Chapter 447 |
2025 -- S 0792 SUBSTITUTE A Enacted 07/02/2025 |
A N A C T |
RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND KRATOM ACT |
Introduced By: Senators Gallo, Sosnowski, Thompson, Burke, Murray, and LaMountain |
Date Introduced: March 14, 2025 |
It is enacted by the General Assembly as follows: |
SECTION 1. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby |
amended by adding thereto the following chapter: |
CHAPTER 28.12 |
THE RHODE ISLAND KRATOM ACT |
21-28.12-1. Short title. |
This chapter shall be known and may be cited as the "Rhode Island Kratom Act." |
21-28.12-2. Definitions. |
As used in this chapter: |
(1) “Contraband kratom products” means any kratom product that is prohibited by § 21- |
28.12-3. |
(2) “Department” means the department of health; |
(3) “Distributor” means any person: |
(i) Whether located within or outside of this state, other than a retailer, who sells or |
distributes kratom or kratom products within or into this state; and |
(ii) Engaged in this state in the business of manufacturing kratom products or any person |
engaged in the business of selling kratom or kratom products to dealers, or to other persons, for the |
purpose of resale only; provided that, seventy-five percent (75%) of all kratom and kratom products |
sold by that person in this state are sold to retailers or other persons for resale and selling kratom |
and kratom products directly to at least twenty (20) dealers or other persons for resale; or |
(iii) Maintaining one or more regular places of business in this state for that purpose; |
provided that, seventy-five percent (75%) of the sold kratom and kratom products are purchased |
directly from the manufacturer and selling kratom and kratom products directly to at least twenty |
(20) retailers or other persons for resale. |
(4) “Kratom” means any part of the leaf of the plant mitragyna speciosa. |
(5) "Kratom product" means a product containing any part or extract of the leaf of the plant |
mitragyna speciosa or an extract thereof including concentrated forms of kratom and products |
composed of kratom and other ingredients. |
(6) “Importer” means any person who imports into the United States, either directly or |
indirectly, kratom or a kratom product for sale or distribution. |
(7) “Kratom extract” means a substance or compound obtained by extraction of the |
mitragyna speciosa leaf, intended for ingestion, containing only naturally occurring constituents of |
the kratom plant, Generally Recognized As Safe (GRAS) substances, approved constituent articles, |
and does not contain any controlled substances. |
(8) "Synthesized material" means: |
(i) An alkaloid 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), rather than traditional food preparation techniques, such as heating |
or extracting that synthetically alters the composition of any kratom alkaloid or constituent; or |
(ii) An alkaloid or alkaloid derivative contained in kratom that has been exposed to |
chemicals or processes that would confer a structural change in the alkaloids, resulting in material |
that has been chemically altered. |
(9) “Licensed” when used with reference to a manufacturer, importer, distributor, or |
retailer, means only those persons who hold a valid and current license issued under § 21-28.12-6 |
for the type of business being engaged in. When the term “licensed” is used before a list of entities, |
such as “licensed manufacturer, importer, wholesale retailer, or retailer” such term shall be deemed |
to apply to each entity in such list. |
(10) “Manufacturer” means any person who manufactures, fabricates, assembles, |
processes, or labels a kratom product. |
(11) “Person” means any individual, including an employee or agent, firm, fiduciary, |
partnership, corporation, trust, or association, however formed. |
(12) “Place of business” means any location where kratom or kratom products are sold, |
stored, or kept including, but not limited to: any storage room, attic, basement, garage or other |
facility immediately adjacent to the location. It also includes any receptacle, hide, vessel, vehicle, |
airplane, or train. |
(13) "Retailer" means any person, whether located within or outside of this state, who sells |
or distributes kratom or kratom products to a consumer in this state. |
(14) “Sale” or “sell” means gifts, exchanges, and/or barter of kratom products. The act of |
holding, storing, or keeping kratom products at a place of business or with a person for any purpose |
shall be presumed to be holding the kratom products for sale. Furthermore, any sale of kratom |
products by the servants, employees, or agents of the licensed retailer at the place of business shall |
be presumed to be a sale by the licensee. |
21-28.12-3. Kratom and kratom product limitations. |
(a) A person shall not prepare, distribute, sell, possess, or advertise any of the following: |
(1) A kratom product that is a conventional food or beverage or labeled as a conventional |
food or beverage product. |
(2) A kratom product that contains any substance that is poisonous, harmful, or injurious |
to health. |
(3) A kratom product that contains a substance other than a non-psychoactive substance |
necessary for the preparation, processing, or manufacturing of said product. |
(4) A kratom extract that contains levels of residual solvents higher than is allowed in the |
U.S. Pharmacopeia 467. |
(5) A kratom product containing any synthetic alkaloids including synthetic mitragynine, |
synthetic 7-hydroxymitragynine, or any other synthetically derived compounds of the kratom plant. |
(6) A kratom product that contains a heavy metal that exceeds any of the following limits |
in parts per million: |
(i) Arsenic <2 |
(ii) Cadmium <0.82 |
(iii) Lead <1.2 |
(iv) Mercury <0.4 |
(7) A kratom product in any form that is combustible or intended to be used for |
vaporization, aerosolization, or injection. |
(8) A kratom product in any form that mimics a candy product or is manufactured, |
packaged, or advertised in a way that can be reasonably considered to appeal to individuals under |
twenty-one (21) years. |
(9) A kratom product not contained in child-resistant packaging that meets the standards |
set forth in 16 C.F.R 1700.15(b) when tested in accordance with 16 C.F.R 1700.20. All persons |
holding valid licenses pursuant to §21-28.12 shall ensure that kratom and/or any kratom product |
sold by the licensee and intended for human consumption shall meet requirements related to child- |
resistant packaging. |
(10) A kratom product that contains a concentration ratio that is: |
(i) Greater than 150 mg of mitragynine per serving; |
(ii) Greater than 0.5 mg 7-hydroxymitragynine per gram; or |
(iii) Greater than 1 mg 7-hydroxymitragynine per serving. |
(11) A kratom product that contains more than one percent of 7-hydroxymitragynine by |
percentage of total kratom alkaloids. |
(12) Kratom or a kratom product that does not provide clearly visible labeling including, |
but not limited to: |
(i) A recommendation to consult a health carehealthcare professional prior to use; |
(ii) A statement that kratom may be habit forming; |
(iii) A statement that kratom is not safe for use while pregnant or breastfeeding; |
(iv) A warning that the product may result in dangerous medication interactions. |
(v) The following statement: “These statements have not been evaluated by the United |
States Food and Drug Administration. This product is not intended to diagnose, treat, cure, or |
prevent any disease.”; |
(vi) The net quantity of contents declared in numerical count (e.g., thirty (30) capsules), or |
in volume or weight in United States Customary System terms; |
(A) The amount of mitragynine and/or 7-hydroxymitragynine contained in a serving in said |
kratom product; |
(B) A recommended amount of the kratom product per serving; and |
(C) A recommended number of servings that can be safely consumed in a twenty-four- |
(24)hour (24) period. |
(vii) The total amount of mitragynine and 7-hydroxymitragynine contained in the kratom |
product; |
(viii) A statement that this product should be stored safely and out of the reach of children; |
(ix) The name, physical non-post office box address of the manufacturer. |
(b) Kratom and kratom products sold at retail must be sold by a licensed retailer and must |
be obtained from a licensed manufacturer, importer, or distributor. |
(c) All kratom and kratom products that do not comply with subsection (a) of this section |
shall be deemed contraband. |
21-28.12-4. Age limits and sales restrictions. |
(a) No person or entity shall distribute, sell, transfer, or advertise a kratom product to a |
person under twenty-one (21) years. |
(b) All kratom products shall be kept behind the sales counter only accessible to store |
employees. |
(c) The sale or distribution of kratom or kratom products to individuals under the age of |
twenty-one (21) is prohibited. |
(d) Valid photo identification for proof of age is required for all kratom and kratom product |
purchases. Acceptable forms of government-issued identification shall include a recent photo of |
the individual to whom the identification has been issued showing the date of birth of the individual |
to verify the individual is age twenty-one (21) years or over. Acceptable forms of government- |
issued identification are: a valid motor vehicle operator’s license issued by the Statestate of Rhode |
Island or another Statestate; a valid driver privilege card issued by the Statestate of Rhode Island |
or another state; a valid Rhode Island identification card issued by the administrator of the division |
of motor vehicles; a valid armed services identification card; or a valid passport. |
21-28.12-5. Violations. |
(a) A person or entity that violates §§ 21-28.12-3 or 21-28.12-4 may be subject to the |
suspension or revocation of its license pursuant to § 21-28.12-9 by the department and shall be |
subject to a fine by the department of not more than one thousand dollars ($1,000) for the first |
offense and not more than two thousand dollars ($2,000) for a second offense. Upon a third |
violation, the license of the retailer shall be revoked by the department, and the retailer shall be |
prohibited from selling kratom or kratom products. |
(b) The department may require an independent third-party test of a kratom product by a |
laboratory of the department’s choice to determine if the product is prohibited by § 21-28.12-3, and |
the retailer shall be required to submit payment for the test and administrative costs associated with |
said testing. If the retailer does not tender payment to the department within thirty (30) days of |
receipt of the invoice, the retailer may be subject to the suspension or revocation of its license |
pursuant to this section. |
(c) The department of health, the department of revenue division of taxation, and the |
department of behavioral health, developmental disabilities, and hospitals are authorized to share |
information to effectuate the purposes of this chapter and chapter 20.3 of title 44. |
(d) A person or entity who violates the provisions of this chapter by adulterating a kratom |
product with any substance listed in § 21-28-2.08 shall be subject to penalties set forth in this |
chapter as well as in § 21-28-4.01. |
(e) All funds received by the department pursuant to this section shall be deposited into a |
restricted receipt account established in § 21-28.12-11. |
21-28.12-5.1. Confiscation of contraband kratom products and other property. |
(a) All kratom products that are held for sale or distribution within the borders of this state |
in violation of the requirements of this chapter are declared to be contraband goods and may be |
seized by the department or the department’s agents, or employees, or by any sheriff, or the sheriff’s |
deputy, or any police officer when directed by the department to do so, without a warrant. All |
contraband goods seized by the state under this chapter shall be destroyed. |
(b) All fixtures, equipment, and all other materials and personal property on the premises |
of any distributor or retailer who or that, with the intent to defraud the state, fails to keep or make |
any record, return, report, or inventory; keeps or makes any false or fraudulent record, return, |
report, or inventory required by this chapter; refuses to pay any tax imposed by this chapter; or |
attempts in any manner to evade or defeat the requirements of this chapter shall be forfeited to the |
state. |
21-28.12-5.2. Sale of contraband kratom products prohibited. |
No distributor shall sell, and no other person shall sell, offer for sale, display for sale, or |
possess with intent to sell any contraband kratom products without written record of the payment |
of tax imposed by this chapter. |
21-28.12-5.3. Penalties for violations as to contraband kratom products. |
(a) Any person who violates any provision of § 21-28.12-5.2 shall be fined by the |
department as follows: |
(1) For a first offense in a twenty-four-month (24) period, fined not more than ten (10) |
times the retail value of the contraband kratom products; |
(2) For a second or subsequent offense in a twenty-four-month (24) period, fined not more |
than twenty-five (25) times the retail value of the contraband kratom products. |
(b) When determining the amount of a fine sought or imposed under this section, evidence |
of mitigating factors, including history, severity, and intent shall be considered. |
(c) All funds received by the department pursuant to this section shall be deposited into a |
restricted receipt account established in § 21-28.12-11. |
21-28.12-5.4. Hearing on kratom products confiscated, fines, or license suspension or |
revocation. |
(a) When any kratom products are confiscated under the provisions of § 21-28.12-5.1, upon |
the request of a person claiming an interest in the kratom the department shall conduct a hearing in |
accordance with the procedures as set forth in chapter 35 of title 42 ("administrative procedures"). |
(b) When a fine,or license suspension or revocation occurs under the provisions of this |
chapter, upon the request of the aggrieved party, the department shall conduct a hearing in |
accordance with the procedures as set forth in chapter 35 of title 42 ("administrative procedures"). |
(c) When a person aggrieved by any action under this chapter, upon the request of a person |
claiming an interest in the kratom the department shall conduct a hearing in accordance with the |
procedures as set forth in chapter 35 of title 42 ("administrative procedures"). |
21-28.12-5.6. Appeal to district court. |
Any person aggrieved by any decision of the department under the provisions of this |
chapter may appeal the decision within thirty (30) days thereafter to the sixth division of the district |
court. |
21-28.12-5.7. Disposition of revenue — Payment of refunds. |
All monies received by the department under the provisions of this chapter, unless |
otherwise designated, are paid to the general fund. Whenever the department determines that any |
person is entitled to a refund of any monies paid by that person under the provisions of this chapter, |
or whenever a court of competent jurisdiction orders a refund of any paid monies, the general |
treasurer shall, upon certification by the department and with the approval of the controller, pay the |
refunds from any monies in the treasury not appropriated without any further act or resolution |
making appropriation for any monies. |
21-28.12-6. Manufacturer, importer, distributor, and retailer licenses required – |
Licenses required. |
(a) Each person engaging in the business of selling kratom or kratom products in this state, |
including any manufacturer, importer, distributor, or retailer, shall secure a license from the |
department before engaging or continuing to engage in that business in accordance with this |
section. A separate application and license are required for each place of business operated by a |
distributor, manufacturer, importer, distributor, or retailer. If the applicant for a license does not |
have a place of business in this state, the license shall be issued for such applicant’s principal place |
of business, wherever located. A licensee shall notify the department within thirty (30) days that it |
changes its principal place of business. A separate license is required for each class of business if |
the applicant is engaged in more than one of the activities required to be licensed by this section. |
Each license shall expire after one year at which time said license shall be renewed in accordance |
with subsection (c) of this section. |
(b) Effective April 1, 2026 until December 31, 2027, each initial licensing application for |
a manufacturer’s, importer’s, or distributor’s license shall be accompanied by a non-refundable |
initial application fee of two thousand dollars ($2,000). Effective April 1, 2026 until December 31, |
2027, each initial licensing application for a retailer’s license shall be accompanied by a non- |
refundable initial application fee of one thousand dollars ($1,000). |
(c) Each license, including any manufacturer, importer, distributor, or retailer license, shall |
be renewed annually. Effective April 1, 2026, until December 31, 2027, each license renewal of a |
manufacturer’s, importer’s, or distributor’s license shall be accompanied by a non-refundable |
renewal fee of two thousand dollars ($2,000). Effective April 1, 2026, until December 31, 2027, |
each license renewal of a retailer’s license shall be accompanied by a non-refundable renewal fee |
of one thousand dollars ($1,000). |
(d) Effective January 1, 2028, the director of the department of health is authorized to |
establish by rule and regulation reasonable initial application fees and license renewal fees for |
kratom manufacturer’s, importer’s, distributor’s, and retail licenses. |
(e) Each issued license shall be prominently displayed on the premises, if any, covered by |
the license. |
(f) A manufacturer or importer may sell or distribute kratom and/or kratom products to a |
person located or doing business within the state only if such person is a licensed distributor. An |
importer may obtain kratom and/or kratom products only from a licensed manufacturer. A |
distributor may sell or distribute kratom and/or kratom products to a person located or doing |
business within this state only if such person is a licensed distributor or retailer. A distributor may |
obtain kratom and/or kratom products only from a licensed manufacturer, importer, or distributor. |
A retailer may obtain kratom and/or kratom products only from a licensed distributor. |
(g)(1) No license under this chapter may be granted, maintained, or renewed if the |
applicant, or any combination of persons owning directly or indirectly any interests in the applicant: |
(i) Is delinquent in any tax filings for one month or more; or |
(ii) Had a license under this chapter revoked within the past two (2) years. |
(2) No person shall apply for a new license, or renewal of a license and no license shall be |
issued or renewed for any person, unless all outstanding fines, fees, or other charges relating to any |
license held by that person have been paid. |
(3) No license shall be issued relating to a business at any specific location until all prior |
licenses relating to that location have been officially terminated and all fines, fees, or charges |
relating to the prior licenses have been paid or otherwise resolved or if the department has found |
that the person applying for the new license is not acting as an agent for the prior licensee who is |
subject to any such related fines, fees, or charges that are still due. Evidence of such agency status |
includes, but is not limited to, a direct familial relationship and/or employment, contractual, or |
other formal financial or business relationship with the prior licensee. |
(4) No person shall apply for a new license pertaining to a specific location to evade |
payment of any fines, fees, or other charges relating to a prior license for that location. |
(5) No new license shall be issued for a business at a specific location for which a license |
has already issued unless there is a bona fide, good-faith change in ownership of the business at |
that location. |
(6) No license or permit shall be issued, renewed, or maintained for any person, including |
the owners of the business being licensed, who has been convicted of violating any criminal law |
relating to tobacco products, electronic nicotine-delivery system products, kratom and/or kratom |
products, the payment of taxes, fraud, and/or has been ordered to pay civil fines of more than |
twenty-five thousand dollars ($25,000) for violations of any civil law relating to tobacco products, |
electronic nicotine-delivery system products, kratom and/or kratom products, the payment of taxes, |
or fraud. |
(h) All funds received by the department pursuant to this section shall be deposited into a |
restricted receipt account established in § 21-28.12-11. |
21-28.12-7. Penalties for unlicensed business. |
Any manufacturer, importer, distributor, or retailer who sells, offers for sale, or possesses |
with intent to sell, kratom or kratom products, without a license as provided in § 21-28.12-6, shall |
be fined in accordance with the provisions of, and the penalties contained in, § 21-28.12-8. |
21-28.12-8. Penalty for operating without a manufacturer, importer, distributor, or |
dealer license. |
Any individual or business who violates this chapter by selling or conveying kratom or a |
kratom product without a retail license or a license under this chapter shall be cited for that violation |
and shall be fined five thousand ($5,000) dollars by the department. All funds received by the |
department pursuant to this section shall be deposited into a restricted receipt account established |
in § 21-28.12-11. |
21-28.12-9. Suspension or revocation of license. |
The department may suspend or revoke any license under this chapter for failure of the |
licensee to comply with any provision of this chapter or with any provision of any other law or |
ordinance relative to the sale or purchase of kratom or kratom products. The department may also |
suspend or revoke any license for failure of the licensee to comply with any provision of this chapter |
and chapter 13 of title 6 ("unfair sales practices"), and, for the purpose of determining whether the |
licensee is complying with any provision of chapter 13 of title 6 ("unfair sales practices"), the |
department and his or herits authorized agents are empowered to examine the books, papers, and |
records of any licensee. The department shall revoke the license of any person who would be |
ineligible to obtain a new or renew a license by reason of any of the conditions for licensure |
provided in this chapter. Any person aggrieved by the suspension or revocation may apply to the |
department for a hearing as provided in this title. |
21-28.12-10. Taxation of kratom products. |
(a) The following taxes are imposed on kratom and kratom products pursuant to the |
provisions of this chapter. |
(1) Sales tax pursuant to the provisions of § 44-18-18; |
(2) A state kratom and kratom product excise tax in accordance with chapter 20.3 in title |
44. |
(b) The assessment, collection, and enforcement of the sales tax pursuant to § 44-18-18 |
and the state kratom and kratom products tax shall be pursuant to the provisions of chapters 18 and |
19 of title 44 and paid to the tax administrator by the manufacturer, importer or distributor at the |
time and in the manner prescribed for the tax in chapter 20.3 in title 44. |
21-28.12-11. Restricted receipt account established. |
All funds received pursuant to §§ 21-28.12-5, 21-28.12-5.3, 21-28.12-6, and 21-28.12-8 |
shall be payable to the department of health. There is to be established a restricted receipt account |
to be known as the “kratom administration account” which shall be a separate account within the |
department of health. Penalties, fines, application fees, and license renewal fees shall be deposited |
into the account. Monies deposited into the account shall be transferred to the department of health |
and shall be expended for the purpose of administering the provision of this chapter. |
21-28.12-12. Rules and regulation. |
The department has the authority to promulgate rules and regulation to fulfill the intent of |
this chapter. |
SECTION 2. Section 21-28-2.03 of the General Laws in Chapter 21-28 entitled "Uniform |
Controlled Substances Act" is hereby amended to read as follows: |
21-28-2.03. Schedule I tests. |
(a) The director of health shall place a substance in schedule I if he or shethe director finds |
that the substance: |
(1) Has high potential for abuse; and |
(2) Has no accepted medical use in treatment in the United States or lacks accepted safety |
for use in treatment under medical supervision. |
(b) Notwithstanding the provisions of subsection (a) of this section, the director shall have |
no authority to place or maintain mitragynine and 7-hydroxymitragynine in schedule I. |
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 |
General Laws in Chapter 11-9 entitled "Children" are hereby amended to read as follows: |
11-9-13. Sale or delivery of tobacco products, including electronic nicotine-delivery |
system products to individuals under twenty-one (21) — Posting notice of law. |
No person shall sell, give, or deliver to any individual under twenty-one (21) years of age, |
any tobacco product in the form of cigarettes, bidi cigarettes, cigars, little cigars, flavored cigars |
known as “blunts,” unflavored “blunts,” flavored and unflavored blunt wraps, cigarette rolling |
papers of any size or composition, cigarillos and tiparillos, pipe tobacco, chewing tobacco, snuff, |
electronic nicotine-delivery system products, kratom or kratom products or any and all products as |
defined in § 44-20-1 or §21-28.12-2. Any person, firm, or corporation that owns, manages, or |
operates a place of business in which tobacco products kratom and/or kratom products are sold, |
including sales through tobacco product vending machines, shall post notice of this law |
conspicuously in the place of business in letters at least three-eighths of an inch (⅜″) high. |
11-9-13.4. Definitions. |
For the purposes of this chapter: |
(1) “Bidi cigarette” means any product that (i) Contains tobacco that is wrapped in |
temburni or tender leaf, or that is wrapped in any other material identified by rules of the department |
of health that is similar in appearance or characteristics to the temburni or tender leaf, and (ii) Does |
not contain a smoke filtering device. |
(2) “Court” means any appropriate district court of the state of Rhode Island. |
(3) “Dealer” is synonymous with the term “retail tobacco products dealer.” |
(4) “Department of behavioral healthcare, developmental disabilities and hospitals” means |
the state of Rhode Island behavioral healthcare, developmental disabilities and hospitals |
department, its employees, agents, or assigns. |
(5) “Department of taxation” means the state of Rhode Island taxation division, its |
employees, agents, or assigns. |
(6) “Electronic nicotine-delivery system” means an electronic device that may be used to |
simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device, |
and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo, |
electronic little cigars, electronic pipe, electronic hookah, e-liquids, e-liquid products, or any related |
device and any cartridge or other component of such device. |
(7) “Electronic nicotine-delivery system product” means any combination of electronic |
nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid |
container. Electronic nicotine-delivery system products shall not include hemp-derived consumable |
cannabidiol (CBD) products as defined in § 2-26-3. |
(8) “E-liquid” and “e-liquid products” means any liquid or substance placed in or sold for |
use in an electronic nicotine-delivery system that generally utilizes a heating element that |
aerosolizes, vaporizes, or combusts a liquid or other substance containing nicotine or nicotine |
derivative: |
(i) Whether the liquid or substance contains nicotine or a nicotine derivative; or |
(ii) Whether sold separately or sold in combination with a personal vaporizer, electronic |
nicotine-delivery system, or an electronic inhaler. |
(9) “Kratom” means any part of the leaf of the plant mitragyna speciosa. |
(10) "Kratom product" means a product that contains any part or extract of the leaf of the |
plant mitragyna speciosa or an extract thereof including concentrated forms of kratom and products |
composed of kratom and other ingredients. |
(11) “License” is synonymous with the term “retail tobacco products dealer license” or |
“electronic nicotine-delivery system license” or any license issued under chapter 20 of title 44 or |
license issued under chapter 28.12 of title 21. |
(10)(12) “License holder” is synonymous with the term “retail tobacco products dealer” or |
“electronic nicotine-delivery system license” or any licenses issued under chapter 20 of title 44 or |
license issued under chapter 28.12 of title 21. |
(11)(13) “Little cigars” means and includes any roll, made wholly or in part of tobacco, |
irrespective of size or shape, and irrespective of whether the tobacco is flavored, adulterated, or |
mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco wrapped |
in leaf tobacco or any substance containing tobacco paper or any other material and where such roll |
has an integrated filter, except where such wrapper is wholly or in greater part made of tobacco and |
where such roll has an integrated filter and weighs over four (4) pounds per thousand (1,000). |
(12)(14) “Person” means any individual person, firm, fiduciary, partnership, trust, |
association, or corporation licensed as a retail dealer to sell tobacco products within the state. |
(13)(15) “Retail tobacco products dealer” means the holder of a license to sell tobacco |
products at retail and shall include holders of all other licenses issued under chapter 20 of title 44. |
(14)(16) “Retail tobacco products dealer license” means a license to sell tobacco products |
and/or electronic nicotine-delivery system products as defined in § 44-20-1(6) at retail as issued by |
the department of taxation. |
(15)(17) “Spitting tobacco” also means snuff, powdered tobacco, chewing tobacco, dipping |
tobacco, pouch tobacco, or smokeless tobacco. |
(16)(18) “Tobacco product(s)” means any product(s) containing, made of, or derived from |
tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether |
inhaled, absorbed, or ingested by any other means, including, but not limited to, a cigarette, a little |
cigar as defined in § 44-20.2-1, and any and all products as defined in § 44-20-1, electronic nicotine- |
delivery system products, or any added substance that may be aerosolized, vaporized, or otherwise |
delivered by such an electronic nicotine-delivery system device, whether or not that substance |
contains nicotine. |
(i) “Tobacco product(s)” does not include drugs, devices, or combination products intended |
to treat tobacco or nicotine dependence that are authorized by the United States Food and Drug |
Administration, as those terms are defined in the Federal Food, Drug and Cosmetic Act. Nor does |
it include such authorized drugs, devices, or combination products with such treatment purpose by |
individuals under age twenty-one (21) if prescribed by a licensed prescriber such as a physician, |
nurse practitioner, or physician assistant. |
(17)(19) “Underage individual” or “underage individuals” means any individual under the |
age of twenty-one (21). |
11-9-13.8. Prohibitions applicable to license holders and their employees and agents. |
A person holding a license issued under chapter 20 of title 44 and/or § 23-1-56 chapter |
28.12 of title 21, or an employee or agent of that person, is prohibited from selling, distributing, or |
delivering a tobacco product, including an electronic nicotine-delivery system product and/or |
kratom or kratom product: |
(1) To any individual who is under twenty-one (21) years of age; or |
(2) In any form other than an original, factory-wrapped package as sealed and certified by |
the manufacturer; or |
(3) As a single-cigarette sale (§ 44-20-31) or as a sale of cigarettes by the individual piece |
known as “loosies.” |
11-9-13.13. Nature and size of penalties. |
(a) Any license holder who violates a requirement of § 11-9-13.6(2) or § 11-9-13.7, display |
of specific signage, shall be subject to a fine in court of not less than thirty-five dollars ($35.00), |
nor more than five hundred dollars ($500), per civil violation. |
(b) The license holder is responsible for all violations of this section that occur at the |
location for which the license is issued. Any license holder who or that violates the prohibition of |
§ 11-9-13.8(1) or § 11-9-13.20 shall be subject to civil fines as follows: |
(1) A fine of two hundred fifty dollars ($250) for the first violation within any thirty-six- |
month (36) period; |
(2) A fine of five hundred dollars ($500) for the second violation within any thirty-six- |
month (36) period; |
(3) A fine of one thousand dollars ($1,000) and a fourteen-day (14) suspension of the |
license to sell tobacco products, or electronic nicotine-delivery systems, or kratom or kratom |
products for the third violation within any thirty-six-month (36) period; |
(4) A fine of one thousand five hundred dollars ($1,500) and a ninety-day (90) suspension |
of the license to sell tobacco products , or electronic nicotine-delivery systems, or kratom or kratom |
products for each violation in excess of three (3). |
(c) Any person who or that violates a prohibition of § 11-9-13.8(3), sale of single cigarettes; |
or § 11-9-13.8(2), regarding factory-wrapped packs as sealed and certified by the manufacturer; |
shall be subject to a penalty of five hundred dollars ($500) for each violation. |
(d) The department of taxation or department of health shall not issue a license to any |
individual, business, firm, fiduciary, partnership, trust, association, or corporation, the license of |
which has been revoked or suspended; to any corporation, an officer of which has had his or |
hertheir license revoked or suspended; or to any individual who is, or has been, an officer of a |
corporation the license of which has been revoked or suspended so long as such revocations or |
suspensions are in effect. |
(e) The court may suspend the imposition of a license suspension of the license secured |
from the Rhode Island tax administrator or department of health for a violation of subsections (b)(3) |
and (b)(4) of this section if the court finds that the license holder has taken measures to prevent the |
sale of tobacco products, including electronic nicotine-delivery system products, or kratom and |
kratom products, as applicable, to an underage individual and the license holder can demonstrate |
to the court that those measures have been taken and that employees have received training. No |
person or individual shall sell tobacco products, including electronic nicotine-delivery system |
products, or kratom and kratom products, at retail without first being trained in the legal sale of |
tobacco products, including electronic nicotine-delivery system products, or kratom and kratom |
products, as applicable. Training shall teach employees what constitutes a tobacco product, |
including an electronic nicotine-delivery system product, or kratom and kratom products, as |
applicable; legal age of sale; acceptable identification; how to refuse a direct sale to an underage |
individual or secondary sale to an individual twenty-one (21) years or older; and all applicable laws |
on tobacco, electronic nicotine-delivery systems or kratom and kratom products, as applicable sales |
and distribution. Dealers All license holders shall maintain records indicating that the provisions |
of this section were reviewed with all employees who conduct, or will conduct, tobacco product |
sales, including electronic nicotine-delivery system product sales , or kratom and kratom products, |
as applicable. Each employee who sells or will sell tobacco products, including electronic nicotine- |
delivery system products, or kratom and kratom products, as applicable shall sign an |
acknowledgement form attesting that the provisions of this section were reviewed with him or |
herthe employee. Each form shall be maintained by the retailer for as long as the employee is so |
employed and for no less than one year after termination of employment. The measures to prevent |
the sale of tobacco products, including electronic nicotine-delivery system products, to underage |
individuals shall be defined by the department of behavioral healthcare, developmental disabilities |
and hospitals in rules and regulations. The measures to prevent the sale of kratom and kratom |
products to underage individuals shall be defined by the department of health in rules and |
regulations. |
SECTION 4. Chapter 11-9 of the General Laws entitled "Children" is hereby amended by |
adding thereto the following sections: |
11-9-13.21. Signs concerning sales of kratom and kratom products to individuals |
under the age of twenty-one (21). |
(a) The department of health shall provide to retail kratom and kratom products dealers |
signs concerning the prohibition of sales to individuals under twenty-one (21) years of age. This |
sign, or an exact duplicate of it made privately, shall be displayed in all locations where kratom or |
kratom products are sold. |
(b) Signs provided by the department of health or an exact duplicate of it made privately, |
shall: |
(1) Contain in red bold lettering a minimum of three-eighths inch (3/8″) high on a white |
background the following wording in both English and Spanish: |
THE SALE OF KRATOM PRODUCTS, |
TO INDIVIDUALS UNDER THE AGE OF 21 |
IS AGAINST RHODE ISLAND LAW |
(R.I. Gen. Laws Chapter 21-28.12) |
PHOTO ID FOR PROOF OF AGE IS |
REQUIRED FOR PURCHASE. |
Each red letter shall feature a visible black border. |
(2) Contain the phone number at the department of health, where violations of chapter 1 of |
title 23 can be reported, in addition to any other information required by the department of health. |
(3) Be displayed prominently for public view wherever kratom or kratom products are sold |
including at each cash register, or any other place from which kratom or kratom products are sold. |
The signs shall be available electronically in both English and Spanish online on the department of |
health’s website. |
11-9-13.22. Prohibition on the distribution of free kratom or kratom products. |
The distribution and/or redemption of free kratom or kratom products or coupons or |
vouchers redeemable for free or discounted kratom or kratom products, to any individual under |
twenty-one (21) years of age shall be prohibited. Further, the distribution and/or redemption of free |
kratom or kratom products or coupons or vouchers redeemable for free or discounted kratom or |
kratom products shall be prohibited, regardless of the age of the individual to whom the products, |
coupons, or vouchers are distributed, within five hundred feet (500′) of any school. The attorney |
general, the department of health, or any local or Statestate of Rhode Island police department, or |
their officers or agents, shall bring an action for any violation of this section. Every separate, free |
or discounted kratom or kratom product or coupon or voucher redeemable for a free or discounted |
kratom or kratom product in violation of this section shall constitute a separate offense subject to a |
fine of five hundred dollars ($500). The penalty shall be assessed against the person or individual |
responsible for initiating the Rhode Island distribution of the free or discounted kratom or kratom |
products or coupons or vouchers redeemable for free or discounted kratom or kratom products |
and/or against the person or individual responsible for the redemption of such coupons or vouchers. |
11-9-13.23. Prohibition on the delivery sale of kratom products. |
Kratom and kratom products shall only be sold at retail at the fixed location for which a |
person holds a kratom retailer license issued by the department of health. Delivery of kratom and |
kratom products to retail purchasers is prohibited. |
11-9-13.24. Compliance inspections for the underage sale of kratom and/or kratom |
products. |
The department of health and the department behavioral healthcare, developmental |
disabilities and hospitals (BHDDH) shall have the authority to: |
(1) Investigate with other state and local officials any violations of this chapter. |
(2) Utilize unannounced statewide compliance checks of kratom product sales. BHDDH |
nor any person who has not yet attained twenty one (21) years of age shall not be liable for any |
criminal or civil statute that prohibits the sale of kratom or kratom products to an underaged person |
by virtue of conducting a compliance check pursuant to this chapter. Nothing herein shall prevent |
a law enforcement agency from assisting BHDDH with a compliance check in which an underaged |
buyer is involved. |
(i) In fulfilling the requirement of unannounced statewide compliance checks, the |
department of health or the department of behavioral healthcare, developmental disabilities and |
hospitals shall maintain and shall provide to the department of revenue division of taxation records |
of the unannounced compliance checks. The records shall be subject to public disclosure after |
completion of the investigation consistent with § 38-2-2(4)(D) and (P). |
(3) In coordination with other state and local departments and agencies, seek enforcement |
of the penalties as specified in this chapter. |
(4) The department of health may promulgate rules and regulations necessary to fulfill the |
intent of §§ 11-9-13.21 through 11-9-13.24. |
SECTION 5. Title 44 of the General Laws entitled "TAXATION" is hereby amended by |
adding thereto the following chapter: |
CHAPTER 20.3 |
KRATOM AND KRATOM PRODUCTS TAX |
44-20.3-1. Definitions. |
Whenever used in this chapter, unless the context requires otherwise: |
(1) “Administrator” means the tax administrator. |
(2) “Dealer” means a “retailer” as defined in this chapter. |
(3) “Distributor” means any person: |
(i) Whether located within or outside of this state, other than a retailer, who sells or |
distributes kratom or kratom products within or into this state; and |
(ii) Engaged in this state in the business of manufacturing kratom products or any person |
engaged in the business of selling kratom or kratom products to retailers, or to other persons, for |
the purpose of resale only; provided that, seventy-five percent (75%) of all kratom or kratom |
products sold by that person in this state are sold to retailers or other persons for resale and selling |
kratom or kratom products directly to at least twenty (20) retailers or other persons for resale; or |
(iii) Maintaining one or more regular places of business in this state for that purpose; |
provided that, seventy-five percent (75%) of the sold kratom or kratom products are purchased |
directly from the manufacturer and selling kratom or kratom products directly to at least twenty |
(20) retailers or other persons for resale. |
(4) “Importer” means any person who imports into the United States, either directly or |
indirectly, kratom or a kratom product for sale or distribution. |
(5) “Kratom” means any part of the leaf of the plant mitragyna speciosa. |
(6) “Kratom product” means a product that contains any part or extract of the leaf of the |
plant mitragyna speciosa or an extract thereof including concentrated forms of kratom and products |
composed of kratom and other ingredients. |
(7) “Licensed” when used with reference to a manufacturer, importer, distributor, or |
retailer, means only those persons who hold a valid and current license issued under § 44-20.3-2 |
for the type of business being engaged in. When the term “licensed” is used before a list of entities, |
such as “licensed manufacturer, importer, wholesale retailer, or retailer,” such term shall be deemed |
to apply to each entity in such list. |
(8) “Manufacturer” means any person who manufactures, fabricates, assembles, processes, |
or labels a kratom product. |
(9) “Person” means any individual, including an employee or agent, firm, fiduciary, |
partnership, corporation, trust, or association, however formed. |
(10) “Place of business” means any location where kratom or kratom products are sold, |
stored, or kept including, but not limited to, any storage room, attic, basement, garage or other |
facility immediately adjacent to the location. It also includes any receptacle, hide, vessel, vehicle, |
airplane, or train. |
(11) “Retailer” means any person whether located within or outside of this state, who sells |
or distributes kratom products to a consumer in this state. |
(12) “Sale” or “sell” means gifts, exchanges, or barter of kratom or kratom products. The |
act of holding, storing, or keeping kratom or kratom products at a place of business for any purpose |
shall be presumed to be holding the kratom or kratom products for sale. Furthermore, any sale of |
kratom or kratom products by the servants, employees, or agents of the licensed retailer during |
business hours at the place of business shall be presumed to be a sale by the licensee. |
44-20.3-2. Tax imposed on kratom and kratom products sold. |
(a) A tax is imposed on all kratom and kratom products sold, or held for sale in the state |
by any person, the payment of the tax to be accomplished according to a mechanism established by |
the tax administrator. The tax imposed by this section shall be at the rate of fifteen percent (15%) |
of the wholesale cost for all kratom and kratom products, whether or not sold at wholesale, and if |
not sold, then at the same rate upon the use by the wholesaler. |
(b) All kratom and kratom products sold at wholesale in Rhode Island must be sold by a |
Rhode Island licensed distributor, manufacturer, or importer, and purchasers of kratom and kratom |
products, licensed by chapter 28.12 of title 21, from an unlicensed distributor, manufacturer, or |
importer are prohibited. Any kratom and kratom products purchased and/or obtained from an |
unlicensed person shall be subject to the terms of this chapter and shall be taxed pursuant to this |
section. |
(c) The proceeds collected are paid into the general fund. |
(d) Any tax imposed under the provisions of this chapter, together with all fees or charges, |
also become, from the time they are due and payable, a debt to the Statestate of Rhode Island from |
the person liable for the payment of the tax, fees, or charges. |
44-20.3-3. Interest and Penalties. |
(a) Failure to pay the kratom and kratom products tax to the state, or any amount of tax |
required to be paid to the state, shall result in interest at the annual rate provided by § 44-1-7 from |
the date on which the tax or amount of the tax required to be collected became due and payable to |
the state until date of payment. |
(b) Failure to file tax returns or to pay tax. In the case of failure: |
(1) To file. The tax return on or before the prescribed date, unless it is shown that the failure |
is due to reasonable cause and not due to willful neglect, an addition to tax shall be made equal to |
ten percent (10%) of the tax required to be reported. For this purpose, the amount of tax required |
to be reported shall be reduced by an amount of the tax paid on or before the date prescribed for |
payment and by the amount of any credit against the tax which may properly be claimed upon the |
return. |
(2) To pay. The amount shown as tax on the return on or before the prescribed date for |
payment of the tax unless it is shown that the failure is due to reasonable cause and not due to |
willful neglect, there shall be added to the amount shown as tax on the return ten percent (10%) of |
the amount of the tax. |
(c) Negligence. If any part of a deficiency is due to negligence or intentional disregard of |
the Rhode Island general laws or rules or regulations under this chapter (but without intent to |
defraud), five percent (5%) of that part of the deficiency shall be added to the tax. |
(d) Fraud. If any part of a deficiency is due to fraud, fifty percent (50%) of that part of the |
deficiency shall be added to the tax. This amount shall be in lieu of any other additional amounts |
imposed by subsections (a) and (b) of this section. |
(e) Additions and penalties treated as tax. The additions to the tax and civil penalties |
provided by this section shall be paid upon notice and demand and shall be assessed, collected, and |
paid in the same manner as taxes. |
(f) Bad checks. If any check or money order in payment of any amount receivable under |
this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as |
a penalty by the person who tendered the check, upon notice and demand by the tax administrator |
or his or her delegate, in the same manner as tax, an amount equal to one percent of the amount of |
the check, except that if the amount of the check is less than five hundred dollars ($500), the penalty |
under this section shall be five dollars ($5.00). This subsection shall not apply if the person tendered |
the check in good faith and with reasonable cause to believe that it would be duly paid. |
(g) Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or |
regulations, shall, in addition to any other penalty provided in this chapter, be liable for a penalty |
of one thousand dollars ($1,000) or not more than five (5) times the tax due but unpaid, whichever |
is greater. |
44-20.3-4. Records — Investigation and inspection of books, premises, and stock. |
(a) Each manufacturer, importer, distributor, and dealer shall maintain copies of invoices |
or equivalent documentation for, or itemized for, each of its facilities for each transaction involving |
the sale, purchase, transfer, consignment, or receipt of kratom and kratom products. The invoices |
or documentation shall show the name and address of the other party and the quantity and type of |
kratom and kratom products involved in the transaction. All records and invoices required under |
this section must be safely preserved for three (3) years in a manner to insure permanency and |
accessibility for inspection by the administrator or his or herthe administrator’s authorized agents. |
(b) Records required under this section shall be preserved on the premises described in the |
relevant license in such a manner as to ensure permanency and accessibility for inspection at |
reasonable hours by authorized personnel of the administrator. With the administrator’s permission, |
persons with multiple places of business may retain centralized records, but shall transmit |
duplicates of the invoices or the equivalent documentation to each place of business within twenty- |
four (24) hours upon the request of the administrator or his or herthe administrator’s designee. |
(c) The administrator or his or her the administrator’s authorized agents may examine the |
books, papers, reports, and records of any manufacturer, importer, distributor, or dealer in this state |
for the purpose of determining whether taxes imposed by this chapter have been fully paid, and |
may investigate the stock of kratom and kratom products in or upon any premises for the purpose |
of determining whether the provisions of this chapter are being obeyed. The administrator in their |
sole discretion may share the records and reports required by such sections with law enforcement |
officials of the federal government, the state, other states, and the department of health. |
44-20.3-5. Inspections. |
(a) The administrator or the administrator’s duly authorized agent shall have authority to |
enter and inspect, without a warrant during normal business hours, and with a warrant during |
nonbusiness hours, the facilities and records of any manufacturer, importer, distributor, or dealer. |
(b) In any case where the administrator or the administrator’s duly authorized agent, or any |
police officer of this state, has knowledge or reasonable grounds to believe that any vehicle is |
transporting kratom products in violation of this chapter, the administrator, such agent, or such |
police officer, is authorized to stop such vehicle and to inspect the same for contraband kratom |
products. |
44-20.3-6. Reports and records of carriers, bailees and warehouse persons. |
The tax administrator may, in his or herthe tax administrator’s discretion, require reports |
from any common or contract carrier who transports kratom or kratom products to any point or |
points within the state, and from any bonded warehouseperson or bailee who has in his or hertheir |
possession any kratom or kratom products, these reports to contain any information concerning |
shipments of kratom or kratom products that the tax administrator determines. All common and |
contract carriers, bailees, and warehousepersons shall permit the examination by the tax |
administrator or his or herthe tax administrator’s authorized agent of any records relating to the |
shipment or receipt of kratom or kratom products. |
44-20.3-7. Violations as to reports and records. |
Any person who fails to submit the reports required in this chapter or by the tax |
administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who |
refuses to permit the tax administrator or the tax administrator’s authorized agent to examine any |
books, records, papers, or stocks of kratom and kratom products as provided in this chapter, or who |
refuses to supply the tax administrator with any other information which the tax administrator |
requests for the reasonable and proper enforcement of the provisions of this chapter, shall be guilty |
of a misdemeanor punishable by imprisonment up to one year, or a fine of not more than five |
thousand dollars ($5,000), or both, for the first offense, and for each subsequent offense, shall be |
guilty of a felony and fined not more than ten thousand dollars ($10,000), or be imprisoned not |
more than five (5) years, or both. |
44-20.3-8. Declarations under penalty of perjury. |
The oath or affirmation required by the provisions of this chapter as to any report or written |
statement is not required if the report or statement to be sworn to contains or is verified by a written |
declaration that it is made under the penalties of perjury; and if any report or statement is willfully |
false, any person who signs and issues any statement containing or verified by this declaration is |
guilty of perjury. |
44-20.3-9. Importation of kratom or kratom products with intent to evade tax. |
Any person, firm, corporation, club, or association of persons who or that orders any |
kratom products for another; or pools orders for kratom or kratom products from any persons; or |
conspires with others for pooling orders; or receives in this state any shipment of contraband kratom |
products on which the tax imposed by this chapter has not been paid, for the purpose and intention |
of violating the provisions of this chapter or to avoid payment of the tax imposed in this chapter, is |
guilty of a felony and shall be fined one hundred thousand dollars ($100,000) or five (5) times the |
retail value of the kratom products involved, whichever is greater, or imprisoned not more than |
fifteen (15) years, or both. |
44-20.3-10. Witnesses before tax administrator. |
(a) The tax administrator and any agent of the tax administrator authorized to conduct any |
inquiry, investigation, or hearing under this chapter has power to administer oaths and take |
testimony under oath relative to the matter of inquiry or investigation. At any hearing ordered by |
the tax administrator, the tax administrator or his or herthe tax administrator’s agent may |
subpoena witnesses and require the production of books, papers, and documents pertinent to the |
inquiry. No witness under subpoena authorized to be issued by the provisions of this chapter is |
excused from testifying or from producing books or papers on the ground that the testimony or the |
production of the books or other documentary evidence would tend to incriminate the witness, but |
the testimony or the evidence of the books or papers so produced shall not be used in any criminal |
proceedings against the witness. |
(b) If any person disobeys this process or, having appeared in obedience to it, refuses to |
answer any pertinent question put to the person by the tax administrator or his or herthe tax |
administrator’s authorized agent or to produce any books and papers pursuant to the process, the |
tax administrator or the agent may apply to the sixth division of the district court, stating the |
disobedience to process or refusal to answer, and the court shall cite the person to appear before |
the court to answer that question or to produce those books and papers, and, upon his or herthe |
person’s refusal so to do, shall commit the person to the adult correctional institutions, for a period |
not to exceed sixty (60) days. Notwithstanding the serving of the term of this commitment by any |
person, the tax administrator may proceed in all respects with this inquiry and examination as if the |
witness had not previously been called upon to testify. |
(c) Officers who serve subpoenas issued by the tax administrator or under the tax |
administrator's authority and witnesses subpoenaed by the tax administrator under this section shall |
receive fees and compensation at the same rates as officers and witnesses in the district courts of |
the state, to be paid from the proper appropriation for the administration of this chapter. |
(d) A party aggrieved by an order of the court may appeal the order to the supreme court |
in accordance with the procedures contained in the rules of appellate procedure of the supreme |
court. |
44-20.3-11. Hearings by tax administrator. |
Any person aggrieved by any action under this chapter of the tax administrator or the tax |
administrator’s authorized agent for which a hearing is not elsewhere provided may apply to the |
tax administrator, in writing, within thirty (30) days of the action for a hearing, stating the reasons |
why the hearing should be granted and the manner of relief sought. The tax administrator shall |
notify the applicant of the time and place fixed for the hearing. After the hearing, the tax |
administrator may make the order in the premises as may appear to the tax administrator just and |
lawful and shall furnish a copy of the order to the applicant. The tax administrator may, by notice |
in writing, at any time, order a hearing on the tax administrator’s own initiative and require the |
taxpayer or any other individual whom the tax administrator believes to be in possession of |
information concerning any manufacture, importation, or sale of kratom or kratom products to |
appear before the tax administrator or the tax administrator’s authorized agent with any specific |
books of account, papers, or other documents, for examination relative to the hearing. |
44-20.3-12. Appeal to district court. |
Any person aggrieved by any decision of the tax administrator under the provisions of this |
chapter may appeal the decision within thirty (30) days thereafter to the sixth division of the district |
court. The appellant shall at the time of taking an appeal file with the court a bond of recognizance |
to the state, with surety to prosecute the appeal to effect and to comply with the orders and decrees |
of the court in the premises. These appeals are preferred cases, to be heard, unless cause appears to |
the contrary, in priority to other cases. The court may grant relief as may be equitable. If the court |
determines that the appeal was taken without probable cause, the court may tax double or triple |
costs, as the case demands; and, upon all those appeals, which may be denied, costs may be taxed |
against the appellant at the discretion of the court. In no case shall costs be taxed against the state, |
its officers, or agents. A party aggrieved by a final order of the court may seek review of the order |
in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35- |
16. |
44-20.3-13. Claim for refund. |
Whenever the tax administrator determines that any person is entitled to a refund of any |
monies paid by a person under the provisions of this chapter, or whenever a court of competent |
jurisdiction orders a refund of any monies paid, the general treasurer shall, upon certification by |
the tax administrator and with the approval of the director of revenue, pay the refund from any |
monies in the treasury not appropriated without any further act or resolution making appropriation |
for the refund. No refund is allowed unless a claim is filed with the tax administrator within three |
(3) years from the fifteenth day after the close of the month for which the overpayment was made. |
44-20.3-14. Administration — Forms — Rules and regulations. |
The tax administrator is authorized to promulgate rules and regulations to carry out the |
provisions, policies, and purposes of this chapter. The provisions of this chapter shall be liberally |
construed to foster the enforcement of and compliance with all provisions herein related to taxation. |
Notwithstanding any other provision of law, the tax administrator may make available to an |
authorized agent of the department of health and the attorney general any information that the |
administrator may consider proper contained in tax reports or returns or any audit or the report of |
any investigation made with respect to them, filed pursuant to the tax laws of this state, to whom |
disclosure is necessary for the purpose of ensuring compliance with state law and regulations. |
44-20.3-15. Severability. |
The provisions of this chapter are declared to be severable; and in case any part, section, |
or provision of this chapter is held void by any court of competent jurisdiction, the remaining parts, |
sections, and provisions of the chapter are not impaired or affected. |
SECTION 6. This act shall take effect on April 1, 2026. |
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LC002405/SUB A |
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