Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 385 (2022GS)

Sponsor

Rep. Dailey-Provost, J.

Final action

Governor Signed 3/21/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• allows industrial hemp producers to procure background checks through a federal system;
• identifies an unlawful act for a person to:
• distribute, sell, or market a product that exceeds a concentration of THC;
• transport material outside the state that exceeds a concentration of THC; and
• produce, sell, or use a cannabinoid product that is added to a conventional food or beverage, enticing to children, or smokable flower;
• allows for increased flexibility in dosage forms;
• provides for registration of a product class rather than individual products;
• repeals a provision related to an industrial hemp research certificate;
• repeals the involvement of the Utah Department of Agriculture and Food in the regulation of hemp cultivation; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

HEMP AND CBD AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jennifer Dailey-Provost
Senate Sponsor: 
Evan J. Vickers
LONG TITLE
General Description:
This bill amends provisions related to the production and sale of industrial hemp and
cannabinoid products.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ allows industrial hemp producers to procure background checks through a federal
system;
▸ identifies an unlawful act for a person to:
• distribute, sell, or market a product that exceeds a concentration of THC;
• transport material outside the state that exceeds a concentration of THC; and
• produce, sell, or use a cannabinoid product that is added to a conventional food
or beverage, enticing to children, or smokable flower;
▸ allows for increased flexibility in dosage forms;
▸ provides for registration of a product class rather than individual products;
▸ repeals a provision related to an industrial hemp research certificate;
▸ repeals the involvement of the Utah Department of Agriculture and Food in the
regulation of hemp cultivation; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a coordination clause.
Utah Code Sections Affected:
AMENDS:
4-41-102
, as last amended by Laws of Utah 2020, Chapters 12 and 14
4-41-103.1
, as enacted by Laws of Utah 2020, Chapter 14
4-41-103.2
, as enacted by Laws of Utah 2020, Chapter 14
4-41-104
, as enacted by Laws of Utah 2018, Chapter 227
4-41-105
, as last amended by Laws of Utah 2020, Chapter 14
4-41-106
, as enacted by Laws of Utah 2020, Chapter 14
4-41-403
, as last amended by Laws of Utah 2019, Chapter 23
REPEALS:
4-41-103
, as last amended by Laws of Utah 2020, Chapter 14
4-41-204
, as enacted by Laws of Utah 2018, Chapter 446
Utah Code Sections Affected by Coordination Clause:
4-41-105
, as last amended by Laws of Utah 2020, Chapter 14
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) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 13956-29-1.
(2) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS#
1244-58-2.
[
(1)
] 
(3)
 "Cannabinoid product" means a [
chemical compound extracted from a hemp
]
product that:
[
(a) is processed into a medicinal dosage form; and
]
(a) contains or is represented to contain one or more naturally occurring cannabinoids;
and
(b) contains less than 0.3% tetrahydrocannabinol by dry weight.
(4) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid identified
as CAS# 1972-08-3, the primary psychotropic cannabinoid in cannabis.
(5) "Derivative cannabinoid" means any cannabinoid that has been intentionally
created using a process to convert one cannabinoid into another.
(6) "Dosage form" means the form in which a product is produced for individual
dosage and that is not specified as unlawful in this chapter.
[
(2)
] 
(7)
 "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)
] 
(8)
 "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)
] 
(9)
 "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)
] 
(10)
 "Industrial hemp retailer permit" means a permit that the department issues
to a retailer who sells any industrial hemp product.
[
(8)
] 
(11)
 "Industrial hemp product" means a product derived from, or made by,
processing industrial hemp plants or industrial hemp parts.
(12) "Industrial hemp product class" means a group of cannabinoid products:
(a) that have all ingredients in common; and
(b) are produced by or for the same company.
(13) (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" includes an:
(i) individual at an executive level, including a chief executive officer, chief operating
officer, or chief financial officer; and
(ii) operation manager, site manager, or any employee who may present a risk of
diversion.
[
(9)
] 
(14)
 "Laboratory permittee" means a person possessing an industrial hemp
laboratory permit that the department issues under this chapter.
[
(10)
] 
(15)
 "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)
] 
(16)
 "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)
] 
(17)
 "Permittee" means a person possessing a permit that the department issues
under this chapter.
[
(14)
] 
(18)
 "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) "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)
] 
(19)
 "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.
]
(20) "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.
(21) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)".
(22) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
amounts of delta-9-THC, tertrahydrocannabinolic acid, calculated as "total THC = delta-9-THC
+ (THCA x 0.877)".
Section 2. Section 
4-41-103.1
 is amended to read:
4-41-103.1.
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)
] 
(a)
 establish requirements for an industrial hemp producer license to [
cultivate or
]
process industrial hemp;
[
(c)
] 
(b)
 establish requirements for an industrial hemp retailer permit to market or sell
industrial hemp products; and
[
(d)
] 
(c)
 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 3. Section 
4-41-103.2
 is amended 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
] 
facility
 the person uses to [
grow
] 
process
 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 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 4. Section 
4-41-104
 is amended to read:
4-41-104.
Product registration required for distribution -- Application -- Fees --
Renewal.
(1) An industrial hemp product 
class or cannabinoid product
 that is not registered with
the department may not be distributed in this state.
(2) A person seeking registration for an industrial hemp product 
class or cannabinoid
product
 shall:
(a) apply to the department on forms provided by the department; and
(b) submit an annual registration fee, determined by the department pursuant to
Subsection 
4-2-103
(2), for each industrial hemp product 
class or cannabinoid product
 the
person intends to distribute in this state.
(3) The department may conduct tests, or require test results, to ensure that any claim
made by an applicant about an industrial hemp product 
class or cannabinoid product
 is
accurate.
(4) Upon receipt by the department of a proper application and payment of the
appropriate fee, as described in Subsection (2), the department shall issue a registration to the
applicant allowing the applicant to distribute the registered 
industrial
 hemp product 
class or
cannabinoid product
 in the state [
through June 30 of each year
] 
for one year from the date of
the payment of the fee
, subject to suspension or revocation for cause.
(5) The department shall mail, either through the postal service or electronically, forms
for the renewal of a registration to a registrant at least 30 days before the day on which the
registrant's registration expires.
Section 5. Section 
4-41-105
 is amended to read:
4-41-105.
Unlawful acts.
(1) It is unlawful for a person 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
:
(a)
 distribute, sell, or market an industrial hemp product 
or cannabinoid product
 that is
:
(i)
 not registered with the department [
pursuant to
] 
under
 Section 
4-41-104
[
.
]
; or
(ii) noncompliant material;
(b) transport into or out of the state extracted material or final product that contains
0.3% or more of total THC;
(c) produce, sell, or use a cannabinoid product that is:
(i) added to a conventional food or beverage, as the department further defines in rules
described in Section 
4-41-403
; or
(ii) marketed or manufactured to be enticing to children, as further defined in rules
described in Section 
4-41-403
; or
(iii) smokable flower.
(3) The department may seize and destroy non-compliant material.
(4) Nothing in this chapter authorizes any person to violate federal law, regulation, or
any provision of this title.
Section 6. Section 
4-41-106
 is amended 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
] 
Except for a fine that the department assesses for an unlicensed processor or
unregistered product, 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 7. Section 
4-41-403
 is amended to read:
4-41-403.
Standards for registration.
(1) 
(a)
 The department shall make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act[
,
]
:
(i)
 to determine standards for a registered cannabinoid product, including standards for:
[
(a)
] 
(A)
 testing to ensure the product is safe for human consumption; 
and
[
(b)
] 
(B)
 accurate labeling; [
and
]
(ii) governing an entity that manufactures cannabinoid products, including standards
for health and safety;
(iii) regarding what constitutes:
(A) a conventional food or beverage; and
(B) a product that is marketed or manufactured to be enticing to children; and
[
(c)
] 
(iv) regarding
 any other issue the department considers necessary 
for the safe
production and sale of cannabinoid products
.
(b) Notwithstanding Subsection (1)(a), the department may not prohibit a sugar coating
on a cannabinoid product to mask the product's taste, subject to the limitations described in
Subsection (1)(a)(iii) or (iv).
(2) The department shall set a fee for a registered cannabinoid product, in accordance
with Section 
4-2-103
.
(3) (a) A producer, manufacturer, or distributor of a cannabinoid product may pay the
fee described in Subsection (2).
(b) A cannabinoid product may not be registered with the department until the fee
described in Subsection (2) is paid.
(4) The department shall set an administrative fine, larger than the fee described in
Subsection (2), for a person who sells a cannabinoid product that is not registered by the
department.
Section 8. 
Repealer.
This bill repeals:
Section 
4-41-103
,
Industrial hemp -- Agricultural and academic research.
Section 
4-41-204
,
Department to make rules regarding cultivation and processing.
Section 9. 
 Coordinating H.B. 385 with S.B. 190 -- Substantive and technical
amendments.
If this H.B. 385 and S.B. 190, Medical Cannabis Act Amendments, both pass and
become law, it is the intent of the Legislature that the Office of Legislative Research and
General Counsel shall prepare the Utah Code database for publication by amending Subsection
4-41-105
(2) to read:
"
(2) It is unlawful for any person to
:
(a)
 distribute, sell, or market an industrial hemp product 
or cannabinoid product
 that is
:
(i)
 not registered with the department [
pursuant to
] 
under
 Section 
4-41-104
[
.
]
; or
(ii) noncompliant material;
(b) transport into or out of the state extracted material or final product that contains
0.3% or more of total THC; or
(c) produce, sell, or use a cannabinoid product that is:
(i) added to a conventional food or beverage, as the department further defines in rules
described in Section 
4-41-403
;
(ii) marketed or manufactured to be enticing to children, as further defined in rules
described in Section 
4-41-403
; or
(iii) smokable flower.".