The proposed bill introduces a new chapter in Title 82 RCW that focuses on the taxation and regulation of kratom products in Washington State. It defines essential terms such as "distributor," "retailer," and "kratom product," and imposes a tax on various activities related to kratom, including its sale and distribution. The bill requires that taxes be collected at different points in the distribution chain and mandates itemization of these taxes on sales receipts. Revenue from the taxes will be deposited into a "youth harmful substance prevention account" to fund programs aimed at reducing youth access to harmful substances.

Additionally, the bill sets forth licensing requirements for distributors and retailers, including application processes, fees, and criminal background checks. It establishes penalties for non-compliance, which can range from misdemeanors to class C felonies. The legislation also requires proper labeling of kratom products and maintenance of transaction records for five years. It includes provisions for the taxation of existing inventories, stipulating that tax liabilities must be settled by February 25, 2027, while ensuring that no taxes will be collected on kratom products acquired before January 1, 2027. The act is scheduled to take effect on January 1, 2027, and includes enforcement measures for compliance and the potential for license revocation for violations.