LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7668 NOTE PREPARED: Jan 13, 2025
BILL NUMBER: HB 1542 BILL AMENDED:
SUBJECT: Sale of kratom consumable products.
FIRST AUTHOR: Rep. Morris BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Pending
DEDICATED
FEDERAL
Summary of Legislation: Provides for regulation of the sale of kratom consumable products as follows:
(1) Provides that a person must register with the Indiana state department of agriculture (department) in order
to manufacture, distribute, or sell a kratom consumable product in Indiana. (2) Provides restrictions on the
content of specified substances in a kratom consumable product (content restrictions), and provides for: (A)
both civil and criminal penalties for violations; and (B) defenses to imposition of a penalty for a violation.
(3) Prohibits the knowing or negligent sale of a kratom consumable product: (A) to an individual less than
21 years of age; (B) without verifying the age of the purchaser under specified conditions; (C) that violates
the content restrictions; or (D) through specified retail displays or locations; and provides for civil penalties,
and defenses to the imposition of a civil penalty, for violations. (4) Prohibits: (A) a person from knowingly
or negligently providing a kratom consumable product to a person less than 21 years of age; (B) a person less
than 21 years of age from knowingly or intentionally possessing, purchasing, or attempting to purchase a
kratom consumable product; (C) an individual from knowingly or intentionally obtaining or attempting to
obtain a kratom consumable product using fraudulent or altered proof of the individual's age or identity; and
(D) an individual from knowingly or intentionally allowing another person to use the individual's
identification for the purpose of assisting the other person in unlawfully obtaining a kratom consumable
product; and provides for criminal penalties for a violation. (5) Requires: (A) a manufacturer of a kratom
consumable product; and (B) under specified circumstances, a distributor of a kratom consumable product;
to have samples of the a kratom consumable product tested for compliance with the content restrictions, and
provides for civil penalties for a violation. (6) Imposes requirements regarding labeling, packaging, and
marketing of kratom consumable products, and provides for civil penalties for a violation. (7) Requires a
person that sells a kratom consumable product in Indiana to provide notice to the department of each variety
of kratom consumable product sold by the person in Indiana. Creates the kratom regulation fund for the
purpose of funding enforcement of regulations regarding kratom consumable products and provides that: (1)
civil penalties collected for violations of regulations regarding kratom consumable products; and (2)
registration fees for manufacturers, distributors, and sellers of kratom consumable products; are deposited
in the fund. Makes an appropriation.
Effective Date: July 1, 2025.
HB 1542 1 Explanation of State Expenditures: As of the above date, the fiscal analysis of this bill has not been
completed. Please contact the Office of Fiscal and Management Analysis for an update of this fiscal impact
statement.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Nate Bodnar, 317-234-9476.
HB 1542 2