Specialized Product Retailer
Specialized Products
A specialized product retailer may not sell a specialized product in the state unless the specialized product retailer obtains a Specialized Products Retailer License.
A license is required for each location that sells a specialized product.
Our current focus is licensing retailers and educating them on the requirements. We realize there are many questions, and we encourage you to reach out if you need additional clarification.
Specialized Product Retailer License Fees
The fee for this license* will be determined based on the types of specialized products that you are selling. The department shall charge the following fees to obtain a license under this chapter:
Retail Tobacco Specialty Business (RTSB) - $2,500 if the retailer:
- Has a Retail Tobacco Specialty Business License from their Local health department
- This license does not replace the RTSB issued by your local health department
- Sells kratom products as defined in Section 4-45-102
- To sell kratom you must also have an RTSB issued by your local health department and a Kratom Retailer Permit
Specialized Products Retailer - $600 for any retailer that sells any of the following types of specialized product:
- Cannabinoid products as defined in Section 4-41-102;
- To sell hemp you must also have a Hemp Retailer Permit
- Any product containing a substance that is known or intended to have any of the following effects:
- AND is not generally recognized as safe for use in a conventional food product under applicable federal food additive regulations.
NOTE: Specialized products do not include alcohol or alcohol products, FDA approved prescription drugs, or over the counter drugs.
General Tobacco Retailer - $300 for a general tobacco retailer that does not sell specialized products described above.
*License is valid for up to one year from January 1 to December 31; fees can’t be prorated.
Requirements for Specialized Product Retailer License Application
Depending on the business type and the products you are selling you will need to submit:
- Local Health Department - Tobacco Retailer Permit
- Retail Tobacco Specialty Business permit; or
- General Tobacco Retailer Permit
- Tobacco Tax License
- Cannabinoid Tax License
All applicants will need to provide an Affidavit with the following information:
- For a publicly traded company:
- Any individual that has a financial or voting interest of 10% or greater in the specialized product retailer; and
- Any individual who has the power to direct or cause the management or control of the specialized product retailer
- For a privately held company:
- Any individual that has a financial or voting interest in the specialized product retailer; and
- Any individual who has the power to direct or cause the management or control of the specialized product retailer
The department may not issue a license to an applicant if an individual described above has been convicted under state or federal law of:
- a felony in the preceding 10 years;
- a crime involving a nicotine containing product; or
- after December 3, 2018, a misdemeanor or felony for drug distribution.
Additional Requirement Post License Acceptance
Licensees will provide a product list unique to each location.
- A "Product list" means a list of specialized products sold by a licensee.
- To determine which products need to go on the product list please refer to the Specialized Products Determination Guidance document.
- Important notes about the product list:
- Specialized products do not include alcohol or alcohol products, FDA approved prescription drugs, or over the counter drugs.
- At least seven days before selling a specialized product not on the product list, a licensee shall notify the department and provide an updated product list that includes the additional specialized product.
- The department may remove specialized products from a product list if the possession or sale of the specialized product violates state law.
- A licensee may not sell a specialized product that is not on or has been removed from the product list.
- If requested by the department to provide a specialized product for inspection or testing, a licensee shall provide the requested specialized product to the department.
Frequently Asked Questions
What are some examples of type of Specialized Products? This is not intended to be an inclusive list or a guarantee that a product is legal to sell:
- Mad and Royal Honey, Amanita muscaria, functional mushroom products, Blue Lotus, Kava, Kanna, Ibogaine, Tianeptine, nootropics and cognitive enhancers, natural stimulants and energy products, relaxation and sleep aids (including melatonin gummies), naturopathic pain relievers, mood stabilizers, natural sexual enhancement products.
- Specialized Products do not include alcohol or alcohol products, FDA approved prescription drugs, or over the counter drugs.
When do I need to submit my Product List?
- We are currently focusing on Licensing and Educating retailers on the requirements of the new law. Once you are issued an SPRL you will receive a link to submit your list. Please reach out if you have questions.
What happens if I list a product that's not a specialized product/fail to list a product that is considered specialized?
- As we implement the program we realize that determining whether some products are specialized may be difficult.
- Adding a non-specialized product to your list is fine.
- If you fail to add a specialized product to your list, we will work with you to help you understand the process and add the product. Our focus is on educating retailers.
- As we work more with retailers we will develop additional guidance to help address questions and concerns.
Is there a cost to register each product I add to my Product List?
- There is no cost to list a product. The Product List is not a registration. For Hemp and Kratom products you will still need to ensure that what you are selling is registered and listed in the program's respective Registration Lists.
What is the purpose of the Product List?
- After you submit your list the Specialized Products Division team will review the submitted products. If the team finds that a product violates State or Federal law, they will send out a notification to you and all retailers letting them know that product cannot be sold. The product will be removed from everyone's list who is selling it. If a retailer is found selling the product after they have been notified and it was removed from their list, it is a potential violation that could be subject to enforcement action by UDAF.
Why do I need to wait 7 days before I start selling products?
- You do not need to wait 7 days to sell your products when you submit your initial list or sell products that were missed inadvertently. The waiting period applies to new products that you are not currently selling and want to sell. If you start selling a new specialized product you must add it to your list at least 7 days before selling it.
- As we develop our list of ineligible products, the waiting period allows us to more proactively notify retailers that a product can't be sold and prevent retailers from inadvertently selling something they shouldn't.
If I stop selling hemp/kratom do I still need to get this license?
- Because the definition of Specialized Products includes more than just hemp and kratom you may still need to obtain an SPRL.
If I have a Retail Tobacco Speciality Business (RTSB) permit from my local health department but I'm not selling kratom do I still need to pay $2,500?
- If your establishment is an RTSB the SPRL license is $2,500 even if you choose to not sell kratom.
- Only RTSB's can legally sell kratom.