S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8136
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Health
 
 AN ACT to amend the public health law and the tax law,  in  relation  to
   enacting the "New York state kratom consumer protection act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York state kratom consumer protection act".
   §  2. The article heading of article 13-F of the public health law, as
 amended by chapter 448 of the laws  of  2012,  is  amended  to  read  as
 follows:
             REGULATION OF TOBACCO PRODUCTS, HERBAL CIGARETTES,
             KRATOM AND SMOKING PARAPHERNALIA; DISTRIBUTION TO
                                  MINORS
   §  3.  Section  1399-aa  of the public health law is amended by adding
 eleven new sections, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28  and  29  to
 read as follows:
   19.  "KRATOM"  MEANS  THE PLANT MITRAGYNA SPECIOSA OR ANY PART OF THAT
 PLANT.
   20. "KRATOM PRODUCT" MEANS A FINISHED ARTICLE CONTAINING: (A) ANY PART
 OF A LEAF OF THE PLANT MITRAGYNA SPECIOSA IN FRESH, DEHYDRATED, OR DRIED
 FORM; OR (B) A KRATOM EXTRACT.
   21. "KRATOM PROCESSOR" MEANS A PERSON WHO:
   (A) MANUFACTURES, DISTRIBUTES, OR WAREHOUSES A KRATOM PRODUCT; OR
   (B) ADVERTISES, REPRESENTS, OR HOLDS  ONESELF  OUT  AS  MANUFACTURING,
 DISTRIBUTING, OR WAREHOUSING A KRATOM PRODUCT.
   22.  "KRATOM  EXTRACT"  MEANS  A  SUBSTANCE  OR  COMPOUND  OBTAINED BY
 EXTRACTION OF THE  MITRAGYNA  SPECIOSA  LEAF,  INTENDED  FOR  INGESTION,
 CONTAINING  MORE THAN TRACE AMOUNTS OF MITRAGYNA SPECIOSA AND CONTAINING
 OTHER ALKALOIDS  OF  THE  KRATOM  PLANT,  WHICH  DOES  NOT  CONTAIN  ANY
 CONTROLLED  SUBSTANCES  OR  LEVELS  OF  RESIDUAL SOLVENTS HIGHER THAN IS
 ALLOWED IN THE U.S. PHARMACOPEIA (USP) 467.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00486-04-5
 S. 8136                             2
 
   23. "ALKALOID" MEANS A COMPOUND FOUND IN THE MITRAGYNA  SPECIOSA  LEAF
 INCLUDING BUT NOT LIMITED TO MITRAGYNINE, PAYNANTHEINE, SPECIOCILIATINE,
 OR SPECIOGYNINE.
   24.  "SYNTHESIZED  MATERIAL" MEANS AN ALKALOID, METABOLITE OF AN ALKA-
 LOID, OR ALKALOID DERIVATIVE THAT HAS BEEN CREATED BY CHEMICAL SYNTHESIS
 OR BIOSYNTHETIC MEANS  INCLUDING,  BUT  NOT  LIMITED  TO:  FERMENTATION,
 RECOMBINANT  TECHNIQUES, YEAST DERIVED, ENZYMATIC TECHNIQUES, OXIDATION,
 RATHER THAN TRADITIONAL FOOD PREPARATION TECHNIQUES, SUCH AS HEATING  OR
 EXTRACTING.
   25.  "SEMI-SYNTHETIC ALKALOID" MEANS A SUBSTANCE DERIVED FROM AN ALKA-
 LOID NATURALLY OCCURRING IN KRATOM  THAT  HAS  BEEN  CHEMICALLY  ALTERED
 THROUGH  CHEMICAL  REACTIONS  SUCH  AS,  BUT  NOT LIMITED TO: OXIDATION,
 REDUCTION, ACETYLATION, OR OTHER PROCESSES TO CHANGE  THE  STRUCTURE  OR
 PHARMACOLOGICAL  ACTIVITY  OF  THE  NATURALLY OCCURRING KRATOM ALKALOID.
 THIS INCLUDES BUT IS NOT LIMITED TO THE SYNTHESIS  OF  7-HYDROXYMITRAGY-
 NINE WHEN PRODUCED BY CHEMICAL ALTERATION OF MITRAGYNINE.
   26.  "SYNTHETIC  KRATOM-LIKE  COMPOUND"  MEANS A SUBSTANCE THAT IS NOT
 FOUND NATURALLY IN THE MITRAGYNA SPECIOSA PLANT AND IS CREATED  ENTIRELY
 THROUGH  LABORATORY  SYNTHESIS  TO  MIMIC THE PHARMACOLOGICAL EFFECTS OF
 KRATOM ALKALOIDS.
   27. "RETAILER" MEANS ANY PERSON THAT SELLS  OR  ADVERTISES  ITSELF  AS
 SELLING  KRATOM  PRODUCTS  DIRECTLY TO CONSUMERS, EXCEPT THAT A RETAILER
 SHALL NOT INCLUDE ANY FACILITY THAT PREPARES A KRATOM OR KRATOM  PRODUCT
 EXTRACT  ONSITE AND OFFERS ONSITE SALE OF THAT KRATOM OR KRATOM RAW LEAF
 OR EXTRACT PRODUCT SHALL HAVE A RESTAURANT LICENSE IN  THE  JURISDICTION
 WHERE  THEY  OPERATE  AND SHALL BE EXEMPT FROM REGISTRATION REQUIREMENTS
 AND LABELING PROVISIONS PROVIDED HEREIN, INCLUDING  AS  A  PROCESSOR  OR
 RETAILER.
   28. "ATTRACTIVE TO CHILDREN" MEANS KRATOM PRODUCTS MANUFACTURED IN THE
 SHAPE  OF  CARTOONS, OR ANIMALS OR IS MANUFACTURED OR PACKAGED IN A FORM
 THAT BEARS ANY REASONABLE RESEMBLANCE TO AN EXISTING CANDY PRODUCT  THAT
 IS  FAMILIAR TO THE PUBLIC AS A WIDELY DISTRIBUTED, BRANDED FOOD PRODUCT
 SUCH THAT A PRODUCT COULD BE MISTAKEN FOR THE BRANDED PRODUCT, ESPECIAL-
 LY BY CHILDREN.
   29. "CURRENT CERTIFICATE OF ANALYSIS (COA)"  MEANS  A  TEST  COMPLETED
 WITHIN TWELVE MONTHS OF SUBMISSION.
   §  4.  The  public  health  law  is  amended  by  adding a new section
 1399-gg-1 to read as follows:
   § 1399-GG-1. KRATOM PRODUCT LIMITATIONS. 1. A PROCESSOR OR A  RETAILER
 SHALL  NOT  PREPARE,  DISTRIBUTE,  SELL,  OR  OFFER  FOR SALE ANY OF THE
 FOLLOWING:
   (A)  ANY  PRODUCT  CONTAINING  A  SYNTHESIZED,  SEMI-SYNTHESIZED,   OR
 SYNTHETIC KRATOM LIKE-COMPOUND AS FOLLOWS:
   (I) A PRODUCT THAT CONTAINS SYNTHESIZED MATERIAL AS PROVIDED IN SUBDI-
 VISION  TWENTY-FOUR,  TWENTY-FIVE,  OR  TWENTY-SIX  OF  SECTION THIRTEEN
 HUNDRED NINETY-NINE-AA OF THIS ARTICLE; OR
   (II) A PRODUCT CONTAINING A LEVEL OF 7-HYDROXYMITRAGYNINE IN THE ALKA-
 LOID FRACTION THAT IS GREATER THAN TWO PERCENT OF TOTAL ALKALOIDS  IN  A
 CONTAINER; OR
   (III)  A  PRODUCT  WITH  A  SINGLE  SERVING  OF  A  PRODUCT  EXCEEDING
 1MG/SERVING OF 7-HYROXYMITRAGYNINE.
   (B) A PRODUCT THAT CONTAINS OR IS ADULTERATED WITH ANY OF THE  FOLLOW-
 ING:
   (I) A KRATOM PRODUCT CONTAINS A DANGEROUS POISONOUS OR OTHERWISE DELE-
 TERIOUS  NON-KRATOM  INGREDIENT,  INCLUDING,  BUT  NOT  LIMITED  TO, THE
 SUBSTANCES LISTED AS A CONTROLLED SUBSTANCE UNDER STATE OR FEDERAL LAW;
 S. 8136                             3
 
   (II) A KRATOM PRODUCT IN ANY FORM THAT IS COMBUSTIBLE, INTENDED TO  BE
 USED FOR VAPORIZATION, OR AS AN INJECTABLE;
   (III)  A KRATOM PRODUCT MANUFACTURED IN A MANNER THAT IS ATTRACTIVE TO
 CHILDREN; OR
   (IV) A  KRATOM  EXTRACT  PRODUCT  THAT  CONTAINS  LEVELS  OF  RESIDUAL
 SOLVENTS  HIGHER  THAN  IS  ALLOWED IN SUBDIVISION TWENTY-TWO OF SECTION
 THIRTEEN HUNDRED NINETY-NINE-AA OF THIS ARTICLE.
   § 5. The public  health  law  is  amended  by  adding  a  new  section
 1399-gg-2 to read as follows:
   §  1399-GG-2.  KRATOM  PRODUCT REGISTRATION. 1. A KRATOM PROCESSOR MAY
 NOT KNOWINGLY PREPARE, DISTRIBUTE, SELL, OR  OFFER  FOR  SALE  A  KRATOM
 PRODUCT IN THIS STATE THAT IS NOT REGISTERED WITH THE DEPARTMENT.
   2.  A  KRATOM RETAILER MAY NOT SELL, DISTRIBUTE, ADVERTISE, REPRESENT,
 OR HOLD ITSELF OUT AS SELLING A KRATOM PRODUCT IN THIS STATE THAT IS NOT
 REGISTERED WITH THE DEPARTMENT.
   3. THE PERSON RESPONSIBLE FOR KNOWINGLY PLACING A KRATOM PRODUCT  INTO
 COMMERCE  DIRECTLY  IN  THIS  STATE SHALL REGISTER ANNUALLY TO OFFER FOR
 SALE KRATOM PRODUCTS MANUFACTURED IN AN APPROVED  KRATOM  DELIVERY  FORM
 AND  PAY  A  FEE,  ADJUSTED  ANNUALLY, TO COVER THE ADMINISTRATIVE COSTS
 SPECIFICALLY REQUIRED FOR PROCESSING AND  ADMINISTERING  SUCH  REGISTRA-
 TIONS, INCLUDING THE NECESSARY STAFF AND THE PUBLICATION AND MAINTENANCE
 OF A KRATOM REGISTRATION WEBPAGE ON THE DEPARTMENT'S WEBSITE.
   4. THE REGISTRATION SHALL INCLUDE THE FOLLOWING DOCUMENTATION FROM THE
 PROCESSOR:
   (A)  A  SWORN  DECLARATION FROM THE REGISTRANT THAT THE PRODUCT REGIS-
 TERED IS COMPLIANT WITH THE REQUIREMENTS OF THIS SECTION;
   (B) A CERTIFICATION FROM A THIRD-PARTY INDEPENDENT  AUDITOR  THAT  THE
 PROCESSOR'S  OPERATIONS ARE GENERALLY CONSISTENT WITH APPROPRIATE GUIDE-
 LINES OF THE FDA GMP REQUIREMENTS FOUND IN 21 CFR PART 111 OR  117  THAT
 WOULD  APPLY TO KRATOM PRODUCTS ALLOWED BY THIS CHAPTER FOR ANY FACILITY
 THAT MANUFACTURES, PROCESSES, PACKS, OR HOLDS SUCH A KRATOM  PRODUCT  AS
 BEING REGISTERED;
   (C)  PROOF  OF CURRENT U.S. FOOD AND DRUG ADMINISTRATION FOOD FACILITY
 REGISTRATION FOR ALL OF  THE  PROCESSOR'S  FACILITY  THAT  MANUFACTURES,
 PROCESSES, PACKS, OR HOLDS THE KRATOM PRODUCT BEING REGISTERED;
   (D) A SWORN DECLARATION FROM THE REGISTRANT THAT THE PROCESSOR HAS THE
 EVIDENCE  REQUIRED  TO MEET THE FEDERAL REQUIREMENT FOR HAVING A REASON-
 ABLE EXPECTATION OF THE SAFETY OF THE PRODUCT UNDER  THE  CONDITIONS  OF
 USE  SET  FORTH  ON THE LABEL. THE REGISTRANT ASSUMES RESPONSIBILITY AND
 LIABILITY FOR ANY SUCH PRODUCTS OFFERED FOR SALE; AND
   (E) THE SUBMISSION OF A  CURRENT  COA  FROM  A  CERTIFIED  INDEPENDENT
 THIRD-PARTY  LABORATORY  SHOWING COMPLIANCE WITH THE REQUIREMENTS OF USP
 467 FOR RESIDUAL SOLVENTS, 7-HYDROXYMITRAGYNINE  CONTENT,  AND  THE  USP
 2232 STANDARD FOR HEAVY METAL CONTAMINANTS.
   5.  A  KRATOM PRODUCT THAT CONTAINS THE SAME KRATOM INGREDIENTS IN THE
 SAME KRATOM DELIVERY FORM, BUT IN A  DIFFERENT  CONTAINER,  PACKAGE,  OR
 VOLUME, SHALL BE INCLUDED IN A SINGLE REGISTRATION.
   6.  THE DEPARTMENT SHALL MAINTAIN A KRATOM REGISTRATION DATABASE LIST-
 ING ALL CURRENTLY REGISTERED KRATOM PRODUCTS.
   § 6. The public  health  law  is  amended  by  adding  a  new  section
 1399-gg-3 to read as follows:
   §  1399-GG-3.  LABELING OF KRATOM. 1. A KRATOM PRODUCT PRODUCED, MANU-
 FACTURED, DISTRIBUTED, OFFERED, SOLD OR OFFERED FOR SALE  SHALL  HAVE  A
 LABEL  THAT CLEARLY AND CONSPICUOUSLY PROVIDES THE FOLLOWING INFORMATION
 ON EACH RETAIL PACKAGE, INCLUDING, BUT NOT LIMITED TO:
 S. 8136                             4
 
   (A) A STATEMENT AGAINST THE USE BY INDIVIDUALS WHO ARE  UNDER  TWENTY-
 ONE YEARS OF AGE, WHO ARE PREGNANT, OR WHO ARE BREASTFEEDING;
   (B)  A  RECOMMENDATION  TO CONSULT A HEALTH CARE PROFESSIONAL PRIOR TO
 USE;
   (C) A STATEMENT THAT KRATOM MAY BE HABIT FORMING;
   (D) THE FOLLOWING STATEMENT: "THESE STATEMENTS HAVE NOT BEEN EVALUATED
 BY THE U.S. FOOD AND DRUG ADMINISTRATION. THIS PRODUCT IS  NOT  INTENDED
 TO DIAGNOSE, TREAT, CURE, OR PREVENT ANY DISEASE.";
   (E) THE NAME AND THE ADDRESS FOR THE PLACE OF BUSINESS OF THE MANUFAC-
 TUROR OR DISTRIBUTOR; AND
   (F)  DIRECTIONS  FOR  USE  THAT  INCLUDE,  BUT ARE NOT LIMITED TO, THE
 FOLLOWING:
   (I) A RECOMMENDED AMOUNT OF THE KRATOM PRODUCT PER  SERVING  THAT  IS:
 (A)  CLEARLY  DESCRIBED ON THE LABEL FOR PRODUCT FORMS SUCH AS CAPSULES,
 GUMMIES, PREPACKAGED SINGLE SERVING UNITS, AND SIMILAR PRODUCT FORMS; OR
   (B) FOR BEVERAGES, LIQUIDS, OR LOOSE POWDERS, A CLEAR INSTRUCTION OR A
 MARK ON THE PACKAGE OR  CONTAINER  THAT  CLEARLY  INFORMS  THE  CONSUMER
 REGARDING THE RECOMMENDED SERVING SIZE AND SERVINGS PER TWENTY-FOUR HOUR
 PERIOD;
   (II)  A RECOMMENDED MAXIMUM NUMBER OF SERVINGS THAT SHOULD BE CONSUMED
 IN A TWENTY-FOUR HOUR PERIOD;
   (III) A LISTING OF THE SERVINGS PER CONTAINER;
   (IV) A LISTING OF ALL THE INGREDIENTS IN THE PRODUCT; AND
   (V) THE AMOUNT PER SERVING OF EACH OF THE FOLLOWING KRATOM COMPOUNDS:
   (A) MITRAGYNINE; AND
   (B) 7-HYDROXYMITRAGYNINE.
   § 7. The public  health  law  is  amended  by  adding  a  new  section
 1399-mm-4 to read as follows:
   §  1399-MM-4.  SALE OF UNREGISTERED KRATOM PRODUCTS PROHIBITED. 1.  NO
 PERSON SHALL KNOWINGLY SELL, DISTRIBUTE, ADVERTISE, REPRESENT,  OR  HOLD
 ANY  KRATOM  PRODUCT  THAT DOES NOT HAVE A CURRENT REGISTRATION WITH THE
 DEPARTMENT. A RETAILER KNOWINGLY SELLING ANY KRATOM PRODUCT  NOT  REGIS-
 TERED WITH THE DEPARTMENT THAT IS NOT ON THE LIST OF REGISTERED PRODUCTS
 PUBLISHED  ON THE DEPARTMENT'S WEBSITE SHALL BE SUBJECT TO THE FOLLOWING
 CIVIL PENALTIES:
   (A) A FINE OF ONE THOUSAND DOLLARS FOR EACH INSTANCE IN WHICH  PRODUCT
 HAS BEEN FOUND TO BE SOLD;
   (B) A FINE OF UP TO FIVE THOUSAND DOLLARS FOR A SECOND VIOLATION; AND
   (C) A FINE OF UP TO TEN THOUSAND DOLLARS FOR A THIRD VIOLATION AND THE
 RETAILER  SHALL BE PROHIBITED FROM THE SALE OF ANY KRATOM PRODUCT IN THE
 STATE FOR A PERIOD OF TWO YEARS.
   2. NO KRATOM PROCESSOR SHALL KNOWINGLY  SELL,  DISTRIBUTE,  ADVERTISE,
 REPRESENT, OR HOLD ANY KRATOM PRODUCT IN THIS STATE THAT IS NONCOMPLIANT
 WITH THE REQUIREMENTS OF THIS ARTICLE.
   (A)  A FINE OF TEN THOUSAND DOLLARS FOR EACH SUCH NONCOMPLIANT PRODUCT
 OFFERED FOR SALE;
   (B) A FINE OF TWENTY THOUSAND DOLLARS AND  SUCH  KRATOM  PROCESSOR  IS
 PROHIBITED FROM SELLING ANY KRATOM PRODUCT IN THE STATE FOR TWO YEARS;
   (C)  UPON  A  THIRD VIOLATION, THE PROCESSOR, DISTRIBUTOR, OR RETAILER
 SHALL BE PROHIBITED FROM THE SALE OF ANY KRATOM PRODUCT IN THE STATE FOR
 TEN YEARS; AND
   (D) ANY DIRECT TO CONSUMER BUSINESS MODEL WOULD BE SUBJECT TO THE SAME
 FINES ISSUED PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
   3. NO SELLER SHALL KNOWINGLY SELL OR PROVIDE KRATOM  PRODUCTS  TO  ANY
 PERSON UNDER TWENTY-ONE YEARS OF AGE.
 S. 8136                             5
 
   (A)  A PERSON WHO KNOWINGLY AND WILLFULLY COMMITS A FIRST VIOLATION OF
 THIS SUBDIVISION SHALL BE GUILTY OF A CLASS A MISDEMEANOR.
   (B)  A  PERSON  WHO KNOWINGLY AND WILLFULLY COMMITS A SECOND OR SUBSE-
 QUENT VIOLATION OF THIS PARAGRAPH WITHIN TWO  YEARS  AFTER  THE  INITIAL
 VIOLATION, SHALL BE GUILTY OF A CLASS E FELONY.
   4.  A REGISTRANT OR RETAILER WHO KNOWINGLY AND WILLFULLY MANUFACTURES,
 DELIVERS, HOLDS, OFFERS FOR SALE, DISTRIBUTES OR SELLS A KRATOM  PRODUCT
 IN  THIS  STATE  THAT  CONTAINS  ANY CONTROLLED SUBSTANCE LISTED IN THIS
 STATE OR IN FEDERAL LAW SHALL BE GUILTY OF A CLASS A MISDEMEANOR.
   5. A PERSON WHO KNOWINGLY AND WILLFULLY MANUFACTURES, DELIVERS, HOLDS,
 OFFERS FOR SALE, DISTRIBUTES OR SELLS A PRODUCT  THAT  CONTAINS  SYNTHE-
 SIZED   MATERIAL,  SEMI-SYNTHETIC  ALKALOID,  OR  SYNTHETIC  KRATOM-LIKE
 COMPOUND AS DEFINED IN THIS ARTICLE COMMITS A CLASS A MISDEMEANOR.
   6. UPON RECEIPT OF A CREDIBLE VIOLATION REPORT ON ANY  KRATOM  PRODUCT
 OFFERED FOR SALE, THE DEPARTMENT SHALL REQUIRE THE REGISTRANT TO PRODUCE
 AN  UPDATED  AND  CURRENT  COA  FROM A CERTIFIED INDEPENDENT THIRD-PARTY
 LABORATORY WITHIN THIRTY DAYS ESTABLISHING COMPLIANCE WITH THE  REQUIRE-
 MENTS OF THIS CHAPTER FOR KRATOM PRODUCTS, INCLUDING COPIES OF ALL PROD-
 UCT LABELS. IF THE REGISTRANT DOES NOT PROVIDE THE CERTIFICATE OF ANALY-
 SIS IN THE SPECIFIED TIME FRAME, THE REGISTRATION FOR THAT PRODUCT SHALL
 BE  REVOKED  AND  A  STOP  SALES  ORDER SHALL BE ISSUED FOR ALL PRODUCTS
 COVERED BY SUCH REGISTRATION.
   7. IF THE DEPARTMENT HAS A REASONABLE BASIS TO REQUIRE AN  INDEPENDENT
 THIRD-PARTY  TEST  OF A REGISTERED KRATOM PRODUCT BY A LABORATORY OF THE
 DEPARTMENT'S CHOICE, THE REGISTRANT SHALL BE REQUIRED TO SUBMIT  PAYMENT
 FOR  THE TEST WITHIN A REASONABLE TIME FRAME. IF THE REGISTRANT DOES NOT
 TENDER PAYMENT TO THE DEPARTMENT WITHIN THIRTY DAYS OF  RECEIPT  OF  THE
 INVOICE  FOR  THE  TESTING, THE DEPARTMENT SHALL REVOKE THE REGISTRATION
 FOR THAT PRODUCT AND A STOP SALES ORDER SHALL BE ISSUED FOR ALL PRODUCTS
 COVERED BY SUCH REGISTRATION.
   8. IT IS AN AFFIRMATIVE DEFENSE IF THE RETAILER SHOWS BY A  PREPONDER-
 ANCE  OF  THE  EVIDENCE THAT SUCH RETAILER RELIED IN GOOD FAITH UPON THE
 REPRESENTATIONS OF A PROCESSOR OF FOOD REPRESENTED TO BE A KRATOM  PROD-
 UCT.
   §  8.  The tax law is amended by adding a new section 471-f to read as
 follows:
   § 471-F. IMPOSITION OF KRATOM AND KRATOM PRODUCTS  TAX.  1.  THERE  IS
 HEREBY IMPOSED AND SHALL BE PAID A TAX ON ALL KRATOM AND KRATOM PRODUCTS
 POSSESSED IN THIS STATE BY ANY PERSON.
   2. IT IS INTENDED THAT THE ULTIMATE INCIDENCE OF AND LIABILITY FOR THE
 TAX  SHALL  BE UPON THE CONSUMER, AND THAT ANY AGENT OR DEALER WHO SHALL
 PAY THE TAX TO THE COMMISSIONER SHALL COLLECT THE TAX FROM THE PURCHASER
 OR CONSUMER.
   § 9. The tax law is amended by adding a new section 471-g to  read  as
 follows:
   §  471-G. EXCISE TAX ON KRATOM AND KRATOM PRODUCTS. 1. THERE IS HEREBY
 IMPOSED AN EXCISE TAX ON THE GROSS RECEIPTS FROM THE SALE OF  KRATOM  OR
 KRATOM PRODUCTS BY A KRATOM RETAILER TO A RETAIL CUSTOMER AT THE RATE OF
 FIVE  PERCENT.  THE TAX IMPOSED BY THIS ARTICLE SHALL BE CHARGED AGAINST
 AND BE PAID BY THE RETAIL CUSTOMER AND SHALL NOT BE ADDED AS A  SEPARATE
 CHARGE  OR LINE ITEM ON ANY SALES SLIP, INVOICE, RECEIPT OR OTHER STATE-
 MENT OR MEMORANDUM OF THE PRICE GIVEN TO THE RETAIL CUSTOMER.
   2. THE COMMISSIONER MAY MAKE,  ADOPT  AND  AMEND  RULES,  REGULATIONS,
 PROCEDURES  AND  FORMS  NECESSARY  FOR THE PROPER ADMINISTRATION OF THIS
 ARTICLE.
 S. 8136                             6
 
   3. EVERY REGISTERED KRATOM RETAILER THAT MAKES  SALES  OF  KRATOM  AND
 KRATOM  PRODUCTS SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE SHALL, ON OR
 BEFORE THE TWENTIETH DATE OF EACH MONTH, FILE WITH  THE  COMMISSIONER  A
 RETURN  ON  FORMS  TO  BE  PRESCRIBED  BY  THE COMMISSIONER, SHOWING ITS
 RECEIPTS  FROM  THE RETAIL SALE OF KRATOM AND KRATOM PRODUCTS DURING THE
 PRECEDING CALENDAR MONTH AND THE AMOUNT OF TAX DUE THEREON. SUCH RETURNS
 SHALL CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY  REQUIRE.
 EVERY  REGISTERED  KRATOM  RETAILER REQUIRED TO FILE A RETURN UNDER THIS
 SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSION-
 ER THE TOTAL AMOUNT OF TAX DUE ON ITS RETAIL SALES OF KRATOM AND  KRATOM
 PRODUCTS FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED
 WHEN  DUE,  THE  TAX  SHALL  BE  DUE  ON  THE DAY ON WHICH THE RETURN IS
 REQUIRED TO BE FILED.
   4. WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS  RECEIVED
 UNDER  THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR, THEY MAY CAUSE
 THE SAME TO BE REFUNDED, WITH INTEREST, IN ACCORDANCE  WITH  SUCH  RULES
 AND  REGULATIONS AS THEY MAY PRESCRIBE, EXCEPT THAT NO INTEREST SHALL BE
 ALLOWED OR PAID IF THE AMOUNT THEREOF WOULD BE  LESS  THAN  ONE  DOLLAR.
 SUCH  INTEREST  SHALL BE AT THE OVERPAYMENT RATE SET BY THE COMMISSIONER
 PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED  SEVENTY-ONE
 OF  THIS  CHAPTER,  OR IF NO RATE IS SET, AT THE RATE OF SIX PERCENT PER
 ANNUM, FROM THE DATE WHEN THE TAX, PENALTY OR INTEREST  TO  BE  REFUNDED
 WAS  PAID  TO  A DATE PRECEDING THE DATE OF THE REFUND CHECK BY NOT MORE
 THAN THIRTY DAYS. PROVIDED, HOWEVER,  THAT  FOR  THE  PURPOSES  OF  THIS
 SUBDIVISION, ANY TAX PAID BEFORE THE LAST DAY PRESCRIBED FOR ITS PAYMENT
 SHALL BE DEEMED TO HAVE BEEN PAID ON SUCH LAST DAY. SUCH MONEYS RECEIVED
 UNDER THE PROVISIONS OF THIS ARTICLE WHICH THE COMMISSIONER SHALL DETER-
 MINE  WERE PAID IN ERROR, MAY BE REFUNDED OUT OF FUNDS IN THE CUSTODY OF
 THE COMPTROLLER TO THE CREDIT OF  SUCH  TAXES  PROVIDED  AN  APPLICATION
 THEREFOR  IS  FILED WITH THE COMMISSIONER WITHIN TWO YEARS FROM THE TIME
 THE ERRONEOUS PAYMENT WAS MADE.
   5. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL  APPLY
 TO  THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME
 FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE  HAD  BEEN  INCORPO-
 RATED  IN  FULL  INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE TAX
 IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH
 ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS  ARTICLE  OR  IS
 NOT RELEVANT TO THIS ARTICLE.
   §  10. Rules and regulations. The department of health shall adopt any
 necessary rules and regulations to administer provisions  of  this  act.
 Such rules and regulations shall include, but not be limited to:
   1.  The process for a registration of a kratom product by a processor,
 distributor, or a retailer;
   2. The requirements for enforcing the restriction on the sale  of  any
 kratom product to a person under the age of 21; and
   3.  Proof  of appropriate quality testing from an ISO 17025 laboratory
 in the form of a Certificate of Analysis (COA) representing the  product
 does not contain levels of residual solvents, biological contaminants or
 heavy  metal  contaminants that meet the standard for dietary supplement
 products.
   § 11. This act shall take effect on  the  one  hundred  eightieth  day
 after  it  shall have become a law. Effective immediately, the addition,
 amendment and/or repeal of any rule  or  regulation  necessary  for  the
 implementation  of  this  act on its effective date are authorized to be
 made and completed on or before such effective date.