House Bill No. introduced by N. Nicol establishes the Kratom Consumer Protection Act in Montana, which aims to regulate the sale and distribution of kratom products. The bill mandates the registration of kratom processors, distributors, and retailers, and sets forth labeling requirements for kratom products. It prohibits the sale of kratom to individuals under 21 years of age and imposes specific limitations on kratom products, including restrictions on certain alkaloid levels and a ban on synthesized materials. The Department of Revenue will oversee enforcement and compliance with these new regulations.
Additionally, the bill introduces civil penalties for violations, including fines for selling unregistered products or to underage individuals, and establishes a 5% excise tax on the wholesale selling price of kratom products. It requires registrants to provide a certificate of analysis and product labels within a specified timeframe, with noncompliance leading to revocation of registration and potential stop sale orders. The legislation also creates a Kratom State Special Revenue Account to manage funds from registration fees, taxes, and penalties, and outlines that the Department will adopt rules for administration and enforcement, with the new regulations taking effect on January 1, 2026.
Statutes affected: HB0407_2(10): 17-7-502
HB0407_2(11): 17-7-502
HB0407_2(12): 17-7-502
HB0407_2(13): 17-7-502
HB0407_2(8): 17-7-502
HB0407_2(9): 17-7-502