Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 39 Second Substitute (2021GS)

Sponsor

Sen. Hinkins, D.

Final action

Governor Vetoed 3/24/2021

Outcome

Vetoed

Summary

What it does

• This bill:
• defines terms;
• allows industrial hemp producers to procure background checks through a federal system;
• requires industrial hemp laboratories to demonstrate the ability to test for delta-8 tetrahydrocannabinol;
• identifies an unlawful act for a person to:
• distribute, sell, or market a product that exceeds the acceptable hemp THC level;
• sell a psychoactive cannabinoid;
• transport material outside of the state that exceeds the acceptable hemp THC level; or
• produce, sell, or use a cannabinoid product that is added to an alcoholic beverage or food, enticing to children, or smokable flower;
• allows for increased flexibility in dosage forms; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

HEMP REGULATION AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: David P. Hinkins
House Sponsor: 
Jennifer Dailey-Provost
LONG TITLE
Committee Note:
The Natural Resources, Agriculture, and Environment Interim Committee
recommended this bill.
Legislative Vote: 16 voting for 0 voting against 3 absent
General Description:
This bill amends provisions of Title 4, Chapter 41, Hemp and Cannabinoid Act, to
provide clarity regarding existing and developing cannabinoids and regulate production
and sale.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ allows industrial hemp producers to procure background checks through a federal
system;
▸ requires industrial hemp laboratories to demonstrate the ability to test for delta-8
tetrahydrocannabinol;
▸ identifies an unlawful act for a person to:
• distribute, sell, or market a product that exceeds the acceptable hemp THC
level;
• sell a psychoactive cannabinoid;
• transport material outside of the state that exceeds the acceptable hemp THC
level; or
• produce, sell, or use a cannabinoid product that is added to an alcoholic
beverage or food, enticing to children, or smokable flower;
▸ allows for increased flexibility in dosage forms; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
4-41-102
, as last amended by Laws of Utah 2020, Chapters 12 and 14
4-41-103.2
, as enacted by Laws of Utah 2020, Chapter 14
4-41-103.4
, as enacted by Laws of Utah 2020, Chapter 14
4-41-105
, as last amended by Laws of Utah 2020, Chapter 14
4-41-204
, as enacted by Laws of Utah 2018, Chapter 446
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
4-41-102
 is amended to read:
4-41-102.
Definitions.
As used in this chapter:
(1) "Acceptable hemp THC level" means total tetrahydrocannabinol concentration of
not more than 0.3% on a dry weight basis if laboratory testing confirms a result within a
measurement of uncertainty that includes the total tetrahydrocannabinol concentration of 0.3%.
(2) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 
3556-78-3
.
(3) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS#
1244-58-2
.
[
(1)
] 
(4)
 "Cannabinoid product" means a chemical compound extracted from a hemp
product 
or any cannabinoid extracted from any naturally occurring biomass
 that:
(a) is processed into a [
medicinal
] dosage form; and
(b) contains less than
:
(i)
 0.3% tetrahydrocannabinol by dry weight[
.
]
; or
(ii) 0.3% delta-8 tetrahydrocannabinol by dry weight.
(5) "Delta-8 tetrahydrocannabinol" or "delta-8 THC" means the cannabinoid identified
as CAS# 5957-75-5, having a lower psychotropic potency than delta-9 THC.
(6) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid identified
as CAS# 1972-08-03, the primary psychotropic cannabinoid in cannabis.
(7) "Derivative cannabinoid" means any cannabinoid that has been intentionally
created using a process to convert a naturally occurring cannabinoid into another cannabinoid.
(8) "Dosage form" means the form in which a product is produced for individual
dosage that is not specified as unlawful in this chapter.
[
(2)
] 
(9)
 "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)
] 
(10)
 "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)
] 
(11)
 "Industrial hemp certificate holder" means a person possessing an industrial
hemp certificate that the department issues under this chapter.
[
(5)
] 
(12)
 "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.
[
(6)
] 
(13)
 "Industrial hemp producer license" means a license that the department
issues to a person for the purpose of cultivating or processing industrial hemp or an industrial
hemp product.
[
(7)
] 
(14)
 "Industrial hemp retailer permit" means a permit that the department issues
to a retailer who sells any industrial hemp product.
[
(8)
] 
(15)
 "Industrial hemp product" means a product derived from, or made by,
processing industrial hemp plants or industrial hemp parts.
(16) (a) "Key participant" means any person who has a financial interest in the business
entity, including members of a limited liability company, a sole proprietor, partners in a
partnership, and incorporators or directors of a corporation.
(b) "Key participant" also includes:
(i) an individual at an executive level, including a chief executive officer, chief
operating officer, or chief financial officer; and
(ii) an operation manager, site manager, or any employee who may present a risk of
diversion.
[
(9)
] 
(17)
 "Laboratory permittee" means a person possessing an industrial hemp
laboratory permit that the department issues under this chapter.
[
(10)
] 
(18)
 "Licensee" means a person possessing an industrial hemp producer license
that the department issues under this chapter.
[
(11) "Medicinal dosage form" means:
]
[
(a) a tablet;
]
[
(b) a capsule;
]
[
(c) a concentrated oil;
]
[
(d) a liquid suspension;
]
[
(e) a sublingual preparation;
]
[
(f) a topical preparation;
]
[
(g) a transdermal preparation;
]
[
(h) a gelatinous cube, gelatinous rectangular cuboid, or lozenge in a cube or
rectangular cuboid shape; or
]
[
(i) other preparations that the department approves.
]
[
(12)
] 
(19)
 "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
:
(a)
 0.3% tetrahydrocannabinol or greater by dry weight[
.
]
; or
(b) 0.3% delta-8-tetrahydrocannabinol or greater by dry weight.
[
(13)
] 
(20)
 "Permittee" means a person possessing a permit that the department issues
under this chapter.
[
(14)
] 
(21)
 "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.
[
(15)
] 
(22)
 "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)
] 
(23)
 "Retailer permittee" means a person possessing an industrial hemp retailer
permit that the department issues under this chapter.
[
(17)
] 
(24)
 "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.
(25) "Synthetic cannabinoid" means any cannabinoid that:
(a) was chemically synthesized from starting materials other than a naturally occurring
cannabinoid; and
(b) is not a derivative cannabinoid.
(26) "Tetrahydrocannabinol" or "THC" means a substance derived from cannabis or a
synthetic cannabinoid equivalent as described in Subsection 
58-37-4
(2)(a)(iii)(AA).
(27) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)."
(28) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
amounts of delta-9 THC and tetrahydrocannabinolic acid, calculated as "total THC = delta-9
THC + (THCA x 0.977)."
Section 2. Section 
4-41-103.2
 is amended to read:
4-41-103.2.
Industrial hemp producer license -- Background checks.
(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.
(6) (a) Each applicant for a license to cultivate or process industrial hemp shall submit
to the department, at the time of application, from each key participant:
(i) a fingerprint card in a form acceptable to the Department of Public Safety;
(ii) a signed waiver in accordance with Subsection 
53-10-108
(4) acknowledging the
registration of the individual's fingerprints in the Federal Bureau of Investigation Next
Generation Identification System's Rap Back Service; and
(iii) consent to a fingerprint background check by:
(A) the Bureau of Criminal Identification; and
(B) the Federal Bureau of Investigation.
(b) The Bureau of Criminal Identification shall:
(i) check the fingerprints the applicant submits under Subsection (6)(a) against the
applicable state, regional, and national criminal records databases, including the Federal
Bureau of Investigation Next Generation Identification System;
(ii) report the results of the background check to the department;
(iii) maintain a separate file of fingerprints that applicants submit under Subsection
(6)(a) for search by future submissions to the local and regional criminal records databases,
including latent prints;
(iv) request that the fingerprints be retained in the Federal Bureau of Investigation Next
Generation Identification System's Rap Back Service for search by future submissions to
national criminal records databases, including the Next Generation Identification System and
latent prints; and
(v) establish a privacy risk mitigation strategy to ensure that the department only
receives notifications for an individual with whom the department maintains an authorizing
relationship.
(c) The department shall:
(i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
amount that the department sets in accordance with Section 
63J-1-504
 for the services that the
Bureau of Criminal Identification or another authorized agency provides under this section; and
(ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
Identification.
Section 3. Section 
4-41-103.4
 is amended 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 delta-8
tetrahydrocannabinol 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 4. Section 
4-41-105
 is amended to read:
4-41-105.
Unlawful acts.
(1) It is unlawful for a person to
:
(a)
 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)
] 
(b)
 [
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
[
.
]
;
(c) distribute, sell, or market a product that contains greater than 0.3% of either total
THC or delta-8 THC under this chapter;
(d) sell a cannabinoid identified by the department as psychoactive under this chapter;
(e) transport outside the state extracted material or final product that exceeds the
acceptable hemp THC level; or
(f) produce, sell, or use a cannabinoid product that is:
(i) added to a conventional food or alcoholic beverage;
(ii) marketed or manufactured to be enticing to children; or
(iii) smokable flower.
[
(3)
] 
(2)
 The department may seize and destroy non-compliant material.
[
(4)
] 
(3)
 Nothing in this chapter authorizes any person to violate federal law,
regulation, or any provision of this title.
Section 5. Section 
4-41-204
 is amended to read:
4-41-204.
Department to make rules regarding cultivation and processing.
The department shall make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act:
(1) to ensure:
(a) cannabis cultivated in the state pursuant to this chapter is cultivated from
state-approved seed sources; and
(b) a private entity contracted to cultivate cannabis has sufficient security protocols;
and
(2) governing an entity that puts cannabis into a [
medicinal
] dosage form, including
standards for health and safety.