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 that include health warnings and ingredient disclosures. It prohibits the sale of kratom to individuals under 21 years of age and imposes specific limitations on product composition, including restrictions on certain alkaloid levels and synthesized materials. The Department of Revenue is designated as the enforcement authority, with the power to impose civil penalties and criminal charges for violations.

Additionally, the bill introduces a fee structure for registration, requiring kratom processors to pay an annual fee of $500, while distributors and retailers must pay $400 each. A 5% excise tax on the wholesale selling price of kratom products is also established. The legislation emphasizes safety and compliance, requiring quality testing and certification from independent laboratories, and allows the Department to mandate third-party testing if necessary. A dedicated Kratom State Special Revenue Account will manage funds from registration fees, taxes, and penalties, and the Department is tasked with adopting rules for the administration of these provisions. 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