| Summary |
Section 1 of the bill repeals certain provisions regarding the
regulation of kratom that are included in sections 2 and 3 with
amendments.
Section 2 prohibits a processor from manufacturing, packaging,
labeling, or distributing in the state a food or dietary supplement that
consists of kratom leaf or kratom leaf extract (kratom product) unless the
manufacturer of the kratom product has obtained a registration of the
kratom product (registration) from the executive director of the
department of revenue (executive director). The manufacturer must pay
a fee and provide proof of certain certificates and a registration from the
federal food and drug administration to receive a registration for the
kratom product from the executive director.
The executive director is required to establish an annual fee paid
by manufacturers of kratom products that are manufactured, packaged,
labeled, or distributed in the state. The fees are credited to the kratom
consumer protection cash fund, which is created in section 2 and may be
used by the executive director for the administration and enforcement of
state laws regulating kratom.
A manufacturer of a kratom product that is manufactured,
packaged, labeled, or distributed in the state without a registration is
subject to a civil penalty of:
•
No more than $1,000 for the first violation;
•
No more than $5,000 for the second violation; and
•
At least $5,000 and no more than $20,000 for a third or
subsequent violation.
In the event of a third or subsequent violation, the manufacturer is
prohibited from manufacturing or distributing kratom products in the state
for 3 years after the date the civil penalty is assessed.
Section 3 prohibits a person from:
•
Knowingly preparing, distributing, advertising, selling, or
offering to sell a kratom product under certain
circumstances;
•
Preparing, distributing, advertising, selling, or offering to
sell a kratom product that does not clearly and
conspicuously set forth certain information on the kratom
product's label;
•
Displaying or storing kratom products in a retail location in
a manner that will allow the products to be accessed by
individuals under 21 years of age; or
•
Manufacturing, packaging, labeling, or distributing a
kratom product that contains synthesized or
semi-synthesized kratom alkaloids or has a level of
7-hydroxymitragynine in the alkaloid fraction that is greater
than 2% of the alkaloid composition of the product.
A person that conducts these prohibited activities engages in a
deceptive trade practice.
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