Industrial Hemp Grant Program

(1) (a) There is created the Industrial Hemp Grant Program to be administered by the office. (b) The purpose of the program is to award grants to existing Utah businesses that have a cannabinoid processor license or an industrial hemp producer registration to develop industrial hemp products. (2) (a) An entity that submits a proposal for a grant to the office shall include details in the proposal regarding: (i) how the entity plans to use the grant to fulfill the purpose described in Subsection (1)(b); (ii) any plan to use funding sources in addition to a grant for the proposal; and (iii) any existing or planned partnerships between the entity and another individual or entity to implement the proposal. (b) In evaluating a proposal for a grant, the office shall consider: (i) the likelihood the proposal will accomplish the purpose described in Subsection (1)(b); (ii) the extent to which any additional funding sources or existing or planned partnerships will benefit the proposal; and (iii) the viability and sustainability of the proposal. (c) In determining a grant award, the office: (i) shall consult with the Department of Agriculture and Food; and (ii) may prioritize a business that is committed to switching from producing cannabinoid products to industrial hemp products. (3) Before receiving the grant, a grant recipient shall enter into a written agreement with the office that specifies: (a) the grant amount; (b) the time period and structure for distribution of the grant, including any terms and conditions the recipient is required to meet to receive a distribution; and (c) the expenses for which the recipient may use the grant. (4) Subject to Subsection (2), the office may, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to establish: (a) the form and process for submitting a proposal to the office for a grant; (b) which entities are eligible to apply for a grant; (c) the method and formula for determining a grant amount; and (d) the reporting requirements for a grant recipient.