Pennsylvania House passes bill to tax and regulate natural kratom, and ban synthetic kratom

(The Center Square) – The state House on Monday unanimously approved a bill to create first-time regulations and a new tax on the sale of natural kratom – an increasingly popular tree-derived substance that can act as both a stimulant and a sedative – and ban the sale of synthetic kratom.Meanwhile, in a split vote driven by Democrats seeking to address potential electricity shortages, the House acted to require that electric distribution companies acquire battery storage systems.
Concerning kratom, lawmakers on both sides argued on the House floor it was time to create regulations.
The bill, sponsored by Democratic Rep. Bridget Kosierowski of Lackawanna County, would require that all sellers register with the state and would ban sales to minors. It also would require labeling that verifies the kratom is natural and which discloses that the federal government has not evaluated kratom’s safety.
“Kratom is already here,” Kosierowksi said. The question, she added, is, “How do we establish standards to protect our customers?”
A Republican, Rep. Brenda Pugh of Luzerne County, argued strongly for passage.
“Kratom is a big deal,” Pugh said. People who are using such a natural product to deal with pain should be assured of its safety, she said. At the same time, for other uses, we “need to start putting warnings on this stuff.”
Addicts have said “it is harder to come off kratom” than it is to stop using heroin, according to Pugh.
The bill now goes to the Senate for consideration.
It calls for all taxes and registration and renewal fees from the kratom sellers to be placed in a new state Kratom Regulatory Fund.
A legislative analysis of the bill estimated that in the first full year of implementation the new 12% tax on the sale of kratom products would generate $4.4 million, and the state would collect an additional $241,000 in sales tax. The analysis was unclear on how much would be generated in registration and renewal fees.
Meanwhile, it was projected there would be hundreds of thousands of dollars in new costs for the departments of Revenue and Health to implement the new law. There also could be potential costs to the Department of Corrections for imprisoning persons convicted of violations.
Kratom can affect the body as a stimulant and, in greater concentrations, as a sedative. It comes from a tree native to southeast Asia.
A spokesperson for the kratom-favoring advocacy group, American Kratom Association, said it disapproved of the bill.
The AKA’s Mac Haddow said putting both a registration fee and a tax on the sale of natural kratom forms a “restraint” on business.
“There is no reason that kratom can’t be sold at any commercial retail outlet that has a limit on age,” as in the sale of cigarettes or alcohol, he said.
Meanwhile, the battery storage bill had the full backing of Democrats but got strong objections from many Republicans.
Sponsored by Democratic Rep. Nikki Rivera of Lancaster County, the measure would amend the state Public Utility Code to create battery storage requirements for electric distribution companies. Specifically, it would apply to those with at least 500,000 customers and with intended capacity of 3,500 megawatts by July 1, 2035.
A Public Utility Commission report, Rivera said, found that “Pennsylvania could face regular blackouts and brownouts as soon as 2030.”
Battery projects, she said, can be deployed in just two years, while building a new natural gas power plant can take five years and a nuclear power plant even longer. And under one estimate, Rivera said, the battery storage could save consumers and small businesses $397 million over 10 years.
That projection was disputed by Rep. Jesse Topper of Bedford County, the top Republican in the chamber. Such a government mandate, he said, will “in the end make it more expensive.”
And Republican Rep. Eric Nelson of Westmoreland County said, “It feels good in concept, but in reality your constituents will pay more.”
In the vote, all Democrats were in favor and were joined by 13 Republicans. The bill now goes to the Senate for consideration.

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