This bill amends the Kratom Consumer Protection Act to introduce an excise tax on the retail sale of kratom products, set at ten percent of the retail purchase price, effective July 1, 2027. Retailers will be required to maintain accurate electronic sales records and file monthly tax returns with the Department of Revenue. The collected excise tax will be credited to the Property Tax Credit Cash Fund. Additionally, the bill modifies provisions regarding adulterated kratom products, allowing the Department to require independent third-party testing if there is reasonable belief that a product may be adulterated, and prohibits the sale of products undergoing testing until verified as non-adulterated.

The bill also outlines penalties for violations of the Kratom Consumer Protection Act, with escalating civil penalties for repeat offenders and the potential removal of adulterated products from the department's registered list. It clarifies that the Attorney General has enforcement authority under the act, while also establishing that violations related to adulterated products can serve as prima facie evidence of violations under the Consumer Protection Act. The original sections of the law being amended are repealed as part of this legislative update.

Statutes affected:
Introduced: 71-3801, 71-3809, 71-3810, 71-3812