House Bill 2740 (H-3615.1) establishes new regulation of hemp-derived cannabinoid products by amending RCW 15.140.020 and adding new sections to chapter 15.140 RCW and chapter 69.50 RCW. It creates a new annual product registration program for each distinct product formulation, requires submission of labels, ingredient lists, and certificates of analysis, and sets a statutory minimum registration fee of $2,500 per product formulation per year (actual fees set by rule). The bill defines a per-container combined cannabinoid limit of not more than 0.4 milligrams for a product to qualify as a “hemp consumable,” requires hemp to meet the 0.3 percent total THC dry-weight limit, bars sale or transfer of any hemp consumable containing any detectable tetrahydrocannabinols to persons under 21, and grants the Department of Agriculture rulemaking and enforcement authority including stop‑sale/embargo orders and civil penalties up to $10,000 per product, per day for selling or distributing unregistered products. The bill imposes a new 10 percent hemp-derived cannabinoid product tax on each retail sale of such products, separate from state and local sales taxes and required to be separately itemized on receipts and reflected in posted prices and advertising. Tax revenues are deposited daily with 50 percent to the hemp regulatory account (RCW 15.140.080) and 50 percent to the state general fund. Sellers must collect the tax from buyers, hold collected taxes in trust, and are personally liable for failure to collect or remit. RCW 69.50.101 is amended with numerous definitional changes and thresholds for cannabis, concentrates, and cannabis-infused products. RCW 69.50.325 is amended to codify three license types—producer, processor, and retailer—with specified authorities; licensed cannabis processors are expressly allowed to manufacture, package, and label hemp consumables that meet the 0.4 mg per-container limit and chapter 15.140 requirements. The act sets an application fee of $250 and an annual license fee of $1,381 for producers, processors, and retailers, requires a separate license per location, limits aggregate ownership to no more than five retail cannabis licenses, restricts certain management or cross‑financial agreements across more than five licenses, and directs the Liquor and Cannabis Board to adopt forfeiture rules (no forfeiture within nine months of issuance and required forfeiture by 24 months if not operational, subject to limited exceptions). Some portions of the bill text provided here are incomplete or not fully detailed in the extracted facts. A new section added to chapter 82.32 RCW (Sec. 6) was cut off and its contents are not available in these extracts. The definition or criteria for a “qualifying laboratory” referenced for certificates of analysis is not provided in the extracted material. Effective dates shown in the extracts: sections 1–4, 6–8, and 10 take effect July 1, 2026; section 9 takes effect June 30, 2027; section 8 expires June 30, 2027; section 5 takes effect immediately.

If enacted, businesses that make, sell, or distribute hemp-derived cannabinoid products will face new, costly regulation: each distinct product formulation must be registered every year and the fee will be at least $2,500, products will need testing, labeling, age verification, and must keep cannabinoid levels below about 0.4 milligrams per package to be treated as hemp rather than cannabis. Retail sellers must collect a new 10 percent tax on each sale (shown separately on receipts) that will raise retail prices and requires sellers to hold and remit the tax or risk personal liability; half of that tax and the registration fees go into a hemp regulatory account and the other half of tax revenue goes to the state general fund. Noncompliance creates substantial financial risk: the Department of Agriculture can order stop‑sales, seek injunctions, and civil penalties can reach up to $10,000 per product, per day for selling unregistered items. The agencies most affected are the Department of Agriculture and the Liquor and Cannabis Board, which will need to write rules and oversee testing, registration, and coordination with licensed cannabis processors now allowed to make compliant hemp consumables. Small manufacturers and retailers face higher upfront and ongoing costs, stricter age‑21 sales controls, and new operational risks that could force product changes or removal from the market; licensed cannabis processors gain an added production option but must comply with processor licensing and board rules. Key details remain unclear from the available text—most notably the incomplete section about a possible levy or other fiscal measures, and the specific criteria for “qualifying laboratories” and many rulemaking specifics that will determine the actual compliance burden.