Civil Penalties for Unregistered Kratom Processors

# (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.

(a) The department will issue a civil penalty of $500 for a kratom processor's first violation.

(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.