Tobacco, nicotine, and vapor

AN ACT Relating to protecting public health and safety by 1
enhancing the regulation of tobacco products, alternative nicotine 2
products, and vapor products; amending RCW 26.28.080, 70.155.010, 3
70.155.090, 70.155.100, 70.345.010, 70.345.030, 82.25.030, 82.25.095, 4
82.26.010, 82.26.020, 82.26.060, 82.26.190, 82.26.200, 82.26.240, and 5
42.56.270; adding new sections to chapter 70.345 RCW; and prescribing 6
penalties. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:8
Sec. 1. RCW 26.28.080 and 2019 c 15 s 1 are each amended to read 9
as follows: 10
(1) A person who sells or gives, or permits to be sold or given, 11
to any person under the age of twenty-one years any cigar, cigarette, 12
cigarette paper or wrapper, tobacco in any form, alternative nicotine 13
product, or a vapor product is guilty of a gross misdemeanor and is 14
additionally liable for a fine of up to $500. 15
(2) It is not a defense to a prosecution for a violation of this 16
section that the person acted, or was believed by the defendant to 17
act, as agent or representative of another. 18
(3) For the purposes of this section((, "vapor)):19
(a) "Alternative nicotine product" has the same meaning as 20
provided in RCW 82.26.010; and21
H-0505.2
HOUSE BILL 1534
State of Washington 69th Legislature 2025 Regular Session
By Representatives Santos, Wylie, Parshley, Scott, Leavitt, Reeves,
Doglio, Tharinger, Nance, Corry, Ybarra, Couture, McClintock,
Hackney, Berry, Davis, Dufault, Ramel, Reed, Mendoza, Obras,
Gregerson, Kloba, Callan, Shavers, Peterson, Zahn, Ormsby, Pollet,
and Hill
Read first time 01/23/25. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 1534
(b) "Vapor product" has the same meaning as provided in RCW 1
70.345.010. 2
Sec. 2. RCW 70.155.010 and 2019 c 15 s 3 are each amended to 3
read as follows: 4
The definitions set forth in RCW 82.24.010 apply to this chapter. 5
In addition, for the purposes of this chapter, unless otherwise 6
required by the context: 7
(1) "Board" means the Washington state liquor and cannabis board.8
(2) "Internet" means any computer network, telephonic network, or 9
other electronic network. 10
(3) "Sample" means a tobacco product distributed to members of 11
the general public at no cost or at nominal cost for product 12
promotion purposes. 13
(4) "Sampling" means the distribution of samples to members of 14
the public. 15
(5) "Tobacco product" means an alternative nicotine product as 16
defined in RCW 82.26.010 or a product that contains tobacco and is 17
intended for human use, including any product defined in RCW 18
82.24.010(2) or 82.26.010(((21))) (22), except that for the purposes 19
of RCW 70.155.140 only, "tobacco product" does not include cigars 20
defined in RCW 82.26.010 as to which one thousand units weigh more 21
than three pounds. 22
(6) "Vapor product" has the same meaning as defined in RCW 23
70.345.010. 24
Sec. 3. RCW 70.155.090 and 2006 c 14 s 4 are each amended to 25
read as follows: 26
(1) ((Where there may be a question of a person's right to 27
purchase or obtain tobacco products by reason of age, the )) A 28
retailer or agent ((thereof,)) shall require the purchaser of a 29
tobacco product or vapor product to present any one of the following 30
officially issued identification that shows the purchaser's age and 31
bears his or her signature and photograph: (a) Liquor control 32
authority card of identification of a state or province of Canada; 33
(b) driver's license, instruction permit, or identification card of a 34
state or province of Canada; (c) "identicard" issued by the 35
Washington state department of licensing under chapter 46.20 RCW; (d) 36
United States military identification; (e) passport; (f) enrollment 37
card, issued by the governing authority of a federally recognized 38
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Indian tribe located in Washington, that incorporates security 1
features comparable to those implemented by the department of 2
licensing for Washington drivers' licenses. At least ninety days 3
prior to implementation of an enrollment card under this subsection, 4
the appropriate tribal authority shall give notice to the board. The 5
board shall publish and communicate to licensees regarding the 6
implementation of each new enrollment card; or (g) merchant marine 7
identification card issued by the United States coast guard.8
(2) It is a defense to a prosecution under RCW 26.28.080 that the 9
person making a sale reasonably relied on any of the officially 10
issued identification as defined in subsection (1) of this section. 11
The liquor ((control)) and cannabis board shall waive the suspension 12
or revocation of a license if the licensee clearly establishes that 13
he or she acted in good faith to prevent violations and a violation 14
occurred despite the licensee's exercise of due diligence.15
Sec. 4. RCW 70.155.100 and 2023 c 398 s 4 are each amended to 16
read as follows: 17
(1) The liquor and cannabis board may suspend or revoke a 18
retailer's license issued under RCW 82.24.510(1)(b) or 19
82.26.150(1)(b) held by a business at any location, or may impose a 20
monetary penalty as set forth in subsection (3) of this section, if 21
the liquor and cannabis board finds that the licensee has violated 22
RCW 26.28.080, 70.155.020, 70.155.030, 70.155.040, 70.155.050, 23
70.155.070, or 70.155.090. 24
(2) Any retailer's licenses issued under RCW 70.345.020 to a 25
person whose license or licenses under chapter 82.24 or 82.26 RCW 26
have been suspended or revoked for violating RCW 26.28.080 must also 27
be suspended or revoked during the period of suspension or revocation 28
under this section. 29
(3) The sanctions that the liquor and cannabis board may impose 30
against a person licensed under RCW 82.24.530 or 82.26.170 based upon 31
one or more findings under subsection (1) of this section may not 32
exceed the following: 33
(a) For violations of RCW 70.155.020 or 21 C.F.R. Sec. 1140.14, 34
and for violations of RCW 70.155.040 occurring on the licensed 35
premises: 36
(i) A monetary penalty of $200 for the first violation within any 37
((three-year)) two-year period; 38
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(ii) A monetary penalty of $600 for the second violation within 1
any ((three-year)) two-year period; 2
(iii) A monetary penalty of $2,000 and suspension of the license 3
for a period of six months for the third violation within any 4
((three-year)) two-year period; 5
(iv) A monetary penalty of $3,000 and suspension of the license 6
for a period of 12 months for the fourth violation within any 7
((three-year)) two-year period; 8
(v) ((Revocation)) A monetary penalty of $5,000 and revocation of 9
the license with no possibility of reinstatement for a period of five 10
years for the fifth or more violation within any ((three-year)) two-11
year period; 12
(b) For violations of RCW 26.28.080: 13
(i) A monetary penalty of (($1,000)) $1,500 for the first 14
violation within any ((three-year)) two-year period;15
(ii) A monetary penalty of (($2,500)) $3,000 for the second 16
violation within any ((three-year)) two-year period;17
(iii) A monetary penalty of (($5,000)) $6,000 and suspension of 18
the license for a period of six months for the third violation within 19
any ((three-year)) two-year period; 20
(iv) A monetary penalty of (($10,000)) $12,000 and suspension of 21
the license for a period of 12 months for the fourth violation within 22
any ((three-year)) two-year period; 23
(v) ((Revocation)) A monetary penalty of $15,000 and revocation 24
of the license with no possibility of reinstatement for a period of 25
five years for the fifth or more violation within any ((three-year)) 26
two-year period; 27
(c) If the board finds that a person licensed under chapter 82.24 28
or 82.26 RCW and RCW 70.345.020 has violated RCW 26.28.080, each 29
subsequent violation of either of the person's licenses counts as an 30
additional violation within that ((three-year)) two-year period;31
(d) For violations of RCW 70.155.030, a monetary penalty in the 32
amount of $100 for each day upon which such violation occurred;33
(e) For violations of RCW 70.155.050, a monetary penalty in the 34
amount of $600 for each violation; 35
(f) For violations of RCW 70.155.070, a monetary penalty in the 36
amount of $2,000 for each violation. 37
(4) The liquor and cannabis board may impose a monetary penalty 38
upon any person other than a licensed cigarette or tobacco product 39
retailer if the liquor and cannabis board finds that the person has 40
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violated RCW 26.28.080, 70.155.020, 70.155.030, 70.155.040, 1
70.155.050, 70.155.070, or 70.155.090. 2
(5) The monetary penalty that the liquor and cannabis board may 3
impose based upon one or more findings under subsection (4) of this 4
section may not exceed the following: 5
(a) For violation of RCW 26.28.080 or 70.155.020, $100 for the 6
first violation and $200 for each subsequent violation;7
(b) For violations of RCW 70.155.030, $200 for each day upon 8
which such violation occurred; 9
(c) For violations of RCW 70.155.040, $200 for each violation;10
(d) For violations of RCW 70.155.050, $600 for each violation;11
(e) For violations of RCW 70.155.070, $2,000 for each violation.12
(6) The liquor and cannabis board may develop and offer a class 13
for retail clerks and use this class in lieu of a monetary penalty 14
for the clerk's first violation. 15
(7) The liquor and cannabis board may issue a cease and desist 16
order to any person who is found by the liquor and cannabis board to 17
have violated or intending to violate the provisions of this chapter, 18
RCW 26.28.080, 82.24.500, or 82.26.190 requiring such person to cease 19
specified conduct that is in violation. The issuance of a cease and 20
desist order does not preclude the imposition of other sanctions 21
authorized by this statute or any other provision of law.22
(8) The liquor and cannabis board may seek injunctive relief to 23
enforce the provisions of RCW 26.28.080, 82.24.500, 82.26.190 or this 24
chapter. The liquor and cannabis board may initiate legal action to 25
collect civil penalties imposed under this chapter if the same have 26
not been paid within thirty days after imposition of such penalties. 27
In any action filed by the liquor and cannabis board under this 28
chapter, the court may, in addition to any other relief, award the 29
liquor and cannabis board reasonable attorneys' fees and costs.30
(9) All proceedings under subsections (1) through (7) of this 31
section shall be conducted in accordance with chapter 34.05 RCW.32
(10) The liquor and cannabis board may reduce or waive either the 33
penalties or the suspension or revocation of a license, or both, as 34
set forth in this chapter where the elements of proof are inadequate 35
or where there are mitigating circumstances. Mitigating circumstances 36
may include, but are not limited to, an exercise of due diligence by 37
a retailer. Further, the board may exceed penalties set forth in this 38
chapter based on aggravating circumstances. 39
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Sec. 5. RCW 70.345.010 and 2022 c 16 s 135 are each amended to 1
read as follows: 2
The definitions in this section apply throughout this chapter 3
unless the context clearly requires otherwise. 4
(1) "Alternative nicotine product" has the same meaning as 5
provided in RCW 82.26.010.6
(2) "Board" means the Washington state liquor and cannabis board.7
(((2))) (3) "Business" means any trade, occupation, activity, or 8
enterprise engaged in for the purpose of selling or distributing 9
vapor products in this state. 10
(((3))) (4) "Child care facility" has the same meaning as 11
provided in RCW 70A.320.020. 12
(((4))) (5) "Closed system nicotine container" means a sealed, 13
prefilled, and disposable container of nicotine in a solution or 14
other form in which such container is inserted directly into an 15
electronic cigarette, electronic nicotine delivery system, or other 16
similar product, if the nicotine in the container is inaccessible 17
through customary or reasonably foreseeable handling or use, 18
including reasonably foreseeable ingestion or other contact by 19
children. 20
(((5))) (6) "Delivery sale" means any sale of a vapor product to 21
a purchaser in this state where either: 22
(a) The purchaser submits the order for such sale by means of a 23
telephonic or other method of voice transmission, the mails or any 24
other delivery service, or the internet or other online service; or25
(b) The vapor product is delivered by use of the mails or of a 26
delivery service. The foregoing sales of vapor products constitute a 27
delivery sale regardless of whether the seller is located within or 28
without this state. "Delivery sale" does not include a sale of any 29
vapor product not for personal consumption to a retailer.30
(((6))) (7) "Delivery seller" means a person who makes delivery 31
sales. 32
(((7))) (8) "Directory" means the directory established in 33
section 10 of this act.34
(9) "Distributor" has the same meaning as in RCW 82.25.005.35
(((8))) (10) "Liquid nicotine container" means a package from 36
which nicotine in a solution or other form is accessible through 37
normal and foreseeable use by a consumer and that is used to hold 38
soluble nicotine in any concentration. "Liquid nicotine container" 39
does not include closed system nicotine containers.40
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(((9))) (11) "Manufacturer" means a person who manufactures and 1
sells vapor products. 2
(((10))) (12) "Person" means any individual, receiver, 3
administrator, executor, assignee, trustee in bankruptcy, trust, 4
estate, firm, copartnership, joint venture, club, company, joint 5
stock company, business trust, municipal corporation, the state and 6
its departments and institutions, political subdivision of the state 7
of Washington, corporation, limited liability company, association, 8
society, any group of individuals acting as a unit, whether mutual, 9
cooperative, fraternal, nonprofit, or otherwise. 10
(((11))) (13) "Place of business" means any place where vapor 11
products are sold or where vapor products are manufactured, stored, 12
or kept for the purpose of sale. 13
(((12))) (14) "Playground" means any public improved area 14
designed, equipped, and set aside for play of six or more children 15
which is not intended for use as an athletic playing field or 16
athletic court, including but not limited to any play equipment, 17
surfacing, fencing, signs, internal pathways, internal land forms, 18
vegetation, and related structures. 19
(((13))) (15) "Retail outlet" means each place of business from 20
which vapor products are sold to consumers. 21
(((14))) (16) "Retailer" means any person engaged in the business 22
of selling vapor products to ultimate consumers. 23
(((15))) (17)(a) "Sale" means any transfer, exchange, or barter, 24
in any manner or by any means whatsoever, for a consideration, and 25
includes and means all sales made by any person. 26
(b) The term "sale" includes a gift by a person engaged in the 27
business of selling vapor products, for advertising, promoting, or as 28
a means of evading the provisions of this chapter.29
(((16))) (18) "School" has the same meaning as provided in RCW 30
70A.320.020. 31
(((17))) (19) "Self-service display" means a display that 32
contains vapor products and is located in an area that is openly 33
accessible to customers and from which customers can readily access 34
such products without the assistance of a salesperson. A display case 35
that holds vapor products behind locked doors does not constitute a 36
self-service display. 37
(((18))) (20) "Timely filed premarket tobacco product 38
application" means an application under 21 U.S.C. Sec. 387j for a 39
vapor product containing nicotine derived from tobacco marketed in 40
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the United States as of August 8, 2016, that was submitted to the 1
food and drug administration on or before September 9, 2020, and 2
accepted for filing. 3
(21) "Vapor product" means any noncombustible product that may 4
contain nicotine and that employs a heating element, power source, 5
electronic circuit, or other electronic, chemical, or mechanical 6
means, regardless of shape or size, that can be used to produce vapor 7
or aerosol from a solution or other substance. 8
(a) "Vapor product" includes any electronic cigarette, electronic 9
cigar, electronic cigarillo, electronic pipe, or similar product or 10
device and any vapor cartridge or other container that may contain 11
nicotine in a solution or other form that is intended to be used with 12
or in an electronic cigarette, electronic cigar, electronic 13
cigarillo, electronic pipe, or similar product or device.14
(b) "Vapor product" does not include any product that meets the 15
definition of cannabis, useable cannabis, cannabis concentrates, 16
cannabis-infused products, cigarette, alternative nicotine products, 17
or tobacco products. 18
(c) For purposes of this subsection (((18))) (21), "cannabis," 19
"useable cannabis," "cannabis concentrates," and "cannabis-infused 20
products" have the same meaning as provided in RCW 69.50.101.21
Sec. 6. RCW 70.345.030 and 2019 c 445 s 211 are each amended to 22
read as follows: 23
(1)(a) No person may engage in or conduct business as a retailer, 24
distributor, or delivery seller in this state without a valid license 25
issued under this chapter, except as otherwise provided by law. Any 26
person who sells vapor products to ultimate consumers by a means 27
other than delivery sales must obtain a retailer's license under this 28
chapter. Any person who meets the definition of distributor under 29
this chapter must obtain a distributor's license under this chapter. 30
Any person who conducts delivery sales of vapor products must obtain 31
a delivery sale license. 32
(b) A retailer may obtain vapor products only from a licensed 33
distributor. A retailer that obtains vapor products from any person 34
that is not licensed under this chapter, including directly from a 35
manufacturer, must be licensed both as a retailer and a distributor 36
under this chapter and is liable for the tax imposed under RCW 37
82.25.010 with respect to the vapor products acquired from the 38
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unlicensed person that are held for sale, handling, or distribution 1
in this state. 2
(c) A violation of this subsection is punishable as a class C 3
felony according to chapter 9A.20 RCW. Products offered for sale in 4
violation of this subsection are contraband and subject to seizure in 5
accordance with RCW 82.25.095.6
(2) No person engaged in or conducting business as a retailer, 7
distributor, or delivery seller in this state may refuse to allow the 8
enforcement officers of the board, on demand, to make full inspection 9
of any place of business or vehicle where any of the vapor products 10
regulated under this chapter are sold, stored, transported, or 11
handled, or otherwise hinder or prevent such inspection. A person who 12
violates this subsection is guilty of a gross misdemeanor.13
(3) Any person licensed under this chapter as a distributor, any 14
person licensed under this chapter as a retailer, and any person 15
licensed under this chapter as a delivery seller may not operate in 16
any other capacity unless the additional appropriate license is first 17
secured, except as otherwise provided by law. A violation of this 18
subsection is a misdemeanor. 19
(4) No person engaged in or conducting business as a retailer, 20
distributor, or delivery seller in this state may sell or give, or 21
permit to sell or give, a product that contains any amount of any 22
cannabinoid, synthetic cannabinoid, cathinone, or methcathinone, 23
unless otherwise provided by law. A violation of this subsection (4) 24
is punishable according to RCW 69.50.401. 25
(5) The penalties provided in this section are in addition to any 26
other penalties provided by law for violating the provisions of this 27
chapter or the rules adopted under this chapter. 28
NEW SECTION. Sec. 7. A new section is added to chapter 70.345 29
RCW to read as follows: 30
(1) By October 1, 2025, and annually thereafter, every 31
manufacturer of a vapor product that contains nicotine that is sold 32
for retail sale in this state or to a consumer in this state, whether 33
directly or through a distributor, wholesaler, retailer, delivery 34
seller, or similar intermediary or intermediaries, shall execute and 35
deliver to the board a certification, under penalty of perjury on a 36
form and in a manner prescribed by the board, that the manufacturer 37
is compliant with this chapter and that, for each vapor product sold 38
for retail sale in this state or to a consumer in this state:39
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(a) The manufacturer has received a marketing granted order for 1
the vapor product from the food and drug administration under 21 2
U.S.C. Sec. 387j; 3
(b) The manufacturer submitted a timely filed premarket tobacco 4
product application for the vapor product to the food and drug 5
administration under 21 U.S.C. Sec. 387j, and the application either 6
remains under review by the food and drug administration or has 7
received a denial order that has been and remains stayed by the food 8
and drug administration or court order, rescinded by the food and 9
drug administration, or vacated by a court; or 10
(c) The manufacturer is not required to submit an additional 11
marketing granted order or premarket tobacco product application for 12
the vapor product because the vapor product merely reflects changes 13
to the name, brand style, or packaging of a vapor product that is 14
covered under (a) or (b) of this subsection. 15
(2) The certification form must list for each vapor product 16
containing nicotine that is sold in this state: Brand name; product 17
name; category including but not limited to disposable vapor product, 18
power unit, device, e-liquid cartridge, or e-liquid pod; and flavor.19
(3) Each certification form must be accompanied by:20
(a) A copy of: (i) The marketing granted order issued by the food 21
and drug administration under 21 U.S.C. Sec. 387j; (ii) a copy of the 22
acceptance letter issued by the food and drug administration under 21 23
U.S.C. Sec. 387j for a timely filed premarket tobacco product 24
application; or (iii) a document issued by the food and drug 25
administration or by a court confirming that the premarket tobacco 26
product application has received a denial order that has been and 27
remains stayed by the food and drug administration or court order, 28
rescinded by the food and drug administration or vacated by a court; 29
and 30
(b) A payment of a $1,000 fee for each vapor product containing 31
nicotine the first time an annual certification form is delivered to 32
the board and a payment of a $500 fee for each vapor product 33
containing nicotine the second and each subsequent time an annual 34
certification form is delivered to the board. 35
NEW SECTION. Sec. 8. A new section is added to chapter 70.345 36
RCW to read as follows: 37
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Information submitted by a manufacturer under section 7 (3)(a) of 1
this act is confidential and exempt from public disclosure under RCW 2
42.56.270. 3
NEW SECTION. Sec. 9. A new section is added to chapter 70.345 4
RCW to read as follows: 5
A manufacturer required to submit a certification form under 6
section 7 of this act must notify the attorney general within 30 days 7
of any material change to the certification form, including the 8
issuance or denial of a marketing authorization or other order by the 9
food and drug administration under 21 U.S.C. Sec. 387j, or any other 10
order or action by the food and drug administration or any court that 11
affects the ability of the vapor product containing nicotine to be 12
introduced or delivered into interstate commerce for commercial 13
distribution in the United States. 14
NEW SECTION. Sec. 10. A new section is added to chapter 70.345 15
RCW to read as follows: 16
(1) Starting January 1, 2026, the board shall maintain and make 17
publicly available on its website a directory that lists all 18
manufacturers and vapor products containing nicotine including brand 19
names, product names, categories including disposable vapor product, 20
e-liquid, e-liquid cartridge, e-liquid pod, and power unit, and 21
flavors, for which certification forms have been submitted and 22
approved by the board. 23
(2) The board must update the directory at least monthly to 24
ensure accuracy, and establish a process to provide licensed 25
retailers, distributors, and other relevant parties notice of the 26
initial publication of the directory and changes made to the 27
directory in the previous month. 28
(3) No manufacturer or the manufacturer's vapor products 29
containing nicotine may be included or retained in the directory if 30
the board determines that any of the following apply:31
(a) The manufacturer failed to provide a complete and accurate 32
certification as required by section 7(1) of this act;33
(b) The manufacturer submitted a certification that does not 34
comply with the requirements of section 7 (2) or (3) of this act;35
(c) The manufacturer failed to include with its certification the 36
payment required by section 7(3)(b) of this act; 37
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(d) The manufacturer sold vapor products containing nicotine in 1
this state required to be certified under this chapter during a 2
period when either the manufacturer or the vapor product had not been 3
certified and listed on the directory; or 4
(e) The information provided by the manufacturer in its 5
certification is determined by the attorney general to contain false 6
information or contains material misrepresentations or omissions.7
NEW SECTION. Sec. 11. A new section is added to chapter 70.345 8
RCW to read as follows: 9
(1) The board must provide manufacturers notice and an 10
opportunity to cure deficiencies before removing manufacturers or 11
vapor products containing nicotine from the directory.12
(2) The board may not remove the manufacturer or its vapor 13
products containing nicotine from the directory until at least 30 14
days after the manufacturer has been given notice of an intended 15
action setting forth the reasons for removal. Notice is sufficient 16
and deemed to be immediately received by a manufacturer if the notice 17
is sent either electronically or by facsimile to an email address or 18
facsimile number, as the case may be, provided by the manufacturer in 19
its most recent certification filed under section 7 (2) and (3) of 20
this act. 21
(3) The manufacturer has 15 days from the date of service of the 22
notice of the board's intended action to cure the deficiencies or 23
otherwise establish that the manufacturer or its vapor products 24
containing nicotine should be included in the directory.25
(4) Retailers have 30 days following the removal of a 26
manufacturer or its vapor products containing nicotine from the 27
directory to sell such vapor products that were in the retailer's 28
inventory as of the date of removal. 29
(5) After 30 days following removal from the directory, the vapor 30
products containing nicotine of a manufacturer identified in the 31
notice of removal and intended for retail sale in this state or to a 32
consumer in this state are subject to seizure, in accordance with RCW 33
82.25.095, from distributors and retailers, forfeiture from 34
distributors and retailers, and destruction or disposal, and may not 35
be purchased or sold for retail sale in this state or to a consumer 36
in this state. The cost of the seizure, forfeiture, and destruction 37
or disposal must be borne by the person from whom the vapor products 38
are confiscated. 39
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NEW SECTION. Sec. 12. A new section is added to chapter 70.345 1
RCW to read as follows: 2
(1) Except as provided in subsections (2) and (3) of this 3
section, beginning January 1, 2026, or on the date that the board 4
first makes the directory available for public inspection on its 5
official website, whichever is later, vapor products containing 6
nicotine not included in the directory may not be sold for retail 7
sale in this state, either directly or through an importer, 8
distributor, wholesaler, retailer, or similar intermediary or 9
intermediaries. 10
(2) Each retailer has 60 days from the date that the board first 11
makes the directory available for inspection on its public website to 12
sell vapor products containing nicotine that were in its inventory 13
and not included in the directory or remove those vapor products from 14
inventory. 15
(3) Each distributor or wholesaler has 60 days from the date that 16
the board first makes the directory available for inspection on its 17
public website to remove vapor products containing nicotine intended 18
for retail sale in the state that are not included in the directory 19
from its inventory. 20
(4) After 60 days following publication of the directory, vapor 21
products containing nicotine not listed in the directory and intended 22
for retail sale in this state or to a consumer in this state are 23
subject to seizure, forfeiture, and destruction or disposal, and may 24
not be purchased or sold for retail sale in this state or to a 25
consumer in this state except as provided in subsections (2) and (3) 26
of this section. The cost of such seizure, forfeiture, and 27
destruction or disposal must be borne by the person from whom the 28
vapor products are confiscated. 29
NEW SECTION. Sec. 13. A new section is added to chapter 70.345 30
RCW to read as follows: 31
The following penalties apply to violations of sections 7 through 32
17 of this act: 33
(1)(a) In addition to, or in lieu of, any other civil or criminal 34
remedy provided by law, a retailer, distributor, wholesaler, or 35
importer, who sells or offers for sale a vapor product containing 36
nicotine for retail sale in this state or to a consumer in this state 37
that is not included in the directory is subject to a civil penalty 38
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of $500 for each individual vapor product containing nicotine offered 1
for sale in violation of sections 7 through 17 of this act.2
(b) For a second violation of (a) of this subsection within a 12-3
month period, the civil penalty must be at least $750 but not more 4
than $1,000 per vapor product containing nicotine and the licensee's 5
license must be suspended for 30 days. 6
(c) For a third violation of (a) of this subsection within a 12-7
month period, the civil penalty must be at least $1,000 but not more 8
than $1,500 per vapor product containing nicotine and the licensee's 9
license must be revoked; 10
(2) A manufacturer whose vapor products containing nicotine are 11
not listed in the directory and who causes the vapor products 12
containing nicotine that are not listed to be sold for retail sale in 13
this state, whether directly or through an importer, distributor, 14
wholesaler, retailer, or similar intermediary or intermediaries, is 15
subject to a civil penalty of $10,000 for each individual vapor 16
product offered for sale in violation of this section. In addition, 17
any manufacturer that falsely represents any information required by 18
a certification form is guilty of a class C misdemeanor for each 19
false representation; 20
(3) In an action under this section, the state is entitled to 21
recover costs, including the costs of investigation, expert witness 22
fees, and reasonable attorneys' fees; 23
(4) Vapor products containing nicotine offered for sale in 24
violation of sections 7 through 17 of this act are considered 25
contraband and may be seized and disposed of or destroyed by an 26
enforcement officer of the board. The cost of seizure and disposal or 27
destruction must be borne by the person from whom the vapor products 28
are confiscated, and not by the board; 29
(5) The board may seek recovery of the penalty in a civil action 30
in superior court; 31
(6) The board may seek an injunction in superior court to 32
restrain a threatened or actual violation of this section and to 33
compel compliance with this section; and 34
(7) A second or subsequent violation of sections 7 through 17 of 35
this act is not reasonable in relation to the development and 36
preservation of business and is an unfair and deceptive act or 37
practice and an unfair method of competition in the conduct of trade 38
or commerce in violation of RCW 19.86.020. Standing to bring an 39
action to enforce RCW 19.86.020 for violation of this section lies 40
p. 14 HB 1534
solely with the attorney general. Remedies provided by chapter 19.86 1
RCW are cumulative and not exclusive. 2
NEW SECTION. Sec. 14. A new section is added to chapter 70.345 3
RCW to read as follows: 4
Each retailer, distributor, and wholesaler that sells or 5
distributes vapor products containing nicotine in this state are 6
subject to at least two unannounced compliance checks annually for 7
purposes of enforcing this section. Unannounced follow-up compliance 8
checks of all noncompliant retailers, distributors, and wholesalers 9
must be conducted within 30 days after any violation of sections 7 10
through 17 of this act. The board must publish the results of all 11
compliance checks at least annually and make the results available to 12
the public on request. The requirements of this section do not apply 13
to an Indian tribal organization, Indian retailer, or Indian 14
distributor, as those terms are defined in RCW 82.25.105.15
NEW SECTION. Sec. 15. A new section is added to chapter 70.345 16
RCW to read as follows: 17
(1) Any nonresident or foreign manufacturer that has not 18
registered to do business in the state as a foreign corporation or 19
business entity must, as a condition precedent to having its vapor 20
products containing nicotine included or retained in the directory, 21
appoint and continually engage without interruption the services of 22
an agent in this state to act as agent for the service of process on 23
whom all process, and any action or proceeding against it concerning 24
or arising out of the enforcement of sections 7 through 17 of this 25
act, may be served in any manner authorized by law. The service must 26
constitute legal and valid service of process on the manufacturer. 27
The manufacturer must provide the name, address, phone number, and 28
proof of the appointment and availability of the agent to the 29
satisfaction of the board. 30
(2) The manufacturer must provide notice to the board 30 days 31
before termination of the authority of an agent and must further 32
provide proof to the satisfaction of the board of the appointment of 33
a new agent no fewer than five days before the termination of an 34
existing agent appointment. If an agent terminates an agency 35
appointment, the manufacturer must notify the board of the 36
termination within five days and include proof to the satisfaction of 37
the board of the appointment of a new agent. 38
p. 15 HB 1534
(3) Any manufacturer whose vapor products containing nicotine are 1
sold in this state, who has not appointed and engaged an agent as 2
required in this section, must be deemed to have appointed the 3
secretary of state as the agent and may be proceeded against in 4
courts of this state by service of process upon the secretary of 5
state. However, the appointment of the secretary of state as agent 6
does not satisfy the condition precedent for having the vapor 7
products containing nicotine of the manufacturer included or retained 8
in the directory. 9
NEW SECTION. Sec. 16. A new section is added to chapter 70.345 10
RCW to read as follows: 11
(1) Any nonresident or foreign manufacturer that has not 12
registered to do business in the state as a foreign corporation or 13
business entity must, as a condition precedent to having its name or 14
its vapor products containing nicotine listed and retained in the 15
directory, submit to the board a surety bond or other cash security 16
payable to the state of Washington in the amount of $25,000. The bond 17
must be posted by a corporate surety located within the United 18
States. 19
(2) The bond under subsection (1) of this section must be 20
conditioned on the performance by the manufacturer of all 21
requirements and obligations imposed by this section. A surety on a 22
manufacturer's bond is liable up to the amount of the bond and the 23
state may execute on the surety bond for the payment of fines and 24
penalties imposed on the manufacturer under section 13 of this act 25
and for the costs of seizure and destruction of products sold in 26
violation of sections 7 through 17 of this act. If the state executes 27
on the surety bond, it may require the manufacturer to provide an 28
additional bond as a condition precedent for retaining the 29
manufacturer or its vapor products containing nicotine in the 30
directory. 31
(3) A surety on a bond furnished by a manufacturer as provided in 32
this section must be released and discharged from liability to the 33
state accruing on the bond after 60 days from the date upon which the 34
surety has filed with the board a written request to be released and 35
discharged. This subsection does not operate to relieve, release, or 36
discharge the surety from liability already accrued or that accrues 37
before the expiration of the 60-day period. The board must, upon 38
receiving a request under this subsection, notify the manufacturer 39
p. 16 HB 1534
who furnished the bond. The board must remove the manufacturer and 1
its vapor products containing nicotine from the directory unless the 2
manufacturer files a new bond with the board before the expiration of 3
the 60-day period, with the surety approved by and acceptable to the 4
board. 5
NEW SECTION. Sec. 17. A new section is added to chapter 70.345 6
RCW to read as follows: 7
(1) Nicotine analogue means a substance: 8
(a) Chemical structure of which is substantially similar to the 9
chemical structure of nicotine; or 10
(b) That has, purports to have, or is represented to have, an 11
effect on the central nervous system that is similar to or greater 12
than the effect on the central nervous system of nicotine.13
(2) Factors relevant to determining whether a substance is a 14
nicotine analogue include, but are not limited to, the marketing, 15
advertising, and labeling of the substance, and whether the substance 16
has been manufactured, formulated, sold, distributed, or marketed 17
with the intent to avoid sections 7 through 16 of this act or other 18
application provisions of law. 19
(3) It is unlawful for any person to sell, give, deliver, or 20
furnish to a person in this state a product that contains a nicotine 21
analogue. 22
(4) Violations of this section are subject to the following 23
penalties: 24
(a) A monetary penalty of $1,500 for the first violation within 25
any 12-month period; 26
(b) A monetary penalty of $3,000 for the second violation within 27
any 12-month period; 28
(c) A monetary penalty of $6,000 and suspension of a license 29
issued under this chapter for a period of six months for the third 30
violation within any 12-month period; 31
(d) A monetary penalty of $12,000 and suspension of a license 32
issued under this chapter for a period of 12 months for the fourth 33
violation within any 12-month period; 34
(e) A monetary penalty of $15,000 and revocation of a license 35
issued under this chapter with no possibility of reinstatement for a 36
period of five years for the fifth or a subsequent violation within 37
any three-year period. 38
p. 17 HB 1534
NEW SECTION. Sec. 18. A new section is added to chapter 70.345 1
RCW to read as follows: 2
(1) The board may adopt rules necessary to implement sections 7 3
through 17 of this act. 4
(2) Starting July 1, 2026, and annually thereafter, the board 5
must provide a report to the legislature regarding: The status of the 6
directory, manufacturers, and vapor products containing nicotine 7
included in the directory; revenue and expenditures related to 8
administration of this section; and enforcement activities undertaken 9
under sections 7 through 17 of this act. 10
NEW SECTION. Sec. 19. A new section is added to chapter 70.345 11
RCW to read as follows: 12
The vapor product nicotine directory account is created in the 13
state treasury. All receipts from monetary penalties under sections 7 14
through 18 of this act must be deposited into the account. Moneys in 15
the account may be spent only after appropriation. Expenditures from 16
the account may only be used by the board for implementation of 17
sections 7 through 17 of this act. 18
Sec. 20. RCW 82.25.030 and 2019 c 445 s 106 are each amended to 19
read as follows: 20
(1) Every distributor must keep at each place of business 21
complete and accurate records for that place of business, including 22
itemized invoices, of vapor products held, purchased, manufactured, 23
brought in or caused to be brought in from without the state, or 24
shipped or transported to retailers in this state, and of all sales 25
of vapor products made. 26
(2) These records must show the names and addresses of 27
purchasers, the inventory of all vapor products including quantity of 28
vapor products by brand , and other pertinent papers and documents 29
relating to the purchase, sale, or disposition of vapor products. All 30
invoices and other records required by this section to be kept must 31
be preserved for a period of five years from the date of the invoices 32
or other documents or the date of the entries appearing in the 33
records. 34
(3) At any time during usual business hours the department, 35
board, or its duly authorized agents or employees may enter any place 36
of business of a distributor, without a search warrant, and inspect 37
the premises, the records required to be kept under this chapter, and 38
p. 18 HB 1534
the vapor products contained therein, to determine whether or not all 1
the provisions of this chapter are being fully complied with. If the 2
department, board, or any of its agents or employees are denied free 3
access or are hindered or interfered with in making such examination, 4
the registration certificate issued under RCW 82.32.030 of the 5
distributor at such premises are subject to revocation by the 6
department, and any licenses issued under chapter 70.345, 82.26, or 7
82.24 RCW are subject to suspension or revocation by the board.8
(4) The department may share information obtained under this 9
section that is deemed relevant to the potential violation of the 10
laws of other jurisdictions with the duly appointed agents of those 11
jurisdictions.12
Sec. 21. RCW 82.25.095 and 2019 c 445 s 119 are each amended to 13
read as follows: 14
(1) In all cases of seizure of any vapor products made subject to 15
forfeiture under this chapter, the department or board must proceed 16
as provided in RCW 82.24.135. 17
(2) When vapor products are forfeited under this chapter, the 18
department or board may: 19
(a) Retain the property for official use or upon application by 20
any law enforcement agency of this state, another state, or the 21
District of Columbia, or of the United States for the exclusive use 22
of enforcing this chapter or the laws of any other state or the 23
District of Columbia or of the United States; ((or))24
(b) Destroy the vapor products; or25
(c) Sell the vapor products at public auction to the highest 26
bidder after due advertisement. Before delivering any of the goods to 27
the successful bidder, the department or board must require the 28
purchaser to pay the proper amount of any tax due. The proceeds of 29
the sale must be first applied to the payment of all proper expenses 30
of any investigation leading to the seizure and of the proceedings 31
for forfeiture and sale, including expenses of seizure, maintenance 32
of custody, advertising, and court costs. The balance of the proceeds 33
and all money must be deposited in the general fund of the state. 34
Proper expenses of investigation include costs incurred by any law 35
enforcement agency or any federal, state, or local agency.36
(3) The department or the board may return any property seized 37
under the provisions of this chapter when it is shown that there was 38
no intention to violate the provisions of this chapter. When any 39
p. 19 HB 1534
property is returned under this section, the department or the board 1
may return the property to the parties from whom they were seized if 2
and when such parties have paid the proper amount of tax due under 3
this chapter. 4
Sec. 22. RCW 82.26.010 and 2020 c 139 s 31 are each amended to 5
read as follows: 6
The definitions in this section apply throughout this chapter 7
unless the context clearly requires otherwise. 8
(1) "Actual price" means the total amount of consideration for 9
which tobacco products are sold, valued in money, whether received in 10
money or otherwise, including any charges by the seller necessary to 11
complete the sale such as charges for delivery, freight, 12
transportation, or handling. 13
(2) "Affiliated" means related in any way by virtue of any form 14
or amount of common ownership, control, operation, or management.15
(3)(a) "Alternative nicotine product" means any noncombustible 16
product containing nicotine that is intended for human consumption, 17
whether chewed, absorbed, dissolved, or ingested by any other means.18
(b) "Alternative nicotine product" does not include a vapor 19
product or a product regulated as a drug or device by the food and 20
drug administration.21
(4) "Board" means the liquor and cannabis board.22
(((4))) (5) "Business" means any trade, occupation, activity, or 23
enterprise engaged in for the purpose of selling or distributing 24
tobacco products in this state. 25
(((5))) (6) "Cigar" means a roll for smoking that is of any size 26
or shape and that is made wholly or in part of tobacco, irrespective 27
of whether the tobacco is pure or flavored, adulterated or mixed with 28
any other ingredient, if the roll has a wrapper made wholly or in 29
greater part of tobacco. "Cigar" does not include a cigarette.30
(((6))) (7) "Cigarette" has the same meaning as in RCW 82.24.010.31
(((7))) (8) "Department" means the department of revenue.32
(((8))) (9) "Distributor" means (a) any person engaged in the 33
business of selling tobacco products in this state who brings, or 34
causes to be brought, into this state from without the state any 35
tobacco products for sale, (b) any person who makes, manufactures, 36
fabricates, or stores tobacco products in this state for sale in this 37
state, (c) any person engaged in the business of selling tobacco 38
products without this state who ships or transports tobacco products 39
p. 20 HB 1534
to retailers in this state, to be sold by those retailers, (d) any 1
person engaged in the business of selling tobacco products in this 2
state who handles for sale any tobacco products that are within this 3
state but upon which tax has not been imposed. 4
(((9))) (10) "Indian country" means the same as defined in 5
chapter 82.24 RCW. 6
(((10))) (11) "Little cigar" means a cigar that has a cellulose 7
acetate integrated filter. 8
(((11))) (12) "Manufacturer" means a person who manufactures and 9
sells tobacco products. 10
(((12))) (13) "Manufacturer's representative" means a person 11
hired by a manufacturer to sell or distribute the manufacturer's 12
tobacco products, and includes employees and independent contractors.13
(((13))) (14) "Moist snuff" means tobacco that is finely cut, 14
ground, or powdered; is not for smoking; and is intended to be placed 15
in the oral, but not the nasal, cavity. 16
(((14))) (15) "Person" means any individual, receiver, 17
administrator, executor, assignee, trustee in bankruptcy, trust, 18
estate, firm, copartnership, joint venture, club, company, joint 19
stock company, business trust, municipal corporation, the state and 20
its departments and institutions, political subdivision of the state 21
of Washington, corporation, limited liability company, association, 22
society, any group of individuals acting as a unit, whether mutual, 23
cooperative, fraternal, nonprofit, or otherwise. The term excludes 24
any person immune from state taxation, including the United States or 25
its instrumentalities, and federally recognized Indian tribes and 26
enrolled tribal members, conducting business within Indian country.27
(((15))) (16) "Place of business" means any place where tobacco 28
products are sold or where tobacco products are manufactured, stored, 29
or kept for the purpose of sale, including any vessel, vehicle, 30
airplane, train, or vending machine. 31
(((16))) (17) "Retail outlet" means each place of business from 32
which tobacco products are sold to consumers. 33
(((17))) (18) "Retailer" means any person engaged in the business 34
of selling tobacco products to ultimate consumers.35
(((18))) (19)(a) "Sale" means any transfer, exchange, or barter, 36
in any manner or by any means whatsoever, for a consideration, and 37
includes and means all sales made by any person. 38
p. 21 HB 1534
(b) The term "sale" includes a gift by a person engaged in the 1
business of selling tobacco products, for advertising, promoting, or 2
as a means of evading the provisions of this chapter.3
(((19))) (20)(a) "Taxable sales price" means: 4
(i) In the case of a taxpayer that is not affiliated with the 5
manufacturer, distributor, or other person from whom the taxpayer 6
purchased tobacco products, the actual price for which the taxpayer 7
purchased the tobacco products; 8
(ii) In the case of a taxpayer that purchases tobacco products 9
from an affiliated manufacturer, affiliated distributor, or other 10
affiliated person, and that sells those tobacco products to 11
unaffiliated distributors, unaffiliated retailers, or ultimate 12
consumers, the actual price for which that taxpayer sells those 13
tobacco products to unaffiliated distributors, unaffiliated 14
retailers, or ultimate consumers; 15
(iii) In the case of a taxpayer that sells tobacco products only 16
to affiliated distributors or affiliated retailers, the price, 17
determined as nearly as possible according to the actual price, that 18
other distributors sell similar tobacco products of like quality and 19
character to unaffiliated distributors, unaffiliated retailers, or 20
ultimate consumers; 21
(iv) In the case of a taxpayer that is a manufacturer selling 22
tobacco products directly to ultimate consumers, the actual price for 23
which the taxpayer sells those tobacco products to ultimate 24
consumers; 25
(v) In the case of a taxpayer that has acquired tobacco products 26
under a sale as defined in subsection (((18))) (19)(b) of this 27
section, the price, determined as nearly as possible according to the 28
actual price, that the taxpayer or other distributors sell the same 29
tobacco products or similar tobacco products of like quality and 30
character to unaffiliated distributors, unaffiliated retailers, or 31
ultimate consumers; or 32
(vi) In any case where (a)(i) through (v) of this subsection do 33
not apply, the price, determined as nearly as possible according to 34
the actual price, that the taxpayer or other distributors sell the 35
same tobacco products or similar tobacco products of like quality and 36
character to unaffiliated distributors, unaffiliated retailers, or 37
ultimate consumers. 38
(b) For purposes of (a)(i) and (ii) of this subsection only, 39
"person" includes both persons as defined in subsection (((14))) (15) 40
p. 22 HB 1534
of this section and any person immune from state taxation, including 1
the United States or its instrumentalities, and federally recognized 2
Indian tribes and enrolled tribal members, conducting business within 3
Indian country. 4
(c) The department may adopt rules regarding the determination of 5
taxable sales price under this subsection. 6
(((20))) (21) "Taxpayer" means a person liable for the tax 7
imposed by this chapter. 8
(((21))) (22) "Tobacco products" means alternative nicotine 9
products, cigars, cheroots, stogies, periques, granulated, plug cut, 10
crimp cut, ready rubbed, and other smoking tobacco, snuff, snuff 11
flour, cavendish, plug and twist tobacco, fine-cut and other chewing 12
tobaccos, shorts, refuse scraps, clippings, cuttings and sweepings of 13
tobacco, and other kinds and forms of tobacco, prepared in such 14
manner as to be suitable for chewing or smoking in a pipe or 15
otherwise, or both for chewing and smoking, and any other product, 16
regardless of form, that contains tobacco and is intended for human 17
consumption or placement in the oral or nasal cavity or absorption 18
into the human body by any other means, but does not include 19
cigarettes as defined in RCW 82.24.010. 20
(((22))) (23) "Unaffiliated distributor" means a distributor that 21
is not affiliated with the manufacturer, distributor, or other person 22
from whom the distributor has purchased tobacco products.23
(((23))) (24) "Unaffiliated retailer" means a retailer that is 24
not affiliated with the manufacturer, distributor, or other person 25
from whom the retailer has purchased tobacco products.26
Sec. 23. RCW 82.26.020 and 2019 c 445 s 404 are each amended to 27
read as follows: 28
(1) There is levied and collected a tax upon the sale, handling, 29
or distribution of all tobacco products , except alternative nicotine 30
products, in this state at the following rate: 31
(a) For cigars except little cigars, ninety-five percent of the 32
taxable sales price of cigars, not to exceed sixty-five cents per 33
cigar; 34
(b) For all tobacco products except those covered under separate 35
provisions of this subsection and alternative nicotine products , 36
ninety-five percent of the taxable sales price. The tax imposed on a 37
product under this subsection must be reduced by fifty percent if 38
that same product is issued a modified risk tobacco product order by 39
p. 23 HB 1534
the secretary of the United States department of health and human 1
services pursuant to Title 21 U.S.C. Sec. 387k (g)(1), or by twenty-2
five percent if that same product is issued a modified risk tobacco 3
product order by the secretary of the United States department of 4
health and human services pursuant to Title 21 U.S.C. Sec. 5
387k(g)(2). The tax reduction applies during the period the modified 6
risk tobacco product order is in effect; 7
(c) For moist snuff, as established in this subsection (1)(c) and 8
computed on the net weight listed by the manufacturer:9
(i) On each single unit consumer-sized can or package whose net 10
weight is one and two-tenths ounces or less, a rate per single unit 11
that is equal to the greater of 2.526 dollars or eighty-three and 12
one-half percent of the cigarette tax under chapter 82.24 RCW 13
multiplied by twenty; or 14
(ii) On each single unit consumer-sized can or package whose net 15
weight is more than one and two-tenths ounces, a proportionate tax at 16
the rate established in (c)(i) of this subsection (1) on each ounce 17
or fractional part of an ounce; and 18
(d) For little cigars, an amount per cigar equal to the cigarette 19
tax under chapter 82.24 RCW. 20
(2) Taxes under this section must be imposed at the time the 21
distributor (a) brings, or causes to be brought, into this state from 22
without the state tobacco products for sale, (b) makes, manufactures, 23
fabricates, or stores tobacco products in this state for sale in this 24
state, (c) ships or transports tobacco products to retailers in this 25
state, to be sold by those retailers, or (d) handles for sale any 26
tobacco products that are within this state but upon which tax has 27
not been imposed. 28
(3) The moneys collected under this section must be deposited 29
into the state general fund. 30
Sec. 24. RCW 82.26.060 and 2019 c 445 s 205 are each amended to 31
read as follows: 32
(1) Every distributor must keep at each place of business 33
complete and accurate records for that place of business, including 34
itemized invoices, of tobacco products held, purchased, manufactured, 35
brought in or caused to be brought in from without the state, or 36
shipped or transported to retailers in this state, and of all sales 37
of tobacco products made. 38
p. 24 HB 1534
(2) These records must show the names and addresses of 1
purchasers, the inventory of all tobacco products including quantity 2
of tobacco products by brand , and other pertinent papers and 3
documents relating to the purchase, sale, or disposition of tobacco 4
products. All invoices and other records required by this section to 5
be kept must be preserved for a period of five years from the date of 6
the invoices or other documents or the date of the entries appearing 7
in the records. 8
(3) At any time during usual business hours the department, 9
board, or its duly authorized agents or employees, may enter any 10
place of business of a distributor, without a search warrant, and 11
inspect the premises, the records required to be kept under this 12
chapter, and the tobacco products contained therein, to determine 13
whether or not all the provisions of this chapter are being fully 14
complied with. If the department, board, or any of its agents or 15
employees, are denied free access or are hindered or interfered with 16
in making such examination, the registration certificate issued under 17
RCW 82.32.030 of the distributor at such premises is subject to 18
revocation, and any licenses issued under this chapter or chapter 19
82.24 or 70.345 RCW are subject to suspension or revocation, by the 20
department or board. 21
(4) The department may share information obtained under this 22
section that is deemed relevant to the potential violation of the 23
laws of other jurisdictions with the duly appointed agents of those 24
jurisdictions.25
Sec. 25. RCW 82.26.190 and 2020 c 139 s 34 are each amended to 26
read as follows: 27
(1)(a) No person may engage in or conduct business as a 28
distributor or retailer in this state after September 30, 2005, 29
without a valid license issued under this chapter. Any person who 30
sells tobacco products to persons other than ultimate consumers or 31
who meets the definition of distributor under RCW 82.26.010(((8))) 32
(9)(d) must obtain a distributor's license under this chapter. Any 33
person who sells tobacco products to ultimate consumers must obtain a 34
retailer's license under this chapter. Products offered for sale in 35
violation of this subsection are contraband and subject to seizure in 36
accordance with RCW 82.25.095.37
(b) A violation of this subsection (1) is punishable as a class C 38
felony according to chapter 9A.20 RCW. 39
p. 25 HB 1534
(2)(a) No person engaged in or conducting business as a 1
distributor or retailer in this state may: 2
(i) Refuse to allow the department or the board, on demand, to 3
make a full inspection of any place of business where any of the 4
tobacco products taxed under this chapter are sold, stored, or 5
handled, or otherwise hinder or prevent such inspection;6
(ii) Make, use, or present or exhibit to the department or the 7
board any invoice for any of the tobacco products taxed under this 8
chapter that bears an untrue date or falsely states the nature or 9
quantity of the goods invoiced; or 10
(iii) Fail to produce on demand of the department or the board 11
all invoices of all the tobacco products taxed under this chapter 12
within five years prior to such demand unless the person can show by 13
satisfactory proof that the nonproduction of the invoices was due to 14
causes beyond the person's control. 15
(b) No person, other than a licensed distributor or retailer, may 16
transport tobacco products for sale in this state for which the taxes 17
imposed under this chapter have not been paid unless:18
(i) Notice of the transportation has been given as required under 19
RCW 82.26.140; 20
(ii) The person transporting the tobacco products actually 21
possesses invoices or delivery tickets showing the true name and 22
address of the consignor or seller, the true name and address of the 23
consignee or purchaser, and the quantity and brands of tobacco 24
products being transported; and 25
(iii) The tobacco products are consigned to or purchased by a 26
person in this state who is licensed under this chapter.27
(c) A violation of this subsection (2) is a gross misdemeanor.28
(3) Any person licensed under this chapter as a distributor, and 29
any person licensed under this chapter as a retailer, may not operate 30
in any other capacity unless the additional appropriate license is 31
first secured. A violation of this subsection (3) is a misdemeanor.32
(4) The penalties provided in this section are in addition to any 33
other penalties provided by law for violating the provisions of this 34
chapter or the rules adopted under this chapter. 35
Sec. 26. RCW 82.26.200 and 2020 c 139 s 35 are each amended to 36
read as follows: 37
(1) A retailer may obtain tobacco products only from a licensed 38
distributor. A retailer that obtains tobacco products from ((an 39
p. 26 HB 1534
unlicensed distributor or any other )) a person that is not licensed 1
under this chapter , including directly from a manufacturer, must be 2
licensed both as a retailer and a distributor under this chapter and 3
is liable for the tax imposed under RCW 82.26.020 with respect to the 4
tobacco products acquired from the unlicensed person that are held 5
for sale, handling, or distribution in this state. For the purposes 6
of this subsection, "person" includes both persons defined in RCW 7
82.26.010(((14))) (15) and any person immune from state taxation, 8
such as the United States or its instrumentalities, and federally 9
recognized Indian tribes and enrolled tribal members, conducting 10
business within Indian country. 11
(2) Every distributor licensed under this chapter must sell 12
tobacco products to retailers located in Washington only if the 13
retailer has a current retailer's license under this chapter.14
Sec. 27. RCW 82.26.240 and 2005 c 180 s 21 are each amended to 15
read as follows: 16
(1) In all cases of seizure of any tobacco products made subject 17
to forfeiture under this chapter, the department or board shall 18
proceed as provided in RCW 82.24.135. 19
(2) When tobacco products are forfeited under this chapter, the 20
department or board may: 21
(a) Retain the property for official use or upon application by 22
any law enforcement agency of this state, another state, or the 23
District of Columbia, or of the United States for the exclusive use 24
of enforcing this chapter or the laws of any other state or the 25
District of Columbia or of the United States; ((or))26
(b) Destroy the tobacco products; or27
(c) Sell the tobacco products at public auction to the highest 28
bidder after due advertisement. Before delivering any of the goods to 29
the successful bidder, the department or board shall require the 30
purchaser to pay the proper amount of any tax due. The proceeds of 31
the sale shall be first applied to the payment of all proper expenses 32
of any investigation leading to the seizure and of the proceedings 33
for forfeiture and sale, including expenses of seizure, maintenance 34
of custody, advertising, and court costs. The balance of the proceeds 35
and all money shall be deposited in the general fund of the state. 36
Proper expenses of investigation include costs incurred by any law 37
enforcement agency or any federal, state, or local agency.38
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(3) The department or the board may return any property seized 1
under the provisions of this chapter when it is shown that there was 2
no intention to violate the provisions of this chapter. When any 3
property is returned under this section, the department or the board 4
may return the property to the parties from whom they were seized if 5
and when such parties have paid the proper amount of tax due under 6
this chapter. 7
Sec. 28. RCW 42.56.270 and 2023 c 340 s 11 are each amended to 8
read as follows: 9
The following financial, commercial, and proprietary information 10
is exempt from disclosure under this chapter: 11
(1) Valuable formulae, designs, drawings, computer source code or 12
object code, and research data obtained by any agency within five 13
years of the request for disclosure when disclosure would produce 14
private gain and public loss; 15
(2) Financial information supplied by or on behalf of a person, 16
firm, or corporation for the purpose of qualifying to submit a bid or 17
proposal for (a) a ferry system construction or repair contract as 18
required by RCW 47.60.680 through 47.60.750; (b) highway construction 19
or improvement as required by RCW 47.28.070; or (c) alternative 20
public works contracting procedures as required by RCW 39.10.200 21
through 39.10.905; 22
(3) Financial and commercial information and records supplied by 23
private persons pertaining to export services provided under chapters 24
43.163 and 53.31 RCW, and by persons pertaining to export projects 25
under RCW 43.23.035; 26
(4) Financial and commercial information and records supplied by 27
businesses or individuals during application for loans or program 28
services provided by chapters 43.325, 43.163, 43.160, 43.330, 43.168, 29
and 43.181 RCW and RCW 43.155.160, or during application for economic 30
development loans or program services provided by any local agency;31
(5) Financial information, business plans, examination reports, 32
and any information produced or obtained in evaluating or examining a 33
business and industrial development corporation organized or seeking 34
certification under chapter 31.24 RCW; 35
(6) Financial and commercial information supplied to the state 36
investment board by any person when the information relates to the 37
investment of public trust or retirement funds and when disclosure 38
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would result in loss to such funds or in private loss to the 1
providers of this information; 2
(7) Financial and valuable trade information under RCW 51.36.120;3
(8) Financial, commercial, operations, and technical and research 4
information and data submitted to or obtained by the clean Washington 5
center in applications for, or delivery of, program services under 6
chapter 70.95H RCW; 7
(9) Financial and commercial information requested by the public 8
stadium authority from any person or organization that leases or uses 9
the stadium and exhibition center as defined in RCW 36.102.010;10
(10)(a) Financial information, including but not limited to 11
account numbers and values, and other identification numbers supplied 12
by or on behalf of a person, firm, corporation, limited liability 13
company, partnership, or other entity related to an application for a 14
horse racing license submitted pursuant to RCW 67.16.260(1)(b), 15
cannabis producer, processor, or retailer license, liquor license, 16
gambling license, or lottery retail license; 17
(b) Internal control documents, independent auditors' reports and 18
financial statements, and supporting documents: (i) Of house-banked 19
social card game licensees required by the gambling commission 20
pursuant to rules adopted under chapter 9.46 RCW; or (ii) submitted 21
by tribes with an approved tribal/state compact for class III gaming;22
(c) Valuable formulae or financial or proprietary commercial 23
information records received during a consultative visit or while 24
providing consultative services to a licensed cannabis business in 25
accordance with RCW 69.50.561; 26
(11) Proprietary data, trade secrets, or other information that 27
relates to: (a) A vendor's unique methods of conducting business; (b) 28
data unique to the product or services of the vendor; or (c) 29
determining prices or rates to be charged for services, submitted by 30
any vendor to the department of social and health services or the 31
health care authority for purposes of the development, acquisition, 32
or implementation of state purchased health care as defined in RCW 33
41.05.011; 34
(12)(a) When supplied to and in the records of the department of 35
commerce: 36
(i) Financial and proprietary information collected from any 37
person and provided to the department of commerce pursuant to RCW 38
43.330.050(8); 39
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(ii) Financial or proprietary information collected from any 1
person and provided to the department of commerce or the office of 2
the governor in connection with the siting, recruitment, expansion, 3
retention, or relocation of that person's business and until a siting 4
decision is made, identifying information of any person supplying 5
information under this subsection and the locations being considered 6
for siting, relocation, or expansion of a business; and7
(iii) Financial or proprietary information collected from any 8
person and provided to the department of commerce pursuant to RCW 9
43.31.625 (3)(b) and (4); 10
(b) When developed by the department of commerce based on 11
information as described in (a)(i) of this subsection, any work 12
product is not exempt from disclosure; 13
(c) For the purposes of this subsection, "siting decision" means 14
the decision to acquire or not to acquire a site; 15
(d) If there is no written contact for a period of 60 days to the 16
department of commerce from a person connected with siting, 17
recruitment, expansion, retention, or relocation of that person's 18
business, information described in (a)(ii) of this subsection will be 19
available to the public under this chapter; 20
(13) Financial and proprietary information submitted to or 21
obtained by the department of ecology or the authority created under 22
chapter 70A.500 RCW to implement chapter 70A.500 RCW;23
(14) Financial, commercial, operations, and technical and 24
research information and data submitted to or obtained by the life 25
sciences discovery fund authority in applications for, or delivery 26
of, grants under RCW 43.330.502, to the extent that such information, 27
if revealed, would reasonably be expected to result in private loss 28
to the providers of this information; 29
(15) Financial and commercial information provided as evidence to 30
the department of licensing as required by RCW 19.112.110 or 31
19.112.120, except information disclosed in aggregate form that does 32
not permit the identification of information related to individual 33
fuel licensees; 34
(16) Any production records, mineral assessments, and trade 35
secrets submitted by a permit holder, mine operator, or landowner to 36
the department of natural resources under RCW 78.44.085;37
(17)(a) Farm plans developed by conservation districts, unless 38
permission to release the farm plan is granted by the landowner or 39
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operator who requested the plan, or the farm plan is used for the 1
application or issuance of a permit; 2
(b) Farm plans developed under chapter 90.48 RCW and not under 3
the federal clean water act, 33 U.S.C. Sec. 1251 et seq., are subject 4
to RCW 42.56.610 and 90.64.190; 5
(18) Financial, commercial, operations, and technical and 6
research information and data submitted to or obtained by a health 7
sciences and services authority in applications for, or delivery of, 8
grants under RCW 35.104.010 through 35.104.060, to the extent that 9
such information, if revealed, would reasonably be expected to result 10
in private loss to providers of this information; 11
(19) Information gathered under chapter 19.85 RCW or RCW 12
34.05.328 that can be identified to a particular business;13
(20) Financial and commercial information submitted to or 14
obtained by the University of Washington, other than information the 15
university is required to disclose under RCW 28B.20.150, when the 16
information relates to investments in private funds, to the extent 17
that such information, if revealed, would reasonably be expected to 18
result in loss to the University of Washington consolidated endowment 19
fund or to result in private loss to the providers of this 20
information; 21
(21) Market share data submitted by a manufacturer under RCW 22
70A.500.190(4); 23
(22) Financial information supplied to the department of 24
financial institutions, when filed by or on behalf of an issuer of 25
securities for the purpose of obtaining the exemption from state 26
securities registration for small securities offerings provided under 27
RCW 21.20.880 or when filed by or on behalf of an investor for the 28
purpose of purchasing such securities; 29
(23) Unaggregated or individual notices of a transfer of crude 30
oil that is financial, proprietary, or commercial information, 31
submitted to the department of ecology pursuant to RCW 32
90.56.565(1)(a), and that is in the possession of the department of 33
ecology or any entity with which the department of ecology has shared 34
the notice pursuant to RCW 90.56.565; 35
(24) Financial institution and retirement account information, 36
and building security plan information, supplied to the liquor and 37
cannabis board pursuant to RCW 69.50.325, 69.50.331, 69.50.342, and 38
69.50.345, when filed by or on behalf of a licensee or prospective 39
licensee for the purpose of obtaining, maintaining, or renewing a 40
p. 31 HB 1534
license to produce, process, transport, or sell cannabis as allowed 1
under chapter 69.50 RCW; 2
(25) Cannabis transport information, vehicle and driver 3
identification data, and account numbers or unique access identifiers 4
issued to private entities for traceability system access, submitted 5
by an individual or business to the liquor and cannabis board under 6
the requirements of RCW 69.50.325, 69.50.331, 69.50.342, and 7
69.50.345 for the purpose of cannabis product traceability. 8
Disclosure to local, state, and federal officials is not considered 9
public disclosure for purposes of this section; 10
(26) Financial and commercial information submitted to or 11
obtained by the retirement board of any city that is responsible for 12
the management of an employees' retirement system pursuant to the 13
authority of chapter 35.39 RCW, when the information relates to 14
investments in private funds, to the extent that such information, if 15
revealed, would reasonably be expected to result in loss to the 16
retirement fund or to result in private loss to the providers of this 17
information except that (a) the names and commitment amounts of the 18
private funds in which retirement funds are invested and (b) the 19
aggregate quarterly performance results for a retirement fund's 20
portfolio of investments in such funds are subject to disclosure;21
(27) Proprietary financial, commercial, operations, and technical 22
and research information and data submitted to or obtained by the 23
liquor and cannabis board in applications for cannabis research 24
licenses under RCW 69.50.372, or in reports submitted by cannabis 25
research licensees in accordance with rules adopted by the liquor and 26
cannabis board under RCW 69.50.372; 27
(28) Trade secrets, technology, proprietary information, and 28
financial considerations contained in any agreements or contracts, 29
entered into by a licensed cannabis business under RCW 69.50.395, 30
which may be submitted to or obtained by the state liquor and 31
cannabis board; 32
(29) Financial, commercial, operations, and technical and 33
research information and data submitted to or obtained by the Andy 34
Hill cancer research endowment program in applications for, or 35
delivery of, grants under chapter 43.348 RCW, to the extent that such 36
information, if revealed, would reasonably be expected to result in 37
private loss to providers of this information; 38
(30) Proprietary information filed with the department of health 39
under chapter 69.48 RCW; 40
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(31) Records filed with the department of ecology under chapter 1
70A.515 RCW that a court has determined are confidential valuable 2
commercial information under RCW 70A.515.130; ((and))3
(32) Unaggregated financial, proprietary, or commercial 4
information submitted to or obtained by the liquor and cannabis board 5
in applications for licenses under RCW 66.24.140 or 66.24.145, or in 6
any reports or remittances submitted by a person licensed under RCW 7
66.24.140 or 66.24.145 under rules adopted by the liquor and cannabis 8
board under chapter 66.08 RCW; and9
(33) Confidential commercial or financial information submitted 10
by manufacturers of vapor products to the liquor and cannabis board 11
accompanying a certification delivered under section 7 (3)(a) of this 12
act. 13
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