2025 -- H 5565 | |
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LC001746 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2025 | |
____________ | |
A N A C T | |
RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND KRATOM ACT | |
| |
Introduced By: Representatives Kennedy, Edwards, and Diaz | |
Date Introduced: February 26, 2025 | |
Referred To: House Corporations | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby |
2 | amended by adding thereto the following chapter: |
3 | CHAPTER 28.12 |
4 | THE RHODE ISLAND KRATOM ACT |
5 | 21-28.12-1. Short title. |
6 | This chapter shall be known and may be cited as the "Rhode Island Kratom Act." |
7 | 21-28.12-2. Definitions. |
8 | As used in this chapter: |
9 | (1) “Contraband kratom products” means any kratom product that is prohibited by § 21- |
10 | 28.12-3. |
11 | (2) “Department” means the department of health; |
12 | (3) “Distributor” means any person: |
13 | (i) Whether located within or outside of this state, other than a retailer, who sells or |
14 | distributes kratom or kratom products within or into this state; and |
15 | (ii) Engaged in this state in the business of manufacturing kratom products or any person |
16 | engaged in the business of selling kratom or kratom products to dealers, or to other persons, for the |
17 | purpose of resale only; provided that, seventy-five percent (75%) of all kratom and kratom products |
18 | sold by that person in this state are sold to retailers or other persons for resale and selling kratom |
19 | and kratom products directly to at least twenty (20) dealers or other persons for resale; or |
| |
1 | (iii) Maintaining one or more regular places of business in this state for that purpose; |
2 | provided that, seventy-five percent (75%) of the sold kratom and kratom products are purchased |
3 | directly from the manufacturer and selling kratom and kratom products directly to at least twenty |
4 | (20) retailers or other persons for resale. |
5 | (4) “Kratom” means any part of the leaf of the plant mitragyna speciosa. |
6 | (5) "Kratom product" means a product containing any part or extract of the leaf of the plant |
7 | mitragyna speciosa or an extract thereof including concentrated forms of kratom and products |
8 | composed of kratom and other ingredients. |
9 | (6) “Importer” means any person who imports into the United States, either directly or |
10 | indirectly, kratom or a kratom product for sale or distribution. |
11 | (7) “Kratom extract” means a substance or compound obtained by extraction of the |
12 | mitragyna speciosa leaf, intended for ingestion, containing only naturally occurring constituents of |
13 | the kratom plant, Generally Recognized As Safe (GRAS) substances, approved constituent articles, |
14 | and does not contain any controlled substances. |
15 | (8) "Synthesized material" means: |
16 | (i) An alkaloid or alkaloid derivative that has been created by chemical synthesis or |
17 | biosynthetic means (including, but not limited to, fermentation, recombinant techniques, yeast |
18 | derived, enzymatic techniques), rather than traditional food preparation techniques, such as heating |
19 | or extracting that synthetically alters the composition of any kratom alkaloid or constituent; or |
20 | (ii) An alkaloid or alkaloid derivative contained in kratom that has been exposed to |
21 | chemicals or processes that would confer a structural change in the alkaloids, resulting in material |
22 | that has been chemically altered. |
23 | (9) “Licensed” when used with reference to a manufacturer, importer, distributor, or |
24 | retailer, means only those persons who hold a valid and current license issued under § 21-28.12-6 |
25 | for the type of business being engaged in. When the term “licensed” is used before a list of entities, |
26 | such as “licensed manufacturer, importer, wholesale retailer, or retailer” such term shall be deemed |
27 | to apply to each entity in such list. |
28 | (10) “Manufacturer” means any person who manufactures, fabricates, assembles, |
29 | processes, or labels a kratom product. |
30 | (11) “Person” means any individual, including an employee or agent, firm, fiduciary, |
31 | partnership, corporation, trust, or association, however formed. |
32 | (12) “Place of business” means any location where kratom or kratom products are sold, |
33 | stored, or kept including, but not limited to: any storage room, attic, basement, garage or other |
34 | facility immediately adjacent to the location. It also includes any receptacle, hide, vessel, vehicle, |
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1 | airplane, or train. |
2 | (13) "Retailer" means any person, whether located within or outside of this state, who sells |
3 | or distributes kratom or kratom products to a consumer in this state. |
4 | (14) “Sale” or “sell” means gifts, exchanges, and/or barter of kratom products. The act of |
5 | holding, storing, or keeping kratom products at a place of business or with a person for any purpose |
6 | shall be presumed to be holding the kratom products for sale. Furthermore, any sale of kratom |
7 | products by the servants, employees, or agents of the licensed retailer at the place of business shall |
8 | be presumed to be a sale by the licensee. |
9 | 21-28.12-3. Kratom and kratom product limitations. |
10 | (a) A person shall not prepare, distribute, sell, possess, or advertise any of the following: |
11 | (1) A kratom product that is a conventional food or beverage or labeled as a conventional |
12 | food or beverage product. |
13 | (2) A kratom product that contains any substance that is poisonous, harmful, or injurious |
14 | to health. |
15 | (3) A kratom product that contains a substance other than a non-psychoactive substance |
16 | necessary for the preparation, processing, or manufacturing of said product. |
17 | (4) A kratom extract that contains levels of residual solvents higher than is allowed in the |
18 | U.S. Pharmacopeia 467. |
19 | (5) A kratom product containing any synthetic alkaloids including synthetic mitragynine, |
20 | synthetic 7-hydroxymitragynine, or any other synthetically derived compounds of the kratom plant. |
21 | (6) A kratom product that contains a heavy metal that exceeds any of the following limits |
22 | in parts per million: |
23 | (i) Arsenic <2 |
24 | (ii) Cadmium <0.82 |
25 | (iii) Lead <1.2 |
26 | (iv) Mercury <0.4 |
27 | (7) A kratom product in any form that is combustible or intended to be used for |
28 | vaporization, aerosolization, or injection. |
29 | (8) A kratom product in any form that mimics a candy product or is manufactured, |
30 | packaged, or advertised in a way that can be reasonably considered to appeal to individuals under |
31 | twenty-one (21) years. |
32 | (9) A kratom product not contained in child-resistant packaging that meets the standards |
33 | set forth in 16 C.F.R 1700.15(b) when tested in accordance with 16 C.F.R 1700.20. All persons |
34 | holding valid licenses pursuant to §21-28.12 shall ensure that kratom and/or any kratom product |
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1 | sold by the licensee and intended for human consumption shall meet requirements related to child- |
2 | resistant packaging. |
3 | (10) A kratom product that contains a concentration ratio that is: |
4 | (i) Greater than 150 mg of mitragynine per serving; |
5 | (ii) Greater than 0.5 mg 7-hydroxymitragynine per gram; or |
6 | (iii) Greater than 1 mg 7-hydroxymitragynine per serving. |
7 | (11) A kratom product that contains more than one percent of 7-hydroxymitragynine by |
8 | percentage of total kratom alkaloids. |
9 | (12) Kratom or a kratom product that does not provide clearly visible labeling including, |
10 | but not limited to: |
11 | (i) A recommendation to consult a health care professional prior to use; |
12 | (ii) A statement that kratom may be habit forming; |
13 | (iii) A statement that kratom is not safe for use while pregnant or breastfeeding; |
14 | (iv) A warning that the product may result in dangerous medication interactions. |
15 | (v) The following statement: “These statements have not been evaluated by the United |
16 | States Food and Drug Administration. This product is not intended to diagnose, treat, cure, or |
17 | prevent any disease.”; |
18 | (vi) The net quantity of contents declared in numerical count (e.g., thirty (30) capsules), or |
19 | in volume or weight in United States Customary System terms; |
20 | (A) The amount of mitragynine and/or 7-hydroxymitragynine contained in a serving in said |
21 | kratom product; |
22 | (B) A recommended amount of the kratom product per serving; and |
23 | (C) A recommended number of servings that can be safely consumed in a twenty-four (24) |
24 | hour period. |
25 | (vii) The total amount of mitragynine and 7-hydroxymitragynine contained in the kratom |
26 | product; |
27 | (viii) A statement that this product should be stored safely and out of the reach of children; |
28 | (ix) The name, physical non-post office box address of the manufacturer. |
29 | (b) Kratom and kratom products sold at retail must be sold by a licensed retailer and must |
30 | be obtained from a licensed manufacturer, importer, or distributor. |
31 | (c) All kratom and kratom products that do not comply with subsection (a) of this section |
32 | shall be deemed contraband. |
33 | 21-28.12-4. Age limits and sales restrictions. |
34 | (a) No person or entity shall distribute, sell, transfer, or advertise a kratom product to a |
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1 | person under twenty-one (21) years. |
2 | (b) All kratom products shall be kept behind the sales counter only accessible to store |
3 | employees. |
4 | (c) The sale or distribution of kratom or kratom products to individuals under the age of |
5 | twenty-one (21) is prohibited. |
6 | (d) Valid photo identification for proof of age is required for all kratom and kratom product |
7 | purchases. Acceptable forms of government-issued identification shall include a recent photo of |
8 | the individual to whom the identification has been issued showing the date of birth of the individual |
9 | to verify the individual is age twenty-one (21) years or over. Acceptable forms of government- |
10 | issued identification are: a valid motor vehicle operator’s license issued by the State of Rhode |
11 | Island or another State; a valid driver privilege card issued by the State of Rhode Island or another |
12 | state; a valid Rhode Island identification card issued by the administrator of the division of motor |
13 | vehicles; a valid armed services identification card; or a valid passport. |
14 | 21-28.12-5. Violations. |
15 | (a) A person or entity that violates §§ 21-28.12-3 or 21-28.12-4 may be subject to the |
16 | suspension or revocation of its license pursuant to § 21-28.12-10 by the department and shall be |
17 | subject to a fine by the department of not more than one thousand dollars ($1,000) for the first |
18 | offense and not more than two thousand dollars ($2,000) for a second offense. Upon a third |
19 | violation, the license of the retailer shall be revoked by the department, and the retailer shall be |
20 | prohibited from selling kratom or kratom products. |
21 | (b) The department may require an independent third-party test of a kratom product by a |
22 | laboratory of the department’s choice to determine if the product is prohibited by § 21-28.12-3, and |
23 | the retailer shall be required to submit payment for the test and administrative costs associated with |
24 | said testing. If the retailer does not tender payment to the department within thirty (30) days of |
25 | receipt of the invoice, the retailer may be subject to the suspension or revocation of its license |
26 | pursuant to this section. |
27 | (c) The department of health, the department of revenue division of taxation, and the |
28 | department of behavioral health, developmental disabilities, and hospitals are authorized to share |
29 | information to effectuate the purposes of this chapter and chapter 20.3 of title 44. |
30 | (d) A person or entity who violates the provisions of this chapter by adulterating a kratom |
31 | product with any substance listed in § 21-28-2.08 shall be subject to penalties set forth in this |
32 | chapter as well as in § 21-28-4.01. |
33 | (e) All funds received by the department pursuant to this section shall be deposited into a |
34 | restricted receipt account established in § 21-28.12-11. |
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1 | 21-28.12-5.1. Confiscation of contraband kratom products and other property. |
2 | (a) All kratom products that are held for sale or distribution within the borders of this state |
3 | in violation of the requirements of this chapter are declared to be contraband goods and may be |
4 | seized by the department or the department’s agents, or employees, or by any sheriff, or the sheriff’s |
5 | deputy, or any police officer when directed by the department to do so, without a warrant. All |
6 | contraband goods seized by the state under this chapter shall be destroyed. |
7 | (b) All fixtures, equipment, and all other materials and personal property on the premises |
8 | of any distributor or retailer who or that, with the intent to defraud the state, fails to keep or make |
9 | any record, return, report, or inventory; keeps or makes any false or fraudulent record, return, |
10 | report, or inventory required by this chapter; refuses to pay any tax imposed by this chapter; or |
11 | attempts in any manner to evade or defeat the requirements of this chapter shall be forfeited to the |
12 | state. |
13 | 21-28.12-5.2. Sale of contraband kratom products prohibited. |
14 | No distributor shall sell, and no other person shall sell, offer for sale, display for sale, or |
15 | possess with intent to sell any contraband kratom products without written record of the payment |
16 | of tax imposed by this chapter. |
17 | 21-28.12-5.3. Penalties for violations as to contraband kratom products. |
18 | (a) Any person who violates any provision of § 21-28.12-5.2 shall be fined by the |
19 | department as follows: |
20 | (1) For a first offense in a twenty-four-month (24) period, fined not more than ten (10) |
21 | times the retail value of the contraband kratom products; |
22 | (2) For a second or subsequent offense in a twenty-four-month (24) period, fined not more |
23 | than twenty-five (25) times the retail value of the contraband kratom products. |
24 | (b) When determining the amount of a fine sought or imposed under this section, evidence |
25 | of mitigating factors, including history, severity, and intent shall be considered. |
26 | (c) All funds received by the department pursuant to this section shall be deposited into a |
27 | restricted receipt account established in § 21-28.12-11. |
28 | 21-28.12-5.4. Hearing on kratom products confiscated, fines, or license suspension or |
29 | revocation. |
30 | (a) When any kratom products are confiscated under the provisions of § 21-28.12-5.1, upon |
31 | the request of a person claiming an interest in the kratom the department shall conduct a hearing in |
32 | accordance with the procedures as set forth in chapter 35 of title 42 ("administrative procedures"). |
33 | (b) When a fine, or license suspension or revocation occurs under the provisions of this |
34 | chapter, upon the request of the aggrieved party, the department shall conduct a hearing in |
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1 | accordance with the procedures as set forth in chapter 35 of title 42 ("administrative procedures"). |
2 | (c) When a person aggrieved by any action under this chapter, upon the request of a person |
3 | claiming an interest in the kratom the department shall conduct a hearing in accordance with the |
4 | procedures as set forth in chapter 35 of title 42 ("administrative procedures"). |
5 | 21-28.12-5.6. Appeal to district court. |
6 | Any person aggrieved by any decision of the department under the provisions of this |
7 | chapter may appeal the decision within thirty (30) days thereafter to the sixth division of the district |
8 | court. |
9 | 21-28.12-5.7. Disposition of revenue — Payment of refunds. |
10 | All monies received by the department under the provisions of this chapter, unless |
11 | otherwise designated, are paid to the general fund. Whenever the department determines that any |
12 | person is entitled to a refund of any monies paid by that person under the provisions of this chapter, |
13 | or whenever a court of competent jurisdiction orders a refund of any paid monies, the general |
14 | treasurer shall, upon certification by the department and with the approval of the controller, pay the |
15 | refunds from any monies in the treasury not appropriated without any further act or resolution |
16 | making appropriation for any monies. |
17 | 21-28.12-6. Manufacturer, importer, distributor, and retailer licenses required – |
18 | Licenses required. |
19 | (a) Each person engaging in the business of selling kratom or kratom products in this state, |
20 | including any manufacturer, importer, distributor, or retailer, shall secure a license from the |
21 | department before engaging or continuing to engage in that business in accordance with this |
22 | section. A separate application and license are required for each place of business operated by a |
23 | distributor, manufacturer, importer, distributor, or retailer. If the applicant for a license does not |
24 | have a place of business in this state, the license shall be issued for such applicant’s principal place |
25 | of business, wherever located. A licensee shall notify the department within thirty (30) days that it |
26 | changes its principal place of business. A separate license is required for each class of business if |
27 | the applicant is engaged in more than one of the activities required to be licensed by this section. |
28 | Each license shall expire after one year at which time said license shall be renewed in accordance |
29 | with subsection (c) of this section. |
30 | (b) Effective April 1, 2026 until December 31, 2027, each initial licensing application for |
31 | a manufacturer’s, importer’s, or distributor’s license shall be accompanied by a non-refundable |
32 | initial application fee of two thousand dollars ($2,000). Effective April 1, 2026 until December 31, |
33 | 2027, each initial licensing application for a retailer’s license shall be accompanied by a non- |
34 | refundable initial application fee of one thousand dollars ($1,000). |
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1 | (c) Each license, including any manufacturer, importer, distributor, or retailer license, shall |
2 | be renewed annually. Effective April 1, 2026 until December 31, 2027, each license renewal of a |
3 | manufacturer’s, importer’s, or distributor’s license shall be accompanied by a non-refundable |
4 | renewal fee of two thousand dollars ($2,000). Effective April 1, 2026 until December 31, 2027, |
5 | each license renewal of a retailer’s license shall be accompanied by a non-refundable renewal fee |
6 | of one thousand dollars ($1,000). |
7 | (d) Effective January 1, 2028, the director of the department of health is authorized to |
8 | establish by rule and regulation reasonable initial application fees and license renewal fees for |
9 | kratom manufacturer’s, importer’s, distributor’s, and retail licenses. |
10 | (e) Each issued license shall be prominently displayed on the premises, if any, covered by |
11 | the license. |
12 | (f) A manufacturer or importer may sell or distribute kratom and/or kratom products to a |
13 | person located or doing business within the state only if such person is a licensed distributor. An |
14 | importer may obtain kratom and/or kratom products only from a licensed manufacturer. A |
15 | distributor may sell or distribute kratom and/or kratom products to a person located or doing |
16 | business within this state only if such person is a licensed distributor or retailer. A distributor may |
17 | obtain kratom and/or kratom products only from a licensed manufacturer, importer, or distributor. |
18 | A retailer may obtain kratom and/or kratom products only from a licensed distributor. |
19 | (g)(1) No license under this chapter may be granted, maintained, or renewed if the |
20 | applicant, or any combination of persons owning directly or indirectly any interests in the applicant: |
21 | (i) Is delinquent in any tax filings for one month or more; or |
22 | (ii) Had a license under this chapter revoked within the past two (2) years. |
23 | (2) No person shall apply for a new license, or renewal of a license and no license shall be |
24 | issued or renewed for any person, unless all outstanding fines, fees, or other charges relating to any |
25 | license held by that person have been paid. |
26 | (3) No license shall be issued relating to a business at any specific location until all prior |
27 | licenses relating to that location have been officially terminated and all fines, fees, or charges |
28 | relating to the prior licenses have been paid or otherwise resolved or if the department has found |
29 | that the person applying for the new license is not acting as an agent for the prior licensee who is |
30 | subject to any such related fines, fees, or charges that are still due. Evidence of such agency status |
31 | includes, but is not limited to, a direct familial relationship and/or employment, contractual, or |
32 | other formal financial or business relationship with the prior licensee. |
33 | (4) No person shall apply for a new license pertaining to a specific location to evade |
34 | payment of any fines, fees, or other charges relating to a prior license for that location. |
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1 | (5) No new license shall be issued for a business at a specific location for which a license |
2 | has already issued unless there is a bona fide, good-faith change in ownership of the business at |
3 | that location. |
4 | (6) No license or permit shall be issued, renewed, or maintained for any person, including |
5 | the owners of the business being licensed, who has been convicted of violating any criminal law |
6 | relating to tobacco products, electronic nicotine-delivery system products, kratom and/or kratom |
7 | products, the payment of taxes, fraud, and/or has been ordered to pay civil fines of more than |
8 | twenty-five thousand dollars ($25,000) for violations of any civil law relating to tobacco products, |
9 | electronic nicotine-delivery system products, kratom and/or kratom products, the payment of taxes, |
10 | or fraud. |
11 | (h) All funds received by the department pursuant to this section shall be deposited into a |
12 | restricted receipt account established in § 21-28.12-11. |
13 | 21-28.12-7. Penalties for unlicensed business. |
14 | Any manufacturer, importer, distributor, or retailer who sells, offers for sale, or possesses |
15 | with intent to sell, kratom or kratom products, without a license as provided in § 21-28.12-6, shall |
16 | be fined in accordance with the provisions of, and the penalties contained in, § 21-28.12-8. |
17 | 21-28.12-8. Penalty for operating without a manufacturer, importer, distributor, or |
18 | dealer license. |
19 | Any individual or business who violates this chapter by selling or conveying kratom or a |
20 | kratom product without a retail license or a license under this chapter shall be cited for that violation |
21 | and shall be fined five thousand ($5,000) dollars by the department. All funds received by the |
22 | department pursuant to this section shall be deposited into a restricted receipt account established |
23 | in § 21-28.12-11. |
24 | 21-28.12-9. Suspension or revocation of license. |
25 | The department may suspend or revoke any license under this chapter for failure of the |
26 | licensee to comply with any provision of this chapter or with any provision of any other law or |
27 | ordinance relative to the sale or purchase of kratom or kratom products. The department may also |
28 | suspend or revoke any license for failure of the licensee to comply with any provision of this chapter |
29 | and chapter 13 of title 6 ("unfair sales practices"), and, for the purpose of determining whether the |
30 | licensee is complying with any provision of chapter 13 of title 6 ("unfair sales practices"), the |
31 | department and his or her authorized agents are empowered to examine the books, papers, and |
32 | records of any licensee. The department shall revoke the license of any person who would be |
33 | ineligible to obtain a new or renew a license by reason of any of the conditions for licensure |
34 | provided in this chapter. Any person aggrieved by the suspension or revocation may apply to the |
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1 | department for a hearing as provided in this title. |
2 | 21-28.12-10. Taxation of kratom products. |
3 | (a) The following taxes are imposed on kratom and kratom products pursuant to the |
4 | provisions of this chapter. |
5 | (1) Sales tax pursuant to the provisions of § 44-18-18; |
6 | (2) A state kratom and kratom product excise tax in accordance with chapter 20.3 in title |
7 | 44. |
8 | (b) The assessment, collection, and enforcement of the sales tax pursuant to § 44-18-18 |
9 | and the state kratom and kratom products tax shall be pursuant to the provisions of chapters 18 and |
10 | 19 of title 44 and paid to the tax administrator by the manufacturer, importer or distributor at the |
11 | time and in the manner prescribed for the tax in chapter 20.3 in title 44. |
12 | 21-28.12-11. Restricted receipt account established. |
13 | All funds received pursuant to §§ 21-28.12-5, 21-28.12-5.3, 21-28.12-6, and 21-28.12-8 |
14 | shall be payable to the department of health. There is to be established a restricted receipt account |
15 | to be known as the “kratom administration account” which shall be a separate account within the |
16 | department of health. Penalties, fines, application fees, and license renewal fees shall be deposited |
17 | into the account. Monies deposited into the account shall be transferred to the department of health |
18 | and shall be expended for the purpose of administering the provision of this chapter. |
19 | 21-28.12-12. Rules and regulation. |
20 | The department has the authority to promulgate rules and regulation to fulfill the intent of |
21 | this chapter. |
22 | SECTION 2. Section 21-28-2.03 of the General Laws in Chapter 21-28 entitled "Uniform |
23 | Controlled Substances Act" is hereby amended to read as follows: |
24 | 21-28-2.03. Schedule I tests. |
25 | (a) The director of health shall place a substance in schedule I if he or she finds that the |
26 | substance: |
27 | (1) Has high potential for abuse; and |
28 | (2) Has no accepted medical use in treatment in the United States or lacks accepted safety |
29 | for use in treatment under medical supervision. |
30 | (b) Notwithstanding the provisions of subsection (a) of this section, the director shall have |
31 | no authority to place or maintain mitragynine and 7-hydroxymitragynine in schedule I. |
32 | 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 |
33 | General Laws in Chapter 11-9 entitled "Children" are hereby amended to read as follows: |
34 | 11-9-13. Sale or delivery of tobacco products, including electronic nicotine-delivery |
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1 | system products to individuals under twenty-one (21) — Posting notice of law. |
2 | No person shall sell, give, or deliver to any individual under twenty-one (21) years of age, |
3 | any tobacco product in the form of cigarettes, bidi cigarettes, cigars, little cigars, flavored cigars |
4 | known as “blunts,” unflavored “blunts,” flavored and unflavored blunt wraps, cigarette rolling |
5 | papers of any size or composition, cigarillos and tiparillos, pipe tobacco, chewing tobacco, snuff, |
6 | electronic nicotine-delivery system products, kratom or kratom products or any and all products as |
7 | defined in § 44-20-1 or §21-28.12-2. Any person, firm, or corporation that owns, manages, or |
8 | operates a place of business in which tobacco products kratom and/or kratom products are sold, |
9 | including sales through tobacco product vending machines, shall post notice of this law |
10 | conspicuously in the place of business in letters at least three-eighths of an inch (⅜″) high. |
11 | 11-9-13.4. Definitions. |
12 | For the purposes of this chapter: |
13 | (1) “Bidi cigarette” means any product that (i) Contains tobacco that is wrapped in |
14 | temburni or tender leaf, or that is wrapped in any other material identified by rules of the department |
15 | of health that is similar in appearance or characteristics to the temburni or tender leaf, and (ii) Does |
16 | not contain a smoke filtering device. |
17 | (2) “Court” means any appropriate district court of the state of Rhode Island. |
18 | (3) “Dealer” is synonymous with the term “retail tobacco products dealer.” |
19 | (4) “Department of behavioral healthcare, developmental disabilities and hospitals” means |
20 | the state of Rhode Island behavioral healthcare, developmental disabilities and hospitals |
21 | department, its employees, agents, or assigns. |
22 | (5) “Department of taxation” means the state of Rhode Island taxation division, its |
23 | employees, agents, or assigns. |
24 | (6) “Electronic nicotine-delivery system” means an electronic device that may be used to |
25 | simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device, |
26 | and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo, |
27 | electronic little cigars, electronic pipe, electronic hookah, e-liquids, e-liquid products, or any related |
28 | device and any cartridge or other component of such device. |
29 | (7) “Electronic nicotine-delivery system product” means any combination of electronic |
30 | nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid |
31 | container. Electronic nicotine-delivery system products shall not include hemp-derived consumable |
32 | cannabidiol (CBD) products as defined in § 2-26-3. |
33 | (8) “E-liquid” and “e-liquid products” means any liquid or substance placed in or sold for |
34 | use in an electronic nicotine-delivery system that generally utilizes a heating element that |
| LC001746 - Page 11 of 25 |
1 | aerosolizes, vaporizes, or combusts a liquid or other substance containing nicotine or nicotine |
2 | derivative: |
3 | (i) Whether the liquid or substance contains nicotine or a nicotine derivative; or |
4 | (ii) Whether sold separately or sold in combination with a personal vaporizer, electronic |
5 | nicotine-delivery system, or an electronic inhaler. |
6 | (9) “Kratom” means any part of the leaf of the plant mitragyna speciosa. |
7 | (10) "Kratom product" means a product that contains any part or extract of the leaf of the |
8 | plant mitragyna speciosa or an extract thereof including concentrated forms of kratom and products |
9 | composed of kratom and other ingredients. |
10 | (11) “License” is synonymous with the term “retail tobacco products dealer license” or |
11 | “electronic nicotine-delivery system license” or any license issued under chapter 20 of title 44 or |
12 | license issued under chapter 28.12 of title 21. |
13 | (10)(12) “License holder” is synonymous with the term “retail tobacco products dealer” or |
14 | “electronic nicotine-delivery system license” or any licenses issued under chapter 20 of title 44 or |
15 | license issued under chapter 28.12 of title 21. |
16 | (11)(13) “Little cigars” means and includes any roll, made wholly or in part of tobacco, |
17 | irrespective of size or shape, and irrespective of whether the tobacco is flavored, adulterated, or |
18 | mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco wrapped |
19 | in leaf tobacco or any substance containing tobacco paper or any other material and where such roll |
20 | has an integrated filter, except where such wrapper is wholly or in greater part made of tobacco and |
21 | where such roll has an integrated filter and weighs over four (4) pounds per thousand (1,000). |
22 | (12)(14) “Person” means any individual person, firm, fiduciary, partnership, trust, |
23 | association, or corporation licensed as a retail dealer to sell tobacco products within the state. |
24 | (13)(15) “Retail tobacco products dealer” means the holder of a license to sell tobacco |
25 | products at retail and shall include holders of all other licenses issued under chapter 20 of title 44. |
26 | (14)(16) “Retail tobacco products dealer license” means a license to sell tobacco products |
27 | and/or electronic nicotine-delivery system products as defined in § 44-20-1(6) at retail as issued by |
28 | the department of taxation. |
29 | (15)(17) “Spitting tobacco” also means snuff, powdered tobacco, chewing tobacco, dipping |
30 | tobacco, pouch tobacco, or smokeless tobacco. |
31 | (16)(18) “Tobacco product(s)” means any product(s) containing, made of, or derived from |
32 | tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether |
33 | inhaled, absorbed, or ingested by any other means, including, but not limited to, a cigarette, a little |
34 | cigar as defined in § 44-20.2-1, and any and all products as defined in § 44-20-1, electronic nicotine- |
| LC001746 - Page 12 of 25 |
1 | delivery system products, or any added substance that may be aerosolized, vaporized, or otherwise |
2 | delivered by such an electronic nicotine-delivery system device, whether or not that substance |
3 | contains nicotine. |
4 | (i) “Tobacco product(s)” does not include drugs, devices, or combination products intended |
5 | to treat tobacco or nicotine dependence that are authorized by the United States Food and Drug |
6 | Administration, as those terms are defined in the Federal Food, Drug and Cosmetic Act. Nor does |
7 | it include such authorized drugs, devices, or combination products with such treatment purpose by |
8 | individuals under age twenty-one (21) if prescribed by a licensed prescriber such as a physician, |
9 | nurse practitioner, or physician assistant. |
10 | (17)(19) “Underage individual” or “underage individuals” means any individual under the |
11 | age of twenty-one (21). |
12 | 11-9-13.8. Prohibitions applicable to license holders and their employees and agents. |
13 | A person holding a license issued under chapter 20 of title 44 and/or § 23-1-56 chapter |
14 | 28.12 of title 21, or an employee or agent of that person, is prohibited from selling, distributing, or |
15 | delivering a tobacco product, including an electronic nicotine-delivery system product and/or |
16 | kratom or kratom product: |
17 | (1) To any individual who is under twenty-one (21) years of age; or |
18 | (2) In any form other than an original, factory-wrapped package as sealed and certified by |
19 | the manufacturer; or |
20 | (3) As a single-cigarette sale (§ 44-20-31) or as a sale of cigarettes by the individual piece |
21 | known as “loosies.” |
22 | 11-9-13.13. Nature and size of penalties. |
23 | (a) Any license holder who violates a requirement of § 11-9-13.6(2) or § 11-9-13.7, display |
24 | of specific signage, shall be subject to a fine in court of not less than thirty-five dollars ($35.00), |
25 | nor more than five hundred dollars ($500), per civil violation. |
26 | (b) The license holder is responsible for all violations of this section that occur at the |
27 | location for which the license is issued. Any license holder who or that violates the prohibition of |
28 | § 11-9-13.8(1) or § 11-9-13.20 shall be subject to civil fines as follows: |
29 | (1) A fine of two hundred fifty dollars ($250) for the first violation within any thirty-six- |
30 | month (36) period; |
31 | (2) A fine of five hundred dollars ($500) for the second violation within any thirty-six- |
32 | month (36) period; |
33 | (3) A fine of one thousand dollars ($1,000) and a fourteen-day (14) suspension of the |
34 | license to sell tobacco products, or electronic nicotine-delivery systems or kratom or kratom |
| LC001746 - Page 13 of 25 |
1 | products for the third violation within any thirty-six-month (36) period; |
2 | (4) A fine of one thousand five hundred dollars ($1,500) and a ninety-day (90) suspension |
3 | of the license to sell tobacco products , or electronic nicotine-delivery systems or kratom or kratom |
4 | products for each violation in excess of three (3). |
5 | (c) Any person who or that violates a prohibition of § 11-9-13.8(3), sale of single cigarettes; |
6 | or § 11-9-13.8(2), regarding factory-wrapped packs as sealed and certified by the manufacturer; |
7 | shall be subject to a penalty of five hundred dollars ($500) for each violation. |
8 | (d) The department of taxation or department of health shall not issue a license to any |
9 | individual, business, firm, fiduciary, partnership, trust, association, or corporation, the license of |
10 | which has been revoked or suspended; to any corporation, an officer of which has had his or her |
11 | license revoked or suspended; or to any individual who is, or has been, an officer of a corporation |
12 | the license of which has been revoked or suspended so long as such revocations or suspensions are |
13 | in effect. |
14 | (e) The court may suspend the imposition of a license suspension of the license secured |
15 | from the Rhode Island tax administrator or department of health for a violation of subsections (b)(3) |
16 | and (b)(4) of this section if the court finds that the license holder has taken measures to prevent the |
17 | sale of tobacco products, including electronic nicotine-delivery system products, or kratom and |
18 | kratom products, as applicable, to an underage individual and the license holder can demonstrate |
19 | to the court that those measures have been taken and that employees have received training. No |
20 | person or individual shall sell tobacco products, including electronic nicotine-delivery system |
21 | products, or kratom and kratom products, at retail without first being trained in the legal sale of |
22 | tobacco products, including electronic nicotine-delivery system products, or kratom and kratom |
23 | products, as applicable. Training shall teach employees what constitutes a tobacco product, |
24 | including an electronic nicotine-delivery system product, or kratom and kratom products, as |
25 | applicable; legal age of sale; acceptable identification; how to refuse a direct sale to an underage |
26 | individual or secondary sale to an individual twenty-one (21) years or older; and all applicable laws |
27 | on tobacco, electronic nicotine-delivery systems or kratom and kratom products, as applicable sales |
28 | and distribution. Dealers All license holders shall maintain records indicating that the provisions |
29 | of this section were reviewed with all employees who conduct, or will conduct, tobacco product |
30 | sales, including electronic nicotine-delivery system product sales , or kratom and kratom products, |
31 | as applicable. Each employee who sells or will sell tobacco products, including electronic nicotine- |
32 | delivery system products, or kratom and kratom products, as applicable shall sign an |
33 | acknowledgement form attesting that the provisions of this section were reviewed with him or her. |
34 | Each form shall be maintained by the retailer for as long as the employee is so employed and for |
| LC001746 - Page 14 of 25 |
1 | no less than one year after termination of employment. The measures to prevent the sale of tobacco |
2 | products, including electronic nicotine-delivery system products, to underage individuals shall be |
3 | defined by the department of behavioral healthcare, developmental disabilities and hospitals in |
4 | rules and regulations. The measures to prevent the sale of kratom and kratom products to underage |
5 | individuals shall be defined by the department of health in rules and regulations. |
6 | SECTION 4. Chapter 11-9 of the General Laws entitled "Children" is hereby amended by |
7 | adding thereto the following sections: |
8 | 11-9-13.21. Signs concerning sales of kratom and kratom products to individuals |
9 | under the age of twenty-one (21). |
10 | (a) The department of health shall provide to retail kratom and kratom products dealers |
11 | signs concerning the prohibition of sales to individuals under twenty-one (21) years of age. This |
12 | sign, or an exact duplicate of it made privately, shall be displayed in all locations where kratom or |
13 | kratom products are sold. |
14 | (b) Signs provided by the department of health or an exact duplicate of it made privately, |
15 | shall: |
16 | (1) Contain in red bold lettering a minimum of three-eighths inch (3/8″) high on a white |
17 | background the following wording in both English and Spanish: |
18 | THE SALE OF KRATOM PRODUCTS, |
19 | TO INDIVIDUALS UNDER THE AGE OF 21 |
20 | IS AGAINST RHODE ISLAND LAW |
21 | (R.I. Gen. Laws Chapter 21-28.12) |
22 | PHOTO ID FOR PROOF OF AGE IS |
23 | REQUIRED FOR PURCHASE. |
24 | Each red letter shall feature a visible black border. |
25 | (2) Contain the phone number at the department of health, where violations of chapter 1 of |
26 | title 23 can be reported, in addition to any other information required by the department of health. |
27 | (3) Be displayed prominently for public view wherever kratom or kratom products are sold |
28 | including at each cash register, or any other place from which kratom or kratom products are sold. |
29 | The signs shall be available electronically in both English and Spanish online on the department of |
30 | health’s website. |
31 | 11-9-13.22. Prohibition on the distribution of free kratom or kratom products. |
32 | The distribution and/or redemption of free kratom or kratom products or coupons or |
33 | vouchers redeemable for free or discounted kratom or kratom products, to any individual under |
34 | twenty-one (21) years of age shall be prohibited. Further, the distribution and/or redemption of free |
| LC001746 - Page 15 of 25 |
1 | kratom or kratom products or coupons or vouchers redeemable for free or discounted kratom or |
2 | kratom products shall be prohibited, regardless of the age of the individual to whom the products, |
3 | coupons, or vouchers are distributed, within five hundred feet (500′) of any school. The attorney |
4 | general, the department of health, or any local or State of Rhode Island police department, or their |
5 | officers or agents, shall bring an action for any violation of this section. Every separate, free or |
6 | discounted kratom or kratom product or coupon or voucher redeemable for a free or discounted |
7 | kratom or kratom product in violation of this section shall constitute a separate offense subject to a |
8 | fine of five hundred dollars ($500). The penalty shall be assessed against the person or individual |
9 | responsible for initiating the Rhode Island distribution of the free or discounted kratom or kratom |
10 | products or coupons or vouchers redeemable for free or discounted kratom or kratom products |
11 | and/or against the person or individual responsible for the redemption of such coupons or vouchers. |
12 | 11-9-13.23. Prohibition on the delivery sale of kratom products. |
13 | Kratom and kratom products shall only be sold at retail at the fixed location for which a |
14 | person holds a kratom retailer license issued by the department of health. Delivery of kratom and |
15 | kratom products to retail purchasers is prohibited. |
16 | 11-9-13.24. Compliance inspections for the underage sale of kratom and/or kratom |
17 | products. |
18 | The department of health and the department behavioral healthcare, developmental |
19 | disabilities and hospitals shall have the authority to: |
20 | (1) Investigate with other state and local officials any violations of this chapter. |
21 | (2) Utilize unannounced statewide compliance checks of kratom product sales. BHDDH |
22 | nor any person who has not yet attained twenty one (21) years of age shall not be liable for any |
23 | criminal or civil statute that prohibits the sale of kratom or kratom products to an underaged person |
24 | by virtue of conducting a compliance check pursuant to this chapter. Nothing herein shall prevent |
25 | a law enforcement agency from assisting BHDDH with a compliance check in which an underaged |
26 | buyer is involved. |
27 | (i) In fulfilling the requirement of unannounced statewide compliance checks, the |
28 | department of health or the department of behavioral healthcare, developmental disabilities and |
29 | hospitals shall maintain and shall provide to the department of revenue division of taxation records |
30 | of the unannounced compliance checks. The records shall be subject to public disclosure after |
31 | completion of the investigation consistent with § 38-2-2(4)(D) and (P). |
32 | (3) In coordination with other state and local departments and agencies, seek enforcement |
33 | of the penalties as specified in this chapter. |
34 | (4) The department of health, in consultation with the department of behavioral health, |
| LC001746 - Page 16 of 25 |
1 | developmental disabilities, and hospitals, may promulgate rules and regulations necessary to fulfill |
2 | the intent of this chapter. |
3 | SECTION 5. Title 44 of the General Laws entitled "TAXATION" is hereby amended by |
4 | adding thereto the following chapter: |
5 | CHAPTER 20.3 |
6 | KRATOM AND KRATOM PRODUCTS TAX |
7 | 44-20.3-1. Definitions. |
8 | Whenever used in this chapter, unless the context requires otherwise: |
9 | (1) “Administrator” means the tax administrator. |
10 | (2) “Dealer” means a “retailer” as defined in this chapter. |
11 | (3) “Distributor” means any person: |
12 | (i) Whether located within or outside of this state, other than a retailer, who sells or |
13 | distributes kratom or kratom products within or into this state; and |
14 | (ii) Engaged in this state in the business of manufacturing kratom products or any person |
15 | engaged in the business of selling kratom or kratom products to retailers, or to other persons, for |
16 | the purpose of resale only; provided that, seventy-five percent (75%) of all kratom or kratom |
17 | products sold by that person in this state are sold to retailers or other persons for resale and selling |
18 | kratom or kratom products directly to at least twenty (20) retailers or other persons for resale; or |
19 | (iii) Maintaining one or more regular places of business in this state for that purpose; |
20 | provided that, seventy-five percent (75%) of the sold kratom or kratom products are purchased |
21 | directly from the manufacturer and selling kratom or kratom products directly to at least twenty |
22 | (20) retailers or other persons for resale. |
23 | (4) “Importer” means any person who imports into the United States, either directly or |
24 | indirectly, kratom or a kratom product for sale or distribution. |
25 | (5) “Kratom” means any part of the leaf of the plant mitragyna speciosa. |
26 | (6) “Kratom product” means a product that contains any part or extract of the leaf of the |
27 | plant mitragyna speciosa or an extract thereof including concentrated forms of kratom and products |
28 | composed of kratom and other ingredients. |
29 | (7) “Licensed” when used with reference to a manufacturer, importer, distributor, or |
30 | retailer, means only those persons who hold a valid and current license issued under § 44-20.3-2 |
31 | for the type of business being engaged in. When the term “licensed” is used before a list of entities, |
32 | such as “licensed manufacturer, importer, wholesale retailer, or retailer,” such term shall be deemed |
33 | to apply to each entity in such list. |
34 | (8) “Manufacturer” means any person who manufactures, fabricates, assembles, processes, |
| LC001746 - Page 17 of 25 |
1 | or labels a kratom product. |
2 | (9) “Person” means any individual, including an employee or agent, firm, fiduciary, |
3 | partnership, corporation, trust, or association, however formed. |
4 | (10) “Place of business” means any location where kratom or kratom products are sold, |
5 | stored, or kept including, but not limited to, any storage room, attic, basement, garage or other |
6 | facility immediately adjacent to the location. It also includes any receptacle, hide, vessel, vehicle, |
7 | airplane, or train. |
8 | (11) “Retailer” means any person whether located within or outside of this state, who sells |
9 | or distributes kratom products to a consumer in this state. |
10 | (12) “Sale” or “sell” means gifts, exchanges, or barter of kratom or kratom products. The |
11 | act of holding, storing, or keeping kratom or kratom products at a place of business for any purpose |
12 | shall be presumed to be holding the kratom or kratom products for sale. Furthermore, any sale of |
13 | kratom or kratom products by the servants, employees, or agents of the licensed retailer during |
14 | business hours at the place of business shall be presumed to be a sale by the licensee. |
15 | 44-20.3-2. Tax imposed on kratom and kratom products sold. |
16 | (a) A tax is imposed on all kratom and kratom products sold, or held for sale in the state |
17 | by any person, the payment of the tax to be accomplished according to a mechanism established by |
18 | the tax administrator. The tax imposed by this section shall be at the rate of fifteen percent (15%) |
19 | of the wholesale cost for all kratom and kratom products, whether or not sold at wholesale, and if |
20 | not sold, then at the same rate upon the use by the wholesaler. |
21 | (b) All kratom and kratom products sold at wholesale in Rhode Island must be sold by a |
22 | Rhode Island licensed distributor, manufacturer, or importer, and purchasers of kratom and kratom |
23 | products, licensed by chapter 28.12 of title 21, from an unlicensed distributor, manufacturer, or |
24 | importer are prohibited. Any kratom and kratom products purchased and/or obtained from an |
25 | unlicensed person shall be subject to the terms of this chapter and shall be taxed pursuant to this |
26 | section. |
27 | (c) The proceeds collected are paid into the general fund. |
28 | (d) Any tax imposed under the provisions of this chapter, together with all fees or charges, |
29 | also become, from the time they are due and payable, a debt to the State of Rhode Island from the |
30 | person liable for the payment of the tax, fees, or charges. |
31 | 44-20.3-3. Interest and Penalties. |
32 | (a) Failure to pay the kratom and kratom products tax to the state, or any amount of tax |
33 | required to be paid to the state, shall result in interest at the annual rate provided by § 44-1-7 from |
34 | the date on which the tax or amount of the tax required to be collected became due and payable to |
| LC001746 - Page 18 of 25 |
1 | the state until date of payment. |
2 | (b) Failure to file tax returns or to pay tax. In the case of failure: |
3 | (1) To file. The tax return on or before the prescribed date, unless it is shown that the failure |
4 | is due to reasonable cause and not due to willful neglect, an addition to tax shall be made equal to |
5 | ten percent (10%) of the tax required to be reported. For this purpose, the amount of tax required |
6 | to be reported shall be reduced by an amount of the tax paid on or before the date prescribed for |
7 | payment and by the amount of any credit against the tax which may properly be claimed upon the |
8 | return. |
9 | (2) To pay. The amount shown as tax on the return on or before the prescribed date for |
10 | payment of the tax unless it is shown that the failure is due to reasonable cause and not due to |
11 | willful neglect, there shall be added to the amount shown as tax on the return ten percent (10%) of |
12 | the amount of the tax. |
13 | (c) Negligence. If any part of a deficiency is due to negligence or intentional disregard of |
14 | the Rhode Island general laws or rules or regulations under this chapter (but without intent to |
15 | defraud), five percent (5%) of that part of the deficiency shall be added to the tax. |
16 | (d) Fraud. If any part of a deficiency is due to fraud, fifty percent (50%) of that part of the |
17 | deficiency shall be added to the tax. This amount shall be in lieu of any other additional amounts |
18 | imposed by subsections (a) and (b) of this section. |
19 | (e) Additions and penalties treated as tax. The additions to the tax and civil penalties |
20 | provided by this section shall be paid upon notice and demand and shall be assessed, collected, and |
21 | paid in the same manner as taxes. |
22 | (f) Bad checks. If any check or money order in payment of any amount receivable under |
23 | this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as |
24 | a penalty by the person who tendered the check, upon notice and demand by the tax administrator |
25 | or his or her delegate, in the same manner as tax, an amount equal to one percent of the amount of |
26 | the check, except that if the amount of the check is less than five hundred dollars ($500), the penalty |
27 | under this section shall be five dollars ($5.00). This subsection shall not apply if the person tendered |
28 | the check in good faith and with reasonable cause to believe that it would be duly paid. |
29 | (g) Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or |
30 | regulations, shall, in addition to any other penalty provided in this chapter, be liable for a penalty |
31 | of one thousand dollars ($1,000) or not more than five (5) times the tax due but unpaid, whichever |
32 | is greater. |
33 | 44-20.3-4. Records — Investigation and inspection of books, premises, and stock. |
34 | (a) Each manufacturer, importer, distributor, and dealer shall maintain copies of invoices |
| LC001746 - Page 19 of 25 |
1 | or equivalent documentation for, or itemized for, each of its facilities for each transaction involving |
2 | the sale, purchase, transfer, consignment, or receipt of kratom and kratom products. The invoices |
3 | or documentation shall show the name and address of the other party and the quantity and type of |
4 | kratom and kratom products involved in the transaction. All records and invoices required under |
5 | this section must be safely preserved for three (3) years in a manner to insure permanency and |
6 | accessibility for inspection by the administrator or his or her authorized agents. |
7 | (b) Records required under this section shall be preserved on the premises described in the |
8 | relevant license in such a manner as to ensure permanency and accessibility for inspection at |
9 | reasonable hours by authorized personnel of the administrator. With the administrator’s permission, |
10 | persons with multiple places of business may retain centralized records, but shall transmit |
11 | duplicates of the invoices or the equivalent documentation to each place of business within twenty- |
12 | four (24) hours upon the request of the administrator or his or her designee. |
13 | (c) The administrator or his or her authorized agents may examine the books, papers, |
14 | reports, and records of any manufacturer, importer, distributor, or dealer in this state for the purpose |
15 | of determining whether taxes imposed by this chapter have been fully paid, and may investigate |
16 | the stock of kratom and kratom products in or upon any premises for the purpose of determining |
17 | whether the provisions of this chapter are being obeyed. The administrator in their sole discretion |
18 | may share the records and reports required by such sections with law enforcement officials of the |
19 | federal government, the state, other states, and the department of health. |
20 | 44-20.3-5. Inspections. |
21 | (a) The administrator or the administrator’s duly authorized agent shall have authority to |
22 | enter and inspect, without a warrant during normal business hours, and with a warrant during |
23 | nonbusiness hours, the facilities and records of any manufacturer, importer, distributor, or dealer. |
24 | (b) In any case where the administrator or the administrator’s duly authorized agent, or any |
25 | police officer of this state, has knowledge or reasonable grounds to believe that any vehicle is |
26 | transporting kratom products in violation of this chapter, the administrator, such agent, or such |
27 | police officer, is authorized to stop such vehicle and to inspect the same for contraband kratom |
28 | products. |
29 | 44-20.3-6. Reports and records of carriers, bailees and warehouse persons. |
30 | The tax administrator may, in his or her discretion, require reports from any common or |
31 | contract carrier who transports kratom or kratom products to any point or points within the state, |
32 | and from any bonded warehouseperson or bailee who has in his or her possession any kratom or |
33 | kratom products, these reports to contain any information concerning shipments of kratom or |
34 | kratom products that the tax administrator determines. All common and contract carriers, bailees, |
| LC001746 - Page 20 of 25 |
1 | and warehousepersons shall permit the examination by the tax administrator or his or her authorized |
2 | agent of any records relating to the shipment or receipt of kratom or kratom products. |
3 | 44-20.3-7. Violations as to reports and records. |
4 | Any person who fails to submit the reports required in this chapter or by the tax |
5 | administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who |
6 | refuses to permit the tax administrator or the tax administrator’s authorized agent to examine any |
7 | books, records, papers, or stocks of kratom and kratom products as provided in this chapter, or who |
8 | refuses to supply the tax administrator with any other information which the tax administrator |
9 | requests for the reasonable and proper enforcement of the provisions of this chapter, shall be guilty |
10 | of a misdemeanor punishable by imprisonment up to one year, or a fine of not more than five |
11 | thousand dollars ($5,000), or both, for the first offense, and for each subsequent offense, shall be |
12 | guilty of a felony and fined not more than ten thousand dollars ($10,000), or be imprisoned not |
13 | more than five (5) years, or both. |
14 | 44-20.3-8. Declarations under penalty of perjury. |
15 | The oath or affirmation required by the provisions of this chapter as to any report or written |
16 | statement is not required if the report or statement to be sworn to contains or is verified by a written |
17 | declaration that it is made under the penalties of perjury; and if any report or statement is willfully |
18 | false, any person who signs and issues any statement containing or verified by this declaration is |
19 | guilty of perjury. |
20 | 44-20.3-9. Importation of kratom or kratom products with intent to evade tax. |
21 | Any person, firm, corporation, club, or association of persons who or that orders any |
22 | kratom products for another; or pools orders for kratom or kratom products from any persons; or |
23 | conspires with others for pooling orders; or receives in this state any shipment of contraband kratom |
24 | products on which the tax imposed by this chapter has not been paid, for the purpose and intention |
25 | of violating the provisions of this chapter or to avoid payment of the tax imposed in this chapter, is |
26 | guilty of a felony and shall be fined one hundred thousand dollars ($100,000) or five (5) times the |
27 | retail value of the kratom products involved, whichever is greater, or imprisoned not more than |
28 | fifteen (15) years, or both. |
29 | 44-20.3-10. Witnesses before tax administrator. |
30 | (a) The tax administrator and any agent of the tax administrator authorized to conduct any |
31 | inquiry, investigation, or hearing under this chapter has power to administer oaths and take |
32 | testimony under oath relative to the matter of inquiry or investigation. At any hearing ordered by |
33 | the tax administrator, the tax administrator or his or her agent may subpoena witnesses and require |
34 | the production of books, papers, and documents pertinent to the inquiry. No witness under subpoena |
| LC001746 - Page 21 of 25 |
1 | authorized to be issued by the provisions of this chapter is excused from testifying or from |
2 | producing books or papers on the ground that the testimony or the production of the books or other |
3 | documentary evidence would tend to incriminate the witness, but the testimony or the evidence of |
4 | the books or papers so produced shall not be used in any criminal proceedings against the witness. |
5 | (b) If any person disobeys this process or, having appeared in obedience to it, refuses to |
6 | answer any pertinent question put to the person by the tax administrator or his or her authorized |
7 | agent or to produce any books and papers pursuant to the process, the tax administrator or the agent |
8 | may apply to the sixth division of the district court, stating the disobedience to process or refusal |
9 | to answer, and the court shall cite the person to appear before the court to answer that question or |
10 | to produce those books and papers, and, upon his or her refusal so to do, shall commit the person |
11 | to the adult correctional institutions, for a period not to exceed sixty (60) days. Notwithstanding |
12 | the serving of the term of this commitment by any person, the tax administrator may proceed in all |
13 | respects with this inquiry and examination as if the witness had not previously been called upon to |
14 | testify. |
15 | (c) Officers who serve subpoenas issued by the tax administrator or under the tax |
16 | administrator's authority and witnesses subpoenaed by the tax administrator under this section shall |
17 | receive fees and compensation at the same rates as officers and witnesses in the district courts of |
18 | the state, to be paid from the proper appropriation for the administration of this chapter. |
19 | (d) A party aggrieved by an order of the court may appeal the order to the supreme court |
20 | in accordance with the procedures contained in the rules of appellate procedure of the supreme |
21 | court. |
22 | 44-20.3-11. Hearings by tax administrator. |
23 | Any person aggrieved by any action under this chapter of the tax administrator or the tax |
24 | administrator’s authorized agent for which a hearing is not elsewhere provided may apply to the |
25 | tax administrator, in writing, within thirty (30) days of the action for a hearing, stating the reasons |
26 | why the hearing should be granted and the manner of relief sought. The tax administrator shall |
27 | notify the applicant of the time and place fixed for the hearing. After the hearing, the tax |
28 | administrator may make the order in the premises as may appear to the tax administrator just and |
29 | lawful and shall furnish a copy of the order to the applicant. The tax administrator may, by notice |
30 | in writing, at any time, order a hearing on the tax administrator’s own initiative and require the |
31 | taxpayer or any other individual whom the tax administrator believes to be in possession of |
32 | information concerning any manufacture, importation, or sale of kratom or kratom products to |
33 | appear before the tax administrator or the tax administrator’s authorized agent with any specific |
34 | books of account, papers, or other documents, for examination relative to the hearing. |
| LC001746 - Page 22 of 25 |
1 | 44-20.3-12. Appeal to district court. |
2 | Any person aggrieved by any decision of the tax administrator under the provisions of this |
3 | chapter may appeal the decision within thirty (30) days thereafter to the sixth division of the district |
4 | court. The appellant shall at the time of taking an appeal file with the court a bond of recognizance |
5 | to the state, with surety to prosecute the appeal to effect and to comply with the orders and decrees |
6 | of the court in the premises. These appeals are preferred cases, to be heard, unless cause appears to |
7 | the contrary, in priority to other cases. The court may grant relief as may be equitable. If the court |
8 | determines that the appeal was taken without probable cause, the court may tax double or triple |
9 | costs, as the case demands; and, upon all those appeals, which may be denied, costs may be taxed |
10 | against the appellant at the discretion of the court. In no case shall costs be taxed against the state, |
11 | its officers, or agents. A party aggrieved by a final order of the court may seek review of the order |
12 | in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35- |
13 | 16. |
14 | 44-20.3-13. Claim for refund. |
15 | Whenever the tax administrator determines that any person is entitled to a refund of any |
16 | monies paid by a person under the provisions of this chapter, or whenever a court of competent |
17 | jurisdiction orders a refund of any monies paid, the general treasurer shall, upon certification by |
18 | the tax administrator and with the approval of the director of revenue, pay the refund from any |
19 | monies in the treasury not appropriated without any further act or resolution making appropriation |
20 | for the refund. No refund is allowed unless a claim is filed with the tax administrator within three |
21 | (3) years from the fifteenth day after the close of the month for which the overpayment was made. |
22 | 44-20.3-14. Administration — Forms — Rules and regulations. |
23 | The tax administrator is authorized to promulgate rules and regulations to carry out the |
24 | provisions, policies, and purposes of this chapter. The provisions of this chapter shall be liberally |
25 | construed to foster the enforcement of and compliance with all provisions herein related to taxation. |
26 | Notwithstanding any other provision of law, the tax administrator may make available to an |
27 | authorized agent of the department of health and the attorney general any information that the |
28 | administrator may consider proper contained in tax reports or returns or any audit or the report of |
29 | any investigation made with respect to them, filed pursuant to the tax laws of this state, to whom |
30 | disclosure is necessary for the purpose of ensuring compliance with state law and regulations. |
31 | 44-20.3-15. Severability. |
32 | The provisions of this chapter are declared to be severable; and in case any part, section, |
33 | or provision of this chapter is held void by any court of competent jurisdiction, the remaining parts, |
34 | sections, and provisions of the chapter are not impaired or affected. |
| LC001746 - Page 23 of 25 |
1 | SECTION 6. This act shall take effect on April 1, 2026. |
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| LC001746 - Page 24 of 25 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND KRATOM ACT | |
*** | |
1 | This act would authorize and regulate the distribution of the product known as "kratom", |
2 | and would ban the adulteration of kratom with a dangerous non-kratom substance as to render the |
3 | product injurious to a consumer. The act would require that any kratom product contain adequate |
4 | labeling directions necessary for safe and effective use by consumers. |
5 | This act would take effect on April 1, 2026. |
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| LC001746 - Page 25 of 25 |