71-3810.

Processor or retailer; violations; determination; civil penalties.

(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) 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.

(4) 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.

(5) 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.