1. (1) The Department of Revenue may impose civil penalties on any person who sells, distributes, or exposes for sale kratom products on a wholesale basis to a retailer without first registering as a Kratom Processor under OAR 150-475-6010.

2. (2) The following civil penalties will be imposed on a per incident basis for a violation listed in section (1) of this rule.

   1. (a) The department will issue a civil penalty of $500 for a kratom processor’s first violation.
   2. (b) The department will issue a civil penalty of $1,000 for a kratom processor’s second and each subsequent violation.
3. (3) Each sales invoice or other document indicating a sale of kratom will be considered a separate incident for determining the penalty imposed under subsection (2) of this rule.
4. (4) If the department assesses a penalty under this administrative rule, the penalty assessment may be appealed as a contested case under ORS chapter 183 within 30 days of the date on the notice of penalty assessment.

Statutory/Other Authority

Oregon Laws 2022, chapter 41, section 7

Statutes/Other Implemented

Oregon Laws 2022, chapter 41, section 3

History

REV 10-2023, adopt filed 05/10/2023, effective 06/01/2023