This bill creates a new chapter in Title 69 RCW establishing a regulatory and consumer protection scheme for kratom products. It creates two new licenses administered through the business licensing system: a kratom retailer's license and a kratom processor's license, each requiring a $1,000 application or renewal fee (an additional $1,000 for each additional retail location). The Washington State Liquor and Cannabis Board is the licensing and enforcement authority; the Department of Health provides a required retail sign and the Department of Revenue is the tax recipient. The act takes effect January 1, 2027. The chapter is a comprehensive regulatory framework that imposes licensing requirements, product testing and labeling standards, packaging and child-safety rules, a publicly maintained directory of approved products, limits on product composition (including a 2% cap on 7‑hydroxymitragynine in the alkaloid fraction), and numerous prohibitions (for example, no self-service displays, no tastings or public consumption, no mail/internet delivery to any person). Independent ISO/IEC 17025–accredited labs must test products and supply certificates of analysis; processors must submit certifications and product lists to the board beginning January 1, 2027. The board may inspect licensed premises, require additional testing, seize noncompliant products, suspend or revoke licenses, and impose graduated monetary penalties and suspensions for violations of the age-restriction provision. Appeals and hearing procedures are tied to existing administrative and judicial processes, including de novo review in Thurston County Superior Court. The bill creates new criminal and civil penalties and tax obligations: selling or otherwise operating without the required license is a class C felony; selling or giving kratom to a person under 21 is a gross misdemeanor; persons under 21 who attempt to buy or possess kratom commit a class 3 civil infraction with up to four hours of community service; knowingly shipping or delivering kratom by mail or internet is a class C felony and subject to civil penalties; processors who produce products containing controlled substances face class C felony charges, while producing synthetically derived kratom alkaloids is a misdemeanor. The act also imposes an 11 percent kratom excise tax, separately itemized on receipts, with revenue deposited into a newly created youth regulated substance prevention account (25% for administration, 75% for public health education and interventions, subject to appropriation). Important items are incomplete or not fully provided in the extracted text: some sections are cut off or referenced but not shown (notably parts of sections 8, 10, 22(4), and 24), the specific new chapter number in Title 69 RCW is not given, and certain procedural details and definitions referenced elsewhere may be missing. The bill also states that any future federal regulation of kratom or its extracts will supersede conflicting provisions of this chapter.

If enacted, the bill would create a regulated market for kratom with mandatory annual licenses for both retailers and processors (each application or renewal costing $1,000 and an additional $1,000 for each extra retail location), strict product and packaging rules (child-resistant packaging, limits on 7-hydroxymitragynine, bans on mixes with certain drugs or synthetic alkaloids, no combustible/vape/injectable forms, and no packaging attractive to children), required independent lab testing and certificates of analysis, and a publicly maintained board directory of approved products and processors starting January 1, 2027. Retailers would face new limits on how kratom can be displayed or sold (no open self-service displays, no tastings, no mail or internet delivery), must post health and age signage, check IDs, and could be subject to escalating fines, license suspension or revocation, and product seizure for noncompliance; selling to anyone under 21 is criminalized and possession by under-21s is a civil infraction. Retailers and processors will likely see higher upfront and ongoing costs for licensing, testing, labeling, compliant packaging, and potential legal exposure, while independent ISO/IEC 17025 labs will face new business from required testing; sellers must also collect an 11 percent kratom excise tax (separately itemized and reflected in advertised prices) that is remitted to the state and deposited into a new youth regulated substance prevention account (with 25 percent for administration and 75 percent for prevention/education as appropriated). Enforcement responsibility falls to the Washington State Liquor and Cannabis Board, local health jurisdictions, and law enforcement, and the Attorney General can pursue civil penalties; some important implementation details are unclear in the provided text (for example, a cut-off provision about waiver of suspension, full procedures in a few sections, and certain definitional text), and federal regulation would override any conflicting state rules.