Bill Text: MS HB1437 | 2024 | Regular Session | Introduced
Bill Title: Kratom Consumer Protection Act; create.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2024-03-05 - Died In Committee [HB1437 Detail]
Download: Mississippi-2024-HB1437-Introduced.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Drug Policy; Judiciary B
By: Representative Roberson
House Bill 1437
AN ACT TO CREATE THE KRATOM CONSUMER PROTECTION ACT; TO DEFINE CERTAIN TERMS THAT RELATE TO THE PROVISIONS OF THIS ACT; TO REQUIRE THE DEPARTMENT OF REVENUE TO ISSUE LICENSES FOR CONSUMABLE FOOD MANUFACTURING DISTRIBUTORS; TO REQUIRE THE DEPARTMENT OF REVENUE TO ISSUE RETAIL KRATOM LICENSES FOR RETAILERS AND WHOLESALE KRATOM LICENSES FOR WHOLESALERS; TO REQUIRE THE DEPARTMENT OF HEALTH TO ISSUE PROCESSING KRATOM LICENSES FOR PROCESSORS; TO REQUIRE A RETAILER TO DISPLAY AND STORE ALL KRATOM PRODUCTS IN A LOCATION THAT IS NOT ACCESSIBLE BY THE PUBLIC WITHOUT ASSISTANCE FROM SUCH RETAILER; TO PROVIDE THAT IT IS UNLAWFUL FOR ANY PERSON UNDER TWENTY-ONE YEARS OF AGE TO POSSESS ANY KRATOM PRODUCTS; TO PROHIBIT A RETAILER FROM DISTRIBUTING OR SELLING ANY KRATOM PRODUCT TO A PERSON UNDER TWENTY-ONE YEARS OF AGE; TO REQUIRE A RETAILER TO VERIFY THE AGE OF ANY PERSON ATTEMPTING TO PURCHASE OR RECEIVE A KRATOM PRODUCT PRIOR TO THE SALE OR TRANSFER OF SUCH PRODUCT; TO REQUIRE PROCESSORS, RETAILERS, WHOLESALERS, AND CONSUMABLE FOOD MANUFACTURING DISTRIBUTORS THAT ARE REGISTERED WITH EITHER THE DEPARTMENT OF HEALTH OR THE DEPARTMENT OF REVENUE TO SUBMIT A REPORT THAT CONTAINS CERTAIN INFORMATION ON A QUARTERLY BASIS; TO REQUIRE THE DEPARTMENT OF REVENUE TO DEVELOP, IMPLEMENT AND PROVIDE AN ELECTRONIC REPORTING SYSTEM FOR RETAILERS, WHOLESALERS AND DISTRIBUTORS OF KRATOM PRODUCTS; TO REQUIRE THAT A FINALIZED SAMPLE OF ANY FINISHED KRATOM PRODUCT HAVE A COMPLETE CERTIFICATE OF ANALYSIS CONTAINING CERTAIN INFORMATION FROM AN ACCREDITED AND CERTIFIED LAB; TO REQUIRE THAT THE DEPARTMENT OF REVENUE, APPROVE ALL LABELS FOR KRATOM PRODUCTS; TO PROVIDE CERTAIN REQUIREMENTS FOR LABELS OF KRATOM PRODUCTS; TO IMPOSED AN EXCISE TAX ON RETAILERS OF KRATOM PRODUCTS AT THE RATE OF 3% OF THE RETAIL SALES PRICE OF A KRATOM PRODUCT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "Kratom Consumer Protection Act".
SECTION 2. As used in this act, the following terms have the meanings as defined in this section, unless the context clearly indicates otherwise:
(a) "Commissioner" means the Commissioner of the Department of Revenue.
(b) "Kratom product" means a food product or dietary ingredient containing any part of the leaf of the plant Mitragyna Speciosa, or an extract of it processed as a powder, capsule, pill, beverage, extract, or other edible or consumable form. For purposes of this act, all kratom products are considered food.
(c) "Processor" means a GMP Certified entity who applies for and obtains a processing kratom license from the Department of Health, and prepares, processes or manufactures
kratom products, and holds itself out as selling only to licensed consumable food manufacturing distributors.
(d) "Retailer" means any individual, partnership, corporation, cooperative association, or other business entity who applies for and obtains a retail kratom license from the Department of Revenue, and sells, advertises, represents, or holds itself out as selling, kratom products to consumers at retail, or maintaining kratom products. All kratom products purchased for resale at retail shall only be purchased from a licensed consumable food manufacturing distributor, an authorized agent of a licensed consumable food manufacturing distributor or a licensed kratom wholesaler.
(e) "Wholesaler" means any individual, partnership, corporation, cooperative association, or other business entity who applies for and obtains a wholesale kratom license from the Department of Revenue, and purchases kratom products for resale to retail from a licensed Consumable Food Manufacturing Distributor.
(f) "Consumable food manufacturing distributor" means any individual, partnership, corporation, cooperative association, or other business entity that receives raw kratom or kratom products, extract, distillates, isolates or any other form of kratom. Consumable food manufacturing distributors may sell to licensed wholesalers, licensed retailers, and directly to
consumers.
(g) "Department" means the State Department of Health or the Department of Revenue.
SECTION 3. (1) The Department of Revenue shall issue licenses for consumable food manufacturing distributors.
(a) To be eligible to receive a consumable food manufacturing distributors license, the entity applying for such license shall:
(i) Have a minimum of a pending GMP certification from a certifying body that is accredited by the America National Standards Institute (ANSI) as of December 31, 2023;
(ii) Have a state-approved current food manufacturing license in the state that such entity resides, with a facility specializing in a key specialty crop;
(iii) Be responsible for notifying the Department of Health and Department of Revenue of any designated agents or representatives; and
(iv) Offer for sale, anti-counterfeiting scan codes for distribution for any kratom product approved by the department.
Consumable food manufacturing distributors may designate authorized agents for the purposes of wholesaling consumable kratom products to a licensed wholesaler or retailer.
A consumable food manufacturing distributor shall be subject to an annual license fee of Five Hundred Dollars ($500.00), due by December 31 of each year.
(b) The Department of Revenue shall issue retail kratom licenses for retailers and wholesale kratom licenses for wholesalers in a manner and form as prescribed by the department.
(i) A retailer shall be subject to an annual license fee of One Hundred and Seventy-five Dollars ($175.00), due by December 31 of each year.
(ii) A wholesaler shall be subject to an annual license fee of Five Hundred Dollars ($500.00), due by December 31 of each year.
(2) The Department of Health shall issue processing kratom licenses for processors in a manner and form as prescribed by the department. A processor shall be subject to an annual license fee of Five Hundred Dollars ($500.00), due by December 31 of each year.
SECTION 4. (1) A retailer shall display and store all kratom products in a location that is not accessible by the public without assistance from such retailer.
(2) It is unlawful for any person under twenty-one (21) years of age to possess any kratom products.
(3) A retailer shall not distribute or sell any kratom product to a person under twenty-one (21) years of age. No person or entity shall distribute a promotional sample of kratom products to a person under twenty-one (21) years of age.
(4) Prior to the sale or transfer of any kratom product, a retailer shall verify the age of any person attempting to purchase or receive such product by requiring the person to provide any one (1) of the following methods to verify his or her identity and age:
(a) A digitized identification card; or
(b) A valid government-issued identification card.
(5) Any kratom product that is found in this state, which does not contain an anti-counterfeiting solution provided by a consumable food manufacturing distributor, shall be considered contraband, and any property interest in such product is vested in the State of Mississippi and is subject to seizure and destruction.
SECTION 5. (1) Any processor, retailer, wholesaler, or consumable food manufacturing distributor that is registered with either the Department of Health or the Department of Revenue, must submit a report on a quarterly basis, due by the 20th day of the following month, which contains the following:
(a) Processors shall report all purchases by consumable food manufacturing distributors of kratom products;
(b) Retailers shall report all purchases of kratom products from licensed wholesalers and licensed consumable food manufacturing distributors, and all sales of kratom products to the public;
(c) Wholesalers shall report all purchases of kratom products from a consumable food manufacturing distributor, and all resales of kratom products to other authorized wholesalers and licensed retailers;
(d) Consumable food manufacturing distributors shall report all kratom products received from licensed processors, and all such products sold to authorized agents, wholesalers, retailers, or to the public.
(2) A processor, retailer, wholesaler or consumable food manufacturing distributor of kratom products that fails to file a quarterly report by the 20th day of the following month
shall be subject to a fine of not less than One Thousand Dollars ($1,000.00).
SECTION 6. (1) An electronic reporting system shall be developed, implemented and provided by the Department of Revenue.
(2) The department shall provide a list of licensed processors, wholesalers, retailers and consumable food manufacturing distributors that is accessible to the public on its website. Such list shall be updated each month, and contain the following information of licensed processors, wholesalers, retailers and consumable food manufacturing distributors:
(a) Name;
(b) Address;
(c) Phone number;
(d) Email;
(e) Date of license; and
(f) Date of expiration of such license.
SECTION 7. A finalized sample of any finished kratom product shall have a complete certificate of analysis from an accredited and certified lab, which contains detailed information regarding the following:
(a) Mitragynine and 7-Hydroxymitragynine;
(b) Metals, such as As, Cd, Hg, Pb;
(c) Salmonella spp.;
(d) STEC;
(e) Aerobic plate count;
(f) Coliforms and E. coli;
(g) S. aureus;
(h) Yeast and mold;
(i) Pesticides;
(j) Mycotoxins;
(k) Residual solvents; and
(l) Nickel.
SECTION 8. (1) In order to receive approval from the Department of Revenue, all labels for kratom products shall:
(a) Contain an anti-counterfeit label that is purchased from a licensed consumable food manufacturing distributor;
(b) Contain a scannable QR code linked to the processor's website, or a document containing a certificate of analysis for such kratom product;
(c) Be affixed to a tamper-evident container or package that clearly indicates prior access to such container or package;
(d) (i) Have packaging and/or labeling that contains the following information:
1. Net weight or contents with the correct corresponding units for the product whether it is a liquid, semi solid or solid:
a. Liquids shall have the contents listed as (example, Net Weight Zfl ozl60mL);
b. Semi Solids shall have the contents listed as (example, Net Weight 2oz I 57g);
c. Solids shall have the contents listed as (example, Net Weight 2oz I 57g);
2. Number of servings;
3. Total servings per package;
4. List of ingredients;
5. A statement, of exact wording, declaring, "These statements have not been evaluated by the Food and Drug Administration, this product is not intended to diagnose, treat, cure or prevent any disease";
6. Allergen information corresponding to the facility of manufacture;
7. A unique UPC code identifying the product;
8. Manufacturing information that includes the name and address of the manufacturer; and
9. Indication this product shall not be sold to anyone under the age of twenty-one (21) years.
(e) Have packaging and/or labeling that does not contain any medical claims;
(f) Not contain any active pharmaceutical ingredient (API) recognized by the United States Food and Drug Administration; and
(g) Not contain any synthetic kratom product, or a kratom product that is not natural.
(2) The department shall charge and collect a fee of not more than Fifty Dollars ($50.00) for each separate and distinct kratom product registered by the department.
SECTION 9. A processor, retailer, wholesaler or consumable food manufacturing distributor that stores, purchases, sells, or distributes unlawful kratom products shall be subject to a fine of not less than One Thousand Dollars ($1,000.00) per item.
SECTION 10. (1) There is hereby imposed, levied and assessed an excise tax on retailers of kratom products. Such excise tax shall be three percent (3%) of the retail sales price of any kratom product.
A retailer shall collect and remit an excise tax on forms and in a manner specified by the Commissioner of Revenue.
(2) All administrative provisions of the sales tax law and amendments thereto, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provision of said sales tax law, and all other requirements and duties imposed upon a taxpayer, shall apply to all persons liable for taxes under the provisions of this section. The commissioner shall exercise all power and authority and perform all duties with respect to taxpayers under this section as are provided in said sales tax law, except where there is conflict, then the provisions of this section shall control.
(3) All excise taxes collected under the provisions of this section shall be deposited into the State General Fund.
SECTION 11. This act shall take effect and be in force from and after July 1, 2024.
