Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 18 First Substitute (2020GS)

Sponsor

Rep. Daw, B.

Final action

Governor Signed 3/2/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• directs the Department of Agriculture and Food to develop a state industrial hemp production plan;
• makes changes to the industrial hemp producer license;
• establishes requirements for:
• an industrial hemp retail permit; and
• an industrial hemp laboratory permit;
• establishes a process for enforcement of legal provisions relating to industrial hemp; and
• makes technical changes.

Every vote on this bill

Bill text

INDUSTRIAL HEMP PROGRAM AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brad M. Daw
Senate Sponsor: 
Scott D. Sandall
LONG TITLE
General Description:
This bill makes amendments to the industrial hemp program.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ directs the Department of Agriculture and Food to develop a state industrial hemp
production plan;
▸ makes changes to the industrial hemp producer license;
▸ establishes requirements for:
• an industrial hemp retail permit; and
• an industrial hemp laboratory permit;
▸ establishes a process for enforcement of legal provisions relating to industrial hemp;
and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
4-41-101
, as last amended by Laws of Utah 2019, Chapter 23
4-41-102
, as last amended by Laws of Utah 2019, Chapter 23
4-41-103
, as last amended by Laws of Utah 2019, Chapter 23
4-41-105
, as enacted by Laws of Utah 2018, Chapter 227
ENACTS:
4-41-103.1
, Utah Code Annotated 1953
4-41-103.2
, Utah Code Annotated 1953
4-41-103.3
, Utah Code Annotated 1953
4-41-103.4
, Utah Code Annotated 1953
4-41-106
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
4-41-101
 is amended to read:
Part 1. Industrial Hemp
4-41-101.
Title.
(1) This chapter is known as the "Hemp and Cannabinoid Act."
(2) This part is known as "Industrial Hemp [
Research
]."
Section 2. Section 
4-41-102
 is amended to read:
4-41-102.
Definitions.
As used in this chapter:
(1) "Cannabinoid product" means a chemical compound extracted from a hemp
product that:
(a) is processed into a medicinal dosage form; and
(b) contains less than 0.3% tetrahydrocannabinol by dry weight.
(2) "Industrial hemp" means any part of a cannabis plant, whether growing or not, with
a concentration of less than 0.3% tetrahydrocannabinol by dry weight.
(3) "Industrial hemp certificate" means a certificate that the department issues to a
higher education institution to grow or cultivate industrial hemp under Subsection 
4-41-103
(1).
(4) "Industrial hemp certificate holder" means a person possessing an industrial hemp
certificate that the department issues under this chapter.
(5) "Industrial hemp laboratory permit" means a permit that the department issues to a
laboratory qualified to test industrial hemp under the state hemp production plan.
[
(4)
] 
(6)
 "Industrial hemp 
producer
 license" means a license that the department issues
to a person for the purpose of [
growing, cultivating, processing, or marketing
] 
cultivating or
processing
 industrial hemp or an industrial hemp product.
(7) "Industrial hemp retailer permit" means a permit that the department issues to a
retailer who sells any industrial hemp product.
[
(5)
] 
(8)
 "Industrial hemp product" means a product derived from, or made by,
processing industrial hemp plants or industrial hemp parts.
(9) "Laboratory permittee" means a person possessing an industrial hemp laboratory
permit that the department issues under this chapter.
[
(6)
] 
(10)
 "Licensee" means [
an individual or business entity
] 
a person
 possessing [
a
]
an industrial hemp producer
 license that the department issues under this chapter [
to grow,
cultivate, process, or market industrial hemp or an industrial hemp product
].
[
(7)
] 
(11)
 "Medicinal dosage form" means:
(a) a tablet;
(b) a capsule;
(c) a concentrated oil;
(d) a sublingual preparation;
(e) a topical preparation;
(f) a transdermal preparation;
(g) a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or rectangular
cuboid shape; or
(h) other preparations that the department approves.
(12) "Non-compliant material" means a hemp plant or hemp product that does not
comply with this chapter, including a cannabis plant or product that contains a concentration of
0.3% tetrahydrocannabinol or greater by dry weight.
(13) "Permittee" means a person possessing a permit that the department issues under
this chapter.
[
(8)
] 
(14)
 "Person" means:
(a) an individual, partnership, association, firm, trust, limited liability company, or
corporation; and
(b) an agent or employee of an individual, partnership, association, firm, trust, limited
liability company, or corporation.
[
(9)
] 
(15)
 "Research pilot program" means a program conducted by the department in
collaboration with at least one licensee to study methods of cultivating, processing, or
marketing industrial hemp.
(16) "Retailer permittee" means a person possessing an industrial hemp retailer permit
that the department issues under this chapter.
(17) "State hemp production plan" means a plan submitted by the state to, and
approved by, the United States Department of Agriculture in accordance with 7 C.F.R. Chapter
990.
Section 3. Section 
4-41-103
 is amended to read:
4-41-103.
Industrial hemp -- Agricultural and academic research.
(1) The department [
and its licensee may grow, cultivate, or process
] 
or a certified
higher education institution may cultivate or process
 industrial hemp 
for agricultural and
academic research
.
(2) The department shall [
certify
] 
issue an industrial hemp certificate to
 a higher
education institution to [
grow or
] cultivate 
or process
 industrial hemp for the purpose of
agricultural or academic research if the higher education institution submits to the department:
(a) the location where the higher education institution intends to [
grow or
] cultivate 
or
process
 industrial hemp;
(b) the higher education institution's research plan; and
(c) the name of an employee of the higher education institution who will supervise the
industrial hemp [
growth,
] cultivation, 
processing,
 and research.
(3) The department shall maintain a list of each industrial hemp certificate holder [
and
licensee
].
(4) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to[
:(a) ensure any
] 
ensure that an
 industrial hemp project or
research pilot project meets the standards of an agricultural pilot project, as defined by Section
7606 of the United States Agricultural Act of 2014[
;
]
.
[
(b) establish requirements for a license to participate in an industrial hemp research
pilot program;
]
[
(c) establish requirements for a license to grow, cultivate, process, or market industrial
hemp;
]
[
(d) set sampling and testing procedures for industrial hemp; and
]
[
(e) define a class or category of an industrial hemp product that is eligible for sale,
transfer, or distribution to a member of the public.
]
[
(5) A person seeking to cultivate industrial hemp shall provide to the department:
]
[
(a) the legal description and global positioning coordinates sufficient for locating any
field or greenhouse the person uses to grow industrial hemp; and
]
[
(b) written consent allowing a representative of the department and local law
enforcement to enter all premises where the person cultivates, processes, or stores industrial
hemp for the purpose of:
]
[
(i) conducting a physical inspection; or
]
[
(ii) ensuring compliance with the requirements of this chapter.
]
[
(6) An individual who has been convicted of a drug-related felony within the last 10
years is not eligible to obtain a license under this chapter.
]
[
(7)
] 
(5)
 The department may set a fee in accordance with Subsection 
4-2-103
(2) for
the application for an industrial hemp certificate [
and the application for an industrial hemp
license
]. 
Section 4. Section 
4-41-103.1
 is enacted to read:
 4-41-103.1.
Industrial hemp state production plan -- Authority to regulate
production, sale, and testing of industrial hemp.
(1) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to:
(a) create a state hemp production plan that meets the standards of the Domestic Hemp
Production Program, 7 C.F.R. Chapter 990;
(b) establish requirements for an industrial hemp producer license to cultivate or
process industrial hemp;
(c) establish requirements for an industrial hemp retailer permit to market or sell
industrial hemp products; and
(d) establish the standards, methods, practices, and procedures a laboratory must use to
qualify for a permit to test industrial hemp and industrial hemp products and to dispose of
non-compliant material.
(2) The department shall maintain a list of each licensee and permittee.
Section 5. Section 
4-41-103.2
 is enacted to read:
 4-41-103.2.
Industrial hemp producer license.
(1) The department or a licensee of the department may cultivate or process industrial
hemp.
(2) A person seeking an industrial hemp producer license shall provide to the
department:
(a) the legal description and global positioning coordinates sufficient for locating the
fields or greenhouses the person uses to grow industrial hemp; and
(b) written consent allowing a representative of the department and local law
enforcement to enter all premises where the person cultivates, processes, or stores industrial
hemp for the purpose of:
(i) conducting a physical inspection; or
(ii) ensuring compliance with the requirements of this chapter.
(3) An individual who has been convicted of a drug-related felony within the last 10
years is not eligible to obtain an industrial hemp producer license.
(4) The department may set a fee in accordance with Subsection 
4-2-103
(2) for the
application for an industrial hemp producer license.
(5) A licensee may only market industrial hemp that the licensee cultivates or
processes.
Section 6. Section 
4-41-103.3
 is enacted to read:
 4-41-103.3.
Industrial hemp retailer permit.
(1) A retailer permittee of the department may market or sell industrial hemp products.
(2) A person seeking an industrial hemp retailer permit shall provide to the department:
(a) the name of the person that is seeking to market or sell an industrial hemp product;
(b) the address of each location where the industrial hemp product will be sold; and
(c) written consent allowing a representative of the department to enter all premises
where the person is selling an industrial hemp product for the purpose of:
(i) conducting a physical inspection; or
(ii) ensuring compliance with the requirements of this chapter.
(3) The department may set a fee in accordance with Subsection 
4-2-103
(2) for the
application for an industrial hemp retailer permit.
Section 7. Section 
4-41-103.4
 is enacted to read:
 4-41-103.4.
Industrial hemp laboratory permit.
(1) The department or a laboratory permittee of the department may test industrial
hemp and industrial hemp products.
(2) The department or a laboratory permittee of the department may dispose of
non-compliant material.
(3) A laboratory seeking an industrial hemp laboratory permit shall:
(a) demonstrate to the department that:
(i) the laboratory and laboratory staff possess the professional certifications required by
department rule;
(ii) the laboratory has the ability to test industrial hemp and industrial hemp products
using the standards, methods, practices, and procedures required by department rule;
(iii) the laboratory has the ability to meet the department's minimum standards of
performance for detecting delta-9 tetrahydrocannabinol (THC) concentration levels; and
(iv) the laboratory has a plan that complies with the department's rule for the safe
disposal of non-compliant material; and
(b) provide to the department written consent allowing a representative of the
department and local law enforcement to enter all premises where the laboratory tests,
processes, or stores industrial hemp, industrial hemp products, and non-compliant plants for the
purpose of:
(i) conducting a physical inspection; or
(ii) ensuring compliance with the requirements of this chapter.
(4) An individual who has been convicted of a drug-related felony within the last 10
years is not eligible to obtain a license under this chapter.
(5) The department may set a fee in accordance with Subsection 
4-2-103
(2) for the
application for an industrial hemp laboratory permit.
Section 8. Section 
4-41-105
 is amended to read:
4-41-105.
Unlawful acts.
(1) It is unlawful for a person [
who is not a licensee
] to cultivate, handle, process, or
market living industrial hemp plants, viable hemp seeds, leaf materials, or floral materials
derived from industrial hemp 
without the appropriate license or permit issued by the
department under this chapter
.
(2) It is unlawful for any person to distribute
, sell,
 or market an industrial hemp
product that is not registered with the department pursuant to Section 
4-41-104
.
(3) The department may seize and destroy [
hemp plants or products that do not comply
with this chapter, including cannabis plants or products that contain a concentration of 0.3%
tetrahydrocannabinol or greater by weight
] 
non-compliant material
.
(4) Nothing in this chapter authorizes any person to violate federal law, regulation, or
any provision of this title.
Section 9. Section 
4-41-106
 is enacted to read:
 4-41-106.
Enforcement -- Fine -- Citation.
(1) If a person violates this part, the department may:
(a) revoke the person's license or permit;
(b) decline to renew the person's license or permit; or
(c) assess the person a civil penalty that the department establishes in accordance with
Section 
4-2-304
.
(2) The department shall deposit a penalty imposed under this section into the General
Fund.
(3) The department may take an action described in Subsection (4) if the department
concludes, upon investigation, that a person has violated this chapter, a rule made under this
chapter, or an order issued under this chapter.
(4) If the department makes the conclusion described in Subsection (3), the department
shall:
(a) issue the person a written administrative citation;
(b) attempt to negotiate a stipulated settlement;
(c) seize, embargo, or destroy the industrial hemp batch or unregistered product;
(d) order the person to cease the violation; and
(e) if a stipulated settlement cannot be reached, conduct an adjudicative proceeding
under Title 63G, Chapter 4, Administrative Procedures Act.
(5) The department may, for a person, other than an individual, that is subject to an
uncontested citation, a stipulated settlement, or a finding of a violation in an adjudicative
proceeding under this section, for a fine amount not already specified in law, assess the person
a fine of up to $5,000 per violation, in accordance with a fine schedule that the department
establishes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
Act.
(6) The department may not revoke an industrial hemp producer's license, an industrial
hemp retailer's permit, or an industrial hemp laboratory permit without first giving the person
the opportunity to appear before an adjudicative proceeding conducted under Title 63G,
Chapter 4, Administrative Procedures Act.
(7) If, within 30 calendar days after the day on which a department serves a citation for
a violation of this chapter, the person that is the subject of the citation fails to request a hearing
to contest the citation, the citation becomes the department's final order.
(8) The department may, for a person who fails to comply with a citation under this
section:
(a) refuse to issue or renew the person's producer license, retailer permit, or laboratory
permit; or
(b) suspend, revoke, or place on probation the person's producer license, retailer
permit, or laboratory permit.
Section 10. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.