AI-generated summary. We recommend consulting the bill text for important decisions.

Beginning January 1, 2027, this bill expands Utah's existing regulatory framework for cannabinoid products (like hemp-derived CBD) to also cover kratom products — a botanical supplement sold in many Utah stores — grouping them together under the new label "specialized products." It requires retailers to obtain a state license from the Tax Commission (for a $50 fee) to sell either type of product, raises the tax rate on specialized product sales from 0.10% to 5.3% of the retail price, extends that same tax to kratom for the first time, redirects all tax revenue into a renamed "Specialized Product Proceeds Restricted Account" to fund enforcement and related duties, removes a previous provision that split revenue to local governments, and creates a $1,000 administrative fine for selling without a license.