Bill > HB407

This bill creates the Kratom Consumer Protection Act, which establishes a comprehensive regulatory framework for kratom products in Montana. The legislation requires kratom processors, distributors, and retailers to register annually with the Department of Revenue, paying registration fees ranging from $400 to $500. The bill sets strict product standards, prohibiting kratom products that contain synthetic materials, excessive levels of specific alkaloids, or dangerous substances, and mandates that all products undergo quality testing by an independent laboratory. Kratom products must be labeled with specific warnings, including age restrictions (no sales to individuals under 21), potential habit-forming risks, and recommended serving sizes. The bill imposes significant penalties for violations, including fines of $10,000 to $15,000 per violation and potential two-year sales prohibitions for repeat offenders. A 5% excise tax will be collected on wholesale kratom sales, with the revenue deposited into a dedicated state special revenue account. The law also establishes criminal penalties for serious violations, such as selling kratom products containing controlled substances, with potential misdemeanor or felony charges. The bill is set to take effect on January 1, 2026, and aims to ensure consumer safety by creating a regulated market for kratom products in Montana.

Budget and Finance, Business and Industry

https://bills.legmt.gov/#/laws/bill/2/LC1851