Agriculture and Food

Specialized Products

Rule 30: Industrial Hemp Program - Cannabinoid Product Processors

Effective Date: 08/21/2026

Admin. Code Reference: R66-30

Rule Type: Current Rule

NOTICE OF SUBSTANTIVE CHANGE

TYPE OF FILING: Amendment

Filing ID: 58088

Rule or section number:

R66-30

1. Agency Information

Title catchline:

Agriculture and Food, Specialized Products

Building:

TSOB, South Bldg, Floor 2

Street address:

4315 S 2700 W

City, state:

Taylorsville, UT 84129

Mailing address:

PO Box 146500

City, state, and zip:

Salt Lake City, UT 84114-6500

2. Contact Persons

Name:

Phone:

Email:

Amber Brown

385-245-5222

ambermbrown@utah.gov

Brandon Forsyth

801-710-9945

bforsyth@utah.gov

Camille Knudson

801-597-6010

camillek@utah.gov

Please address questions regarding information on this notice to the persons listed above.

3. General Information

A. Rule or section catchline:

R66-30. Industrial Hemp Program - Cannabinoid Product Processors

B. Purpose of the new rule or reason for the change:

The Department of Agriculture and Food (Department) is amending this rule to align with the requirements of HB 389, passed during the 2026 General Session, by removing redundant information that is now found in statute.

C. Summary of the new rule or change:

The proposed amendments clarify that a Tier Two license includes transporting and wholesaling finished cannabinoid products.

This rule removes redundant processing facility restrictions, record requirements, and violations that are now addressed by statute following the passage of HB 389 (2026).

Additionally, the amendments update terminology to clarify the status of cannabinoid processors and make technical corrections for consistency with the Rulewriting Manual for Utah standards.

4. Legislative Action Information

A. Are any changes in this filing because of state legislative action?

Changes are because of legislative action.

B. If yes, any bill number and session:

HB 389 (2026 General Session)

5. Fiscal Information

Provide an estimate and written explanation of the aggregate anticipated cost or savings to:

A. State budget:

These amendments are mostly technical and clarifying to align with HB 389 (2026), resulting in no anticipated fiscal impact to the state budget.

B. Local governments:

The proposed changes will not impact local governments because they do not participate in or administer the program.

C. Small businesses ("small business" means a business employing 1-49 persons):

These amendments update terminology to align with state law without imposing new compliance costs or fees, resulting in no fiscal impact on small businesses.

D. Non-small businesses ("non-small business" means a business employing 50 or more persons):

These technical and clarifying amendments do not affect the financial operations or compliance requirements of non-small businesses, resulting in no fiscal impact.

E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency):

These updates clarify terminology and definitions, resulting in no fiscal impact on other persons.

F. Compliance costs for affected persons:

The compliance costs for the program are not changing.

6. Regulatory Impact Summary Table

Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable."

Fiscal Cost

FY2027

FY2028

FY2029

FY2030

FY2031

State Budget

Local Governments

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Cost

Fiscal Benefits

FY2027

FY2028

FY2029

FY2030

FY2031

State Budget

Local Governments

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Benefits

Net Fiscal Benefits

7. Regulatory Impact Analysis Approval

The Commissioner of the Department of Agriculture and Food, Kelly Pehrson, has reviewed and approved this regulatory impact analysis.

8. Family Impact Information

A. The agency has considered this rule's impact on family health, stability, and formation:

☒

9. Citation Information

Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement:

Section 4-41-103.1

11. Public Notice Information

The public may submit written or oral comments to the agency identified in box 1.

A. Comments will be accepted until:

08/14/2026

12. Effective Date Information

This rule change MAY become effective on:

(NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date)

08/21/2026

13. Agency Authorization Information

Agency head or

designee and title:

Kelly Pehrson, Commissioner

Date:

07/01/2026

R66. Agriculture and Food, Specialized Products.

R66-30. Industrial Hemp Program - Cannabinoid Product Processors.

R66-30-1. Authority and Purpose.

Pursuant to Section 4-41-103.1, this rule establishes the standards, practices, procedures, and requirements for participation in the Utah Industrial Hemp Program for the processing and handling of cannabinoid products.

R66-30-2. Definitions.

(1) "Bulk cannabinoid product" means a cannabinoid product that has been prepared and is ready for final packaging.

(2) "Cannabinoid" means any:

(a) naturally occurring derivative of cannabigerolic acid (CAS #25555-57-1); or

(b) any chemical compound that is both structurally and chemically similar to a derivative of cannabigerolic acid.

(3) "Cannabinoid concentrate" means:

(a) the product of any chemical or physical process applied to naturally occurring biomass that concentrates or isolates the cannabinoids contained in the biomass; and

(b) any amount of a natural, derivative, or synthetic cannabinoid in the synthetic cannabinoid's purified state.

(4) "Department" means the Utah Department of Agriculture and Food.

(5) "Final product" means a reasonably homogenous cannabinoid product in its final packaged form created using the same standard operating procedures and the same formulation.

(6) "Handle" or "Handling" means possessing, transporting, or storing industrial hemp, cannabinoid concentrate, or cannabinoid product for any period.

(7) "Industrial hemp material" means raw concentrate, raw plant material, or materials made from raw plant material or raw concentrates that are not in a final packaged form.

(8) "Location" means a specific street address, including street number, street name, city, state, and zip code.

(9) "Manufacturing" means storing, preparing, packaging, or labeling of industrial hemp, industrial hemp material, or cannabinoid products.

(10) "Processing" means any action taken to prepare industrial hemp, or material derived from industrial hemp, for market.

(11) "Cannabinoid [P]processor" means:

(a) a person licensed by the department to process industrial hemp or a material derived from industrial hemp; or

(b) a licensed medical cannabis processor approved by the department to process industrial hemp or material derived from industrial hemp.

(12) "Raw plant material" or "Raw concentrate" means industrial hemp plant material or concentrate that is not in final product form.

(13) "Third-party laboratory" means a laboratory that has no direct interest in a grower or processor of industrial hemp or cannabinoid products that is capable of performing mandated testing utilizing validated methods.

R66-30-3. Cannabinoid Product Processor Licenses.

(1) The department shall issue the following cannabinoid [product ]processor licenses:

(a) a Tier One license, which allows a [licensee ]cannabinoid processor to:

(i) receive, store, extract, transport, and wholesale industrial hemp material; and

(ii) manufacture finished cannabinoid product;

(b) a Tier Two license, which allows a [licensee ]cannabinoid processor to:

(i) receive bulk cannabinoid product and store, package,[ and] label, transport; and

(ii) wholesale finished cannabinoid product; [and]or

(i) sell finished cannabinoid product to a retailer[,]; and

(ii) perform minimal processing for storage only.

(2) A cannabinoid processing establishment shall obtain a separate license for each type of cannabinoid processing establishment and each location of a cannabinoid processing establishment.

R66-30-4. Application Requirements.

(1) An applicant seeking a cannabinoid [product processing]processor license shall submit a complete application to the department.

(2) The applicant shall submit a non-refundable fee as approved by the Legislature in the fee schedule.

(3) The department shall deny any applicant who does not submit the required information.

(4) Each applicant for a cannabinoid processor license that processes industrial hemp or cannabinoid products intended for human consumption, shall be required to register as a food establishment under Section 4-5-301 pursuant to the requirements of Section R66-30-7.

R66-30-5. Processing Facility Restrictions.

(1) A [licensee ]cannabinoid processor may not process or store raw plant material or raw concentrate from industrial hemp in any

structure that is used for residential purposes.

[(2) A licensee shall dispose of industrial hemp waste in accordance with federal and state laws and regulations related to hazardous waste.]

([3]2) A [licensee ]cannabinoid processor may not process or handle industrial hemp or hemp material from any person who is not licensed

by the department, or the United States Department of Agriculture (USDA), or from a person outside the state who is not authorized by the laws of

that state.

([4]3) A [licensee ]cannabinoid processor may not permit a person under the age of 18 to access industrial hemp or cannabinoid products.

([5]4) A [licensee ]cannabinoid processor shall submit a nationwide criminal history from the FBI to the department for each key

participant within 90 days of employment.

([6]5) The [licensee ]cannabinoid processor shall notify the department if a key participant separates from the [licensee ]cannabinoid

processor within two weeks following the separation.

R66-30-6. Extraction Methods.

(1) In addition to the requirements of Section R66-30-4, an applicant seeking to engage in the extraction of cannabinoid concentrate from industrial hemp shall submit to the department a detailed description of the proposed extraction method.

(2) The applicant shall describe the proposed process for the removal of any solvents added during the extraction process, if applicable.

(3) The applicant shall describe the safety measures proposed to protect the public and employees from dangers associated with extraction methods.

(4) The department may deny a license for methods that pose a significant risk to public health and safety.

(5) Each [licensee ]cannabinoid processor shall adhere to the following extraction guidelines:

(a) ensure hydrocarbons n-butane, isobutane, propane, or heptane are of at least 99% purity;

(b) use a professional grade closed loop extraction system designed to recover the solvents, work in an environment with proper ventilation, and control each source of ignition where a flammable atmosphere is or may be present;

(c) ensure that any carbon dioxide (CO2) gas extraction system uses a professional grade closed loop CO2 gas extraction system where each vessel is rated to a minimum of six hundred pounds per square inch and CO2 shall be at least 99% purity;

(d) ensure that closed loop hydrocarbon, alcohol, or CO2 extraction systems are commercially manufactured and bear a permanently affixed and visible serial number; and

(e) upon request, provide the department with documentation showing that the system is:

(i) safe for its intended use; and

(ii) commercially manufactured.

(6) The applicant shall state whether they will be using derivative or synthetic cannabinoids and how they will produce or procure them.

R66-30-7. Processing Practices.

(1) A [licensee ]cannabinoid processor that manufactures cannabinoid products for human consumption shall register with the Division of

Regulatory Services within the department.

(2) A [licensee ]cannabinoid processor that also is a holder of a medical cannabis processing license shall adhere to the separation

requirements of Section R66-2-5 to ensure physical separation of medical cannabis and industrial hemp in their facility.

(3) A [licensee ]cannabinoid processor that manufactures cannabinoid products shall ensure that the facility meets basic cleanliness

standards, including:

(a) buildings are of suitable size, design, and construction to permit unobstructed placement of equipment, orderly storage of materials, sanitary operation, and proper cleaning and maintenance;

(b) floors, walls, and ceilings are constructed of smooth, easily cleanable surfaces and are kept clean and in good repair;

(c) fixtures, ducts, and pipes are installed in such a manner that drip or condensate does not contaminate materials, utensils, contact surfaces of equipment, or finished products in bulk;

(d) lighting and ventilation are sufficient for the intended operation and comfort of personnel;

(e) water supply, washing and toilet facilities, floor drainage, and sewage system are adequate for sanitary operation and cleaning of facilities, equipment, and utensils, as well as [to satisfy]satisfying employee needs and [facilitate]facilitating personal cleanliness; and

(f) adequate filth and pest controls are in place.

R66-30-8. Required Records.

(1) The [licensee ]cannabinoid processor shall keep records of receipt for any industrial hemp material obtained, including:

(a) the date of receipt;

(b) quantity received;

(d) the seller's information, including:

(i) the seller's department license number;

(ii) seller's contact information; and

(iii) the address of the facility or growing area from which the industrial hemp material was shipped.

(2) The [licensee ]cannabinoid processor shall keep records that include the following information for each batch of industrial hemp

material processed;

(a) the date of processing;

(b) the lot number of the material;

(d) the type of processing; and

(e) any lab test conducted on the industrial hemp material or product during the processing.

(3) The [licensee ]cannabinoid processor shall [keep]maintain records of the following:

(a) any derivative or synthetic cannabinoids procured or produced and the product[s they are] in which the cannabinoid is used[ for.];

([4]b) [The licensee shall keep records of ]any tests conducted, including [ with ]the identifying lot number[.]; and

([5]c) [The licensee shall keep records ]for a minimum of three years, [of ]any manufactured products[ they have manufactured] and the

disposition of any cannabinoid material [that leaves]leaving the facility.

[(6) Records are subject to review by department officials at the time of inspection or upon request.]

R66-30-9. Testing.

(1) A third-party laboratory shall test cannabinoid products for the following before distribution:

(a) cannabinoid profile;

(b) solvents;

(d) microbials;

(e) heavy metals; and

(f) foreign matter.

(2) The department shall conduct random testing of cannabinoid products and materials.

(3) The sample taken by the department shall be the official sample.

R66-30-10. Inspections and Sampling.

(1) The department shall have complete and unrestricted access to industrial hemp plants, seeds, [and ]materials, and any land, buildings,

and other structures used to process industrial hemp.

(2) Samples of industrial hemp or cannabinoid product may be randomly taken from the facility by department officials.

(3) The department may review records kept in accordance with rule requirements.

(4) The department shall notify a [licensee ]cannabinoid processor of test results greater than 0.3% THC.

(5) Any laboratory test with a result greater than 0.3% THC may be considered a violation of the terms of the license and may result in an immediate license revocation.

(6) Any laboratory test of a final product with a result of 1% THC or greater shall be turned over to the appropriate law enforcement agency, and revocation of the cannabinoid processor license shall be immediate.

(7) The department shall notify the [licensee ]cannabinoid processor of any adulterants found during testing.

(8) The presence of deleterious or harmful substances may be considered a violation of the terms of the license and may result in a license revocation.

R66-30-11. Storage of Industrial Hemp Material and Cannabinoid Products.

(1) A [licensee ]cannabinoid processor may store industrial hemp material and cannabinoid products at their licensed facility.

(2) A Tier One [licensee ]cannabinoid processor may store a raw concentrate that exceeds 0.3% THC provided:

(a) the concentrate is kept in a secure room;

(b) the concentrate is kept separate from other hemp and cannabinoid products;

(d) a record is kept of the amount of concentrate being stored and when it is being moved.

(3) Storage facilities shall be maintained in accordance with the practice adopted in Section R66-30-7.

(4) Storage facilities and records are subject to random inspection by department officials.

R66-30-12. Transportation of Industrial Hemp Material.

Each movement of industrial hemp material shall include a transport manifest that includes the following information:

(1) a copy of the COA for each batch included in the shipment;

(2) the location of the sending and receiving parties;

(3) proof of registration or licensure for the sending and receiving parties; and

(4) a bill of lading for the transported material.

R66-30-13. Restriction on the Sale and Transfer of Industrial Hemp Material.

(1) A [licensee ]cannabinoid processor may not sell or transfer living plants, viable plants, viable seed, or industrial hemp material to any

person not licensed by the department or the USDA.

(2) A [licensee ]cannabinoid processor may sell stripped stalks, fiber, and nonviable seed to the [general ]public provided the material's

THC level is less than 0.3%.

R66-30-14. Renewal.

(1) A [licensee ]cannabinoid processor shall resubmit the documents required in Section R66-30-4, with updated information, on or before

December 31[st] of the current year.

(2) The department may deny a renewal for an incomplete application.

(3) The department may deny renewal for any [licensee ]cannabinoid processor who has violated any portion of this rule or state law.

(4) The department shall assess a late fee for a renewal of a cannabinoid processor license submitted on or after [December 31st]January 1

and the[ licensee] cannabinoid processor shall pay the fee before the license renewal is issued.

R66-30-15. Violations.

(1) It is a violation to process industrial hemp or industrial hemp material on a site not approved by the department.

(2) It is a violation to process industrial hemp or industrial hemp material from a source that is not approved by the [D]department.

(3) A [licensee ]cannabinoid processor may not allow unsupervised public access to hemp processing facilities.

(4) It is a violation to employ a person under the age of 18 in the processing or handling of industrial hemp or cannabinoid products.

(5) It is a violation to sell a cannabinoid product to the public or another [licensee]cannabinoid processor in violation of this section or

state laws governing the final product.

(6) It is a violation to process raw concentrate without the appropriate [industrial hemp ]cannabinoid processor license.

(7) It is a violation to fail to [keep]maintain records required by this rule or to fail to adhere to the notification requirements of this rule.

(8) It is a violation to use artificially derived cannabinoids in cannabinoid products without notifying the department.

(9) It is a violation for a [licensee ]cannabinoid processor to allow an employee access to industrial hemp material or cannabinoid product

that contains over 0.3% THC, or has the potential to contain over 0.3% THC, if the employee:

(a) has a felony conviction; or

(b) has a drug-related misdemeanor conviction within the previous 10 years.

(10) It is a violation to have cannabinoid concentrate without a cannabinoid product processing license.

(11) It is a violation to store cannabinoid concentrate with greater than 0.3% THC concentration without following the requirements of Subsection R66-30-12(2).

(12) It is a violation to store industrial hemp material without a cannabinoid processor license from the department or a cultivator license

from the USDA.

(13) It is a violation to have non-compliant material.

(14) It is a violation for a [licensee ]cannabinoid processor to engage in practices outside of the scope of their license.

(15) It is a violation to use an extraction method that is not authorized by Section R66-30-6.

(16) It is a violation to employ a key participant without a background check for longer than 90 days.

(17) It is a violation to operate a facility that does not meet basic cleanliness standards outlined in Section R66-30-7.

(18) For holders of industrial hemp and medical cannabis processing licenses, it is a violation to operate a facility that does not adhere to the separation requirements of Section R66-2-5.

(19) It is a violation to sell a cannabinoid product that has not been tested as required by Section R66-30-9.

(20) It is a violation to deny the department the ability to take a sample of a cannabinoid product during an inspection or as part of an investigation.

[(21) It is a violation to deny the department access to a cannabinoid product processing facility or cannabinoid product processing facility

records during regular business hours.]

KEY: cannabidiol, hemp products, hemp extraction, hemp oil

Date of Last Change: 2026[August 7, 2025]

Authorizing, and Implemented or Interpreted Law: 4-41-103(4)

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