This act creates a new chapter in Title 82 RCW establishing a 95 percent excise tax on the taxable sales price of kratom products. The tax is imposed at the distributor level when kratom products are brought into Washington for sale, manufactured/stored for sale in the state, shipped to in‑state retailers, or otherwise handled for sale without prior tax. The tax must be separately itemized on customer receipts and the revenue is deposited into a newly created youth harmful substance prevention account in the state treasury, to be spent only after appropriation for programs that prevent or reduce youth access to harmful substances. The act takes effect January 1, 2027; preexisting distributor inventories in the state are subject to tax with returns and payment due by February 25, 2027, and consumers may not be taxed on kratom products acquired before January 1, 2027. The department may allow tax credits for kratom shipped out of state, returned to a manufacturer, destroyed, or sold to the United States or qualifying tribal organizations. The Liquor and Cannabis Board issues distributor and retailer kratom licenses through the business licensing system, may adopt rules, and enforces licensing requirements. Distributor license fees are $150 with an additional $100 per extra business location; retailer license fees are $175 per retail location. Applicants must submit to a criminal background check disclosing criminal conduct within the prior five years; prior background checks under certain statutes satisfy this requirement. Licenses expire with the business license and must be renewed annually; licensees must display licenses, retain detailed invoices and records for five years, and comply with labeling rules (including clear identification of the product, full ingredient lists, and amounts of mitragynine and 7‑hydroxymitragynine). Inspections of distributor and retail premises and records may occur during usual business hours without a search warrant, and transport of kratom for sale is restricted and must be accompanied by true invoices or delivery tickets. The act creates new enforcement and penalty provisions including criminal and civil consequences and forfeiture authority. Conducting business as an unlicensed distributor or retailer is made a class C felony under chapter 9A.20 RCW; other statutory violations are described as gross misdemeanors or misdemeanors depending on subsection, and tax penalties and interest under chapter 82.32 RCW apply where indicated. Kratom products and conveyances used in unlicensed sale or improper transport may be seized and forfeited under specified procedures; forfeited property may be retained for official use or sold with proceeds applied first to investigation and sale expenses and the remainder to the state general fund, and seized property may be returned if there was no intent to violate and taxes owed are paid. The provided excerpts omit some material needed to fully interpret the bill. The identity of "the department" referenced for administration and enforcement is not specified here. Portions of section 6 and the contents of sections 16 and 20 are missing from the excerpts, and one transport provision references "tobacco products" in a way that appears inconsistent with the rest of the kratom provisions; these points cannot be resolved from the available text.

If enacted, kratom sellers would face a large new cost and a heavy compliance regime: distributors would owe a 95% tax on kratom when bringing it into Washington, making it for sale, shipping to in‑state retailers, or otherwise handling it for sale, and that tax must be shown separately on receipts. Distributors and retailers must get annual licenses from the liquor and cannabis board, pay fees ($150 plus $100 for extra distributor locations; $175 per retailer location), pass five‑year criminal background checks, follow labeling rules that list ingredients and alkaloid amounts, keep five years of invoices and inventory records, carry specific transport paperwork, and submit to inspections without a warrant. Failure to be licensed or to follow transport, invoicing, or inspection rules risks seizure and forfeiture of products and vehicles, license suspension or revocation (minimum 30 days first offense, longer for repeats), and criminal penalties including felony exposure for unlicensed business activity. The tax revenue would go into a new youth harmful substance prevention account to fund programs that reduce youth access to tobacco, vapor products, cannabis, and kratom, but money can be spent only after the Legislature appropriates it. The law would take effect January 1, 2027; preexisting distributor inventory in the state would be taxable with reports and payment due by February 25, 2027, while consumers cannot be charged tax for products acquired before January 1, 2027. Important implementation details remain unclear from the provided text—most notably the specific state department named to administer and inspect, the full contents of sections referenced about transportation notice and board discretion, and one transport provision that mentions "tobacco products" which may be an error—so some enforcement and procedural outcomes could change once those parts are known.