House Bill No. introduced by N. Nicol establishes the Kratom Consumer Protection Act in Montana, aimed at regulating the sale and distribution of kratom products. The bill mandates the registration of kratom processors, distributors, and retailers, along with specific labeling requirements. It prohibits the sale of kratom to individuals under 21 years of age and imposes limitations on product formulations, including restrictions on certain alkaloid levels and synthesized materials. The Department of Revenue will oversee enforcement and compliance, while civil penalties, including fines for selling unregistered products or to underage individuals, are introduced. A 5% excise tax on the wholesale price of kratom products is also established, and an annual registration with the Department is required, which will maintain a public registry of compliant products.

Additionally, the bill emphasizes consumer safety by requiring proof of quality testing and certifications from independent auditors. Registrants must 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 may also require independent third-party testing at the registrant's expense. A dedicated Kratom State Special Revenue Account will manage funds from registration fees, taxes, and civil penalties, and the Department is responsible for adopting rules for administration and enforcement. The act is set to take 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