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REFERENCE TITLE: kratom products; enforcement; financial institutions. |
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State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session 2021
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HB 2651 |
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Introduced by Representative Biasiucci
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AN ACT
Amending sections 36‑795, 36‑795.01, 36‑795.02 and 36‑795.03, Arizona Revised Statutes; amending title 36, chapter 6, article 10, Arizona Revised Statutes, by adding section 36‑795.04; relating to Kratom products.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 36-795, Arizona Revised Statutes, is amended to read:
36-795. Definitions
In this article, unless the context otherwise requires:
2. 1. "Food" means a food, food product, food ingredient, dietary ingredient, dietary supplement or beverage for human consumption.
3. 2. "Kratom product" means a food product or dietary ingredient containing any part of the leaf of the plant mitragyna speciosa.
1. 3. "Dealer Retailer":
(a) Means a person that sells, prepares or maintains kratom products or that advertises, represents or holds itself out as selling, preparing or maintaining kratom products.
(b) Includes a manufacturer, wholesaler, store, restaurant, hotel, catering facility, camp, bakery, delicatessen, supermarket, grocery store, convenience store, nursing home or food or drink company.
Sec. 2. Section 36-795.01, Arizona Revised Statutes, is amended to read:
36-795.01. Kratom product disclosure; preparing, distributing, selling or exposing for sale without disclosure prohibited
A. A dealer retailer that prepares, distributes, sells or exposes for sale a food that is represented to be a kratom product shall disclose on the product label the factual basis on which that representation is made.
B. A dealer retailer may not prepare, distribute, sell or expose for sale a food represented to be a kratom product that does not conform to the disclosure required by this section.
Sec. 3. Section 36-795.02, Arizona Revised Statutes, is amended to read:
36-795.02. Kratom product; adulteration; contamination; sales to minors prohibited
A. A dealer retailer may not prepare, distribute, sell or expose for sale any of the following:
1. A kratom product that is adulterated with a dangerous nonkratom substance. A kratom product is adulterated with a dangerous nonkratom substance if the kratom product is mixed or packed with a nonkratom substance and that substance affects the quality or strength of the kratom product to such a degree as to render the kratom product injurious to a consumer.
2. A kratom product that is contaminated with a dangerous nonkratom substance. A kratom product is contaminated with a dangerous nonkratom substance if the kratom product contains a poisonous or otherwise deleterious nonkratom substance, including any controlled substance prescribed by chapter 27 of this title.
3. A kratom product containing a level of 7‑hydroxymitragynine in the alkaloid fraction that is greater than two percent of the alkaloid composition of the product.
4. A kratom product containing any synthetic alkaloid, including synthetic mitragynine, synthetic 7‑hydroxymitragynine or any other synthetically derived compounds of the kratom plant.
5. Any kratom‑containing product that does not include on its package or label the amount of mitragynine and 7‑hydroxymitragynine contained in the product.
B. A dealer RETAILER may not distribute, sell or expose for sale a kratom product to an individual under eighteen years of age.
Sec. 4. Section 36-795.03, Arizona Revised Statutes, is amended to read:
36-795.03. Violations; classification; prohibition
A. A dealer retailer that violates section 36‑795.01, subsection B or section 36‑795.02 is guilty of a class 2 misdemeanor.
B. In addition to and distinct from any other remedy at law or equity, a person aggrieved by a violation of section 36‑795.01, subsection B or section 36‑795.02, subsection A may bring a private cause of action in a court of competent jurisdiction for damages resulting from that violation, including economic, noneconomic or consequential damages.
C. A dealer retailer does not violate section 36‑795.01, subsection B or section 36‑795.02, subsection A if the court finds by a preponderance of the evidence that the dealer retailer relied in good faith on the representation of a manufacturer, processor, packer or distributor that the food was a kratom product.
D. A state agency may not take any enforcement action, including seizure of product, against a person that sells products containing kratom or its constituent alkaloids when the products are offered for sale as a food or dietary ingredient, unless the United States drug enforcement administration classifies kratom or its constituent alkaloids as a schedule I substance.
Sec. 5. Title 36, chapter 6, article 10, Arizona Revised Statutes, is amended by adding section 36-795.04, to read:
36-795.04. Financial institutions; service to retailers
A financial institution, service or entity, including a bank, credit union, credit card network or credit card processing company, may not refuse or terminate service to a retailer because the retailer engages in preparing, distributing or selling kratom products. If a financial institution, service or entity refuses or terminates service to a retailer because the retailer engages in preparing, distributing or selling kratom products, the financial institution, service or entity shall reestablish or accept service with the retailer on request of the retailer, regardless of whether the retailer appears on any report generated by a financial institution data match program or system.