Public health: kratom.

A 15 percent tax on the purchase of kratom products is imposed effective July 1, 2027. Retailers collect the tax at point of sale and may retain 1 percent for collection costs. Payments are due quarterly with electronic returns.

The Kratom Products Public Health and Safety Fund is created as a continuously appropriated fund. Allocations: 25 percent to UC Kern County Medical Education Endowment Fund, 25 percent to the Board of State and Community Corrections for trafficking and violence grants, 20 percent to the Primary Care Account, 20 percent to the Specialty Care Account, 5 percent to the State Department of Public Health for regulation costs, and 5 percent to CDTFA for administration.

Processors must register with the department and annually register each kratom product they manufacture, pack, distribute, or label. Each registration requires a certificate of analysis from an ISO 17025:2017 accredited independent laboratory confirming the product meets all requirements in the article.

The department may establish tiered annual registration fees based on units produced and total annual California sales, capped at reasonable regulatory costs. Violations are grounds for denial, suspension, forfeiture, revocation, or surrender of registration.

New labeling requirements: a mandatory warning statement that kratom is not approved as a medication, for opioid addiction treatment, or as a harm reduction product and may be habit forming; name and place of business of the processor; and quantitative declarations of each kratom alkaloid in the package.

Prohibition on health claims regarding kratom products, whether explicit or implicit, including through labeling, packaging, advertising, marketing, branding, or naming that resembles or references a drug product, food, or food additive.

New per-package alkaloid limits: no more than 75 milligrams of mitragynine per package and no more than 0.57 milligrams of 7-hydroxymitragynine per package, in addition to the existing 2 percent limit on 7-OH relative to total kratom alkaloids.

New prohibition on selling kratom products with a 'child-attractive flavor,' defined as a characterizing flavor (any taste or odor other than kratom itself) often used to appeal to persons under 21. This is separate from and in addition to the existing prohibition on packaging that is 'attractive to children.'

New prohibition on selling or distributing kratom at a physical premise or on an internet website or application that permits a person under 21 to enter and remain or to complete a purchase of any product.

The previous exemption stating that producers, sellers, and distributors of kratom products were not required to register with or seek licensure from the department is removed and replaced with mandatory registration requirements.

The definition of 'kratom product' is broadened to include any product containing any kratom alkaloid regardless of whether it was derived from kratom leaf or kratom leaf extract, not just products consisting of kratom leaf or extract. New definitions added for 'characterizing flavor,' 'child-attractive flavor,' 'kratom alkaloid' (listing six specific alkaloids and their derivatives), and 'processor.'

A catch-all provision states that the article does not authorize the sale of any kratom product otherwise prohibited by state or federal law. An additional packaging standard referencing Part 1700 of Title 16 CFR as of January 1, 2027 is added.

The vote requirement changes from majority to two-thirds, and the appropriation designation changes from 'no' to 'yes,' reflecting the creation of a continuously appropriated fund and new tax revenue streams.

Removed Chapter 3 (Section 24378) from Division 20 of the Health and Safety Code, which had established a standalone 'Kratom Age Limitation' prohibiting sale of kratom leaf, kratom products, or any product containing 7-Hydroxymitragynine to persons under 21. The age restriction now exists only within Section 111224.85 of the kratom article in Division 104.

The bill title changed from 'Public health: 7-Hydroxymitragynine. Public health: kratom.' to simply 'Public health: kratom,' reflecting the consolidation of all provisions into a single article rather than two separate code sections.

Fiscal committee designation changed from 'no' to 'yes,' meaning the bill now requires review by the fiscal committee before passage.

State-mandated local program designation changed from 'no' to 'yes,' indicating the bill now creates obligations for local agencies that trigger state reimbursement analysis under the California Constitution.

Adds Article 16 (Sections 111224.8 through 111224.86) to the Sherman Food, Drug, and Cosmetic Law, bringing kratom products and 7-OH products under California's food/drug/cosmetic regulatory framework for the first time.

Exempts producers, sellers, and distributors of kratom products and 7-OH products from the requirement to register with or seek licensure from the State Department of Public Health, despite their inclusion in the Sherman Food, Drug, and Cosmetic Law.

Defines key terms including '7-OH product,' 'kratom leaf,' 'kratom leaf extract,' 'kratom product,' 'total kratom alkaloids' (sum of mitragynine, speciociliatine, speciogynine, paynantheine, and 7-hydroxymitragynine), and a detailed multi-part definition of 'attractive to children' covering cartoons, candy-like packaging, brand names, fruits/vegetables imagery, and more.

Requires child-resistant packaging for all kratom and 7-OH products offered for retail sale. Acceptable methods include Poison Prevention Packaging Act certification or plastic at least four mils thick that is heat sealed without easy-open tabs, dimples, corners, or flaps.

Prohibits selling any kratom product or 7-OH product with a level of 7-hydroxymitragynine greater than 2 percent of the total kratom alkaloids in the product.

Prohibits selling, offering for sale, providing, or distributing any kratom product or 7-OH product that is 'attractive to children' as defined in the new article.

Requires online retailers and marketplaces of kratom products or 7-OH products to implement an age-verification system to ensure compliance with the under-21 sales prohibition.

Fiscal committee review changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes,' reflecting that the expanded bill creates a new crime with associated local enforcement costs. A no-reimbursement provision is added citing the creation of a new crime as the reason.

The original single-section age-limitation chapter (Section 24378) is retained but renumbered from Section 1 to Section 3, following the insertion of the new Article 16 as Section 1 and a no-reimbursement provision as Section 2.