HB1303ham001 104TH GENERAL ASSEMBLY

Rep. Curtis J. Tarver, II

Filed: 3/13/2025

10400HB1303ham001 LRB104 05303 BDA 23827 a

AMENDMENT TO HOUSE BILL 1303

AMENDMENT NO. ______. Amend House Bill 1303 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Illinois Kratom Consumer Protection Act.

Section 5. Definitions. As used in this Act:

"Department" means the Department of Revenue.

"Kratom" means the plant Mitragyna speciosa or any part of that plant.

"Kratom extract" means a substance or compound that is obtained by extraction of the Mitragyna speciosa leaf, is intended for ingestion, and contains more than trace amounts of Mitragyna speciosa and other alkaloids of the kratom plant.

"Kratom processor" means (i) a person who manufacturers, distributes, maintains, or sells a kratom product or (ii) a person who advertises, represents, or holds oneself out as selling, preparing, or maintaining a kratom product.

"Kratom product" means a product containing (i) any part of a leaf of the plant Mitragyna speciosa in fresh, dehydrated, or dried form or (ii) a kratom extract.

"Product that is attractive to children" means (i) a product that is in the shape of a cartoon or animal or (ii) a product in a form that bears reasonable resemblance to an existing candy product and that could be mistaken by a child for a widely distributed, branded food product.

"Retailer" means any person that sells, distributes, advertises, represents, or holds oneself out as selling a kratom product.

"Synthesized material" means an alkaloid, metabolite, or alkaloid derivative that has been created by chemical synthesis or biosynthetic means, including, but not limited to, fermentation, recombinant techniques, yeast derivation, or enzymatic techniques, rather than by heating, extracting, or any other traditional food preparation techniques that synthetically alter the composition of the kratom alkaloid or constituent.

Section 10. Kratom-containing product limitations. A person may not prepare, distribute, sell, or offer for sale a kratom product that is intended for ingestion if:

(1) the product contains a concentration of 7-hydroxymitragynine in the alkaloid fraction that is greater than 2% of the alkaloid composition of the product;

(2) the product contains synthesized material;

(3) the product contains a poisonous or otherwise deleterious non-kratom ingredient, including, but not limited to, a substance identified as a controlled substance under State or federal law;

(4) the product is in a form that is combustible, injectable, or intended to be used for vaporization;

(5) the product is a product that is attractive to children; or

(6) the product contains residual solvents in concentrations that are greater than the concentration that is allowed under the U.S. Pharmacopeia General Chapter <467>, "Residual Solvents".

Section 15. Kratom product registration.

(a) A person may not distribute, offer for sale, or sell a kratom product in this State, unless that product is a kratom product that is registered with the Department.

(b) For a kratom product to be offered for sale in this State, the party responsible for placing that kratom product into commerce in the State shall annually register the kratom product with the Department and shall pay to the Department an annual registration fee, which may be adjusted annually by the Department. The fee collected by the Department shall be sufficient to cover all administrative costs specifically needed for processing registrations and otherwise administering this Act, including the necessary staffing costs and costs of publishing and maintaining a kratom registration webpage on the Department's website.

(c) To obtain registration under this Act, the application for registration shall include the following documentation from the kratom processor:

(1) a certification from a qualified independent auditor that the applicant meets or exceeds guidelines published by the U.S. Food and Drug Administration for current good manufacturing practices for the facility that manufactures, processes, packs, or holds the kratom product;

(2) a current U.S. Food and Drug Administration food facility registration certificate for the facility that manufactures, processes, packs, or holds the kratom product;

(3) a statement certifying, under penalty of perjury, that (i) the kratom processor has a reasonable basis to believe that the product is safe for consumption under the conditions of use set forth on the label, (ii) the kratom processor assumes responsibility and liability for the kratom product, and (iii) the kratom processor complies with Section 10 and all other requirements of the Act; and

(4) a certificate of analysis from a certified independent third-party laboratory showing compliance with the requirements of this Act regarding allowable concentrations of residual solvents, 7-hydroxymitragynine, and heavy metals.

(d) A product that contains the same kratom ingredients in the same kratom delivery form, but a different container, package, or volume, shall be included in a single registration.

(e) The Department shall publish and maintain a kratom registration page on its official website, which lists all currently registered kratom products.

Section 20. Labeling. Each retail package containing a kratom product that is produced, manufactured, distributed, sold, or offered for sale in the State shall have a label affixed to it that clearly and conspicuously provides all of the following information:

(1) a statement discouraging use of the product by individuals who are under 21 years of age, who are pregnant, or who are breastfeeding;

(2) a recommendation to consult a health care professional before using the product;

(3) a statement that the product may be habit forming;

(4) the following statement: "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.";

(5) the name and the address for the place of business of the registrant;

(6) directions for use that include the following:

(A) a recommended amount of the kratom product per serving that is (i) clearly described on the label for product forms, such as capsules, gummies, prepackaged single serving units, and similar product forms; or (ii) for beverages, liquids, or loose powders, a clear instruction or a mark on the package or container that clearly informs the consumer of the recommended serving size;

(B) a recommended number of servings that can be safely consumed in a 24-hour period;

(C) a listing of the servings per container; and

(D) a listing of kratom alkaloids and other ingredients in the product, including quantitative data not to exceed declarations of the amount per serving of each of the following: (i) Mitragynine and (ii) 7-hydroxymitragynine.

Section 25. Tax.

(a) A tax is imposed upon the privilege of engaging or continuing within this State in the business of the retail sale of kratom products. The applicable tax rate is equal to 5% of the retail sales price of the kratom or kratom products sold during the reporting period. Such tax is imposed in addition to all other applicable taxes.

(b) On or before the 25th day of the first month following the end of the calendar quarter, a person in the business of the retail sale of kratom products shall file with the Department a return on a form prescribed by the Department. Each person in the business of the retail sale of kratom products in this State shall pay to the Department the amount of the tax at the time when the person is required to file the person's return for the period during which the tax was collected.

(c) A person required to file a return under this Section who knowingly files a false or incomplete return is guilty of a Class A misdemeanor.

(d) The Department has full power to: (i) administer and enforce this Law; (ii) collect all taxes, penalties, and interest due under this Section; (iii) dispose of taxes, penalties, and interest so collected; and (iv) determine all rights to credit memoranda or refunds arising on account of the erroneous payment of tax, penalty, or interest under this Law.

(e) All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, and 5j of the Retailers' Occupation Tax Act, which are not inconsistent with this Act, and Section 3-7 of the Uniform Penalty and Interest Act shall apply, as far as practicable, to the subject matter of this Act to the same extent as if such provisions were included herein.

(f) The tax imposed in this Section shall be administered by the Department under rules adopted by the Department. The Department shall adopt rules as necessary to implement this Section.

Section 30. Enforcement.

(a) A person must not distribute, offer for sale, or sell in this State a kratom product unless that kratom product is registered with the Department.

(b) A person who knowingly violates subsection (a) of this Section is subject to the following penalties:

(1) a civil penalty of $5,000 for a first violation; and

(2) a civil penalty of $10,000 for a second or subsequent violation.

Upon a third or subsequent violation of subsection (a), a person may not, for a period of 2 years, distribute, offer for sale, or sell in this State a kratom product.

(c) A person who knowingly violates Section 15 of this Act, or rules adopted under this Act, shall be subject to the following penalties:

(1) a civil penalty of $1,000 for a first violation; and

(2) a civil penalty of $2,500 for a second or subsequent violation.

Upon a third or subsequent violation of Section 15, or a rule adopted under this Act, a person may not, for a period of 2 years, distribute, offer for sale, or sell in this State a kratom product.

(d) Kratom products that are intended for human ingestion may not be sold in this State to a person who is under 21 years of age. A person who knowingly and willfully violates this subsection (d) commits a Class B misdemeanor. A person who knowingly and willfully commits a second or subsequent violation of this subsection (d) within one year after the initial violation commits a Class A misdemeanor.

(e) A person that knowingly and willfully manufactures, delivers, holds, offers for sale, distributes, or sells a product that contains kratom and a controlled substance regulated under State or federal law commits a Class 4 felony.

(f) A person that knowingly and willfully manufactures, delivers, holds, offers for sale, distributes, or sells a product that contains synthetic mitragynine, synthetic 7-hydroxymitragynine, or any other synthetically derived compound of the plant Mitragyna speciosa commits a Class B misdemeanor.

(g) Upon receipt of a report concerning a kratom product that is being manufactured, distributed, offered for sale, or sold in this State in violation of this Act, the Department shall require the registrant of the product to produce, in a reasonable time frame, an updated and current certificate of analysis for the product from a certified independent third-party laboratory showing compliance with the requirements of this Act, including copies of all product labels. If the registrant does not provide the certificate of analysis in the specified time frame, the Department shall revoke the registration for that product and issue a stop sales order for the product.

(h) If the Department has a reasonable basis to require an independent third-party test by a laboratory of the Department's choice concerning a kratom product that is being manufactured, distributed, offered for sale, or sold in the State, the registrant of that product 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 30 days after receipt of the invoice for the testing, the Department shall revoke the registration for that product, if one exists, and issue a stop sales order for the product.

(i) A retailer does not violate this Section if it is shown by a preponderance of the evidence that the retailer relied in good faith upon the representations of a manufacturer, processor, packer, or distributor of food represented to be a kratom product.

Section 35. Rulemaking. The Department shall adopt rules to implement and administer this Act. The rules must, at a minimum:

(1) establish the process for a registration of a kratom product;

(2) set forth the requirements for enforcing the restriction on the sale of any kratom product to a person under the age of 21; and

(3) require proof of appropriate quality testing from an ISO 17025 laboratory in the form of a certificate of analysis demonstrating that the product does not contain unsafe or otherwise impermissible levels of residual solvents, biological contaminants, or heavy metals.

Section 40. Home rule limitation. The regulation of the manufacturing, packaging, labeling, distribution, and sale of kratom leaves, kratom leaf extracts, and kratom products is an exclusive power and function of the State. A home rule unit may not regulate the manufacturing, packaging, labeling, distribution, and sale of kratom leaves, kratom leaf extracts, and kratom products. This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

(720 ILCS 642/Act rep.)

Section 90. The Kratom Control Act is repealed.

Section 99. Effective date. This Act takes effect January 1, 2026.".