House Bill No. [insert number] introduces the Kratom Consumer Protection Act, which aims to regulate the sale and distribution of kratom products in Montana. The bill establishes definitions for key terms such as "kratom processor," "kratom distributor," and "kratom retailer," and mandates that these entities register annually with the Department of Revenue, paying associated fees. It prohibits the sale of kratom products to individuals under 21 years of age and restricts certain harmful ingredients and manufacturing practices. Additionally, the bill requires product labeling that includes health warnings and ingredient disclosures, and imposes a 5% excise tax on the wholesale selling price of kratom products.

The legislation includes enforcement provisions, civil penalties, and criminal convictions for violations, while also removing previous language regarding contingent federal preemption. It mandates that registrants 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 Department of Revenue will oversee compliance, maintain a public registry of approved kratom products, and can require independent third-party testing if necessary. The bill establishes a Kratom State Special Revenue Account to manage funds from registration fees, taxes, and penalties, and outlines that the new regulations will take effect on January 1, 2026.

Statutes affected:
HB0407_2(10): 17-7-502
HB0407_2(8): 17-7-502
HB0407_2(9): 17-7-502