Food: other; regulation of distribution, sale, and manufacturing of kratom products; provide for. Creates new act.

Introduced on 9/17/25

Version 1 Text

Overview

The Kratom Consumer Protection and Regulatory Act establishes a comprehensive regulatory framework for the distribution, sale, and manufacture of kratom products in the State of Michigan. The legislation aims to protect consumers by implementing mandatory licensing requirements, product testing standards, labeling requirements, and age restrictions for kratom products. The act creates a state-level oversight system administered by the Department of Licensing and Regulatory Affairs to ensure product safety and quality while preventing access by minors and vulnerable populations. By requiring certificates of analysis from qualified laboratories and prohibiting adulterated or contaminated products, the legislation seeks to address public health concerns associated with unregulated kratom products while allowing legal access for adult consumers.

Core Provisions

The act establishes a mandatory licensing regime that prohibits any person from distributing, selling, manufacturing, or offering for distribution or sale any kratom product without obtaining a license from the Department of Licensing and Regulatory Affairs. License applications must include comprehensive information about the applicant, business locations, product lists, and certificates of analysis for each kratom product. Licenses are valid for three years and are non-transferable, with renewal requiring a completed application and a fee of one hundred twenty-five dollars. The legislation mandates specific labeling requirements for all kratom products, including disclosure of alkaloid content (mitragynine and 7-hydroxymitragynine), health risk statements, and prominent warnings about use during pregnancy and breastfeeding. The act prohibits several activities, including the distribution or sale of adulterated or contaminated kratom products, sales to individuals under twenty-one years of age, and failure to provide certificates of analysis upon request. The department must promulgate implementing rules by January 1, 2028, with certain provisions taking effect on January 1, 2027.

Key Points

  • Mandatory licensing for all kratom product manufacturers, distributors, and sellers (§5(1))
  • Three-year license validity period with $125 renewal fee (§5(7)-(8))
  • Required certificate of analysis from qualified laboratories for all products (§5(3))
  • Comprehensive labeling requirements including alkaloid content and health warnings (§7)
  • Minimum age requirement of 21 years for kratom product purchases (§9(2))
  • Prohibition on adulterated or contaminated kratom products (§9(1))
  • Rulemaking deadline of January 1, 2028 (§17)

Legal References

  • MCL 289.1107 (2000 PA 92)
  • MCL 333.7212 (1978 PA 368)
  • MCL 24.201 to 24.328 (1969 PA 306 - Administrative Procedures Act)

Implementation

The Department of Licensing and Regulatory Affairs serves as the primary implementing and enforcing agency for the act. The department holds authority to approve qualified laboratories through rulemaking and to establish detailed standards for product testing, labeling, and distribution. Implementation occurs in phases, with the department required to promulgate comprehensive rules by January 1, 2028, following the procedures established under the Administrative Procedures Act of 1969. The licensing system requires applicants to submit detailed information including full names, dates of birth, contact information, employer identification numbers for business entities, addresses of all business locations, complete product lists, and certificates of analysis for each kratom product offered. All information must be submitted under penalty of perjury. Enforcement mechanisms include the authority to deny, suspend, or revoke licenses for non-compliance, and the department may conduct inspections and require production of certificates of analysis upon request. The act does not specify a dedicated funding mechanism, suggesting implementation will occur through existing departmental appropriations and license fee revenue.

Legal References

  • MCL 24.201 to 24.328 (Administrative Procedures Act of 1969, PA 306)

Impact

The legislation directly impacts multiple stakeholder groups within Michigan's kratom market. Consumers benefit from enhanced product safety through mandatory testing and labeling requirements that provide transparency about alkaloid content and potential health risks. The minimum age requirement of twenty-one years protects minors from access to kratom products. Manufacturers, distributors, and retailers face new compliance obligations including licensing costs, laboratory testing expenses, and labeling modifications. The three-year license term with a one hundred twenty-five dollar renewal fee creates a recurring administrative and financial burden for businesses. Small-scale vendors may face disproportionate impacts due to fixed compliance costs. The requirement for certificates of analysis from qualified laboratories will necessitate ongoing testing expenses that may increase product costs for consumers. The act creates market barriers to entry that may reduce the number of kratom vendors while potentially improving overall product quality and safety. Administrative burden on the Department of Licensing and Regulatory Affairs includes developing qualification standards for laboratories, processing license applications, conducting compliance monitoring, and enforcing violations. The legislation does not contain sunset provisions, establishing a permanent regulatory framework for kratom products in Michigan.

Key Points

  • Enhanced consumer protection through mandatory product testing and labeling
  • Age restriction preventing sales to individuals under 21 years
  • Compliance costs for businesses including licensing fees, testing expenses, and labeling modifications
  • Potential market consolidation due to regulatory barriers to entry
  • Administrative burden on Department of Licensing and Regulatory Affairs for oversight and enforcement
  • No sunset provision - permanent regulatory framework

Legal Framework

The act operates within Michigan's existing regulatory infrastructure, drawing authority from the state's police power to regulate commerce and protect public health and safety. The legislation references and builds upon established statutory frameworks including the Food Law of 2000, which provides foundational authority for regulating food and consumable products, and the Public Health Code of 1978, which addresses controlled substances and public health protections. The Administrative Procedures Act of 1969 governs the rulemaking process that the Department of Licensing and Regulatory Affairs must follow in developing implementing regulations. The act creates a state-level regulatory scheme that may preempt local ordinances to the extent they conflict with state licensing and product standards, though the legislation does not contain explicit preemption language. The requirement that applicants sign statements under penalty of perjury invokes criminal sanctions for false statements, providing an enforcement mechanism beyond administrative penalties. The act does not explicitly address judicial review provisions, suggesting that standard administrative law principles under the Administrative Procedures Act would govern challenges to departmental decisions regarding licensing, enforcement actions, or rulemaking.

Legal References

  • 2000 PA 92, MCL 289.1107 (Food Law)
  • 1978 PA 368, MCL 333.7212 (Public Health Code)
  • 1969 PA 306, MCL 24.201 to 24.328 (Administrative Procedures Act)

Critical Issues

Several implementation challenges and potential concerns arise from the legislation. The January 1, 2028 deadline for rulemaking may prove insufficient for the Department of Licensing and Regulatory Affairs to develop comprehensive standards for qualified laboratories, testing protocols, and enforcement procedures, particularly given the technical complexity of alkaloid testing and product safety standards. The act does not specify initial licensing fees, creating uncertainty about revenue adequacy for program administration and potential barriers to market entry. The requirement for certificates of analysis from qualified laboratories presumes the existence or development of sufficient laboratory capacity within Michigan, which may not materialize without additional incentives or infrastructure investment. The three-year license term may create compliance gaps if businesses fail to renew timely, potentially allowing unlicensed sales during transition periods. The prohibition on sales to individuals under twenty-one years lacks specified enforcement mechanisms for retailers, raising questions about verification requirements and liability for violations. Constitutional concerns may arise regarding the non-transferability of licenses, which could be challenged as an unreasonable restraint on commerce or property rights. The act's interaction with federal law remains ambiguous, as kratom's legal status under federal drug enforcement regulations continues to evolve. Small businesses and existing kratom vendors may face disproportionate compliance burdens, potentially leading to market consolidation that reduces consumer choice while increasing prices. Opposition arguments likely center on regulatory overreach, increased costs for consumers and businesses, and concerns that excessive regulation may drive sales to unregulated online or out-of-state sources, undermining the act's consumer protection objectives.

Key Points

  • Tight rulemaking timeline may be insufficient for developing comprehensive standards
  • Absence of specified initial licensing fees creates revenue and market entry uncertainty
  • Potential laboratory capacity constraints for required product testing
  • Enforcement gaps during license renewal periods
  • Unclear retailer verification requirements for age restrictions
  • Possible constitutional challenges to license non-transferability provisions
  • Ambiguous interaction with evolving federal kratom regulations
  • Disproportionate impact on small businesses may reduce market competition
  • Risk of driving sales to unregulated channels, undermining consumer protection goals

Sponsors

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Democratic CaucusRepublican Caucus

Roll Call Votes

Reported With Recommendation With Substitute H-2

12 Yea

RDRRRRRRRRDD

1 Nay

D

Calendar

Oct 30, 2025

9:00 AM

House Regulatory Reform

Nov 13, 2025

9:00 AM

House Regulatory Reform