California AB 1088

Existing law, the Sherman Food, Drug, and Cosmetic Law, provides for the regulation of various subjects relating to the manufacturing, processing, labeling, advertising, and sale of food, drugs, and cosmetics, under the administration and enforcement of the State Department of Public Health (department) and in accordance with the Federal Food, Drug, and Cosmetic Act. The act generally requires manufacturers, packers, and holders of processed foods to register with the department. A violation of the act is a crime. This bill would add kratom products, as defined, to the Sherman Food, Drug, and Cosmetic Law. The bill would require a processor, as defined, to register with the department and to annually register each kratom product it manufactures, packages, distributes, or labels, which would include certification by a laboratory specifying that the product meets certain qualifications. The bill would establish labeling and packaging requirements for those products. The bill would prohibit the sale of kratom products to those under 21 years of age and would prohibit the sale or distribution of those products at a premise or on an internet website or application that permits a person under 21 years of age to enter and remain or to complete the purchase of any product. The bill would prohibit the sale or distribution of a kratom product that has a child-attractive flavor, as defined. The bill would authorize the department to deny, suspend, or revoke a registration for actions taken in violation of these provisions. By expanding the scope of a crime, the bill would create a state-mandated local program. This bill would require a purchaser of a kratom product to pay a tax on the purchase for use in this state of a kratom product from a retailer of 15% of the sales price from the sale of a kratom product. The bill would require a retailer to collect the tax from the purchaser at the time of the retail sale. The bill would require all revenues, interest, and penalties, less refunds, collected from the tax described above to be deposited into the Kratom Products Public Health and Safety Fund, a continuously appropriated fund created by the bill, and would require all amounts in the fund to be distributed to the University of California Kern County Medical Education Endowment Fund, the Board of State and Community Corrections, the Primary Care Account, and the Specialty Care Account, among others. By creating a continuously appropriated fund and allocating additional moneys to continuously appropriated funds, the bill would make an appropriation. The bill would provide for the administration and collection of this tax pursuant to procedures set forth in the Fee Collection Procedures Law. By expanding the application of the Fee Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.