Sections 71-3801 to 71-3816 shall be known and may be cited as the Kratom Consumer Protection Act.

For purposes of the Kratom Consumer Protection Act:

(1) Attractive to children means products:

(a) Manufactured in the shape of humans, cartoons, or animals; or

(b) Manufactured in a form that bears any reasonable resemblance to an existing candy product that is familiar to the public as a widely distributed or a branded food product such that a product could be mistaken for the branded food product, especially by children;

(2) Department means the Department of Revenue;

(3) Kratom means the plant mitragyna speciosa or any part of that plant, including, but not limited to, all components present in the natural plant;

(4) Kratom extract means the material obtained by extraction of kratom leaves with a solvent consisting of water, ethanol, or food-grade carbon dioxide, or any other solvent allowed by federal or state regulation to be used in manufacturing a food ingredient;

(5) Kratom product means a food, ingredient, or dietary supplement that:

(a) Consists of or contains kratom or kratom extract;

(b) Does not contain any synthesized kratom alkaloids, other synthesized kratom constituents, or synthesized metabolites of any kratom constituent;

(c) Does not contain a level of 7-hydroxymitragynine in the alkaloid fraction that is greater than two percent of the alkaloid composition of the kratom product; and

(d) Does not include any kratom product in any form that is combustible, is intended to be used for vaporization, or is injectable;

(6) Processor means a person that manufactures, packages, labels, or distributes kratom products or advertises, represents, or holds itself out as manufacturing, preparing, packaging, labeling, or distributing kratom products;

(7) Retailer has the same meaning as in section 77-2701.32; and

(8) Synthesized means an alkaloid or alkaloid derivative that has been created, in full or in part, by directed chemical, physical, or biosynthetic conversion, including, but not limited to, fermentation, recombinant techniques, yeast-derived, or enzymatic techniques, rather than traditional food preparation techniques, such as heating or extracting.

(1) No person shall sell, offer for sale, provide, or distribute a kratom product to a person under twenty-one years of age.

(2) An online retailer or marketplace that sells or offers for sale a kratom product shall implement an age-verification system to ensure compliance with this section.

No person shall produce, manufacture, distribute, offer for sale, sell, or introduce into commerce a kratom product in the State of Nebraska if the product is manufactured in a manner that is attractive to children.

A kratom product sold, offered for sale, or introduced into commerce in the State of Nebraska shall:

(1) Be manufactured, packaged, labeled, or held in a facility that meets the requirements of 21 C.F.R. part 111, as such regulations existed on January 1, 2025; and

(2) Be manufactured, processed, packed, or held by a processor who has registered with the federal Food and Drug Administration as a food facility.

A kratom product sold, offered for sale, or introduced into commerce in the State of Nebraska shall have a label on each retail package that clearly and conspicuously provides the following information:

(1) The product is not recommended for use by individuals who are under twenty-one years of age, who are pregnant, or who are breastfeeding;

(2) A health care practitioner should be consulted prior to using the product;

(3) The product may be habit-forming;

(4) The following statements: "These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.";

(5) The name and place of business of the processor;

(6) Directions for use that include a recommended amount of the kratom product per serving that is:

(a) Clearly described on the label for product forms such as capsules, gummies, prepackaged, single-serving units, and similar product forms; or

(b) A clear instruction or a mark on the package or container for beverages or liquids;

(7) A recommended number of servings that can be safely consumed in a twenty-four-hour period;

(8) A listing of the servings per container; and

(9) A listing of kratom alkaloids mitragynine and 7-hydroxymitragynine and other ingredients in the product, including quantitative declarations of the amount per serving of mitragynine.

(1) The department shall establish, operate, and administer a program to register kratom products. The Tax Commissioner shall designate an implementation date for such program which date is on or before January 1, 2026.

(2) Beginning on the implementation date designated by the Tax Commissioner pursuant to subsection (1) of this section:

(a) No processor may manufacture, package, label, or distribute a kratom product to be offered for sale in the State of Nebraska unless the product has been registered with the department;

(b) Applications for product registration shall be submitted on a form prescribed by the department. Each application shall include:

(i) The name, address, and state of organization for the processor of the product;

(ii) A principal point of contact for the processor and contact information for the point of contact;

(iii) The name of the product;

(iv) The product label;

(v) A certificate of analysis for the kratom product that states the kratom product's alkaloid content and certifies that the kratom product has a level of 7-hydroxymitragynine that is less than two percent of the alkaloid composition of the kratom product from an independent laboratory. Such laboratory shall obtain and maintain an International Organization for Standardization and International Electrotechnical Commission (ISO/IEC) 17025 accreditation for testing and calibration laboratories from an accreditation body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement;

(vi) A valid good manufacturing practice certificate issued by an accredited third-party certification body in compliance with 21 C.F.R. part 111; and

(vii) A current food facility registration certificate issued by the federal Food and Drug Administration for all facilities where kratom products are manufactured, prepared, packaged, or labeled;

(c) A certificate of registration shall be valid for one calendar year after the date of issue and shall not be transferable;

(d) The department may charge a fee for product registration applications and may adjust such fee annually. The fee shall be reasonable and shall not exceed any reasonable or necessary costs to administer the Kratom Consumer Protection Act. The department shall remit such fees to the State Treasurer for credit to the Department of Revenue Enforcement Fund; and

(e) A product that contains the same kratom ingredients in the same kratom delivery form, but is packaged, sold, or offered for sale in a different container, package, or volume shall be included in a single registration.

(3) If an application is incomplete or deficient, the department shall, in a timely manner, notify the applicant in writing describing the reason or reasons and request additional information. If such application is not corrected or supplemented within thirty days after the department's request, the department shall deny the application.

(4) If any false statement is made in any part of an application, the department shall deny the application.

(5) A person aggrieved by the denial of an application may request a hearing pursuant to section 71-3811.

(6) A processor or retailer is not prohibited from selling, preparing, manufacturing, distributing, maintaining, advertising, representing, or holding itself out as selling, preparing, or maintaining kratom products in the State of Nebraska prior to the implementation date designated by the Tax Commissioner pursuant to subsection (1) of this section, or while the first product registration applications submitted by processors operating in the State of Nebraska as of January 1, 2025, are pending approval or denial by the department.

Beginning on the implementation date designated by the Tax Commissioner pursuant to subsection (1) of section 71-3807, the department shall make public a list of all registered kratom products on its website.

(1) No person shall sell, offer for sale, provide, or distribute an adulterated kratom product in the State of Nebraska.

(2) A product shall be deemed adulterated if:

(a) It contains any kratom alkaloid or metabolite, including 7-hydroxymitragynine, and does not meet the definition of a kratom product under section 71-3802; or

(b) The kratom product is combined with a dangerous nonkratom substance that contains a poisonous or otherwise deleterious nonkratom ingredient, including, but not limited to, any substance listed as a controlled substance under the laws of this state or federal law.

(3) If the department has a reasonable belief that a product may be an adulterated kratom product, the department may require the person selling, providing, or distributing the product to obtain an independent third-party test of the product by a laboratory of the department's choosing. A person shall not sell, provide, or distribute any product undergoing such testing until the test results verify that such product is not adulterated.

(1) Any processor or retailer that violates any section of the Kratom Consumer Protection Act, including those related to the application or registration, or any of the rules and regulations adopted and promulgated by the department that apply to processors or kratom products shall be subject to the penalties provided in this section.

(2) For the first violation, the department shall impose a civil penalty of up to one thousand dollars. For the second violation, the department shall impose a civil penalty of up to five thousand dollars. For a third violation and any subsequent violations, the department shall impose a civil penalty of at least five thousand dollars and no more than twenty thousand dollars and, if the violator is a processor, the department shall prohibit the sale of any kratom products of such processor within the State of Nebraska for a period of three years.

(3) If a processor violates the Kratom Consumer Protection Act by selling, offering for sale, providing, or distributing an adulterated kratom product in the State of Nebraska, the department shall remove any product found to be adulterated from the list of registered kratom products on the department's website.

(4) For any processor or retailer that has no violation for a period of four consecutive years, a new violation shall be treated as a first violation.

(5) No determination that a violation has occurred shall be made until notice has been given and a hearing has been held by the Tax Commissioner as provided in section 71-3811 if requested by the processor or retailer.

(6) A retailer shall not be found to be in violation of the Kratom Consumer Protection Act if it is shown by a preponderance of the evidence that the retailer relied in good faith upon the representation of a processor that a product is not an adulterated kratom product as defined in section 71-3809 or otherwise conformed to the act.

(1) A processor or retailer aggrieved by a notice of denial of an application issued under section 71-3807 or a notice of violation issued under section 71-3810 may request a hearing.

(2) Such request shall be made within twenty days after the receipt of any such notice.

(3) At such hearing the Tax Commissioner, or any officer or employee of the Tax Commissioner designated in writing, may examine any books, papers, memoranda, or other evidence bearing upon the matter at issue and require the attendance of any officer or employee of the processor or retailer or any person having knowledge pertinent to such hearing. The Tax Commissioner or the Tax Commissioner's designee may administer oaths to persons testifying at such hearing.

(4) During the hearing, the Tax Commissioner or the Tax Commissioner's designee shall not be bound by the technical rules of evidence, and no informality in any proceeding or in the manner of taking testimony shall invalidate any order or decision made or approved by the Tax Commissioner.

(5) Within a reasonable time after the hearing the Tax Commissioner shall make a final decision or final determination and notify the processor or retailer by mail of such decision or determination.

(6) If it is determined that a processor intentionally and materially falsified any information contained in an application under the Kratom Consumer Protection Act, the processor shall be ineligible to obtain a certification of registration for a period of twelve months after the date of such determination.

(7) A processor or retailer may appeal the decision of the Tax Commissioner, and the appeal shall be in accordance with the Administrative Procedure Act.

(1) The Attorney General shall have authority to enforce the Kratom Consumer Protection Act pursuant to the Consumer Protection Act and the Uniform Deceptive Trade Practices Act. This section shall not be construed to allow for a private right of action under the Kratom Consumer Protection Act even though such action is authorized under the Consumer Protection Act and the Uniform Deceptive Trade Practices Act.

(2) If a kratom product is found to be adulterated under section 71-3809 with ingredients not reflected on the label of the product, such violation of the Kratom Consumer Protection Act is also prima facie evidence of a violation of the Consumer Protection Act.

(1) If a registered processor has been convicted by any court of a violation of the Kratom Consumer Protection Act, the processor may, in addition to the penalties for such offense, incur a forfeiture of the certificate of registration for its kratom products and all money that had been paid for such certificate of registration.

(2) If any materially false statement is made in any part of an application submitted under section 71-3807, the applicant shall be subject to prosecution for perjury and if convicted may, in addition to the penalties for such offense, incur a forfeiture of any certificate of registration that was issued for the applicant's kratom products and all money that had been paid for such certificate of registration.

Except as otherwise provided in the Kratom Consumer Protection Act, no political subdivision shall impose additional restrictions on the manufacturing, packaging, labeling, distribution, or sale of kratom products greater than or in addition to those enumerated in the act.

The department may adopt and promulgate rules and regulations to carry out the Kratom Consumer Protection Act.