Rhode Island 2025 Regular Session

Rhode Island House Bill H5565 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 5565
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7	7	LC001746
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND KRATOM ACT
16	16	Introduced By: Representatives Kennedy, Edwards, and Diaz
17	17	Date Introduced: February 26, 2025
18	18	Referred To: House Corporations
19	19
20	20
21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby 1
23	23	amended by adding thereto the following chapter: 2
24	24	CHAPTER 28.12 3
25	25	THE RHODE ISLAND KRATOM ACT 4
26	26	21-28.12-1. Short title. 5
27	27	This chapter shall be known and may be cited as the "Rhode Island Kratom Act." 6
28	28	21-28.12-2. Definitions. 7
29	29	As used in this chapter: 8
30	30	(1) “Contraband kratom products” means any kratom product that is prohibited by § 21-9
31	31	28.12-3. 10
32	32	(2) “Department” means the department of health; 11
33	33	(3) “Distributor” means any person: 12
34	34	(i) Whether located within or outside of this state, other than a retailer, who sells or 13
35	35	distributes kratom or kratom products within or into this state; and 14
36	36	(ii) Engaged in this state in the business of manufacturing kratom products or any person 15
37	37	engaged in the business of selling kratom or kratom products to dealers, or to other persons, for the 16
38	38	purpose of resale only; provided that, seventy-five percent (75%) of all kratom and kratom products 17
39	39	sold by that person in this state are sold to retailers or other persons for resale and selling kratom 18
40	40	and kratom products directly to at least twenty (20) dealers or other persons for resale; or 19
41	41
42	42
43	43	LC001746 - Page 2 of 25
44	44	(iii) Maintaining one or more regular places of business in this state for that purpose; 1
45	45	provided that, seventy-five percent (75%) of the sold kratom and kratom products are purchased 2
46	46	directly from the manufacturer and selling kratom and kratom products directly to at least twenty 3
47	47	(20) retailers or other persons for resale. 4
48	48	(4) “Kratom” means any part of the leaf of the plant mitragyna speciosa. 5
49	49	(5) "Kratom product" means a product containing any part or extract of the leaf of the plant 6
50	50	mitragyna speciosa or an extract thereof including concentrated forms of kratom and products 7
51	51	composed of kratom and other ingredients. 8
52	52	(6) “Importer” means any person who imports into the United States, either directly or 9
53	53	indirectly, kratom or a kratom product for sale or distribution. 10
54	54	(7) “Kratom extract” means a substance or compound obtained by extraction of the 11
55	55	mitragyna speciosa leaf, intended for ingestion, containing only naturally occurring constituents of 12
56	56	the kratom plant, Generally Recognized As Safe (GRAS) substances, approved constituent articles, 13
57	57	and does not contain any controlled substances. 14
58	58	(8) "Synthesized material" means: 15
59	59	(i) An alkaloid or alkaloid derivative that has been created by chemical synthesis or 16
60	60	biosynthetic means (including, but not limited to, fermentation, recombinant techniques, yeast 17
61	61	derived, enzymatic techniques), rather than traditional food preparation techniques, such as heating 18
62	62	or extracting that synthetically alters the composition of any kratom alkaloid or constituent; or 19
63	63	(ii) An alkaloid or alkaloid derivative contained in kratom that has been exposed to 20
64	64	chemicals or processes that would confer a structural change in the alkaloids, resulting in material 21
65	65	that has been chemically altered. 22
66	66	(9) “Licensed” when used with reference to a manufacturer, importer, distributor, or 23
67	67	retailer, means only those persons who hold a valid and current license issued under § 21-28.12-6 24
68	68	for the type of business being engaged in. When the term “licensed” is used before a list of entities, 25
69	69	such as “licensed manufacturer, importer, wholesale retailer, or retailer” such term shall be deemed 26
70	70	to apply to each entity in such list. 27
71	71	(10) “Manufacturer” means any person who manufactures, fabricates, assembles, 28
72	72	processes, or labels a kratom product. 29
73	73	(11) “Person” means any individual, including an employee or agent, firm, fiduciary, 30
74	74	partnership, corporation, trust, or association, however formed. 31
75	75	(12) “Place of business” means any location where kratom or kratom products are sold, 32
76	76	stored, or kept including, but not limited to: any storage room, attic, basement, garage or other 33
77	77	facility immediately adjacent to the location. It also includes any receptacle, hide, vessel, vehicle, 34
78	78
79	79
80	80	LC001746 - Page 3 of 25
81	81	airplane, or train. 1
82	82	(13) "Retailer" means any person, whether located within or outside of this state, who sells 2
83	83	or distributes kratom or kratom products to a consumer in this state. 3
84	84	(14) “Sale” or “sell” means gifts, exchanges, and/or barter of kratom products. The act of 4
85	85	holding, storing, or keeping kratom products at a place of business or with a person for any purpose 5
86	86	shall be presumed to be holding the kratom products for sale. Furthermore, any sale of kratom 6
87	87	products by the servants, employees, or agents of the licensed retailer at the place of business shall 7
88	88	be presumed to be a sale by the licensee. 8
89	89	21-28.12-3. Kratom and kratom product limitations. 9
90	90	(a) A person shall not prepare, distribute, sell, possess, or advertise any of the following: 10
91	91	(1) A kratom product that is a conventional food or beverage or labeled as a conventional 11
92	92	food or beverage product. 12
93	93	(2) A kratom product that contains any substance that is poisonous, harmful, or injurious 13
94	94	to health. 14
95	95	(3) A kratom product that contains a substance other than a non-psychoactive substance 15
96	96	necessary for the preparation, processing, or manufacturing of said product. 16
97	97	(4) A kratom extract that contains levels of residual solvents higher than is allowed in the 17
98	98	U.S. Pharmacopeia 467. 18
99	99	(5) A kratom product containing any synthetic alkaloids including synthetic mitragynine, 19
100	100	synthetic 7-hydroxymitragynine, or any other synthetically derived compounds of the kratom plant. 20
101	101	(6) A kratom product that contains a heavy metal that exceeds any of the following limits 21
102	102	in parts per million: 22
103	103	(i) Arsenic <2 23
104	104	(ii) Cadmium <0.82 24
105	105	(iii) Lead <1.2 25
106	106	(iv) Mercury <0.4 26
107	107	(7) A kratom product in any form that is combustible or intended to be used for 27
108	108	vaporization, aerosolization, or injection. 28
109	109	(8) A kratom product in any form that mimics a candy product or is manufactured, 29
110	110	packaged, or advertised in a way that can be reasonably considered to appeal to individuals under 30
111	111	twenty-one (21) years. 31
112	112	(9) A kratom product not contained in child-resistant packaging that meets the standards 32
113	113	set forth in 16 C.F.R 1700.15(b) when tested in accordance with 16 C.F.R 1700.20. All persons 33
114	114	holding valid licenses pursuant to §21-28.12 shall ensure that kratom and/or any kratom product 34
115	115
116	116
117	117	LC001746 - Page 4 of 25
118	118	sold by the licensee and intended for human consumption shall meet requirements related to child-1
119	119	resistant packaging. 2
120	120	(10) A kratom product that contains a concentration ratio that is: 3
121	121	(i) Greater than 150 mg of mitragynine per serving; 4
122	122	(ii) Greater than 0.5 mg 7-hydroxymitragynine per gram; or 5
123	123	(iii) Greater than 1 mg 7-hydroxymitragynine per serving. 6
124	124	(11) A kratom product that contains more than one percent of 7-hydroxymitragynine by 7
125	125	percentage of total kratom alkaloids. 8
126	126	(12) Kratom or a kratom product that does not provide clearly visible labeling including, 9
127	127	but not limited to: 10
128	128	(i) A recommendation to consult a health care professional prior to use; 11
129	129	(ii) A statement that kratom may be habit forming; 12
130	130	(iii) A statement that kratom is not safe for use while pregnant or breastfeeding; 13
131	131	(iv) A warning that the product may result in dangerous medication interactions. 14
132	132	(v) The following statement: “These statements have not been evaluated by the United 15
133	133	States Food and Drug Administration. This product is not intended to diagnose, treat, cure, or 16
134	134	prevent any disease.”; 17
135	135	(vi) The net quantity of contents declared in numerical count (e.g., thirty (30) capsules), or 18
136	136	in volume or weight in United States Customary System terms; 19
137	137	(A) The amount of mitragynine and/or 7-hydroxymitragynine contained in a serving in said 20
138	138	kratom product; 21
139	139	(B) A recommended amount of the kratom product per serving; and 22
140	140	(C) A recommended number of servings that can be safely consumed in a twenty-four (24) 23
141	141	hour period. 24
142	142	(vii) The total amount of mitragynine and 7-hydroxymitragynine contained in the kratom 25
143	143	product; 26
144	144	(viii) A statement that this product should be stored safely and out of the reach of children; 27
145	145	(ix) The name, physical non-post office box address of the manufacturer. 28
146	146	(b) Kratom and kratom products sold at retail must be sold by a licensed retailer and must 29
147	147	be obtained from a licensed manufacturer, importer, or distributor. 30
148	148	(c) All kratom and kratom products that do not comply with subsection (a) of this section 31
149	149	shall be deemed contraband. 32
150	150	21-28.12-4. Age limits and sales restrictions. 33
151	151	(a) No person or entity shall distribute, sell, transfer, or advertise a kratom product to a 34
152	152
153	153
154	154	LC001746 - Page 5 of 25
155	155	person under twenty-one (21) years. 1
156	156	(b) All kratom products shall be kept behind the sales counter only accessible to store 2
157	157	employees. 3
158	158	(c) The sale or distribution of kratom or kratom products to individuals under the age of 4
159	159	twenty-one (21) is prohibited. 5
160	160	(d) Valid photo identification for proof of age is required for all kratom and kratom product 6
161	161	purchases. Acceptable forms of government-issued identification shall include a recent photo of 7
162	162	the individual to whom the identification has been issued showing the date of birth of the individual 8
163	163	to verify the individual is age twenty-one (21) years or over. Acceptable forms of government-9
164	164	issued identification are: a valid motor vehicle operator’s license issued by the State of Rhode 10
165	165	Island or another State; a valid driver privilege card issued by the State of Rhode Island or another 11
166	166	state; a valid Rhode Island identification card issued by the administrator of the division of motor 12
167	167	vehicles; a valid armed services identification card; or a valid passport. 13
168	168	21-28.12-5. Violations. 14
169	169	(a) A person or entity that violates §§ 21-28.12-3 or 21-28.12-4 may be subject to the 15
170	170	suspension or revocation of its license pursuant to § 21-28.12-10 by the department and shall be 16
171	171	subject to a fine by the department of not more than one thousand dollars ($1,000) for the first 17
172	172	offense and not more than two thousand dollars ($2,000) for a second offense. Upon a third 18
173	173	violation, the license of the retailer shall be revoked by the department, and the retailer shall be 19
174	174	prohibited from selling kratom or kratom products. 20
175	175	(b) The department may require an independent third-party test of a kratom product by a 21
176	176	laboratory of the department’s choice to determine if the product is prohibited by § 21-28.12-3, and 22
177	177	the retailer shall be required to submit payment for the test and administrative costs associated with 23
178	178	said testing. If the retailer does not tender payment to the department within thirty (30) days of 24
179	179	receipt of the invoice, the retailer may be subject to the suspension or revocation of its license 25
180	180	pursuant to this section. 26
181	181	(c) The department of health, the department of revenue division of taxation, and the 27
182	182	department of behavioral health, developmental disabilities, and hospitals are authorized to share 28
183	183	information to effectuate the purposes of this chapter and chapter 20.3 of title 44. 29
184	184	(d) A person or entity who violates the provisions of this chapter by adulterating a kratom 30
185	185	product with any substance listed in § 21-28-2.08 shall be subject to penalties set forth in this 31
186	186	chapter as well as in § 21-28-4.01. 32
187	187	(e) All funds received by the department pursuant to this section shall be deposited into a 33
188	188	restricted receipt account established in § 21-28.12-11. 34
189	189
190	190
191	191	LC001746 - Page 6 of 25
192	192	21-28.12-5.1. Confiscation of contraband kratom products and other property. 1
193	193	(a) All kratom products that are held for sale or distribution within the borders of this state 2
194	194	in violation of the requirements of this chapter are declared to be contraband goods and may be 3
195	195	seized by the department or the department’s agents, or employees, or by any sheriff, or the sheriff’s 4
196	196	deputy, or any police officer when directed by the department to do so, without a warrant. All 5
197	197	contraband goods seized by the state under this chapter shall be destroyed. 6
198	198	(b) All fixtures, equipment, and all other materials and personal property on the premises 7
199	199	of any distributor or retailer who or that, with the intent to defraud the state, fails to keep or make 8
200	200	any record, return, report, or inventory; keeps or makes any false or fraudulent record, return, 9
201	201	report, or inventory required by this chapter; refuses to pay any tax imposed by this chapter; or 10
202	202	attempts in any manner to evade or defeat the requirements of this chapter shall be forfeited to the 11
203	203	state. 12
204	204	21-28.12-5.2. Sale of contraband kratom products prohibited. 13
205	205	No distributor shall sell, and no other person shall sell, offer for sale, display for sale, or 14
206	206	possess with intent to sell any contraband kratom products without written record of the payment 15
207	207	of tax imposed by this chapter. 16
208	208	21-28.12-5.3. Penalties for violations as to contraband kratom products. 17
209	209	(a) Any person who violates any provision of § 21-28.12-5.2 shall be fined by the 18
210	210	department as follows: 19
211	211	(1) For a first offense in a twenty-four-month (24) period, fined not more than ten (10) 20
212	212	times the retail value of the contraband kratom products; 21
213	213	(2) For a second or subsequent offense in a twenty-four-month (24) period, fined not more 22
214	214	than twenty-five (25) times the retail value of the contraband kratom products. 23
215	215	(b) When determining the amount of a fine sought or imposed under this section, evidence 24
216	216	of mitigating factors, including history, severity, and intent shall be considered. 25
217	217	(c) All funds received by the department pursuant to this section shall be deposited into a 26
218	218	restricted receipt account established in § 21-28.12-11. 27
219	219	21-28.12-5.4. Hearing on kratom products confiscated, fines, or license suspension or 28
220	220	revocation. 29
221	221	(a) When any kratom products are confiscated under the provisions of § 21-28.12-5.1, upon 30
222	222	the request of a person claiming an interest in the kratom the department shall conduct a hearing in 31
223	223	accordance with the procedures as set forth in chapter 35 of title 42 ("administrative procedures"). 32
224	224	(b) When a fine, or license suspension or revocation occurs under the provisions of this 33
225	225	chapter, upon the request of the aggrieved party, the department shall conduct a hearing in 34
226	226
227	227
228	228	LC001746 - Page 7 of 25
229	229	accordance with the procedures as set forth in chapter 35 of title 42 ("administrative procedures"). 1
230	230	(c) When a person aggrieved by any action under this chapter, upon the request of a person 2
231	231	claiming an interest in the kratom the department shall conduct a hearing in accordance with the 3
232	232	procedures as set forth in chapter 35 of title 42 ("administrative procedures"). 4
233	233	21-28.12-5.6. Appeal to district court. 5
234	234	Any person aggrieved by any decision of the department under the provisions of this 6
235	235	chapter may appeal the decision within thirty (30) days thereafter to the sixth division of the district 7
236	236	court. 8
237	237	21-28.12-5.7. Disposition of revenue — Payment of refunds. 9
238	238	All monies received by the department under the provisions of this chapter, unless 10
239	239	otherwise designated, are paid to the general fund. Whenever the department determines that any 11
240	240	person is entitled to a refund of any monies paid by that person under the provisions of this chapter, 12
241	241	or whenever a court of competent jurisdiction orders a refund of any paid monies, the general 13
242	242	treasurer shall, upon certification by the department and with the approval of the controller, pay the 14
243	243	refunds from any monies in the treasury not appropriated without any further act or resolution 15
244	244	making appropriation for any monies. 16
245	245	21-28.12-6. Manufacturer, importer, distributor, and retailer licenses required – 17
246	246	Licenses required. 18
247	247	(a) Each person engaging in the business of selling kratom or kratom products in this state, 19
248	248	including any manufacturer, importer, distributor, or retailer, shall secure a license from the 20
249	249	department before engaging or continuing to engage in that business in accordance with this 21
250	250	section. A separate application and license are required for each place of business operated by a 22
251	251	distributor, manufacturer, importer, distributor, or retailer. If the applicant for a license does not 23
252	252	have a place of business in this state, the license shall be issued for such applicant’s principal place 24
253	253	of business, wherever located. A licensee shall notify the department within thirty (30) days that it 25
254	254	changes its principal place of business. A separate license is required for each class of business if 26
255	255	the applicant is engaged in more than one of the activities required to be licensed by this section. 27
256	256	Each license shall expire after one year at which time said license shall be renewed in accordance 28
257	257	with subsection (c) of this section. 29
258	258	(b) Effective April 1, 2026 until December 31, 2027, each initial licensing application for 30
259	259	a manufacturer’s, importer’s, or distributor’s license shall be accompanied by a non-refundable 31
260	260	initial application fee of two thousand dollars ($2,000). Effective April 1, 2026 until December 31, 32
261	261	2027, each initial licensing application for a retailer’s license shall be accompanied by a non-33
262	262	refundable initial application fee of one thousand dollars ($1,000). 34
263	263
264	264
265	265	LC001746 - Page 8 of 25
266	266	(c) Each license, including any manufacturer, importer, distributor, or retailer license, shall 1
267	267	be renewed annually. Effective April 1, 2026 until December 31, 2027, each license renewal of a 2
268	268	manufacturer’s, importer’s, or distributor’s license shall be accompanied by a non-refundable 3
269	269	renewal fee of two thousand dollars ($2,000). Effective April 1, 2026 until December 31, 2027, 4
270	270	each license renewal of a retailer’s license shall be accompanied by a non-refundable renewal fee 5
271	271	of one thousand dollars ($1,000). 6
272	272	(d) Effective January 1, 2028, the director of the department of health is authorized to 7
273	273	establish by rule and regulation reasonable initial application fees and license renewal fees for 8
274	274	kratom manufacturer’s, importer’s, distributor’s, and retail licenses. 9
275	275	(e) Each issued license shall be prominently displayed on the premises, if any, covered by 10
276	276	the license. 11
277	277	(f) A manufacturer or importer may sell or distribute kratom and/or kratom products to a 12
278	278	person located or doing business within the state only if such person is a licensed distributor. An 13
279	279	importer may obtain kratom and/or kratom products only from a licensed manufacturer. A 14
280	280	distributor may sell or distribute kratom and/or kratom products to a person located or doing 15
281	281	business within this state only if such person is a licensed distributor or retailer. A distributor may 16
282	282	obtain kratom and/or kratom products only from a licensed manufacturer, importer, or distributor. 17
283	283	A retailer may obtain kratom and/or kratom products only from a licensed distributor. 18
284	284	(g)(1) No license under this chapter may be granted, maintained, or renewed if the 19
285	285	applicant, or any combination of persons owning directly or indirectly any interests in the applicant: 20
286	286	(i) Is delinquent in any tax filings for one month or more; or 21
287	287	(ii) Had a license under this chapter revoked within the past two (2) years. 22
288	288	(2) No person shall apply for a new license, or renewal of a license and no license shall be 23
289	289	issued or renewed for any person, unless all outstanding fines, fees, or other charges relating to any 24
290	290	license held by that person have been paid. 25
291	291	(3) No license shall be issued relating to a business at any specific location until all prior 26
292	292	licenses relating to that location have been officially terminated and all fines, fees, or charges 27
293	293	relating to the prior licenses have been paid or otherwise resolved or if the department has found 28
294	294	that the person applying for the new license is not acting as an agent for the prior licensee who is 29
295	295	subject to any such related fines, fees, or charges that are still due. Evidence of such agency status 30
296	296	includes, but is not limited to, a direct familial relationship and/or employment, contractual, or 31
297	297	other formal financial or business relationship with the prior licensee. 32
298	298	(4) No person shall apply for a new license pertaining to a specific location to evade 33
299	299	payment of any fines, fees, or other charges relating to a prior license for that location. 34
300	300
301	301
302	302	LC001746 - Page 9 of 25
303	303	(5) No new license shall be issued for a business at a specific location for which a license 1
304	304	has already issued unless there is a bona fide, good-faith change in ownership of the business at 2
305	305	that location. 3
306	306	(6) No license or permit shall be issued, renewed, or maintained for any person, including 4
307	307	the owners of the business being licensed, who has been convicted of violating any criminal law 5
308	308	relating to tobacco products, electronic nicotine-delivery system products, kratom and/or kratom 6
309	309	products, the payment of taxes, fraud, and/or has been ordered to pay civil fines of more than 7
310	310	twenty-five thousand dollars ($25,000) for violations of any civil law relating to tobacco products, 8
311	311	electronic nicotine-delivery system products, kratom and/or kratom products, the payment of taxes, 9
312	312	or fraud. 10
313	313	(h) All funds received by the department pursuant to this section shall be deposited into a 11
314	314	restricted receipt account established in § 21-28.12-11. 12
315	315	21-28.12-7. Penalties for unlicensed business. 13
316	316	Any manufacturer, importer, distributor, or retailer who sells, offers for sale, or possesses 14
317	317	with intent to sell, kratom or kratom products, without a license as provided in § 21-28.12-6, shall 15
318	318	be fined in accordance with the provisions of, and the penalties contained in, § 21-28.12-8. 16
319	319	21-28.12-8. Penalty for operating without a manufacturer, importer, distributor, or 17
320	320	dealer license. 18
321	321	Any individual or business who violates this chapter by selling or conveying kratom or a 19
322	322	kratom product without a retail license or a license under this chapter shall be cited for that violation 20
323	323	and shall be fined five thousand ($5,000) dollars by the department. All funds received by the 21
324	324	department pursuant to this section shall be deposited into a restricted receipt account established 22
325	325	in § 21-28.12-11. 23
326	326	21-28.12-9. Suspension or revocation of license. 24
327	327	The department may suspend or revoke any license under this chapter for failure of the 25
328	328	licensee to comply with any provision of this chapter or with any provision of any other law or 26
329	329	ordinance relative to the sale or purchase of kratom or kratom products. The department may also 27
330	330	suspend or revoke any license for failure of the licensee to comply with any provision of this chapter 28
331	331	and chapter 13 of title 6 ("unfair sales practices"), and, for the purpose of determining whether the 29
332	332	licensee is complying with any provision of chapter 13 of title 6 ("unfair sales practices"), the 30
333	333	department and his or her authorized agents are empowered to examine the books, papers, and 31
334	334	records of any licensee. The department shall revoke the license of any person who would be 32
335	335	ineligible to obtain a new or renew a license by reason of any of the conditions for licensure 33
336	336	provided in this chapter. Any person aggrieved by the suspension or revocation may apply to the 34
337	337
338	338
339	339	LC001746 - Page 10 of 25
340	340	department for a hearing as provided in this title. 1
341	341	21-28.12-10. Taxation of kratom products. 2
342	342	(a) The following taxes are imposed on kratom and kratom products pursuant to the 3
343	343	provisions of this chapter. 4
344	344	(1) Sales tax pursuant to the provisions of § 44-18-18; 5
345	345	(2) A state kratom and kratom product excise tax in accordance with chapter 20.3 in title 6
346	346	44. 7
347	347	(b) The assessment, collection, and enforcement of the sales tax pursuant to § 44-18-18 8
348	348	and the state kratom and kratom products tax shall be pursuant to the provisions of chapters 18 and 9
349	349	19 of title 44 and paid to the tax administrator by the manufacturer, importer or distributor at the 10
350	350	time and in the manner prescribed for the tax in chapter 20.3 in title 44. 11
351	351	21-28.12-11. Restricted receipt account established. 12
352	352	All funds received pursuant to §§ 21-28.12-5, 21-28.12-5.3, 21-28.12-6, and 21-28.12-8 13
353	353	shall be payable to the department of health. There is to be established a restricted receipt account 14
354	354	to be known as the “kratom administration account” which shall be a separate account within the 15
355	355	department of health. Penalties, fines, application fees, and license renewal fees shall be deposited 16
356	356	into the account. Monies deposited into the account shall be transferred to the department of health 17
357	357	and shall be expended for the purpose of administering the provision of this chapter. 18
358	358	21-28.12-12. Rules and regulation. 19
359	359	The department has the authority to promulgate rules and regulation to fulfill the intent of 20
360	360	this chapter. 21
361	361	SECTION 2. Section 21-28-2.03 of the General Laws in Chapter 21-28 entitled "Uniform 22
362	362	Controlled Substances Act" is hereby amended to read as follows: 23
363	363	21-28-2.03. Schedule I tests. 24
364	364	(a) The director of health shall place a substance in schedule I if he or she finds that the 25
365	365	substance: 26
366	366	(1) Has high potential for abuse; and 27
367	367	(2) Has no accepted medical use in treatment in the United States or lacks accepted safety 28
368	368	for use in treatment under medical supervision. 29
369	369	(b) Notwithstanding the provisions of subsection (a) of this section, the director shall have 30
370	370	no authority to place or maintain mitragynine and 7-hydroxymitragynine in schedule I. 31
371	371	SECTION 3. Sections 11-9-13, 11-9-13.4, 11-9-13.8, 11-9-13.11 and 11-9-13.13 of the 32
372	372	General Laws in Chapter 11-9 entitled "Children" are hereby amended to read as follows: 33
373	373	11-9-13. Sale or delivery of tobacco products, including electronic nicotine-delivery 34
374	374
375	375
376	376	LC001746 - Page 11 of 25
377	377	system products to individuals under twenty-one (21) — Posting notice of law. 1
378	378	No person shall sell, give, or deliver to any individual under twenty-one (21) years of age, 2
379	379	any tobacco product in the form of cigarettes, bidi cigarettes, cigars, little cigars, flavored cigars 3
380	380	known as “blunts,” unflavored “blunts,” flavored and unflavored blunt wraps, cigarette rolling 4
381	381	papers of any size or composition, cigarillos and tiparillos, pipe tobacco, chewing tobacco, snuff, 5
382	382	electronic nicotine-delivery system products, kratom or kratom products or any and all products as 6
383	383	defined in § 44-20-1 or §21-28.12-2. Any person, firm, or corporation that owns, manages, or 7
384	384	operates a place of business in which tobacco products kratom and/or kratom products are sold, 8
385	385	including sales through tobacco product vending machines, shall post notice of this law 9
386	386	conspicuously in the place of business in letters at least three-eighths of an inch (⅜″) high. 10
387	387	11-9-13.4. Definitions. 11
388	388	For the purposes of this chapter: 12
389	389	(1) “Bidi cigarette” means any product that (i) Contains tobacco that is wrapped in 13
390	390	temburni or tender leaf, or that is wrapped in any other material identified by rules of the department 14
391	391	of health that is similar in appearance or characteristics to the temburni or tender leaf, and (ii) Does 15
392	392	not contain a smoke filtering device. 16
393	393	(2) “Court” means any appropriate district court of the state of Rhode Island. 17
394	394	(3) “Dealer” is synonymous with the term “retail tobacco products dealer.” 18
395	395	(4) “Department of behavioral healthcare, developmental disabilities and hospitals” means 19
396	396	the state of Rhode Island behavioral healthcare, developmental disabilities and hospitals 20
397	397	department, its employees, agents, or assigns. 21
398	398	(5) “Department of taxation” means the state of Rhode Island taxation division, its 22
399	399	employees, agents, or assigns. 23
400	400	(6) “Electronic nicotine-delivery system” means an electronic device that may be used to 24
401	401	simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device, 25
402	402	and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo, 26
403	403	electronic little cigars, electronic pipe, electronic hookah, e-liquids, e-liquid products, or any related 27
404	404	device and any cartridge or other component of such device. 28
405	405	(7) “Electronic nicotine-delivery system product” means any combination of electronic 29
406	406	nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid 30
407	407	container. Electronic nicotine-delivery system products shall not include hemp-derived consumable 31
408	408	cannabidiol (CBD) products as defined in § 2-26-3. 32
409	409	(8) “E-liquid” and “e-liquid products” means any liquid or substance placed in or sold for 33
410	410	use in an electronic nicotine-delivery system that generally utilizes a heating element that 34
411	411
412	412
413	413	LC001746 - Page 12 of 25
414	414	aerosolizes, vaporizes, or combusts a liquid or other substance containing nicotine or nicotine 1
415	415	derivative: 2
416	416	(i) Whether the liquid or substance contains nicotine or a nicotine derivative; or 3
417	417	(ii) Whether sold separately or sold in combination with a personal vaporizer, electronic 4
418	418	nicotine-delivery system, or an electronic inhaler. 5
419	419	(9) “Kratom” means any part of the leaf of the plant mitragyna speciosa. 6
420	420	(10) "Kratom product" means a product that contains any part or extract of the leaf of the 7
421	421	plant mitragyna speciosa or an extract thereof including concentrated forms of kratom and products 8
422	422	composed of kratom and other ingredients. 9
423	423	(11) “License” is synonymous with the term “retail tobacco products dealer license” or 10
424	424	“electronic nicotine-delivery system license” or any license issued under chapter 20 of title 44 or 11
425	425	license issued under chapter 28.12 of title 21. 12
426	426	(10)(12) “License holder” is synonymous with the term “retail tobacco products dealer” or 13
427	427	“electronic nicotine-delivery system license” or any licenses issued under chapter 20 of title 44 or 14
428	428	license issued under chapter 28.12 of title 21. 15
429	429	(11)(13) “Little cigars” means and includes any roll, made wholly or in part of tobacco, 16
430	430	irrespective of size or shape, and irrespective of whether the tobacco is flavored, adulterated, or 17
431	431	mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco wrapped 18
432	432	in leaf tobacco or any substance containing tobacco paper or any other material and where such roll 19
433	433	has an integrated filter, except where such wrapper is wholly or in greater part made of tobacco and 20
434	434	where such roll has an integrated filter and weighs over four (4) pounds per thousand (1,000). 21
435	435	(12)(14) “Person” means any individual person, firm, fiduciary, partnership, trust, 22
436	436	association, or corporation licensed as a retail dealer to sell tobacco products within the state. 23
437	437	(13)(15) “Retail tobacco products dealer” means the holder of a license to sell tobacco 24
438	438	products at retail and shall include holders of all other licenses issued under chapter 20 of title 44. 25
439	439	(14)(16) “Retail tobacco products dealer license” means a license to sell tobacco products 26
440	440	and/or electronic nicotine-delivery system products as defined in § 44-20-1(6) at retail as issued by 27
441	441	the department of taxation. 28
442	442	(15)(17) “Spitting tobacco” also means snuff, powdered tobacco, chewing tobacco, dipping 29
443	443	tobacco, pouch tobacco, or smokeless tobacco. 30
444	444	(16)(18) “Tobacco product(s)” means any product(s) containing, made of, or derived from 31
445	445	tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether 32
446	446	inhaled, absorbed, or ingested by any other means, including, but not limited to, a cigarette, a little 33
447	447	cigar as defined in § 44-20.2-1, and any and all products as defined in § 44-20-1, electronic nicotine-34
448	448
449	449
450	450	LC001746 - Page 13 of 25
451	451	delivery system products, or any added substance that may be aerosolized, vaporized, or otherwise 1
452	452	delivered by such an electronic nicotine-delivery system device, whether or not that substance 2
453	453	contains nicotine. 3
454	454	(i) “Tobacco product(s)” does not include drugs, devices, or combination products intended 4
455	455	to treat tobacco or nicotine dependence that are authorized by the United States Food and Drug 5
456	456	Administration, as those terms are defined in the Federal Food, Drug and Cosmetic Act. Nor does 6
457	457	it include such authorized drugs, devices, or combination products with such treatment purpose by 7
458	458	individuals under age twenty-one (21) if prescribed by a licensed prescriber such as a physician, 8
459	459	nurse practitioner, or physician assistant. 9
460	460	(17)(19) “Underage individual” or “underage individuals” means any individual under the 10
461	461	age of twenty-one (21). 11
462	462	11-9-13.8. Prohibitions applicable to license holders and their employees and agents. 12
463	463	A person holding a license issued under chapter 20 of title 44 and/or § 23-1-56 chapter 13
464	464	28.12 of title 21, or an employee or agent of that person, is prohibited from selling, distributing, or 14
465	465	delivering a tobacco product, including an electronic nicotine-delivery system product and/or 15
466	466	kratom or kratom product: 16
467	467	(1) To any individual who is under twenty-one (21) years of age; or 17
468	468	(2) In any form other than an original, factory-wrapped package as sealed and certified by 18
469	469	the manufacturer; or 19
470	470	(3) As a single-cigarette sale (§ 44-20-31) or as a sale of cigarettes by the individual piece 20
471	471	known as “loosies.” 21
472	472	11-9-13.13. Nature and size of penalties. 22
473	473	(a) Any license holder who violates a requirement of § 11-9-13.6(2) or § 11-9-13.7, display 23
474	474	of specific signage, shall be subject to a fine in court of not less than thirty-five dollars ($35.00), 24
475	475	nor more than five hundred dollars ($500), per civil violation. 25
476	476	(b) The license holder is responsible for all violations of this section that occur at the 26
477	477	location for which the license is issued. Any license holder who or that violates the prohibition of 27
478	478	§ 11-9-13.8(1) or § 11-9-13.20 shall be subject to civil fines as follows: 28
479	479	(1) A fine of two hundred fifty dollars ($250) for the first violation within any thirty-six-29
480	480	month (36) period; 30
481	481	(2) A fine of five hundred dollars ($500) for the second violation within any thirty-six-31
482	482	month (36) period; 32
483	483	(3) A fine of one thousand dollars ($1,000) and a fourteen-day (14) suspension of the 33
484	484	license to sell tobacco products, or electronic nicotine-delivery systems or kratom or kratom 34
485	485
486	486
487	487	LC001746 - Page 14 of 25
488	488	products for the third violation within any thirty-six-month (36) period; 1
489	489	(4) A fine of one thousand five hundred dollars ($1,500) and a ninety-day (90) suspension 2
490	490	of the license to sell tobacco products , or electronic nicotine-delivery systems or kratom or kratom 3
491	491	products for each violation in excess of three (3). 4
492	492	(c) Any person who or that violates a prohibition of § 11-9-13.8(3), sale of single cigarettes; 5
493	493	or § 11-9-13.8(2), regarding factory-wrapped packs as sealed and certified by the manufacturer; 6
494	494	shall be subject to a penalty of five hundred dollars ($500) for each violation. 7
495	495	(d) The department of taxation or department of health shall not issue a license to any 8
496	496	individual, business, firm, fiduciary, partnership, trust, association, or corporation, the license of 9
497	497	which has been revoked or suspended; to any corporation, an officer of which has had his or her 10
498	498	license revoked or suspended; or to any individual who is, or has been, an officer of a corporation 11
499	499	the license of which has been revoked or suspended so long as such revocations or suspensions are 12
500	500	in effect. 13
501	501	(e) The court may suspend the imposition of a license suspension of the license secured 14
502	502	from the Rhode Island tax administrator or department of health for a violation of subsections (b)(3) 15
503	503	and (b)(4) of this section if the court finds that the license holder has taken measures to prevent the 16
504	504	sale of tobacco products, including electronic nicotine-delivery system products, or kratom and 17
505	505	kratom products, as applicable, to an underage individual and the license holder can demonstrate 18
506	506	to the court that those measures have been taken and that employees have received training. No 19
507	507	person or individual shall sell tobacco products, including electronic nicotine-delivery system 20
508	508	products, or kratom and kratom products, at retail without first being trained in the legal sale of 21
509	509	tobacco products, including electronic nicotine-delivery system products, or kratom and kratom 22
510	510	products, as applicable. Training shall teach employees what constitutes a tobacco product, 23
511	511	including an electronic nicotine-delivery system product, or kratom and kratom products, as 24
512	512	applicable; legal age of sale; acceptable identification; how to refuse a direct sale to an underage 25
513	513	individual or secondary sale to an individual twenty-one (21) years or older; and all applicable laws 26
514	514	on tobacco, electronic nicotine-delivery systems or kratom and kratom products, as applicable sales 27
515	515	and distribution. Dealers All license holders shall maintain records indicating that the provisions 28
516	516	of this section were reviewed with all employees who conduct, or will conduct, tobacco product 29
517	517	sales, including electronic nicotine-delivery system product sales , or kratom and kratom products, 30
518	518	as applicable. Each employee who sells or will sell tobacco products, including electronic nicotine-31
519	519	delivery system products, or kratom and kratom products, as applicable shall sign an 32
520	520	acknowledgement form attesting that the provisions of this section were reviewed with him or her. 33
521	521	Each form shall be maintained by the retailer for as long as the employee is so employed and for 34
522	522
523	523
524	524	LC001746 - Page 15 of 25
525	525	no less than one year after termination of employment. The measures to prevent the sale of tobacco 1
526	526	products, including electronic nicotine-delivery system products, to underage individuals shall be 2
527	527	defined by the department of behavioral healthcare, developmental disabilities and hospitals in 3
528	528	rules and regulations. The measures to prevent the sale of kratom and kratom products to underage 4
529	529	individuals shall be defined by the department of health in rules and regulations. 5
530	530	SECTION 4. Chapter 11-9 of the General Laws entitled "Children" is hereby amended by 6
531	531	adding thereto the following sections: 7
532	532	11-9-13.21. Signs concerning sales of kratom and kratom products to individuals 8
533	533	under the age of twenty-one (21). 9
534	534	(a) The department of health shall provide to retail kratom and kratom products dealers 10
535	535	signs concerning the prohibition of sales to individuals under twenty-one (21) years of age. This 11
536	536	sign, or an exact duplicate of it made privately, shall be displayed in all locations where kratom or 12
537	537	kratom products are sold. 13
538	538	(b) Signs provided by the department of health or an exact duplicate of it made privately, 14
539	539	shall: 15
540	540	(1) Contain in red bold lettering a minimum of three-eighths inch (3/8″) high on a white 16
541	541	background the following wording in both English and Spanish: 17
542	542	THE SALE OF KRATOM PRODUCTS, 18
543	543	TO INDIVIDUALS UNDER THE AGE OF 21 19
544	544	IS AGAINST RHODE ISLAND LAW 20
545	545	(R.I. Gen. Laws Chapter 21-28.12) 21
546	546	PHOTO ID FOR PROOF OF AGE IS 22
547	547	REQUIRED FOR PURCHASE. 23
548	548	Each red letter shall feature a visible black border. 24
549	549	(2) Contain the phone number at the department of health, where violations of chapter 1 of 25
550	550	title 23 can be reported, in addition to any other information required by the department of health. 26
551	551	(3) Be displayed prominently for public view wherever kratom or kratom products are sold 27
552	552	including at each cash register, or any other place from which kratom or kratom products are sold. 28
553	553	The signs shall be available electronically in both English and Spanish online on the department of 29
554	554	health’s website. 30
555	555	11-9-13.22. Prohibition on the distribution of free kratom or kratom products. 31
556	556	The distribution and/or redemption of free kratom or kratom products or coupons or 32
557	557	vouchers redeemable for free or discounted kratom or kratom products, to any individual under 33
558	558	twenty-one (21) years of age shall be prohibited. Further, the distribution and/or redemption of free 34
559	559
560	560
561	561	LC001746 - Page 16 of 25
562	562	kratom or kratom products or coupons or vouchers redeemable for free or discounted kratom or 1
563	563	kratom products shall be prohibited, regardless of the age of the individual to whom the products, 2
564	564	coupons, or vouchers are distributed, within five hundred feet (500′) of any school. The attorney 3
565	565	general, the department of health, or any local or State of Rhode Island police department, or their 4
566	566	officers or agents, shall bring an action for any violation of this section. Every separate, free or 5
567	567	discounted kratom or kratom product or coupon or voucher redeemable for a free or discounted 6
568	568	kratom or kratom product in violation of this section shall constitute a separate offense subject to a 7
569	569	fine of five hundred dollars ($500). The penalty shall be assessed against the person or individual 8
570	570	responsible for initiating the Rhode Island distribution of the free or discounted kratom or kratom 9
571	571	products or coupons or vouchers redeemable for free or discounted kratom or kratom products 10
572	572	and/or against the person or individual responsible for the redemption of such coupons or vouchers. 11
573	573	11-9-13.23. Prohibition on the delivery sale of kratom products. 12
574	574	Kratom and kratom products shall only be sold at retail at the fixed location for which a 13
575	575	person holds a kratom retailer license issued by the department of health. Delivery of kratom and 14
576	576	kratom products to retail purchasers is prohibited. 15
577	577	11-9-13.24. Compliance inspections for the underage sale of kratom and/or kratom 16
578	578	products. 17
579	579	The department of health and the department behavioral healthcare, developmental 18
580	580	disabilities and hospitals shall have the authority to: 19
581	581	(1) Investigate with other state and local officials any violations of this chapter. 20
582	582	(2) Utilize unannounced statewide compliance checks of kratom product sales. BHDDH 21
583	583	nor any person who has not yet attained twenty one (21) years of age shall not be liable for any 22
584	584	criminal or civil statute that prohibits the sale of kratom or kratom products to an underaged person 23
585	585	by virtue of conducting a compliance check pursuant to this chapter. Nothing herein shall prevent 24
586	586	a law enforcement agency from assisting BHDDH with a compliance check in which an underaged 25
587	587	buyer is involved. 26
588	588	(i) In fulfilling the requirement of unannounced statewide compliance checks, the 27
589	589	department of health or the department of behavioral healthcare, developmental disabilities and 28
590	590	hospitals shall maintain and shall provide to the department of revenue division of taxation records 29
591	591	of the unannounced compliance checks. The records shall be subject to public disclosure after 30
592	592	completion of the investigation consistent with § 38-2-2(4)(D) and (P). 31
593	593	(3) In coordination with other state and local departments and agencies, seek enforcement 32
594	594	of the penalties as specified in this chapter. 33
595	595	(4) The department of health, in consultation with the department of behavioral health, 34
596	596
597	597
598	598	LC001746 - Page 17 of 25
599	599	developmental disabilities, and hospitals, may promulgate rules and regulations necessary to fulfill 1
600	600	the intent of this chapter. 2
601	601	SECTION 5. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 3
602	602	adding thereto the following chapter: 4
603	603	CHAPTER 20.3 5
604	604	KRATOM AND KRATOM PRODUCTS TAX 6
605	605	44-20.3-1. Definitions. 7
606	606	Whenever used in this chapter, unless the context requires otherwise: 8
607	607	(1) “Administrator” means the tax administrator. 9
608	608	(2) “Dealer” means a “retailer” as defined in this chapter. 10
609	609	(3) “Distributor” means any person: 11
610	610	(i) Whether located within or outside of this state, other than a retailer, who sells or 12
611	611	distributes kratom or kratom products within or into this state; and 13
612	612	(ii) Engaged in this state in the business of manufacturing kratom products or any person 14
613	613	engaged in the business of selling kratom or kratom products to retailers, or to other persons, for 15
614	614	the purpose of resale only; provided that, seventy-five percent (75%) of all kratom or kratom 16
615	615	products sold by that person in this state are sold to retailers or other persons for resale and selling 17
616	616	kratom or kratom products directly to at least twenty (20) retailers or other persons for resale; or 18
617	617	(iii) Maintaining one or more regular places of business in this state for that purpose; 19
618	618	provided that, seventy-five percent (75%) of the sold kratom or kratom products are purchased 20
619	619	directly from the manufacturer and selling kratom or kratom products directly to at least twenty 21
620	620	(20) retailers or other persons for resale. 22
621	621	(4) “Importer” means any person who imports into the United States, either directly or 23
622	622	indirectly, kratom or a kratom product for sale or distribution. 24
623	623	(5) “Kratom” means any part of the leaf of the plant mitragyna speciosa. 25
624	624	(6) “Kratom product” means a product that contains any part or extract of the leaf of the 26
625	625	plant mitragyna speciosa or an extract thereof including concentrated forms of kratom and products 27
626	626	composed of kratom and other ingredients. 28
627	627	(7) “Licensed” when used with reference to a manufacturer, importer, distributor, or 29
628	628	retailer, means only those persons who hold a valid and current license issued under § 44-20.3-2 30
629	629	for the type of business being engaged in. When the term “licensed” is used before a list of entities, 31
630	630	such as “licensed manufacturer, importer, wholesale retailer, or retailer,” such term shall be deemed 32
631	631	to apply to each entity in such list. 33
632	632	(8) “Manufacturer” means any person who manufactures, fabricates, assembles, processes, 34
633	633
634	634
635	635	LC001746 - Page 18 of 25
636	636	or labels a kratom product. 1
637	637	(9) “Person” means any individual, including an employee or agent, firm, fiduciary, 2
638	638	partnership, corporation, trust, or association, however formed. 3
639	639	(10) “Place of business” means any location where kratom or kratom products are sold, 4
640	640	stored, or kept including, but not limited to, any storage room, attic, basement, garage or other 5
641	641	facility immediately adjacent to the location. It also includes any receptacle, hide, vessel, vehicle, 6
642	642	airplane, or train. 7
643	643	(11) “Retailer” means any person whether located within or outside of this state, who sells 8
644	644	or distributes kratom products to a consumer in this state. 9
645	645	(12) “Sale” or “sell” means gifts, exchanges, or barter of kratom or kratom products. The 10
646	646	act of holding, storing, or keeping kratom or kratom products at a place of business for any purpose 11
647	647	shall be presumed to be holding the kratom or kratom products for sale. Furthermore, any sale of 12
648	648	kratom or kratom products by the servants, employees, or agents of the licensed retailer during 13
649	649	business hours at the place of business shall be presumed to be a sale by the licensee. 14
650	650	44-20.3-2. Tax imposed on kratom and kratom products sold. 15
651	651	(a) A tax is imposed on all kratom and kratom products sold, or held for sale in the state 16
652	652	by any person, the payment of the tax to be accomplished according to a mechanism established by 17
653	653	the tax administrator. The tax imposed by this section shall be at the rate of fifteen percent (15%) 18
654	654	of the wholesale cost for all kratom and kratom products, whether or not sold at wholesale, and if 19
655	655	not sold, then at the same rate upon the use by the wholesaler. 20
656	656	(b) All kratom and kratom products sold at wholesale in Rhode Island must be sold by a 21
657	657	Rhode Island licensed distributor, manufacturer, or importer, and purchasers of kratom and kratom 22
658	658	products, licensed by chapter 28.12 of title 21, from an unlicensed distributor, manufacturer, or 23
659	659	importer are prohibited. Any kratom and kratom products purchased and/or obtained from an 24
660	660	unlicensed person shall be subject to the terms of this chapter and shall be taxed pursuant to this 25
661	661	section. 26
662	662	(c) The proceeds collected are paid into the general fund. 27
663	663	(d) Any tax imposed under the provisions of this chapter, together with all fees or charges, 28
664	664	also become, from the time they are due and payable, a debt to the State of Rhode Island from the 29
665	665	person liable for the payment of the tax, fees, or charges. 30
666	666	44-20.3-3. Interest and Penalties. 31
667	667	(a) Failure to pay the kratom and kratom products tax to the state, or any amount of tax 32
668	668	required to be paid to the state, shall result in interest at the annual rate provided by § 44-1-7 from 33
669	669	the date on which the tax or amount of the tax required to be collected became due and payable to 34
670	670
671	671
672	672	LC001746 - Page 19 of 25
673	673	the state until date of payment. 1
674	674	(b) Failure to file tax returns or to pay tax. In the case of failure: 2
675	675	(1) To file. The tax return on or before the prescribed date, unless it is shown that the failure 3
676	676	is due to reasonable cause and not due to willful neglect, an addition to tax shall be made equal to 4
677	677	ten percent (10%) of the tax required to be reported. For this purpose, the amount of tax required 5
678	678	to be reported shall be reduced by an amount of the tax paid on or before the date prescribed for 6
679	679	payment and by the amount of any credit against the tax which may properly be claimed upon the 7
680	680	return. 8
681	681	(2) To pay. The amount shown as tax on the return on or before the prescribed date for 9
682	682	payment of the tax unless it is shown that the failure is due to reasonable cause and not due to 10
683	683	willful neglect, there shall be added to the amount shown as tax on the return ten percent (10%) of 11
684	684	the amount of the tax. 12
685	685	(c) Negligence. If any part of a deficiency is due to negligence or intentional disregard of 13
686	686	the Rhode Island general laws or rules or regulations under this chapter (but without intent to 14
687	687	defraud), five percent (5%) of that part of the deficiency shall be added to the tax. 15
688	688	(d) Fraud. If any part of a deficiency is due to fraud, fifty percent (50%) of that part of the 16
689	689	deficiency shall be added to the tax. This amount shall be in lieu of any other additional amounts 17
690	690	imposed by subsections (a) and (b) of this section. 18
691	691	(e) Additions and penalties treated as tax. The additions to the tax and civil penalties 19
692	692	provided by this section shall be paid upon notice and demand and shall be assessed, collected, and 20
693	693	paid in the same manner as taxes. 21
694	694	(f) Bad checks. If any check or money order in payment of any amount receivable under 22
695	695	this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as 23
696	696	a penalty by the person who tendered the check, upon notice and demand by the tax administrator 24
697	697	or his or her delegate, in the same manner as tax, an amount equal to one percent of the amount of 25
698	698	the check, except that if the amount of the check is less than five hundred dollars ($500), the penalty 26
699	699	under this section shall be five dollars ($5.00). This subsection shall not apply if the person tendered 27
700	700	the check in good faith and with reasonable cause to believe that it would be duly paid. 28
701	701	(g) Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or 29
702	702	regulations, shall, in addition to any other penalty provided in this chapter, be liable for a penalty 30
703	703	of one thousand dollars ($1,000) or not more than five (5) times the tax due but unpaid, whichever 31
704	704	is greater. 32
705	705	44-20.3-4. Records — Investigation and inspection of books, premises, and stock. 33
706	706	(a) Each manufacturer, importer, distributor, and dealer shall maintain copies of invoices 34
707	707
708	708
709	709	LC001746 - Page 20 of 25
710	710	or equivalent documentation for, or itemized for, each of its facilities for each transaction involving 1
711	711	the sale, purchase, transfer, consignment, or receipt of kratom and kratom products. The invoices 2
712	712	or documentation shall show the name and address of the other party and the quantity and type of 3
713	713	kratom and kratom products involved in the transaction. All records and invoices required under 4
714	714	this section must be safely preserved for three (3) years in a manner to insure permanency and 5
715	715	accessibility for inspection by the administrator or his or her authorized agents. 6
716	716	(b) Records required under this section shall be preserved on the premises described in the 7
717	717	relevant license in such a manner as to ensure permanency and accessibility for inspection at 8
718	718	reasonable hours by authorized personnel of the administrator. With the administrator’s permission, 9
719	719	persons with multiple places of business may retain centralized records, but shall transmit 10
720	720	duplicates of the invoices or the equivalent documentation to each place of business within twenty-11
721	721	four (24) hours upon the request of the administrator or his or her designee. 12
722	722	(c) The administrator or his or her authorized agents may examine the books, papers, 13
723	723	reports, and records of any manufacturer, importer, distributor, or dealer in this state for the purpose 14
724	724	of determining whether taxes imposed by this chapter have been fully paid, and may investigate 15
725	725	the stock of kratom and kratom products in or upon any premises for the purpose of determining 16
726	726	whether the provisions of this chapter are being obeyed. The administrator in their sole discretion 17
727	727	may share the records and reports required by such sections with law enforcement officials of the 18
728	728	federal government, the state, other states, and the department of health. 19
729	729	44-20.3-5. Inspections. 20
730	730	(a) The administrator or the administrator’s duly authorized agent shall have authority to 21
731	731	enter and inspect, without a warrant during normal business hours, and with a warrant during 22
732	732	nonbusiness hours, the facilities and records of any manufacturer, importer, distributor, or dealer. 23
733	733	(b) In any case where the administrator or the administrator’s duly authorized agent, or any 24
734	734	police officer of this state, has knowledge or reasonable grounds to believe that any vehicle is 25
735	735	transporting kratom products in violation of this chapter, the administrator, such agent, or such 26
736	736	police officer, is authorized to stop such vehicle and to inspect the same for contraband kratom 27
737	737	products. 28
738	738	44-20.3-6. Reports and records of carriers, bailees and warehouse persons. 29
739	739	The tax administrator may, in his or her discretion, require reports from any common or 30
740	740	contract carrier who transports kratom or kratom products to any point or points within the state, 31
741	741	and from any bonded warehouseperson or bailee who has in his or her possession any kratom or 32
742	742	kratom products, these reports to contain any information concerning shipments of kratom or 33
743	743	kratom products that the tax administrator determines. All common and contract carriers, bailees, 34
744	744
745	745
746	746	LC001746 - Page 21 of 25
747	747	and warehousepersons shall permit the examination by the tax administrator or his or her authorized 1
748	748	agent of any records relating to the shipment or receipt of kratom or kratom products. 2
749	749	44-20.3-7. Violations as to reports and records. 3
750	750	Any person who fails to submit the reports required in this chapter or by the tax 4
751	751	administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who 5
752	752	refuses to permit the tax administrator or the tax administrator’s authorized agent to examine any 6
753	753	books, records, papers, or stocks of kratom and kratom products as provided in this chapter, or who 7
754	754	refuses to supply the tax administrator with any other information which the tax administrator 8
755	755	requests for the reasonable and proper enforcement of the provisions of this chapter, shall be guilty 9
756	756	of a misdemeanor punishable by imprisonment up to one year, or a fine of not more than five 10
757	757	thousand dollars ($5,000), or both, for the first offense, and for each subsequent offense, shall be 11
758	758	guilty of a felony and fined not more than ten thousand dollars ($10,000), or be imprisoned not 12
759	759	more than five (5) years, or both. 13
760	760	44-20.3-8. Declarations under penalty of perjury. 14
761	761	The oath or affirmation required by the provisions of this chapter as to any report or written 15
762	762	statement is not required if the report or statement to be sworn to contains or is verified by a written 16
763	763	declaration that it is made under the penalties of perjury; and if any report or statement is willfully 17
764	764	false, any person who signs and issues any statement containing or verified by this declaration is 18
765	765	guilty of perjury. 19
766	766	44-20.3-9. Importation of kratom or kratom products with intent to evade tax. 20
767	767	Any person, firm, corporation, club, or association of persons who or that orders any 21
768	768	kratom products for another; or pools orders for kratom or kratom products from any persons; or 22
769	769	conspires with others for pooling orders; or receives in this state any shipment of contraband kratom 23
770	770	products on which the tax imposed by this chapter has not been paid, for the purpose and intention 24
771	771	of violating the provisions of this chapter or to avoid payment of the tax imposed in this chapter, is 25
772	772	guilty of a felony and shall be fined one hundred thousand dollars ($100,000) or five (5) times the 26
773	773	retail value of the kratom products involved, whichever is greater, or imprisoned not more than 27
774	774	fifteen (15) years, or both. 28
775	775	44-20.3-10. Witnesses before tax administrator. 29
776	776	(a) The tax administrator and any agent of the tax administrator authorized to conduct any 30
777	777	inquiry, investigation, or hearing under this chapter has power to administer oaths and take 31
778	778	testimony under oath relative to the matter of inquiry or investigation. At any hearing ordered by 32
779	779	the tax administrator, the tax administrator or his or her agent may subpoena witnesses and require 33
780	780	the production of books, papers, and documents pertinent to the inquiry. No witness under subpoena 34
781	781
782	782
783	783	LC001746 - Page 22 of 25
784	784	authorized to be issued by the provisions of this chapter is excused from testifying or from 1
785	785	producing books or papers on the ground that the testimony or the production of the books or other 2
786	786	documentary evidence would tend to incriminate the witness, but the testimony or the evidence of 3
787	787	the books or papers so produced shall not be used in any criminal proceedings against the witness. 4
788	788	(b) If any person disobeys this process or, having appeared in obedience to it, refuses to 5
789	789	answer any pertinent question put to the person by the tax administrator or his or her authorized 6
790	790	agent or to produce any books and papers pursuant to the process, the tax administrator or the agent 7
791	791	may apply to the sixth division of the district court, stating the disobedience to process or refusal 8
792	792	to answer, and the court shall cite the person to appear before the court to answer that question or 9
793	793	to produce those books and papers, and, upon his or her refusal so to do, shall commit the person 10
794	794	to the adult correctional institutions, for a period not to exceed sixty (60) days. Notwithstanding 11
795	795	the serving of the term of this commitment by any person, the tax administrator may proceed in all 12
796	796	respects with this inquiry and examination as if the witness had not previously been called upon to 13
797	797	testify. 14
798	798	(c) Officers who serve subpoenas issued by the tax administrator or under the tax 15
799	799	administrator's authority and witnesses subpoenaed by the tax administrator under this section shall 16
800	800	receive fees and compensation at the same rates as officers and witnesses in the district courts of 17
801	801	the state, to be paid from the proper appropriation for the administration of this chapter. 18
802	802	(d) A party aggrieved by an order of the court may appeal the order to the supreme court 19
803	803	in accordance with the procedures contained in the rules of appellate procedure of the supreme 20
804	804	court. 21
805	805	44-20.3-11. Hearings by tax administrator. 22
806	806	Any person aggrieved by any action under this chapter of the tax administrator or the tax 23
807	807	administrator’s authorized agent for which a hearing is not elsewhere provided may apply to the 24
808	808	tax administrator, in writing, within thirty (30) days of the action for a hearing, stating the reasons 25
809	809	why the hearing should be granted and the manner of relief sought. The tax administrator shall 26
810	810	notify the applicant of the time and place fixed for the hearing. After the hearing, the tax 27
811	811	administrator may make the order in the premises as may appear to the tax administrator just and 28
812	812	lawful and shall furnish a copy of the order to the applicant. The tax administrator may, by notice 29
813	813	in writing, at any time, order a hearing on the tax administrator’s own initiative and require the 30
814	814	taxpayer or any other individual whom the tax administrator believes to be in possession of 31
815	815	information concerning any manufacture, importation, or sale of kratom or kratom products to 32
816	816	appear before the tax administrator or the tax administrator’s authorized agent with any specific 33
817	817	books of account, papers, or other documents, for examination relative to the hearing. 34
818	818
819	819
820	820	LC001746 - Page 23 of 25
821	821	44-20.3-12. Appeal to district court. 1
822	822	Any person aggrieved by any decision of the tax administrator under the provisions of this 2
823	823	chapter may appeal the decision within thirty (30) days thereafter to the sixth division of the district 3
824	824	court. The appellant shall at the time of taking an appeal file with the court a bond of recognizance 4
825	825	to the state, with surety to prosecute the appeal to effect and to comply with the orders and decrees 5
826	826	of the court in the premises. These appeals are preferred cases, to be heard, unless cause appears to 6
827	827	the contrary, in priority to other cases. The court may grant relief as may be equitable. If the court 7
828	828	determines that the appeal was taken without probable cause, the court may tax double or triple 8
829	829	costs, as the case demands; and, upon all those appeals, which may be denied, costs may be taxed 9
830	830	against the appellant at the discretion of the court. In no case shall costs be taxed against the state, 10
831	831	its officers, or agents. A party aggrieved by a final order of the court may seek review of the order 11
832	832	in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35-12
833	833	16. 13
834	834	44-20.3-13. Claim for refund. 14
835	835	Whenever the tax administrator determines that any person is entitled to a refund of any 15
836	836	monies paid by a person under the provisions of this chapter, or whenever a court of competent 16
837	837	jurisdiction orders a refund of any monies paid, the general treasurer shall, upon certification by 17
838	838	the tax administrator and with the approval of the director of revenue, pay the refund from any 18
839	839	monies in the treasury not appropriated without any further act or resolution making appropriation 19
840	840	for the refund. No refund is allowed unless a claim is filed with the tax administrator within three 20
841	841	(3) years from the fifteenth day after the close of the month for which the overpayment was made. 21
842	842	44-20.3-14. Administration — Forms — Rules and regulations. 22
843	843	The tax administrator is authorized to promulgate rules and regulations to carry out the 23
844	844	provisions, policies, and purposes of this chapter. The provisions of this chapter shall be liberally 24
845	845	construed to foster the enforcement of and compliance with all provisions herein related to taxation. 25
846	846	Notwithstanding any other provision of law, the tax administrator may make available to an 26
847	847	authorized agent of the department of health and the attorney general any information that the 27
848	848	administrator may consider proper contained in tax reports or returns or any audit or the report of 28
849	849	any investigation made with respect to them, filed pursuant to the tax laws of this state, to whom 29
850	850	disclosure is necessary for the purpose of ensuring compliance with state law and regulations. 30
851	851	44-20.3-15. Severability. 31
852	852	The provisions of this chapter are declared to be severable; and in case any part, section, 32
853	853	or provision of this chapter is held void by any court of competent jurisdiction, the remaining parts, 33
854	854	sections, and provisions of the chapter are not impaired or affected. 34
855	855
856	856
857	857	LC001746 - Page 24 of 25
858	858	SECTION 6. This act shall take effect on April 1, 2026. 1
859	859	========
860	860	LC001746
861	861	========
862	862
863	863
864	864	LC001746 - Page 25 of 25
865	865	EXPLANATION
866	866	BY THE LEGISLATIVE COUNCIL
867	867	OF
868	868	A N A C T
869	869	RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND KRATOM ACT
870	870	***
871	871	This act would authorize and regulate the distribution of the product known as "kratom", 1
872	872	and would ban the adulteration of kratom with a dangerous non-kratom substance as to render the 2
873	873	product injurious to a consumer. The act would require that any kratom product contain adequate 3
874	874	labeling directions necessary for safe and effective use by consumers. 4
875	875	This act would take effect on April 1, 2026. 5
876	876	========
877	877	LC001746
878	878	========