SB 101: Specialized Product Amendments - Utah

Amended 1/22/2026 10:01:176 → Amended 2/9/2026 10:02:218 · 8 edits

MODERATE

This bill updates Utah's regulations on specialized products, specifically cannabinoids and kratom, by renaming the proceeds account, adjusting tax rates, and modifying registration fees and fines. It also introduces a new temporary location license for retailers and clarifies enforcement duties.

Scope change

The bill expands the scope of the 'Specialized Product Proceeds Restricted Account' to include revenue from both cannabinoid and kratom products, whereas it previously only covered cannabinoid proceeds.

FISCAL

The 'Cannabinoid Proceeds Restricted Account' has been renamed to the 'Specialized Product Proceeds Restricted Account' to reflect that it now collects funds from both cannabinoid and kratom taxes.

REQUIREMENT

The tax rate on cannabinoid products was increased from 0.10% to 5.3%.

The registration fee for kratom products was changed from a mandatory requirement to an optional fee that the department may set until January 1, 2029.

A new temporary, non-renewable location sales license was created to allow specialized product retailers to operate temporarily.

TIMELINE

The deadline for the department to set registration fees for cannabinoid products was extended from January 1, 2027, to January 1, 2029.

ENFORCEMENT

Administrative fines for selling unregistered kratom products were adjusted to be larger than the registration fee but capped at $5,000.

DEFINITION

The term 'Specialized product' was formally defined to include both cannabinoid products and kratom products.

TECHNICAL

Various formatting errors and inconsistent terminology (such as 'cannabionoid' and 'cannabinoidspecialized') were corrected throughout the text.

Amended Excerpts 2/9/2026 10:02:218 → Amended 1/22/2026 10:01:176 · 7 edits

MODERATE

This bill amends Utah's specialized product laws to clarify definitions, establish registration fees for cannabinoid and kratom products, and create a temporary location sales license. It also adjusts tax collection responsibilities and strengthens enforcement penalties for selling unregistered products.

Scope change

The bill expands the regulatory scope to include temporary location sales licenses and clarifies that out-of-state retailers may be exempt from tax collection under specific conditions.

DEFINITION

Updated the definition of 'cannabinoid product' to explicitly exclude medical cannabis and medical cannabis products.

REQUIREMENT

Introduced a registration fee for cannabinoid products and a temporary location sales license for specialized product retailers.

Established a registration fee for kratom products that must be paid before the product can be registered.

Added rules prohibiting serving sizes smaller than a full discrete unit for cannabinoid products not in oil-based suspensions.

FISCAL

Changed the tax rate on specialized products from 0.10% to 5.3%.

ELIGIBILITY

Allowed retailers located outside the state to elect not to collect the specialized product tax if they meet specific criteria.

ENFORCEMENT

Increased administrative fines for selling unregistered cannabinoid and kratom products to a maximum of $5,000 and authorized the seizure and destruction of unregistered kratom products.

Amended Excerpts 1/22/2026 10:01:176 → Amended Excerpts 2/9/2026 10:02:218 · 5 edits

MODERATE

The bill was renumbered to organize a new chapter on Specialized Product Licensing and Tax Act. It updated the definition of 'cannabinoid product' to explicitly exclude medical cannabis and added a new exemption for out-of-state retailers who do not meet specific state requirements. The tax rate on specialized products was increased from 0.10% to 5.3%, and the rules for when and how this tax must be collected were clarified.

Scope change

The bill's scope expanded to include a new chapter dedicated to specialized products, with specific applicability changes regarding the definition of taxable products and the inclusion of out-of-state retailers in the tax collection framework.

DEFINITION

The definition of 'cannabinoid product' was modified to explicitly exclude medical cannabis and medical cannabis products.

A new definition for 'Kratom product' was added, referencing an existing state definition.

REQUIREMENT

The tax rate on specialized products was increased from 0.10% to 5.3%.

New rules were added allowing out-of-state retailers to elect not to collect the tax if they do not meet specific state requirements.

TIMELINE

The effective date for the new chapter and tax provisions was set to January 1, 2027.

Enrolled → Amended Excerpts 1/22/2026 10:01:176 · 6 edits

MODERATE

This bill amends Utah's specialized product laws to create a unified regulatory framework for both cannabinoid and kratom products. It establishes a new license fee structure, creates a dedicated restricted account for enforcement funding, and adjusts tax rates and remittance procedures for these products.

Scope change

The bill expands the scope of regulation to include kratom products alongside cannabinoid products under a single 'Specialized Product' definition, while also renaming the existing proceeds account to reflect both product types.

DEFINITION

Redefines 'Specialized product' to explicitly include both cannabinoid products and kratom products.

REQUIREMENT

Modifies the licensing fee structure by removing a $50 administrative fee for issuing or renewing licenses.

Adjusts the tax rate on cannabinoid products from 5.3% to .10% and modifies the rules for tax collection and remittance.

FISCAL

Renames the 'Cannabinoid Proceeds Restricted Account' to the 'Specialized Product Proceeds Restricted Account' to include revenue from kratom taxes and fines.

ENFORCEMENT

Updates the department's authority to set fees for registering kratom products and establishes administrative fines for selling unregistered kratom products.

TECHNICAL

Corrects various typographical errors and formatting inconsistencies in the text, such as removing duplicate section numbers and fixing spacing issues.

Introduced → Enrolled · 8 edits · Mar 26, 2026

MODERATE

This bill updates Utah's laws to regulate specialized products, combining cannabinoid and kratom products under a single licensing and tax framework. It establishes a new tax on these products, creates a registration fee for manufacturers, and expands the use of tax revenue to fund enforcement and county services. The legislation also standardizes definitions and penalties across both product types.

Scope change

The bill expands the regulatory scope by grouping cannabinoid and kratom products together under the term 'specialized products,' applying uniform licensing, taxation, and enforcement rules to both categories.

DEFINITION

The term 'specialized product' is now defined to include both cannabinoid products and kratom products, creating a unified regulatory category.

REQUIREMENT

A new registration fee is created for cannabinoid products, allowing the department to set a fee until January 1, 2029, to cover registration costs.

A new tax is imposed on specialized products at a rate of 5.3% of the retail price, which must be collected by retailers or paid by consumers upon first use.

FISCAL

The 'Cannabinoid Proceeds Restricted Account' is renamed the 'Specialized Product Proceeds Restricted Account' to reflect the inclusion of kratom, and its funds can now be used for kratom enforcement and county distribution.

ENFORCEMENT

New provisions allow the State Tax Commission to report sellers of illegal specialized products to the Department of Agriculture and Food within 30 days of suspicion.

Penalties for selling unregistered specialized products are standardized, with fines up to $5,000 for unregistered sales and administrative actions for offering unregistered products for sale.

TIMELINE

The department is authorized to set registration fees for cannabinoid products on a temporary basis until January 1, 2029.

TECHNICAL

Several sections were amended to correct formatting errors, remove duplicate text, and align language between cannabinoid and kratom provisions.

Specialized Product Amendments

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