lease or use of a vehicle issued a temporary sports event registration certificate
1578 in accordance with Section 41-3-306 for the event period specified on the temporary sports
1579 event registration certificate;
1580 (47) (a) sales or uses of electricity, if the sales or uses are made under a retail tariff
1581 adopted by the Public Service Commission only for purchase of electricity produced from a
1582 new alternative energy source built after January 1, 2016, as designated in the tariff by the
1583 Public Service Commission; and
1584 (b) for a residential use customer only, the exemption under Subsection (47)(a) applies
1585 only to the portion of the tariff rate a customer pays under the tariff described in Subsection
1586 (47)(a) that exceeds the tariff rate under the tariff described in Subsection (47)(a) that the
1587 customer would have paid absent the tariff;
1588 (48) sales or rentals of mobility enhancing equipment if a person presents a
1589 prescription for the mobility enhancing equipment;
1590 (49) sales of water in a:
1591 (a) pipe;
1592 (b) conduit;
1593 (c) ditch; or
1594 (d) reservoir;
1595 (50) sales of currency or coins that constitute legal tender of a state, the United States,
1596 or a foreign nation;
1597 (51) (a) sales of an item described in Subsection (51)(b) if the item:
1598 (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
1599 (ii) has a gold, silver, or platinum content of 50% or more; and
1600 (b) Subsection (51)(a) applies to a gold, silver, or platinum:
1601 (i) ingot;
1602 (ii) bar;
1603 (iii) medallion; or
1604 (iv) decorative coin;
1605 (52) amounts paid on a sale-leaseback transaction;
1606 (53) sales of a prosthetic device:
1607 (a) for use on or in a human; and
1608 (b) (i) for which a prescription is required; or
1609 (ii) if the prosthetic device is purchased by a hospital or other medical facility;
1610 (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
1611 machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
1612 or equipment is primarily used in the production or postproduction of the following media for
1613 commercial distribution:
1614 (i) a motion picture;
1615 (ii) a television program;
1616 (iii) a movie made for television;
1617 (iv) a music video;
1618 (v) a commercial;
1619 (vi) a documentary; or
1620 (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
1621 commission by administrative rule made in accordance with Subsection (54)(d); or
1622 (b) purchases, leases, or rentals of machinery or equipment by an establishment
1623 described in Subsection (54)(c) that is used for the production or postproduction of the
1624 following are subject to the taxes imposed by this chapter:
1625 (i) a live musical performance;
1626 (ii) a live news program; or
1627 (iii) a live sporting event;
1628 (c) the following establishments listed in the 1997 North American Industry
1629 Classification System of the federal Executive Office of the President, Office of Management
1630 and Budget, apply to Subsections (54)(a) and (b):
1631 (i) NAICS Code 512110; or
1632 (ii) NAICS Code 51219; and
1633 (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1634 commission may by rule:
1635 (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
1636 or
1637 (ii) define:
1638 (A) "commercial distribution";
1639 (B) "live musical performance";
1640 (C) "live news program"; or
1641 (D) "live sporting event";
1642 (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
1643 on or before June 30, 2027, of tangible personal property that:
1644 (i) is leased or purchased for or by a facility that:
1645 (A) is an alternative energy electricity production facility;
1646 (B) is located in the state; and
1647 (C) (I) becomes operational on or after July 1, 2004; or
1648 (II) has its generation capacity increased by one or more megawatts on or after July 1,
1649 2004, as a result of the use of the tangible personal property;
1650 (ii) has an economic life of five or more years; and
1651 (iii) is used to make the facility or the increase in capacity of the facility described in
1652 Subsection (55)(a)(i) operational up to the point of interconnection with an existing
1653 transmission grid including:
1654 (A) a wind turbine;
1655 (B) generating equipment;
1656 (C) a control and monitoring system;
1657 (D) a power line;
1658 (E) substation equipment;
1659 (F) lighting;
1660 (G) fencing;
1661 (H) pipes; or
1662 (I) other equipment used for locating a power line or pole; and
1663 (b) this Subsection (55) does not apply to:
1664 (i) tangible personal property used in construction of:
1665 (A) a new alternative energy electricity production facility; or
1666 (B) the increase in the capacity of an alternative energy electricity production facility;
1667 (ii) contracted services required for construction and routine maintenance activities;
1668 and
1669 (iii) unless the tangible personal property is used or acquired for an increase in capacity
1670 of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
1671 acquired after:
1672 (A) the alternative energy electricity production facility described in Subsection
1673 (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
1674 (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
1675 in Subsection (55)(a)(iii);
1676 (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
1677 on or before June 30, 2027, of tangible personal property that:
1678 (i) is leased or purchased for or by a facility that:
1679 (A) is a waste energy production facility;
1680 (B) is located in the state; and
1681 (C) (I) becomes operational on or after July 1, 2004; or
1682 (II) has its generation capacity increased by one or more megawatts on or after July 1,
1683 2004, as a result of the use of the tangible personal property;
1684 (ii) has an economic life of five or more years; and
1685 (iii) is used to make the facility or the increase in capacity of the facility described in
1686 Subsection (56)(a)(i) operational up to the point of interconnection with an existing
1687 transmission grid including:
1688 (A) generating equipment;
1689 (B) a control and monitoring system;
1690 (C) a power line;
1691 (D) substation equipment;
1692 (E) lighting;
1693 (F) fencing;
1694 (G) pipes; or
1695 (H) other equipment used for locating a power line or pole; and
1696 (b) this Subsection (56) does not apply to:
1697 (i) tangible personal property used in construction of:
1698 (A) a new waste energy facility; or
1699 (B) the increase in the capacity of a waste energy facility;
1700 (ii) contracted services required for construction and routine maintenance activities;
1701 and
1702 (iii) unless the tangible personal property is used or acquired for an increase in capacity
1703 described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
1704 (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
1705 described in Subsection (56)(a)(iii); or
1706 (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
1707 in Subsection (56)(a)(iii);
1708 (57) (a) leases of five or more years or purchases made on or after July 1, 2004, but on
1709 or before June 30, 2027, of tangible personal property that:
1710 (i) is leased or purchased for or by a facility that:
1711 (A) is located in the state;
1712 (B) produces fuel from alternative energy, including:
1713 (I) methanol; or
1714 (II) ethanol; and
1715 (C) (I) becomes operational on or after July 1, 2004; or
1716 (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
1717 a result of the installation of the tangible personal property;
1718 (ii) has an economic life of five or more years; and
1719 (iii) is installed on the facility described in Subsection (57)(a)(i);
1720 (b) this Subsection (57) does not apply to:
1721 (i) tangible personal property used in construction of:
1722 (A) a new facility described in Subsection (57)(a)(i); or
1723 (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
1724 (ii) contracted services required for construction and routine maintenance activities;
1725 and
1726 (iii) unless the tangible personal property is used or acquired for an increase in capacity
1727 described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
1728 (A) the facility described in Subsection (57)(a)(i) is operational; or
1729 (B) the increased capacity described in Subsection (57)(a)(i) is operational;
1730 (58) (a) subject to Subsection (58)(b), sales of tangible personal property or a product
1731 transferred electronically to a person within this state if that tangible personal property or
1732 product transferred electronically is subsequently shipped outside the state and incorporated
1733 pursuant to contract into and becomes a part of real property located outside of this state; and
1734 (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
1735 state or political entity to which the tangible personal property is shipped imposes a sales, use,
1736 gross receipts, or other similar transaction excise tax on the transaction against which the other
1737 state or political entity allows a credit for sales and use taxes imposed by this chapter;
1738 (59) purchases:
1739 (a) of one or more of the following items in printed or electronic format:
1740 (i) a list containing information that includes one or more:
1741 (A) names; or
1742 (B) addresses; or
1743 (ii) a database containing information that includes one or more:
1744 (A) names; or
1745 (B) addresses; and
1746 (b) used to send direct mail;
1747 (60) redemptions or repurchases of a product by a person if that product was:
1748 (a) delivered to a pawnbroker as part of a pawn transaction; and
1749 (b) redeemed or repurchased within the time period established in a written agreement
1750 between the person and the pawnbroker for redeeming or repurchasing the product;
1751 (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
1752 (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
1753 and
1754 (ii) has a useful economic life of one or more years; and
1755 (b) the following apply to Subsection (61)(a):
1756 (i) telecommunications enabling or facilitating equipment, machinery, or software;
1757 (ii) telecommunications equipment, machinery, or software required for 911 service;
1758 (iii) telecommunications maintenance or repair equipment, machinery, or software;
1759 (iv) telecommunications switching or routing equipment, machinery, or software; or
1760 (v) telecommunications transmission equipment, machinery, or software;
1761 (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
1762 personal property or a product transferred electronically that are used in the research and
1763 development of alternative energy technology; and
1764 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1765 commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
1766 purchases of tangible personal property or a product transferred electronically that are used in
1767 the research and development of alternative energy technology;
1768 (63) (a) purchases of tangible personal property or a product transferred electronically
1769 if:
1770 (i) the tangible personal property or product transferred electronically is:
1771 (A) purchased outside of this state;
1772 (B) brought into this state at any time after the purchase described in Subsection
1773 (63)(a)(i)(A); and
1774 (C) used in conducting business in this state; and
1775 (ii) for:
1776 (A) tangible personal property or a product transferred electronically other than the
1777 tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
1778 for a purpose for which the property is designed occurs outside of this state; or
1779 (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1780 outside of this state and not required to be registered in this state under Section 41-1a-202 or
1781 73-18-9 based on residency;
1782 (b) the exemption provided for in Subsection (63)(a) does not apply to:
1783 (i) a lease or rental of tangible personal property or a product transferred electronically;
1784 or
1785 (ii) a sale of a vehicle exempt under Subsection (33); and
1786 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1787 purposes of Subsection (63)(a), the commission may by rule define what constitutes the
1788 following:
1789 (i) conducting business in this state if that phrase has the same meaning in this
1790 Subsection (63) as in Subsection (24);
1791 (ii) the first use of tangible personal property or a product transferred electronically if
1792 that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
1793 (iii) a purpose for which tangible personal property or a product transferred
1794 electronically is designed if that phrase has the same meaning in this Subsection (63) as in
1795 Subsection (24);
1796 (64) sales of disposable home medical equipment or supplies if:
1797 (a) a person presents a prescription for the disposable home medical equipment or
1798 supplies;
1799 (b) the disposable home medical equipment or supplies are used exclusively by the
1800 person to whom the prescription described in Subsection (64)(a) is issued; and
1801 (c) the disposable home medical equipment and supplies are listed as eligible for
1802 payment under:
1803 (i) Title XVIII, federal Social Security Act; or
1804 (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
1805 (65) sales:
1806 (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
1807 District Act; or
1808 (b) of tangible personal property to a subcontractor of a public transit district, if the
1809 tangible personal property is:
1810 (i) clearly identified; and
1811 (ii) installed or converted to real property owned by the public transit district;
1812 (66) sales of construction materials:
1813 (a) purchased on or after July 1, 2010;
1814 (b) purchased by, on behalf of, or for the benefit of an international airport:
1815 (i) located within a county of the first class; and
1816 (ii) that has a United States customs office on its premises; and
1817 (c) if the construction materials are:
1818 (i) clearly identified;
1819 (ii) segregated; and
1820 (iii) installed or converted to real property:
1821 (A) owned or operated by the international airport described in Subsection (66)(b); and
1822 (B) located at the international airport described in Subsection (66)(b);
1823 (67) sales of construction materials:
1824 (a) purchased on or after July 1, 2008;
1825 (b) purchased by, on behalf of, or for the benefit of a new airport:
1826 (i) located within a county of the second class; and
1827 (ii) that is owned or operated by a city in which an airline as defined in Section
1828 59-2-102 is headquartered; and
1829 (c) if the construction materials are:
1830 (i) clearly identified;
1831 (ii) segregated; and
1832 (iii) installed or converted to real property:
1833 (A) owned or operated by the new airport described in Subsection (67)(b);
1834 (B) located at the new airport described in Subsection (67)(b); and
1835 (C) as part of the construction of the new airport described in Subsection (67)(b);
1836 (68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a
1837 common carrier that is a railroad for use in a locomotive engine;
1838 (69) purchases and sales described in Section 63H-4-111;
1839 (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
1840 overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
1841 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
1842 lists a state or country other than this state as the location of registry of the fixed wing turbine
1843 powered aircraft; or
1844 (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
1845 provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
1846 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
1847 lists a state or country other than this state as the location of registry of the fixed wing turbine
1848 powered aircraft;
1849 (71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
1850 (a) to a person admitted to an institution of higher education; and
1851 (b) by a seller, other than a bookstore owned by an institution of higher education, if
1852 51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
1853 textbook for a higher education course;
1854 (72) a license fee or tax a municipality imposes in accordance with Subsection
1855 10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced
1856 level of municipal services;
1857 (73) amounts paid or charged for construction materials used in the construction of a
1858 new or expanding life science research and development facility in the state, if the construction
1859 materials are:
1860 (a) clearly identified;
1861 (b) segregated; and
1862 (c) installed or converted to real property;
1863 (74) amounts paid or charged for:
1864 (a) a purchase or lease of machinery and equipment that:
1865 (i) are used in performing qualified research:
1866 (A) as defined in Section 41(d), Internal Revenue Code; and
1867 (B) in the state; and
1868 (ii) have an economic life of three or more years; and
1869 (b) normal operating repair or replacement parts:
1870 (i) for the machinery and equipment described in Subsection (74)(a); and
1871 (ii) that have an economic life of three or more years;
1872 (75) a sale or lease of tangible personal property used in the preparation of prepared
1873 food if:
1874 (a) for a sale:
1875 (i) the ownership of the seller and the ownership of the purchaser are identical; and
1876 (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
1877 tangible personal property prior to making the sale; or
1878 (b) for a lease:
1879 (i) the ownership of the lessor and the ownership of the lessee are identical; and
1880 (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
1881 personal property prior to making the lease;
1882 (76) (a) purchases of machinery or equipment if:
1883 (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
1884 Gambling, and Recreation Industries, of the 2012 North American Industry Classification
1885 System of the federal Executive Office of the President, Office of Management and Budget;
1886 (ii) the machinery or equipment:
1887 (A) has an economic life of three or more years; and
1888 (B) is used by one or more persons who pay admission or user fees described in
1889 Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
1890 (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
1891 (A) amounts paid or charged as admission or user fees described in Subsection
1892 59-12-103(1)(f); and
1893 (B) subject to taxation under this chapter; and
1894 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1895 commission may make rules for verifying that 51% of a purchaser's sales revenue for the
1896 previous calendar quarter is:
1897 (i) amounts paid or charged as admission or user fees described in Subsection
1898 59-12-103(1)(f); and
1899 (ii) subject to taxation under this chapter;
1900 (77) purchases of a short-term lodging consumable by a business that provides
1901 accommodations and services described in Subsection 59-12-103(1)(i);
1902 (78) amounts paid or charged to access a database:
1903 (a) if the primary purpose for accessing the database is to view or retrieve information
1904 from the database; and
1905 (b) not including amounts paid or charged for a:
1906 (i) digital audio work;
1907 (ii) digital audio-visual work; or
1908 (iii) digital book;
1909 (79) amounts paid or charged for a purchase or lease made by an electronic financial
1910 payment service, of:
1911 (a) machinery and equipment that:
1912 (i) are used in the operation of the electronic financial payment service; and
1913 (ii) have an economic life of three or more years; and
1914 (b) normal operating repair or replacement parts that:
1915 (i) are used in the operation of the electronic financial payment service; and
1916 (ii) have an economic life of three or more years;
1917 (80) sales of a fuel cell as defined in Section 54-15-102;
1918 (81) amounts paid or charged for a purchase or lease of tangible personal property or a
1919 product transferred electronically if the tangible personal property or product transferred
1920 electronically:
1921 (a) is stored, used, or consumed in the state; and
1922 (b) is temporarily brought into the state from another state:
1923 (i) during a disaster period as defined in Section 53-2a-1202;
1924 (ii) by an out-of-state business as defined in Section 53-2a-1202;
1925 (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
1926 (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
1927 (82) sales of goods and services at a morale, welfare, and recreation facility, as defined
1928 in Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and Recreation
1929 Program;
1930 (83) amounts paid or charged for a purchase or lease of molten magnesium;
1931 (84) amounts paid or charged for a purchase or lease made by a qualifying data center
1932 or an occupant of a qualifying data center of machinery, equipment, or normal operating repair
1933 or replacement parts, if the machinery, equipment, or normal operating repair or replacement
1934 parts:
1935 (a) are used in:
1936 (i) the operation of the qualifying data center; or
1937 (ii) the occupant's operations in the qualifying data center; and
1938 (b) have an economic life of one or more years;
1939 (85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a
1940 vehicle that includes cleaning or washing of the interior of the vehicle;
1941 (86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1942 operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies used
1943 or consumed:
1944 (a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
1945 in Section 79-6-701 located in the state;
1946 (b) if the machinery, equipment, normal operating repair or replacement parts,
1947 catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
1948 (i) the production process to produce gasoline or diesel fuel, or at which blendstock is
1949 added to gasoline or diesel fuel;
1950 (ii) research and development;
1951 (iii) transporting, storing, or managing raw materials, work in process, finished
1952 products, and waste materials produced from refining gasoline or diesel fuel, or adding
1953 blendstock to gasoline or diesel fuel;
1954 (iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
1955 refining; or
1956 (v) preventing, controlling, or reducing pollutants from refining; and
1957 (c) if the person holds a valid refiner tax exemption certification as defined in Section
1958 79-6-701;
1959 (87) amounts paid to or charged by a proprietor for accommodations and services, as
1960 defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations tax
1961 imposed under Section 63H-1-205;
1962 (88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1963 operating repair or replacement parts, or materials, except for office equipment or office
1964 supplies, by an establishment, as the commission defines that term in accordance with Title
1965 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
1966 (a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
1967 American Industry Classification System of the federal Executive Office of the President,
1968 Office of Management and Budget;
1969 (b) is located in this state; and
1970 (c) uses the machinery, equipment, normal operating repair or replacement parts, or
1971 materials in the operation of the establishment;
1972 (89) amounts paid or charged for an item exempt under Section 59-12-104.10;
1973 (90) sales of a note, leaf, foil, or film, if the item:
1974 (a) is used as currency;
1975 (b) does not constitute legal tender of a state, the United States, or a foreign nation; and
1976 (c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
1977 transparent polymer holder, coating, or encasement;
1978 (91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
1979 surfing facility, if a trained instructor:
1980 (a) is present with the participant, in person or by video, for the duration of the activity;
1981 and
1982 (b) actively instructs the participant, including providing observation or feedback;
1983 (92) amounts paid or charged in connection with the construction, operation,
1984 maintenance, repair, or replacement of facilities owned by or constructed for:
1985 (a) a distribution electrical cooperative, as defined in Section 54-2-1; or
1986 (b) a wholesale electrical cooperative, as defined in Section 54-2-1;
1987 (93) amounts paid by the service provider for tangible personal property, other than
1988 machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels, that:
1989 (a) is consumed in the performance of a service that is subject to tax under Subsection
1990 59-12-103(1)(b), (f), (g), (h), (i), or (j);
1991 (b) has to be consumed for the service provider to provide the service described in
1992 Subsection (93)(a); and
1993 (c) will be consumed in the performance of the service described in Subsection (93)(a),
1994 to one or more customers, to the point that the tangible personal property disappears or cannot
1995 be used for any other purpose;
1996 (94) sales of rail rolling stock manufactured in Utah; [
1997 (95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement
1998 products, or construction materials between establishments, as the commission defines that
1999 term in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
2000 (a) the establishments are related directly or indirectly through 100% common
2001 ownership or control; and
2002 (b) each establishment is described in one of the following subsectors of the 2022
2003 North American Industry Classification System of the federal Executive Office of the
2004 President, Office of Management and Budget:
2005 (i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
2006 (ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing[
2007 (96) amounts paid or charged for sales of a cannabinoid product as that term is defined
2008 in Section 4-41-102.
2009 Section 14. Section 59-31-101 is enacted to read:
2010
2011
2012 59-31-101. Definitions.
2013 As used in this chapter:
2014 (1) "Cannabinoid product" means the same as that term is defined in Section 4-41-102.
2015 (2) "Licensee" means a retailer that holds a valid license under Part 2, Licensing, to sell
2016 a cannabinoid product.
2017 (3) "Retail price" means the amount charged by a retailer for a cannabinoid product.
2018 (4) "Retailer" means a person that sells a cannabionoid product to a consumer for
2019 personal use.
2020 Section 15. Section 59-31-201 is enacted to read:
2021
2022 59-31-201. Prohibition on sale of cannabinoid product without license.
2023 (1) A person may not sell, offer to sell, or distribute a cannabinoid product in this state
2024 without first:
2025 (a) obtaining a license from the commission under Section 59-31-202; and
2026 (b) complying with the bonding requirement described in Section 59-31-202.
2027 (2) It is a class B misdemeanor for a person to violate Subsection (1).
2028 Section 16. Section 59-31-202 is enacted to read:
2029 59-31-202. Issuance of license.
2030 (1) The commission shall issue a license to sell a cannabinoid product to a retailer that
2031 submits an application, on a form created by the commission, that includes:
2032 (a) the retailer's name;
2033 (b) the address of the location permitted under Section 4-41-103.3 where the retailer
2034 sells the cannabinoid product; and
2035 (c) any other information the commission requires to implement this chapter.
2036 (2) A license is:
2037 (a) valid at only one fixed business address;
2038 (b) valid for three years;
2039 (c) valid only for a physical location; and
2040 (d) renewable if a licensee meets the criteria for licensing described in Subsection (1).
2041 (3) (a) The commission shall require a retailer that is responsible under this part for the
2042 collection of tax on a cannabinoid product to post a bond.
2043 (b) Subject to Subsection (3)(c), the commission shall determine the form and amount
2044 of the bond.
2045 (c) The minimum amount of the bond shall be $500.
2046 (4) In accordance with Title 63G, Chapter 3, Utah Rulemaking Authority, the
2047 commission may make rules to establish the additional information described in Subsection
2048 (1)(c) that a retailer shall provide in the application described in Subsection (1).
2049 (5) The commission may not charge a fee for a license under this section.
2050 (6) The license under this section is in addition to a license required under Section
2051 4-41-103.3.
2052 (7) (a) The commission shall maintain a public list that includes the identity of each
2053 person licensed under this section.
2054 (b) The list shall:
2055 (i) include the type of license possessed; and
2056 (ii) be updated by the commission at least once per quarter.
2057 Section 17. Section 59-31-203 is enacted to read:
2058 59-31-203. License revocation and reinstatement.
2059 (1) The commission shall, on a reasonable notice and after a hearing, revoke the license
2060 of any licensee violating any provisions of this chapter.
2061 (2) A license may not be reissued to a licensee described in Subsection (1) until the
2062 licensee has complied with the requirements of this chapter, including paying any:
2063 (a) tax due under Part 3, Tax;
2064 (b) penalty as provided in Section 59-1-401; and
2065 (c) interest as provided in Section 59-1-402.
2066 Section 18. Section 59-31-301 is enacted to read:
2067
2068 59-31-301. Taxation of cannabinoid product.
2069 (1) A tax is imposed on a cannabinoid product at a rate of .10 multiplied by the retail
2070 price.
2071 (2) (a) A licensee shall collect the tax imposed under Subsection (1) from a purchaser
2072 at the time the cannabinoid product is sold.
2073 (b) A consumer that purchases or receives an untaxed cannabinoid product shall pay
2074 the tax at the time the cannabinoid product is first received in this state.
2075 Section 19. Section 59-31-302 is enacted to read:
2076 59-31-302. Remittance of tax.
2077 (1) (a) The licensee that collects the tax imposed on a cannabinoid product shall remit
2078 to the commission, in an electronic format approved by the commission:
2079 (i) the tax due in the previous quarter; and
2080 (ii) the tax return.
2081 (b) The tax collected and the return are due on or before the last day of April, July,
2082 October, and January.
2083 (2) A licensee that sells a cannabinoid product to a purchaser shall maintain records to
2084 determine the amount of tax due under this part for a period of three years.
2085 (3) (a) A consumer that receives or purchases an untaxed cannabinoid product for use
2086 or other consumption shall:
2087 (i) file with the commission, on a form provided by the commission, a statement
2088 showing the quantity and description of the cannabinoid product subject to tax under this part;
2089 and
2090 (ii) pay the tax imposed by this part on the cannabinoid product.
2091 (b) The consumer shall file the statement described in Subsection (3)(a) and pay the tax
2092 due on or before the last day of the month immediately following the month during which the
2093 consumer purchased an untaxed cannabinoid product.
2094 (c) A consumer shall maintain records necessary to determine the amount of tax the
2095 consumer is liable to pay under this part for a period of three years after the day on which the
2096 consumer filed the statement required by this section.
2097 (4) A tourist who imports an untaxed cannabinoid product into the state does not need
2098 to file the statement described in Subsection (3) or pay the tax if the cannabinoid product is for
2099 the tourist's own use or consumption while in this state.
2100 (5) In addition to the tax required by this part, a person shall pay a penalty as provided
2101 in Section 59-1-401, plus interest at the rate and in the manner provide in Section 59-1-402, if a
2102 person subject to this section fails to:
2103 (a) pay the tax imposed by this part;
2104 (b) pay the tax on time; or
2105 (c) file a return or statement required by this part.
2106 (6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in
2107 the manner provided in Section 59-1-402.
2108 (7) (a) The commission shall retain and deposit an administrative charge in accordance
2109 with Section 59-1-306 from revenue generated by the tax under this part.
2110 (b) The commission shall Ĥ→ [
2111 by this part
2111a General Fund and the remaining revenue ←Ĥ into the Cannabinoid Proceeds Restricted Account
2111b created in Section 59-31-401.
2112 Section 20. Section 59-31-401 is enacted to read:
2113
2114 59-31-401. Cannabinoid Proceeds Restricted Account.
2115 (1) There is created within the General Fund a restricted account known as the
2116 "Cannabinoid Proceeds Restricted Account."
2117 (2) The Cannabinoid Proceeds Restricted Account consists of:
2118 (a) revenue collected from the tax imposed by Section 59-31-301; and
2119 (b) amounts appropriated by the Legislature.
2120 (3) Ĥ→ [
2120a following:
2121 (a) enforcement of Title 4, Chapter 41, Hemp and Cannabinoid Act by the Department
2122 of Agriculture and Food;
2123 (b) investigations described in Section 77-39-101, regarding cannabinoid products;
2124 (c) the Industrial Hemp Grant Program created in Section 63N-3-1302; and
2125 (d) provided to counties, cities, and towns in proportion to the county's, city's, or town's
2126 distribution under Section 59-12-205 for the preceding fiscal year.
2127 Section 21. Section 59-31-402 is enacted to read:
2128 59-31-402. Report to Department of Agriculture and Food of illegal cannabinoid
2129 product.
2130 If the commission suspects that a cannabinoid product is being sold in the state in
2131 violation of a law other than a law described in this chapter, the commission shall report the
2132 name and tax identification number of the seller and the cannabinoid product:
2133 (1) to the Department of Agriculture and Food; and
2134 (2) within 30 days after the day on which the commission becomes aware of the sale.
2135 Section 22. Section 63N-3-1301 is enacted to read:
2136
2137 63N-3-1301. Definitions.
2138 As used in this part;
2139 (1) "Cannabinoid processor license" means the same as that term is defined in Section
2140 4-41-102.
2141 (2) "Cannabinoid product" means the same as that term is defined in Section 4-41-102.
2142 (3) "Industrial hemp" means the same as that term is defined in Section 4-41-102.
2143 (4) "Industrial hemp producer registration" means the same as that term is defined in
2144 Section 4-41-102.
2145 Section 23. Section 63N-3-1302 is enacted to read:
2146 63N-3-1302. Industrial Hemp Grant Program.
2147 (1) (a) There is created the Industrial Hemp Grant Program to be administered by the
2148 office.
2149 (b) The purpose of the program is to award grants to existing Utah businesses that have
2150 a cannabinoid processor license or an industrial hemp producer registrations to develop
2151 industrial hemp products.
2152 (2) (a) An entity that submits a proposal for a grant to the office shall include details in
2153 the proposal regarding:
2154 (i) how the entity plans to use the grant to fulfill the purpose described in Subsection
2155 (1)(b);
2156 (ii) any plan to use funding sources in addition to a grant for the proposal; and
2157 (iii) any existing or planned partnerships between the entity and another individual or
2158 entity to implement the proposal.
2159 (b) In evaluating a proposal for a grant, the office shall consider:
2160 (i) the likelihood the proposal will accomplish the purpose described in Subsection
2161 (1)(b);
2162 (ii) the extent to which any additional funding sources or existing or planned
2163 partnerships will benefit the proposal; and
2164 (iii) the viability and sustainability of the proposal.
2165 (c) In determining a grant award, the office:
2166 (i) shall consult with the Department of Agriculture and Food; and
2167 (ii) may prioritize a business that is committed to switching from producing
2168 cannabinoid products to industrial hemp products.
2169 (3) Before receiving the grant, a grant recipient shall enter into a written agreement
2170 with the office that specifies:
2171 (a) the grant amount;
2172 (b) the time period and structure for distribution of the grant, including any terms and
2173 conditions the recipient is required to meet to receive a distribution; and
2174 (c) the expenses for which the recipient may use the grant.
2175 (4) Subject to Subsection (2), the office may, in accordance with Title 63G, Chapter 3,
2176 Utah Administrative Rulemaking Act, make rules to establish:
2177 (a) the form and process for submitting a proposal to the office for a grant;
2178 (b) which entities are eligible to apply for a grant;
2179 (c) the method and formula for determining a grant amount; and
2180 (d) the reporting requirements for a grant recipient.
2181 Section 24. Section 77-39-101 is amended to read:
2182 77-39-101. Investigation of sales of alcohol, tobacco products, electronic cigarette
2183 products, nicotine products, and cannabinoid products to underage individuals.
2184 (1) As used in this section:
2185 (a) "Cannabinoid product" means the same as that term is defined in Section 4-41-102.
2186 (b) "Electronic cigarette product" means the same as that term is defined in Section
2187 76-10-101.
2188 [
2189 76-10-101.
2190 [
2191 [
2192 76-10-101.
2193 (2) (a) A peace officer may investigate the possible violation of:
2194 (i) Section 32B-4-403 by requesting an individual under 21 years old to enter into and
2195 attempt to purchase or make a purchase of alcohol from a retail establishment; [
2196 (ii) Section 76-10-114 by requesting an individual under 21 years old to enter into and
2197 attempt to purchase or make a purchase from a retail establishment of:
2198 (A) a tobacco product;
2199 (B) an electronic cigarette product; or
2200 (C) a nicotine product[
2201 (iii) Subsection 4-41-105(2)(d) by requesting an individual under 21 years old to enter
2202 into and attempt to purchase or make a purchase of a cannabinoid product that contains THC or
2203 a THC analog from a retail establishment.
2204 (b) A peace officer who is present at the site of a proposed purchase shall direct,
2205 supervise, and monitor the individual requested to make the purchase.
2206 (c) Immediately following a purchase or attempted purchase or as soon as practical the
2207 supervising peace officer shall inform the cashier and the proprietor or manager of the retail
2208 establishment that the attempted purchaser was under the legal age to purchase:
2209 (i) alcohol; [
2210 (ii) (A) a tobacco product;
2211 (B) an electronic cigarette product; or
2212 (C) a nicotine product[
2213 (iii) a cannabinoid product that contains THC or a THC analog.
2214 (d) If a citation or information is issued, the citation or information shall be issued
2215 within seven days after the day on which the purchase occurs.
2216 (3) (a) If an individual under 18 years old is requested to attempt a purchase, a written
2217 consent of that individual's parent or guardian shall be obtained before the individual
2218 participates in any attempted purchase.
2219 (b) An individual requested by the peace officer to attempt a purchase may:
2220 (i) be a trained volunteer; or
2221 (ii) receive payment, but may not be paid based on the number of successful purchases
2222 of alcohol, tobacco products, electronic cigarette products, [
2223 cannabinoid products that contain THC or a THC analog.
2224 (4) The individual requested by the peace officer to attempt a purchase and anyone
2225 accompanying the individual attempting a purchase may use false identification in attempting
2226 the purchase if:
2227 (a) the Department of Public Safety created in Section 53-1-103 provides the false
2228 identification;
2229 (b) the false identification:
2230 (i) accurately represents the individual's age; and
2231 (ii) displays a current photo of the individual; and
2232 (c) the peace officer maintains possession of the false identification at all times outside
2233 the attempt to purchase.
2234 (5) An individual requested to attempt to purchase or make a purchase pursuant to this
2235 section is immune from prosecution, suit, or civil liability for the purchase of, attempted
2236 purchase of, or possession of alcohol, a tobacco product, an electronic cigarette product, [
2237 nicotine product, or a cannabinoid product that contains THC or a THC analog if a peace
2238 officer directs, supervises, and monitors the individual.
2239 (6) (a) Except as provided in Subsection (6)(b), a purchase attempted under this section
2240 shall be conducted within a 12-month period:
2241 (i) on a random basis at any one retail establishment location, not more often than four
2242 times for the attempted purchase of alcohol; [
2243 (ii) a minimum of two times at a retail establishment that sells tobacco products,
2244 electronic cigarette products, or nicotine products for the attempted purchase of a tobacco
2245 product, an electronic cigarette product, or a nicotine product[
2246 (iii) a minimum of one time at a retail establishment that sells a cannabinoid product
2247 that contains THC or a THC analog.
2248 (b) This section does not prohibit an investigation or an attempt to purchase alcohol, a
2249 tobacco product, an electronic cigarette product, or a nicotine product under this section if:
2250 (i) there is reasonable suspicion to believe the retail establishment has sold alcohol, a
2251 tobacco product, an electronic cigarette product, [
2252 product that contains THC or a THC analog to an individual under the age established by
2253 Section 32B-4-403, [
2254 (ii) the supervising peace officer makes a written record of the grounds for the
2255 reasonable suspicion.
2256 (7) (a) The peace officer exercising direction, supervision, and monitoring of the
2257 attempted purchase shall make a report of the attempted purchase, whether or not a purchase
2258 was made.
2259 (b) The report required by this Subsection (7) shall include:
2260 (i) the name of the supervising peace officer;
2261 (ii) the name of the individual attempting the purchase;
2262 (iii) a photograph of the individual attempting the purchase showing how that
2263 individual appeared at the time of the attempted purchase;
2264 (iv) the name and description of the cashier or proprietor from whom the individual
2265 attempted the purchase;
2266 (v) the name and address of the retail establishment; and
2267 (vi) the date and time of the attempted purchase.
2268 Section 25. Effective date.
2269 (1) Except as provided in Subsection (2), this bill takes effect on January 1, 2025.
2270 (2) Ĥ→ [
2270a by two-thirds of all the members elected to each house, the actions affecting the following
2270b sections take effect upon approval by the governor, or the day following the constitutional time
2270c limit of Utah Constitution, Article VII, Section 8, without the governor's signature, or in the
2270d case of a veto, the date of veto override ←Ĥ :
2271 (a) Section 4-41-102;
2272 (b) Ĥ→ Section 4-41-103.1
2272a (c) ←Ĥ Section 4-41-103.4;
2273 Ĥ→ [
2274 Ĥ→ [
2275 Ĥ→ [
2276 Ĥ→ [
2277 Ĥ→ [