HB1303 IL introduced

KRATOM CONSUMER PROTECTION

privacy

Plain-English summary

1. **ONE-SENTENCE SUMMARY:** This bill establishes regulations for the sale of kratom products in Illinois, focusing on age restrictions, safety standards, and taxation.

2. **KEY REQUIREMENTS:**
   - Do not sell kratom products to anyone under 21 years of age; implement online age verification.
   - Ensure kratom products do not contain certain harmful chemicals or are appealing to children.
   - Avoid selling kratom products that are adulterated with dangerous substances or contain synthesized kratom alkaloids.
   - Comply with federal regulations for kratom products.
   - Collect a 5% tax on retail sales of kratom products and file quarterly tax returns.

3. **DEADLINES:** The bill is currently introduced and does not have an effective date yet; businesses should prepare for compliance once the bill is enacted.

4. **PENALTIES:**
   - First violation: up to $5,000 fine.
   - Second violation: up to $10,000 fine.
   - Third and subsequent violations: minimum $10,000 fine, up to $20,000, plus a 3-year prohibition on selling kratom products.

5. **SMB IMPACT:** Small businesses selling kratom will need to implement age verification and safety measures, which may require additional resources. They must also prepare for tax collection and compliance to avoid significant penalties.

Source description

Creates the Kratom Consumer Protection Act. Provides that no person shall sell, offer for sale, provide, or distribute kratom leaf or a kratom product to a person under 21 years of age, with requirements for online age verification. Provides that no person shall sell, offer for sale, provide, or distribute a kratom product that contains certain chemical compositions. Provides that an individual, business, or other entity shall not produce, sell, or distribute a kratom product that is attractive to children. Provides that no person shall sell, offer for sale, provide, or distribute a kratom product that is adulterated with a dangerous non-kratom substance. Provides that no person shall offer for sale any kratom product that contains synthesized or semi-synthesized kratom alkaloids or kratom constituents. Requires federal compliance for kratom products and processors. Imposes a tax of 5% on the retail sale of kratom products. Requires quarterly returns for the tax. Provides that a person who knowingly files a false or incomplete return is guilty of a Class A misdemeanor. Provides for rulemaking and other powers for the Department of Revenue. Incorporates certain provisions of the Retailers' Occupation Tax Act and the Uniform Penalty and Interest Act. Provides that any person who sells a kratom product in violation of this Act shall be subject to a civil penalty up to $5,000 for the first violation, and up to $10,000 for a second violation. Provides that, for a third violation and each subsequent violation, the person shall be fined a minimum of $10,000, up to a maximum of $20,000, and shall be prohibited from selling kratom products in this State for 3 years. Defines terms. Limits home rule powers. Repeals the Kratom Control Act.

Not legal advice. Summaries are generated by AI from publicly available bill text and may contain errors or omissions. Always consult counsel before making compliance decisions.