CO SB 25-072
Title: Regulation of Kratom
Author: Matt Soper
Summary
Section 1 of the bill repeals certain provisions regarding the regulation of kratom that are included in sections 2 and 3 with amendments. Section 2 prohibits a processor from manufacturing, packaging, labeling, or distributing in the state a food or dietary supplement that consists of kratom leaf or kratom leaf extract (kratom product) unless the manufacturer of the kratom product has obtained a registration of the kratom product (registration) from the executive director of the department of revenue (executive director). The manufacturer must pay a fee and provide proof of certain certificates and a registration from the federal food and drug administration to receive a registration for the kratom product from the executive director. The executive director is required to establish an annual fee paid by manufacturers of kratom products that are manufactured, packaged, labeled, or distributed in the state. The fees are credited to the kratom consumer protection cash fund, which is created in section 2 and may be used by the executive director for the administration and enforcement of state laws regulating kratom. The bill directs the state treasurer to transfer $306,344 from the tobacco litigation settlement cash fund as a loan to the kratom consumer protection cash fund to defray the department of revenue's (department) expenses before the department receives revenues from annual fees assessed to manufacturers. The department must repay the loan, with interest, by June 30, 2027. The department is also authorized to seek, accept, and expend gifts, grants, and donations to defray its expenses in implementing and administering the bill. A manufacturer of a kratom product that is manufactured, packaged, labeled, or distributed in the state without a registration is subject to a civil penalty of: No more than $1,000 for the first violation; No more than $5,000 for the second violation; and At least $5,000 and no more than $20,000 for a third or subsequent violation. In the event of a third or subsequent violation, the manufacturer is prohibited from manufacturing or distributing kratom products in the state for 3 years after the date the civil penalty is assessed. The bill preserves the ability of a local government to enact or enforce an ordinance, resolution, regulation, or other law relating to the sale, transfer, possession, or use of a kratom product that is no less restrictive than the requirements in the bill. Section 3 prohibits a person from: Knowingly preparing, distributing, advertising, selling, or offering to sell a kratom product under certain circumstances; Preparing, distributing, advertising, selling, or offering to sell a kratom product that does not clearly and conspicuously set forth certain information on the kratom product's label; Displaying or storing kratom products in a retail location in a manner that will allow the products to be accessed by individuals under 21 years of age; or Manufacturing, packaging, labeling, or distributing a kratom product that contains synthesized or semi-synthesized kratom alkaloids or has a level of 7-hydroxymitragynine in the alkaloid fraction that is greater than 2% of the alkaloid composition of the product. A person that conducts these prohibited activities engages in a deceptive trade practice. The bill appropriates $280,606 from the kratom consumer protection cash fund to the department of revenue to implement the bill, with $103,108 and 1.3 FTE for personal services, $33,059 for operating expenses, and $144,439 to purchase legal services. The bill reappropriates $144,439 of the appropriation to the department of revenue to the department of law to provide legal services to the department of revenue. (Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)
Status
Sent to the Governor
Bill Documents
CO SB 25-072 - Rerevised Version
2025-01-22 - CO SB 25-072 (Rerevised Version)
CO SB 25-072 - Engrossed Version
2025-01-22 - CO SB 25-072 (Engrossed Version)
CO SB 25-072 - PA2 Preamended Versions
2025-01-22 - CO SB 25-072 (PA2 Preamended Versions)
CO SB 25-072 - PA1 Preamended Versions
2025-01-22 - CO SB 25-072 (PA1 Preamended Versions)
CO SB 25-072 - Final Act Version
2025-01-22 - CO SB 25-072 (Final Act Version)
CO SB 25-072 - Introduced Version
2025-01-22 - CO SB 25-072 (Introduced Version)
CO SB 25-072 - Reengrossed Version
2025-01-22 - CO SB 25-072 (Reengrossed Version)
CO SB 25-072 - Revised Version
2025-01-22 - CO SB 25-072 (Revised Version)
CO SB 25-072 - PA3 Preamended Versions
2025-01-22 - CO SB 25-072 (PA3 Preamended Versions)