UT SB0101

Expands the existing cannabinoid product regulatory framework to include kratom products under a new "specialized products" category, requiring retailers to obtain a license from the State Tax Commission before selling either product type

Changes the tax rate on specialized products from 10% to 5.3% of retail price, with revenue deposited into the renamed "Specialized Product Proceeds Restricted Account" (previously "Cannabinoid Proceeds Restricted Account")

Removes the sales tax exemption for cannabinoid products and eliminates the bonding requirement for retailers, while establishing a $1,000 administrative fine for selling without a license (class B misdemeanor)

Allows the Department of Agriculture and Food to set product registration fees for both cannabinoid and kratom products until January 1, 2029, with fines up to $5,000 for selling unregistered products

Takes effect January 1, 2027, with restricted account funds available for enforcement of hemp/cannabinoid and kratom consumer protection laws, cannabinoid-related investigations, and the Industrial Hemp Grant Program