HB 509: Specialized Product Amendments - Utah

Amended 2/26/2025 10:02:36 → Substitute #1 · 5 edits

MODERATE

This bill amends Utah's kratom regulations by adding new definitions for 'compound kratom products' (those mixed with other ingredients), creating a safety review process for these products, and modifying fines for selling unregistered kratom. The changes aim to better regulate mixed kratom products while maintaining oversight of pure kratom products.

Scope change

The bill now specifically addresses compound kratom products (kratom mixed with other ingredients) which were not previously covered in the same regulatory framework as pure kratom products.

DEFINITION

Added new definition for 'compound kratom product' to mean kratom mixed with dietary ingredients or other additives like flow agents or binders.

REQUIREMENT

Created a new safety review process requiring compound kratom products to be authorized for sale by the Department of Agriculture and Food before July 1, 2025.

Established a fee structure for reviewing compound kratom products for safety, with appeals heard by administrative law judges.

ENFORCEMENT

Modified fines for selling unregistered kratom products by removing language requiring the fine to be 'larger than the registration fee' while maintaining the $20,000 maximum.

TIMELINE

Set effective date for compound kratom product restrictions to July 1, 2025, with the bill itself taking effect on May 7, 2025.

Amended Excerpts 2/26/2025 10:02:36 → Amended 2/26/2025 10:02:36 · 6 edits

MODERATE

This bill adds new definitions for kratom products and establishes a safety review process for compound kratom products (those mixed with other ingredients). It creates a registration fee system, sets administrative fines for selling unregistered products, and requires compound kratom products to be authorized for sale by July 1, 2025. The bill also outlines an appeal process for safety decisions.

Scope change

The bill expands Utah's kratom regulations by introducing a new safety review system specifically for compound kratom products and adding registration requirements that did not previously exist.

DEFINITION

New definitions were added for 'compound kratom product' (kratom mixed with dietary ingredients or other additives), 'department', 'food', and 'kratom processor'.

REQUIREMENT

A new safety review process was created requiring compound kratom products to be reviewed for safety before they can be sold in Utah, with authorization required by July 1, 2025.

An appeal process was added allowing kratom processors to appeal department safety decisions within 30 days, with appeals heard by an administrative law judge.

FISCAL

A registration fee system was established for kratom products, with fees to be set by the department according to existing state fee guidelines.

ENFORCEMENT

Administrative fines for selling unregistered kratom products were modified to allow fines up to $20,000, and the department gained authority to seize and destroy unregistered products.

TIMELINE

The bill takes effect on May 7, 2025, with compound kratom products prohibited from sale until July 1, 2025, unless authorized under the new safety review process.

Introduced → Amended Excerpts 2/26/2025 10:02:36 · 2 edits

MINOR

The bill adds a new appeal process for compound kratom products, allowing processors to challenge the Department's safety determination. If an appeal is successful, the product must be authorized for sale. This creates a formal review pathway for products that initially fail safety assessments.

Scope change

Added an appeal mechanism for compound kratom products that were denied authorization or deregistered due to safety concerns.

REQUIREMENT

Added a requirement that if a compound kratom product is found safe after an appeal, the department must authorize it for sale.

Modified the appeal process to explicitly reference Section 26B-7-417 for both the initial appeal and the final authorization decision.

Substitute #2 → Substitute #3 · 8 edits

MODERATE

This bill expands Utah's specialized product regulations to include kratom products alongside cannabinoid products, creating a unified licensing and tax framework. It adds safety requirements for compound kratom products, establishes a registration system, and creates a new tax on both cannabinoid and kratom products to fund enforcement activities.

Scope change

The bill's scope expanded from only cannabinoid products to include both cannabinoid and kratom products under a unified 'Specialized Product' framework, with separate but parallel regulatory requirements for each product type.

DEFINITION

Added new definitions for 'compound kratom product' (kratom in forms other than dried leaf) and 'kratom processor' to clarify regulatory coverage.

REQUIREMENT

Created a safety review process requiring scientific evidence that compound kratom products are safe for human consumption before they can be sold in Utah.

Established a registration system for kratom products with the Department of Agriculture and Food, including fees and administrative fines for unregistered sales.

FISCAL

Renamed the 'Cannabinoid Proceeds Restricted Account' to 'Specialized Product Proceeds Restricted Account' and added kratom tax revenue to the account for enforcement purposes.

TAXATION

Imposed a 5.3% tax on cannabinoid and kratom products to fund enforcement and other statutory duties.

TIMELINE

Set May 7, 2025 as the effective date for kratom-related provisions, while most other changes take effect January 1, 2026.

ENFORCEMENT

Added new criminal penalties for selling unregistered or unsafe kratom products, including class C misdemeanors for violations of safety standards.

TECHNICAL

Removed the 'Cannabinoid Proceeds Restricted Account' name and replaced it with the broader 'Specialized Product Proceeds Restricted Account' name to reflect expanded scope.

Substitute #1 → Substitute #2 · 6 edits

MODERATE

The bill was amended to broaden its scope from only kratom products to include all specialized products, add tax provisions, and modify registration fees and fines. The definition of compound kratom products was expanded to include extracts with high residual solvents, and the fine for selling unregistered products was reduced from $20,000 to $5,000. A new information-sharing requirement between the department and tax commission was added.

Scope change

The bill's scope was expanded from solely regulating kratom products to covering all specialized products, and new tax-related provisions were added.

DEFINITION

Definition of compound kratom product was expanded to include extracts with residual solvents above USP 467 limits and products combined with non-leaf ingredients.

REQUIREMENT

Maximum administrative fine for selling unregistered kratom products was reduced from $20,000 to $5,000.

ENFORCEMENT

New requirement for the department to share enforcement information with the State Tax Commission upon request.

FISCAL

Bill now includes provisions related to tax on cannabinoid products and applies tax to kratom products for enforcement duties.

TIMELINE

Effective dates were added to specific sections, with some provisions taking effect on May 7, 2025 and others on January 1, 2026.

SCOPE

Bill scope was broadened from kratom-specific amendments to include all specialized products and cannabinoid tax provisions.

Specialized Product Amendments

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