Utah 2023 Regular Session

Utah House Bill HB0227 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy H.B. 227
	1	+	1st Sub. H.B. 227
	2	+	LEGISLATIVE GENERAL COUNSEL
	3	+	6 Approved for Filing: C. Williams 6
	4	+	6 01-26-23 7:31 PM 6
	5	+	H.B. 227
	6	+	1st Sub. (Buff)
	7	+	- 1 - House Floor Amendments 2-2-2023 pf/cw1
	8	+	Representative Jennifer Dailey-Provost proposes the following substitute bill:
2	9		1 HEMP AMENDMENTS
3	10		2 2023 GENERAL SESSION
4	11		3 STATE OF UTAH
5	12		4 Chief Sponsor: Jennifer Dailey-Provost
6	13		5 Senate Sponsor: Evan J. Vickers
7	14		6
8	15		7LONG TITLE
9	16		8General Description:
10	17		9 This bill amends provisions related to hemp.
11	18		10Highlighted Provisions:
12	19		11 This bill:
13	20		12 <defines terms;
14	21		13 <modifies definitions;
15	22		14 <allows the Department of Agriculture and Food (department) to require the
16	23		15registration of non-cannabinoid hemp products;
17	24		16 <creates an industrial hemp producer registration process;
18		-	17 <prohibits the sale of a cannabinoid product that contains THC or a THC analog to an
19		-	18individual who is not at least 21 years old;
	25	+	17 <prohibits the sale of a cannabinoid product º that contains THC or a THC analog
	26	+	17a » to an individual who is not at least 21
	27	+	18years old;
20	28		19 <allows a cannabinoid processor to produce products that may not be sold in the
21	29		20state;
22	30		21 <requires a warning label to be added to all cannabinoid products that are designed to
23	31		22be inhaled;
24	32		23 <expands the authority of the department to keep certain fines;
25	33		24 <authorizes rulemaking for the department:
26	34		25 Cto test a cannabinoid processor's cannabinoid at the processor's expense; and
	35	+	HB0227S01 1st Sub. (Buff) H.B. 227 01-26-23 7:31 PM
	36	+	- 2 -
27	37		26 Cto ban or limit the presence of a substance if the department receives a
28	38		27recommendation from the public health authority; and
29		-	28 <makes technical changes. H.B. 227
30		-	Enrolled Copy
31		-	- 2 -
	39	+	28 <makes technical changes.
32	40		29Money Appropriated in this Bill:
33	41		30 None
34	42		31Other Special Clauses:
35	43		32 None
36	44		33Utah Code Sections Affected:
37	45		34AMENDS:
38	46		35 4-41-102, as last amended by Laws of Utah 2022, Chapters 74, 290
39	47		36 4-41-103.1, as last amended by Laws of Utah 2022, Chapter 74
40	48		37 4-41-103.2, as last amended by Laws of Utah 2022, Chapter 74
41	49		38 4-41-103.3, as last amended by Laws of Utah 2022, Chapter 290
42	50		39 4-41-103.4, as last amended by Laws of Utah 2022, Chapter 290
43	51		40 4-41-104, as last amended by Laws of Utah 2022, Chapter 74
44	52		41 4-41-105, as last amended by Laws of Utah 2022, Chapters 74, 290 and last amended
45	53		42by Coordination Clause, Laws of Utah 2022, Chapter 74
46	54		43 4-41-106, as last amended by Laws of Utah 2022, Chapter 74
47	55		44 4-41-402, as last amended by Laws of Utah 2022, Chapter 290
48	56		45 4-41-403, as last amended by Laws of Utah 2022, Chapter 74
49	57		46ENACTS:
50	58		47 4-41-103.5, Utah Code Annotated 1953
51	59		48
52	60		49Be it enacted by the Legislature of the state of Utah:
53	61		50 Section 1. Section 4-41-102 is amended to read:
54	62		51 4-41-102. Definitions.
55	63		52 As used in this chapter:
56	64		53 (1) "Adulterant" means any poisonous or deleterious substance in a quantity that may
57	65		54be injurious to human health, including:
58		-	55 (a) pesticides; Enrolled Copy H.B. 227
	66	+	55 (a) pesticides;
	67	+	56 (b) heavy metals; 01-26-23 7:31 PM 1st Sub. (Buff) H.B. 227
59	68		- 3 -
60		-	56 (b) heavy metals;
61	69		57 (c) solvents;
62	70		58 (d) microbial life;
63	71		59 (e) artificially derived cannabinoids;
64	72		60 (f) toxins; or
65	73		61 (g) foreign matter.
66	74		62 (2) (a) "Artificially derived cannabinoid" means a chemical substance that is created by
67	75		63a chemical reaction that changes the molecular structure of any chemical substances derived
68	76		64from the cannabis plant.
69	77		65 (b) "Artificially derived cannabinoid" does not include:
70	78		66 (i) a naturally occurring chemical substance that is separated from the cannabis plant
71	79		67by a chemical or mechanical extraction process; or
72	80		68 (ii) cannabinoids that are produced by decarboxylation from a naturally occurring
73	81		69cannabinoid acid without the use of a chemical catalyst.
74	82		70 (3) "Cannabidiol" or "CBD" means the cannabinoid identified as CAS# 13956-29-1.
75	83		71 [(2)] (4) "Cannabidiolic acid" or "CBDA" means the cannabinoid identified as CAS#
76	84		721244-58-2.
77	85		73 (5) "Cannabinoid processor license" means a license that the department issues to a
78	86		74person for the purpose of processing a cannabinoid product.
79	87		75 [(3)] (6) "Cannabinoid product" means a product that:
80	88		76 (a) contains or is represented to contain one or more naturally occurring cannabinoids;
81	89		77[and]
82	90		78 (b) contains less than the cannabinoid product THC level, by dry weight; [and]
83	91		79 (c) [after December 1, 2022,] contains a combined amount of total THC and any THC
84	92		80analog that does not exceed 10% of the total cannabinoid content[.]; and
85	93		81 (d) does not exceed a total of THC and any THC analog that is greater than:
86		-	82 (i) 5 milligrams per serving; and H.B. 227
87		-	Enrolled Copy
88		-	- 4 -
	94	+	82 (i) 5 milligrams per serving; and
89	95		83 (ii) 150 milligrams per package.
90	96		84 (7) "Cannabinoid product class" means a group of cannabinoid products that:
91	97		85 (a) have all ingredients in common; and
92	98		86 (b) are produced by or for the same company.
93		-	87 [(4)] (8) "Cannabinoid product THC level" means a combined concentration of total
	99	+	87 [(4)] (8) "Cannabinoid product THC level" means a combined concentration of total 1st Sub. (Buff) H.B. 227 01-26-23 7:31 PM
	100	+	- 4 -
94	101		88THC and any THC analog of less than 0.3% on a dry weight basis if laboratory testing confirms
95	102		89a result within a measurement of uncertainty that includes the combined concentration of 0.3%.
96	103		90 [(5)] (9) "Delta-9-tetrahydrocannabinol" or "delta-9-THC" means the cannabinoid
97	104		91identified as CAS# 1972-08-3, the primary psychotropic cannabinoid in cannabis.
98	105		92 [(6) "Derivative cannabinoid" means any cannabinoid that has been intentionally
99	106		93created using a process to convert one cannabinoid into another.]
100	107		94 [(7) "Dosage form" means the form in which a product is produced for individual
101	108		95dosage and that is not specified as unlawful in this chapter.]
102	109		96 [(8)] (10) "Industrial hemp" means any part of a cannabis plant, whether growing or
103	110		97not, with a concentration of less than 0.3% tetrahydrocannabinol by dry weight.
104	111		98 [(9)] (11) "Industrial hemp laboratory permit" means a permit that the department
105	112		99issues to a laboratory qualified to test industrial hemp [under the state hemp production plan].
106	113		100 [(10)] (12) "Industrial hemp producer [license] registration" means a [license]
107	114		101registration that the department issues to a person for the purpose of processing industrial hemp
108	115		102or an industrial hemp product.
109	116		103 [(11)] (13) "Industrial hemp retailer permit" means a permit that the department issues
110	117		104to a retailer who sells any viable industrial hemp [product] seed or cannabinoid product.
111	118		105 [(12)] (14) (a) "Industrial hemp product" means a product [derived from, or made by,]
112	119		106made by processing industrial hemp plants or industrial hemp parts.
113	120		107 (b) "Industrial hemp product" does not include cannabinoid material.
114	121		108 (15) "Key participant" means any of the following:
115		-	109 (a) a licensee; Enrolled Copy H.B. 227
116		-	- 5 -
	122	+	109 (a) a licensee;
117	123		110 (b) an operation manager;
118	124		111 (c) a site manager; or
119	125		112 (d) an employee who has access to any industrial hemp material with a THC
120	126		113concentration above 0.3%.
121	127		114 [(13) "Industrial hemp product class" means a group of cannabinoid products:]
122	128		115 [(a) that have all ingredients in common; and]
123	129		116 [(b) are produced by or for the same company.]
124	130		117 [(14) (a) "Key participant" means any person who has a financial interest in the
125		-	118business entity, including members of a limited liability company, a sole proprietor, partners in
	131	+	118business entity, including members of a limited liability company, a sole proprietor, partners in 01-26-23 7:31 PM 1st Sub. (Buff) H.B. 227
	132	+	- 5 -
126	133		119a partnership, and incorporators or directors of a corporation.]
127	134		120 [(b) "Key participant" includes an:]
128	135		121 [(i) individual at an executive level, including a chief executive officer, chief operating
129	136		122officer, or chief financial officer; and]
130	137		123 [(ii) operation manager, site manager, or any employee who may present a risk of
131	138		124diversion.]
132	139		125 [(15)] (16) "Laboratory permittee" means a person possessing an industrial hemp
133	140		126laboratory permit that the department issues under this chapter.
134	141		127 [(16)] (17) "Licensee" means a person possessing [an industrial hemp producer] a
135	142		128cannabinoid processor license that the department issues under this chapter.
136	143		129 [(17)] (18) "Non-compliant material" means:
137	144		130 (a) a hemp plant that does not comply with this chapter, including a cannabis plant
138	145		131with a concentration of 0.3% tetrahydrocannabinol or greater by dry weight; and
139	146		132 (b) a cannabinoid product, chemical, or compound with a concentration that exceeds
140	147		133the cannabinoid product THC level.
141	148		134 [(18)] (19) "Permittee" means a person possessing a permit that the department issues
142	149		135under this chapter.
143		-	136 [(19)] (20) "Person" means: H.B. 227
144		-	Enrolled Copy
145		-	- 6 -
	150	+	136 [(19)] (20) "Person" means:
146	151		137 (a) an individual, partnership, association, firm, trust, limited liability company, or
147	152		138corporation; and
148	153		139 (b) an agent or employee of an individual, partnership, association, firm, trust, limited
149	154		140liability company, or corporation.
150	155		141 [(20)] (21) "Retailer permittee" means a person possessing an industrial hemp retailer
151	156		142permit that the department issues under this chapter.
152	157		143 [(21) "Synthetic cannabinoid" means any cannabinoid that:]
153	158		144 [(a) was chemically synthesized from starting materials other than a naturally occurring
154	159		145cannabinoid; and]
155	160		146 [(b) is not a derivative cannabinoid.]
156	161		147 (22) "Tetrahydrocannabinol" or "THC" means a delta-9-tetrahydrocannabinol, the
157	162		148cannabinoid identified as CAS# 1972-08-3.
158		-	149 (23) (a) "THC analog" means a substance that is structurally or pharmacologically
	163	+	149 (23) (a) "THC analog" means a substance that is structurally or pharmacologically 1st Sub. (Buff) H.B. 227 01-26-23 7:31 PM
	164	+	- 6 -
159	165		150substantially similar to, or is represented as being similar to, delta-9-THC.
160	166		151 (b) "THC analog" does not include the following substances or the naturally occurring
161	167		152acid forms of the following substances:
162	168		153 (i) cannabichromene (CBC), the cannabinoid identified as CAS# 20675-51-8;
163	169		154 (ii) cannabicyclol (CBL), the cannabinoid identified as CAS# 21366-63-2;
164	170		155 (iii) cannabidiol (CBD), the cannabinoid identified as CAS# 13956-29-1;
165	171		156 (iv) cannabidivarol (CBDV), the cannabinoid identified as CAS# 24274-48-4;
166	172		157 (v) cannabielsoin (CBE), the cannabinoid identified as CAS# 52025-76-0;
167	173		158 (vi) cannabigerol (CBG), the cannabinoid identified as CAS# 25654-31-3;
168	174		159 (vii) cannabigerovarin (CBGV), the cannabinoid identified as CAS# 55824-11-8;
169	175		160 (viii) cannabinol (CBN), the cannabinoid identified as CAS# 521-35-7;
170	176		161 (ix) cannabivarin (CBV), the cannabinoid identified as CAS# 33745-21-0; or
171	177		162 (x) delta-9-tetrahydrocannabivarin (THCV), the cannabinoid identified as CAS#
172		-	16331262-37-0. Enrolled Copy H.B. 227
173		-	- 7 -
	178	+	16331262-37-0.
174	179		164 (24) "Total cannabidiol" or "total CBD" means the combined amounts of cannabidiol
175	180		165and cannabidiolic acid, calculated as "total CBD = CBD + (CBDA x 0.877)".
176	181		166 (25) "Total tetrahydrocannabinol" or "total THC" means the sum of the determined
177	182		167amounts of delta-9-THC, tertrahydrocannabinolic acid, calculated as "total THC = delta-9-THC
178	183		168+ (THCA x 0.877)".
179	184		169 Section 2. Section 4-41-103.1 is amended to read:
180	185		170 4-41-103.1. Authority to regulate production, sale, and testing of cannabinoid
181	186		171products and industrial hemp.
182	187		172 (1) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
183	188		173Administrative Rulemaking Act, to:
184	189		174 (a) establish requirements for [an industrial hemp producer] a cannabinoid processor
185	190		175license to process [industrial hemp] cannabinoid products;
186	191		176 (b) establish requirements for an industrial hemp retailer permit to market or sell
187	192		177industrial hemp products; [and]
188	193		178 (c) establish the standards, methods, practices, and procedures a laboratory must use to
189	194		179qualify for a permit to test industrial hemp and [industrial hemp] cannabinoid products and to
190		-	180dispose of non-compliant material[.]; and
	195	+	180dispose of non-compliant material[.]; and 01-26-23 7:31 PM 1st Sub. (Buff) H.B. 227
	196	+	- 7 -
191	197		181 (d) establish requirements for registration of processors of non-cannabinoid industrial
192	198		182hemp products.
193	199		183 (2) The department shall maintain a list of each licensee and permittee.
194	200		184 Section 3. Section 4-41-103.2 is amended to read:
195	201		185 4-41-103.2. Cannabinoid processor license.
196	202		186 (1) The department or a licensee of the department may process [industrial hemp] a
197	203		187cannabinoid product.
198	204		188 (2) A person seeking [an industrial hemp producer] a cannabinoid processor license
199	205		189shall provide to the department:
200		-	190 (a) the legal description and global positioning coordinates sufficient for locating the H.B. 227
201		-	Enrolled Copy
202		-	- 8 -
	206	+	190 (a) the legal description and global positioning coordinates sufficient for locating the
203	207		191facility the person uses to process industrial hemp; and
204	208		192 (b) written consent allowing a representative of the department and local law
205	209		193enforcement to enter all premises where the person processes or stores industrial hemp for the
206	210		194purpose of:
207	211		195 (i) conducting a physical inspection; or
208	212		196 (ii) ensuring compliance with the requirements of this chapter.
209	213		197 (3) An individual who has been convicted of a drug-related felony within the last 10
210	214		198years is not eligible to obtain [an industrial hemp producer] a cannabinoid processor license.
211	215		199 (4) The department may set a fee in accordance with Subsection 4-2-103(2) for the
212	216		200application for [an industrial hemp producer] a cannabinoid processor license.
213	217		201 (5) A licensee may only market [industrial hemp] a cannabinoid product that the
214	218		202licensee [cultivates or] processes.
215	219		203 (6) (a) Each applicant for a license to process [industrial hemp] cannabinoid products
216	220		204shall submit to the department, at the time of application, from each key participant:
217	221		205 (i) a fingerprint card in a form acceptable to the Department of Public Safety;
218	222		206 (ii) a signed waiver in accordance with Subsection 53-10-108(4) acknowledging the
219	223		207registration of the individual's fingerprints in the Federal Bureau of Investigation Next
220	224		208Generation Identification System's Rap Back Service; and
221	225		209 (iii) consent to a fingerprint background check by:
222	226		210 (A) the Bureau of Criminal Identification; and
223		-	211 (B) the Federal Bureau of Investigation.
	227	+	211 (B) the Federal Bureau of Investigation. 1st Sub. (Buff) H.B. 227 01-26-23 7:31 PM
	228	+	- 8 -
224	229		212 (b) The Bureau of Criminal Identification shall:
225	230		213 (i) check the fingerprints the applicant submits under Subsection (6)(a) against the
226	231		214applicable state, regional, and national criminal records databases, including the Federal
227	232		215Bureau of Investigation Next Generation Identification System;
228	233		216 (ii) report the results of the background check to the department;
229		-	217 (iii) maintain a separate file of fingerprints that applicants submit under Subsection Enrolled Copy H.B. 227
230		-	- 9 -
	234	+	217 (iii) maintain a separate file of fingerprints that applicants submit under Subsection
231	235		218(6)(a) for search by future submissions to the local and regional criminal records databases,
232	236		219including latent prints;
233	237		220 (iv) request that the fingerprints be retained in the Federal Bureau of Investigation Next
234	238		221Generation Identification System's Rap Back Service for search by future submissions to
235	239		222national criminal records databases, including the Next Generation Identification System and
236	240		223latent prints; and
237	241		224 (v) establish a privacy risk mitigation strategy to ensure that the department only
238	242		225receives notifications for an individual with whom the department maintains an authorizing
239	243		226relationship.
240	244		227 (c) The department shall:
241	245		228 (i) assess an individual who submits fingerprints under Subsection (6)(a) a fee in an
242	246		229amount that the department sets in accordance with Section 63J-1-504 for the services that the
243	247		230Bureau of Criminal Identification or another authorized agency provides under this section; and
244	248		231 (ii) remit the fee described in Subsection (6)(c)(i) to the Bureau of Criminal
245	249		232Identification.
246	250		233 Section 4. Section 4-41-103.3 is amended to read:
247	251		234 4-41-103.3. Industrial hemp retailer permit.
248	252		235 (1) Except as provided in Subsection (4), a retailer permittee of the department may
249	253		236market or sell [industrial hemp products] a cannabinoid product or a viable industrial hemp
250	254		237seed.
251	255		238 (2) A person seeking an industrial hemp retailer permit shall provide to the department:
252	256		239 (a) the name of the person that is seeking to market or sell [an industrial hemp product]
253	257		240a cannabinoid product or a viable industrial hemp seed;
254	258		241 (b) the address of each location where [the industrial hemp product] a cannabinoid
255		-	242product or a viable industrial hemp seed will be sold; and
	259	+	242product or a viable industrial hemp seed will be sold; and 01-26-23 7:31 PM 1st Sub. (Buff) H.B. 227
	260	+	- 9 -
256	261		243 (c) written consent allowing a representative of the department to enter all premises
257		-	244where the person is selling [an industrial hemp product] a cannabinoid product or a viable H.B. 227
258		-	Enrolled Copy
259		-	- 10 -
	262	+	244where the person is selling [an industrial hemp product] a cannabinoid product or a viable
260	263		245industrial hemp seed for the purpose of:
261	264		246 (i) conducting a physical inspection; or
262	265		247 (ii) ensuring compliance with the requirements of this chapter.
263	266		248 (3) The department may set a fee in accordance with Subsection 4-2-103(2) for the
264	267		249application for an industrial hemp retailer permit.
265	268		250 (4) Any marketing for [an industrial hemp product] a cannabinoid product or a viable
266	269		251industrial hemp seed shall include a notice to consumers that the product is hemp and is not
267	270		252cannabis or medical cannabis, as those terms are defined in Section 26-61a-102.
268	271		253 Section 5. Section 4-41-103.4 is amended to read:
269	272		254 4-41-103.4. Industrial hemp laboratory permit.
270	273		255 (1) The department or a laboratory permittee of the department may test industrial
271	274		256hemp and [industrial hemp] cannabinoid products.
272	275		257 (2) The department or a laboratory permittee of the department may dispose of
273	276		258non-compliant material.
274	277		259 (3) A laboratory seeking an industrial hemp laboratory permit shall:
275	278		260 (a) demonstrate to the department that:
276	279		261 (i) the laboratory and laboratory staff possess the professional certifications required by
277	280		262department rule;
278	281		263 (ii) the laboratory has the ability to test industrial hemp and industrial hemp products
279	282		264using the standards, methods, practices, and procedures required by department rule;
280	283		265 (iii) the laboratory has the ability to meet the department's minimum standards of
281	284		266performance for detecting concentration levels of THC and any cannabinoid known to be
282	285		267present; and
283	286		268 (iv) the laboratory has a plan that complies with the department's rule for the safe
284	287		269disposal of non-compliant material; and
285	288		270 (b) provide to the department written consent allowing a representative of the
286		-	271department and local law enforcement to enter all premises where the laboratory tests, Enrolled Copy H.B. 227
287		-	- 11 -
	289	+	271department and local law enforcement to enter all premises where the laboratory tests,
288	290		272processes, or stores industrial hemp, industrial hemp products, and non-compliant plants for the
289		-	273purpose of:
	291	+	273purpose of: 1st Sub. (Buff) H.B. 227 01-26-23 7:31 PM
	292	+	- 10 -
290	293		274 (i) conducting a physical inspection; or
291	294		275 (ii) ensuring compliance with the requirements of this chapter.
292	295		276 (4) An individual who has been convicted of a drug-related felony within the last 10
293	296		277years is not eligible to obtain a license under this chapter.
294	297		278 (5) The department may set a fee in accordance with Subsection 4-2-103(2) for the
295	298		279application for an industrial hemp laboratory permit.
296	299		280 Section 6. Section 4-41-103.5 is enacted to read:
297	300		281 4-41-103.5. Industrial hemp producer registration -- Limitation on industrial
298	301		282hemp product use.
299	302		283 (1) A person may produce an industrial hemp product if the person has registered with
300	303		284the department as an industrial hemp producer.
301	304		285 (2) A person seeking to register under Subsection (1) shall provide to the department:
302	305		286 (a) the name of the person that is seeking to produce an industrial hemp product;
303	306		287 (b) the address of each location where the industrial hemp product will be
304	307		288manufactured; and
305	308		289 (c) written consent allowing a representative of the department to enter any premise
306	309		290where the person is manufacturing industrial hemp product for:
307	310		291 (i) conducting a physical inspection; or
308	311		292 (ii) ensuring compliance with the requirements of this chapter.
309	312		293 (3) An industrial hemp product or byproduct may not be used for production of a
310	313		294cannabinoid product.
311	314		295 Section 7. Section 4-41-104 is amended to read:
312	315		296 4-41-104. Product registration required for distribution -- Application -- Fees --
313	316		297Renewal.
314		-	298 (1) [An industrial hemp] A cannabinoid product class or cannabinoid product that is H.B. 227
315		-	Enrolled Copy
316		-	- 12 -
	317	+	298 (1) [An industrial hemp] A cannabinoid product class or cannabinoid product that is
317	318		299not registered with the department may not be distributed in this state.
318	319		300 (2) A person seeking registration for [an industrial hemp] a cannabinoid product class
319	320		301or cannabinoid product shall:
320	321		302 (a) apply to the department on forms provided by the department; and
321	322		303 (b) submit an annual registration fee, determined by the department pursuant to
322		-	304Subsection 4-2-103(2), for each [industrial hemp] cannabinoid product class or cannabinoid
	323	+	304Subsection 4-2-103(2), for each [industrial hemp] cannabinoid product class or cannabinoid 01-26-23 7:31 PM 1st Sub. (Buff) H.B. 227
	324	+	- 11 - House Floor Amendments 2-2-2023 pf/cw1
323	325		305product the person intends to distribute in this state.
324	326		306 (3) The department may conduct tests, or require test results, to ensure that any claim
325	327		307made by an applicant about [an industrial hemp] a cannabinoid product class or cannabinoid
326	328		308product is accurate.
327	329		309 (4) Upon receipt by the department of a proper application and payment of the
328	330		310appropriate fee, as described in Subsection (2), the department shall issue a registration to the
329	331		311applicant allowing the applicant to distribute the registered [industrial hemp] cannabinoid
330	332		312product class or cannabinoid product in the state for one year from the date of the payment of
331	333		313the fee, subject to suspension or revocation for cause.
332	334		314 (5) The department shall mail, either through the postal service or electronically, forms
333	335		315for the renewal of a registration to a registrant at least 30 days before the day on which the
334	336		316registrant's registration expires.
335	337		317 Section 8. Section 4-41-105 is amended to read:
336	338		318 4-41-105. Unlawful acts.
337	339		319 (1) It is unlawful for a person to handle, process, or market living industrial hemp
338	340		320plants, viable hemp seeds, leaf materials, or floral materials derived from industrial hemp
339	341		321without the appropriate license or permit issued by the department under this chapter.
340	342		322 (2) It is unlawful for any person to:
341	343		323 (a) distribute, sell, or market [an industrial hemp product or] a cannabinoid product
342	344		324that is:
343		-	325 (i) not registered with the department under Section 4-41-104; or Enrolled Copy H.B. 227
344		-	- 13 -
	345	+	325 (i) not registered with the department under Section 4-41-104; or
345	346		326 (ii) noncompliant material;
346	347		327 (b) transport into or out of the state extracted material or final product that contains
347	348		3280.3% or more of total THC; [or]
348	349		329 (c) [produce, sell,] sell or use a cannabinoid product that is:
349	350		330 (i) added to a conventional food or beverage, as the department further defines in rules
350	351		331described in Section 4-41-403;
351	352		332 (ii) marketed or manufactured to be enticing to children, as further defined in rules
352	353		333described in Section 4-41-403; or
353	354		334 (iii) smokable flower[.]; or
354		-	335 (d) knowingly or intentionally sell or give a cannabinoid product that contains THC or
355		-	336a THC analog in the course of business to an individual who is not at least 21 years old.
	355	+	335 (d) knowingly or intentionally sell or give a cannabinoid product º that contains THC
	356	+	335aor a THC analog » in the course of 1st Sub. (Buff) H.B. 227 01-26-23 7:31 PM
	357	+	- 12 -
	358	+	336business to an individual who is not at least 21 years old.
356	359		337 (3) The department may seize and destroy non-compliant material.
357	360		338 (4) Nothing in this chapter authorizes any person to violate federal law, regulation, or
358	361		339any provision of this title.
359	362		340 Section 9. Section 4-41-106 is amended to read:
360	363		341 4-41-106. Enforcement -- Fine -- Citation.
361	364		342 (1) If a person violates this part, the department may:
362	365		343 (a) revoke the person's license or permit;
363	366		344 (b) decline to renew the person's license or permit; or
364	367		345 (c) assess the person a civil penalty that the department establishes in accordance with
365	368		346Section 4-2-304.
366	369		347 (2) Except for a fine that the department assesses for an [unlicensed processor or
367	370		348unregistered product] unlicensed processor, an unregistered product, or the sale of a
368	371		349cannabinoid product to an individual younger than 21 years old, the department shall deposit a
369	372		350penalty imposed under this section into the General Fund.
370	373		351 (3) The department may take an action described in Subsection (4) if the department
371		-	352concludes, upon investigation, that a person has violated this chapter, a rule made under this H.B. 227
372		-	Enrolled Copy
373		-	- 14 -
	374	+	352concludes, upon investigation, that a person has violated this chapter, a rule made under this
374	375		353chapter, or an order issued under this chapter.
375	376		354 (4) If the department makes the conclusion described in Subsection (3), the department
376	377		355shall:
377	378		356 (a) issue the person a written administrative citation;
378	379		357 (b) attempt to negotiate a stipulated settlement;
379	380		358 (c) seize, embargo, or destroy the industrial hemp batch or unregistered product;
380	381		359 (d) order the person to cease the violation; and
381	382		360 (e) if a stipulated settlement cannot be reached, conduct an adjudicative proceeding
382	383		361under Title 63G, Chapter 4, Administrative Procedures Act.
383	384		362 (5) The department may, for a person, other than an individual, that is subject to an
384	385		363uncontested citation, a stipulated settlement, or a finding of a violation in an adjudicative
385	386		364proceeding under this section, for a fine amount not already specified in law, assess the person
386	387		365a fine of up to $5,000 per violation, in accordance with a fine schedule that the department
387		-	366establishes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
	388	+	366establishes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking 01-26-23 7:31 PM 1st Sub. (Buff) H.B. 227
	389	+	- 13 -
388	390		367Act.
389	391		368 (6) The department may not revoke [an industrial hemp producer's] a cannabinoid
390	392		369processor license, an industrial hemp retailer's permit, or an industrial hemp laboratory permit
391	393		370without first giving the person the opportunity to appear before an adjudicative proceeding
392	394		371conducted under Title 63G, Chapter 4, Administrative Procedures Act.
393	395		372 (7) If, within 30 calendar days after the day on which a department serves a citation for
394	396		373a violation of this chapter, the person that is the subject of the citation fails to request a hearing
395	397		374to contest the citation, the citation becomes the department's final order.
396	398		375 (8) The department may, for a person who fails to comply with a citation under this
397	399		376section:
398	400		377 (a) refuse to issue or renew the person's [producer] processor license, retailer permit, or
399	401		378laboratory permit; or
400		-	379 (b) suspend, revoke, or place on probation the person's [producer] processor license, Enrolled Copy H.B. 227
401		-	- 15 -
	402	+	379 (b) suspend, revoke, or place on probation the person's [producer] processor license,
402	403		380retailer permit, or laboratory permit.
403	404		381 Section 10. Section 4-41-402 is amended to read:
404	405		382 4-41-402. Cannabinoid sales and use authorized.
405	406		383 (1) The sale or use of a cannabinoid product is prohibited:
406	407		384 (a) except as provided in this chapter; or
407	408		385 (b) unless the United States Food and Drug Administration approves the product.
408	409		386 (2) The department shall keep a list of registered cannabinoid products that the
409	410		387department has determined, in accordance with Section 4-41-403, are safe for human
410	411		388consumption.
411	412		389 (3) (a) A person may sell or use a cannabinoid product that is in the list of registered
412	413		390cannabinoid products described in Subsection (2).
413	414		391 (b) An individual may use cannabidiol or a cannabidiol product that is not in the list of
414	415		392registered cannabinoid products described in Subsection (2) if:
415	416		393 (i) the individual purchased the product outside the state; and
416	417		394 (ii) the product's contents do not violate Title 58, Chapter 37, Utah Controlled
417	418		395Substances Act.
418	419		396 (4) Any marketing for a cannabinoid product shall include a notice to consumers that
419		-	397the product is hemp or CBD and is not cannabis or medical cannabis, as those terms are
	420	+	397the product is hemp or CBD and is not cannabis or medical cannabis, as those terms are 1st Sub. (Buff) H.B. 227 01-26-23 7:31 PM
	421	+	- 14 -
420	422		398defined in Section 26-61a-102.
421	423		399 (5) A cannabinoid product that is designed to be inhaled shall include a warning on the
422	424		400label regarding the possible health effects of inhaling cannabinoid products.
423	425		401 Section 11. Section 4-41-403 is amended to read:
424	426		402 4-41-403. Standards for registration.
425	427		403 (1) (a) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
426	428		404Administrative Rulemaking Act:
427	429		405 (i) to determine standards for a registered cannabinoid product, including standards for:
428		-	406 (A) testing to ensure the product is safe for human consumption; and H.B. 227
429		-	Enrolled Copy
430		-	- 16 -
	430	+	406 (A) testing to ensure the product is safe for human consumption; and
431	431		407 (B) accurate labeling;
432	432		408 (ii) governing an entity that manufactures cannabinoid products, including standards
433	433		409for health and safety;
434	434		410 (iii) to determine when and how a cannabinoid processor's cannabinoid must be tested
435	435		411by the department at the expense of the cannabinoid processor;
436	436		412 [(iii)] (iv) regarding what constitutes:
437	437		413 (A) a conventional food or beverage; and
438	438		414 (B) a product that is marketed or manufactured to be enticing to children; and
439	439		415 [(iv)] (v) regarding any other issue the department considers necessary for the safe
440	440		416production and sale of cannabinoid products.
441	441		417 (b) Notwithstanding Subsection (1)(a), the department may not prohibit a sugar coating
442	442		418on a cannabinoid product to mask the product's taste, subject to the limitations described in
443	443		419Subsection [(1)(a)(iii) or (iv)] (1)(a)(iv) or (v).
444	444		420 (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
445	445		421department may make rules to immediately ban or limit the presence of any substance in a
446	446		422cannabinoid product after receiving a recommendation to do so from a public health authority
447	447		423as defined in Section 26B-1-102.
448	448		424 [(2)] (3) The department shall set a fee for a registered cannabinoid product, in
449	449		425accordance with Section 4-2-103.
450	450		426 [(3)] (4) (a) A producer, manufacturer, or distributor of a cannabinoid product may pay
451	451		427the fee described in Subsection [(2)] (3).
452		-	428 (b) A cannabinoid product may not be registered with the department until the fee
	452	+	428 (b) A cannabinoid product may not be registered with the department until the fee 01-26-23 7:31 PM 1st Sub. (Buff) H.B. 227
	453	+	- 15 -
453	454		429described in Subsection [(2)] (3) is paid.
454	455		430 [(4)] (5) The department shall set an administrative fine, larger than the fee described
455	456		431in Subsection [(2)] (3), for a person who sells a cannabinoid product that is not registered by
456	457		432the department.