Bill > HB0509

This bill makes comprehensive amendments to Utah's laws related to specialized products, specifically kratom and cannabinoid products. The bill expands the definition of "food" to include kratom products and establishes new regulatory requirements for kratom processors, including restrictions on product composition such as limiting 7-hydroxymitragynine levels to 2% of alkaloid composition and prohibiting synthetic alkaloids. The legislation creates a new licensing and taxation framework for specialized products, which now includes both cannabinoid and kratom products, with a 5.3% tax rate on retail sales. The bill requires retailers to obtain a three-year license to sell specialized products and mandates that they collect and remit taxes quarterly. The State Tax Commission will maintain a public list of licensed retailers and can impose penalties for non-compliance. Revenue from the specialized product tax will be deposited into a restricted account that can be used for enforcement of hemp, cannabinoid, and kratom consumer protection laws, as well as supporting the Industrial Hemp Grant Program. Additionally, the bill makes various technical amendments to align tax and administrative provisions across different sections of Utah state law. The bill is set to take effect on January 1, 2026, with some specific sections related to kratom becoming effective on May 7, 2025.

Health and Social Services

https://le.utah.gov/~2025/bills/static/HB0509.html