California AB 1088 Would Impose 15% Tax on Kratom and Create Mandatory Product Registration System

Why it matters

California's AB 1088 would establish the most comprehensive state-level kratom regulatory framework in the country, combining mandatory product registration, a 15% excise tax, alkaloid limits, and under-21 sales restrictions — with revenues earmarked for public health and medical education programs.

The big picture

California banned kratom and 7-OH under its Sherman Food, Drug, and Cosmetic Law in October 2024, seizing $5 million in products, but that ban rests on administrative interpretation that could be challenged. AB 1088 would permanently codify kratom regulation into statute with both a comprehensive regulatory framework and a dedicated funding mechanism. The bill comes as California regulators continue enforcement and the state grapples with kratom's widespread availability in smoke shops and convenience stores despite the administrative ban. The bill was amended and re-referred to the Senate Health Committee in June 2026 and continues to advance.

Key findings

• Would add kratom products and 7-OH products to California's Sherman Food, Drug, and Cosmetic Law with permanent statutory authority
• Requires kratom processors to register each product annually with the California Department of Public Health, including laboratory certification of alkaloid content and safety standards
• Prohibits sale to those under 21 and mandates child-resistant packaging; bans child-attractive flavors and sales on platforms accessible to minors
• Imposes a 15% point-of-purchase tax on kratom product sales, with revenues deposited into a new Kratom Products Public Health and Safety Fund
• Fund revenues distributed to UC Kern County Medical Education Endowment, Board of State and Community Corrections, Primary Care Account, and Specialty Care Account
• As of June 8, 2026, the bill was amended and re-referred to the California Senate Health Committee, still advancing through the legislative process

What they say

"The neuroscience is unambiguous. The human brain continues developing into the early 20s. Exposure to substances with central nervous system effects during this critical period can interfere with proper development and increase the risk of substance use disorders later in life." — Assemblymember Jasmeet Bains (D-Bakersfield), author of AB 1088, at committee hearing

Bottom line

If enacted, California's AB 1088 would create the nation's most comprehensive kratom regulatory framework, combining mandatory product registration, a 15% excise tax, and under-21 sales prohibition with substantial public health enforcement funding.