§ 21-28.12-6. Manufacturer, importer, distributor, and retailer licenses required — Licenses required. [Effective April 1, 2026.]
(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.
History of Section.
P.L. 2025, ch. 446, § 1, effective April 1, 2026; P.L. 2025, ch. 447, § 1, effective
April 1, 2026.