Montana bill would regulate kratom sales, add licensing and tax; fiscal impacts unclear

Representative Nelly Nickel, sponsor of House Bill 407, told the House Appropriations Committee that the Kratom Consumer Protection Act would create a regulatory framework for kratom in Montana, including registration of processors, distributors and retailers, labeling requirements and an age limit on sales.

The bill sponsor said the measure grew out of public and law-enforcement concerns about kratom and of accounts of addiction and a small number of violent incidents relayed to the committee. "This bill is intended to regulate the sale and distribution of kratom products in Montana," Representative Nelly Nickel said, and the text she offered seeks to keep products free from harmful additives while preserving access for consumers.

Why it matters: the bill converts an unregulated market into a licensed one. That change creates up-front administration and IT costs for the Department of Revenue and could add a new tax type and collection requirements. The department told the committee the fiscal note it previously prepared is no longer pertinent because the bill was substantially rewritten and now includes licensing, fees and taxes.

Department of Revenue Deputy Director Scott Mendenhall said…