Tobacco & nicotine products

AN ACT Relating to enhancing public health and safety by ending 1
the sale of certain tobacco and nicotine products, regulating tobacco 2
and vapor product retailers, and increasing taxation of cigarettes, 3
tobacco products, and nicotine products; amending RCW 26.28.080, 4
70.155.010, 70.155.020, 70.155.090, 70.155.100, 70.345.030, 5
70.345.040, 70.345.050, 70.345.060, 70.345.070, 70.345.120, 6
70.345.180, 82.24.520, 82.24.530, 82.25.005, 82.25.010, 82.25.030, 7
82.25.095, 82.25.110, 82.26.010, 82.26.020, 82.26.030, 82.26.060, 8
82.26.160, 82.26.170, 82.26.190, 82.26.200, and 82.26.240; adding a 9
new section to chapter 70.345 RCW; adding a new section to chapter 10
82.24 RCW; adding a new chapter to Title 70 RCW; repealing RCW 11
82.26.260; prescribing penalties; providing an effective date; and 12
providing an expiration date. 13
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:14
FLAVORED TOBACCO AND RETAILER REGULATION15
NEW SECTION. Sec. 1. (1) The legislature finds the following:16
(a) Tobacco use remains a significant public health problem and 17
impediment to health equity in Washington and across the country. It 18
remains the leading cause of preventable death in the United States, 19
killing more than 480,000 Americans each year, including 8,300 20
H-2040.2
HOUSE BILL 2068
State of Washington 69th Legislature 2025 Regular Session
By Representatives Reeves, Parshley, Ryu, Pollet, Macri, and
Gregerson
Read first time 04/01/25. Referred to Committee on Finance.
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Washingtonians. Of cancer deaths in Washington, 27 percent are 1
attributable to smoking. 2
(b) The growing market for flavored tobacco and nicotine products 3
is undermining the nation's progress in reducing overall youth 4
tobacco use. Flavored tobacco and nicotine products, including 5
menthol cigarettes, have been shown to be starter products for youth 6
who begin using tobacco, establishing tobacco habits that can lead to 7
long-term addiction. Of youth who have ever used a tobacco product, 8
eight out of 10 initiated with a flavored product. 9
(c) The United States surgeon general declared youth vapor 10
product use an "epidemic" in 2018. More than 1,600,000 middle and 11
high school students across the United States currently use vapor 12
products, including almost eight percent of 10th graders and 14 13
percent of 12th graders in Washington. Of high school students who 14
vape, 42 percent are addicted enough to use frequently or daily.15
(d) Youth vape because they come in appealing, kid-friendly 16
flavors like cotton candy, gummy bear, and pink lemonade. About 88 17
percent of youth who vape use a flavored product. 18
(e) The tobacco industry continues to redesign products to become 19
even more appealing to youth, with some of the newest products 20
featuring light-up video games like pac-man and tetris.21
(f) Vaping is not harmless. Youth vapor product use is associated 22
with an increased risk for cigarette smoking, and according to the 23
surgeon general, nicotine can harm the parts of the adolescent brain 24
responsible for attention, learning, mood, and impulse control, and 25
can prime the brain for addiction to other drugs. 26
(g) Like vapor products, cigars are also sold in hundreds of 27
flavors, including tropical twist, chocolate brownie, and cherry 28
dynamite, which mask the harsh taste of tobacco. Black and Hispanic 29
youth smoke cigars at higher rates than white youth. Regular cigar 30
use can cause cancer of the oral cavity, larynx, esophagus, and lung, 31
and it kills approximately 9,000 Americans each year.32
(h) Each year, more than 9,100 kids in Washington try their first 33
cigarette, with half initiating with menthol cigarettes. Menthol 34
appeals to youth who are initiating tobacco use because it cools and 35
numbs the throat and reduces irritation. The food and drug 36
administration has concluded that menthol cigarettes lead to 37
increased smoking initiation among youth and young adults, greater 38
addiction, and decreased success in quitting smoking.39
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(i) The centers for disease control and prevention estimates that 1
prohibiting menthol cigarettes in Washington state would lead to 2
7,400 adults to quit smoking. 3
(j) The tobacco industry has targeted African American 4
communities for decades with marketing for menthol cigarettes through 5
sponsorship of community and music events, targeted magazine 6
advertising, and retail promotions. The result today is that 85 7
percent of Black smokers and 50 percent of Hispanic smokers smoke 8
menthol cigarettes, compared to 29 percent of white smokers. Each 9
year approximately 45,000 African Americans die from a smoking-caused 10
illness. Ending the sale of flavored tobacco and nicotine products 11
will improve the health and save lives of groups who historically 12
have been targeted by the tobacco industry and disproportionately 13
burdened by tobacco-related disease. 14
(k) The number of youth using nicotine pouches has more than 15
doubled since 2021, with nearly 500,000 youth reporting current 16
nicotine pouch use in 2024. 17
(l) Hookah smoking is linked to many of the same adverse health 18
effects as cigarette smoking, such as heart disease and lung, 19
bladder, and oral cancers. Hookah is available in more than 1,800 20
varieties, including kid-friendly flavors like bubble gum, cola, and 21
watermelon, and 84 percent of youth hookah users use flavored hookah.22
(m) According to the surgeon general, raising prices on tobacco 23
products is one of the most effective tobacco control interventions. 24
Every 10 percent increase in the price of cigarettes reduces 25
consumption by about four percent among adults and seven percent 26
among youth. Significant increases in tobacco excise taxes also 27
prevent potential users from starting. 28
(2) The legislature therefore intends to prohibit the sale of all 29
flavored tobacco and nicotine products and entertainment vapor 30
products and increase the tax on all tobacco products to reduce youth 31
usage and protect the next generation from a lifetime of addiction 32
and premature death. 33
Sec. 2. RCW 26.28.080 and 2019 c 15 s 1 are each amended to read 34
as follows: 35
(1) A person who sells or gives, or permits to be sold or given, 36
to any person under the age of ((twenty-one)) 21 years any cigar, 37
cigarette, cigarette paper or wrapper, tobacco in any form, 38
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alternative nicotine product, or a vapor product is guilty of a gross 1
misdemeanor. 2
(2) It is not a defense to a prosecution for a violation of this 3
section that the person acted, or was believed by the defendant to 4
act, as agent or representative of another. 5
(3) For the purposes of this section((, "vapor)):6
(a) "Alternative nicotine product" has the same meaning as 7
provided in RCW 82.26.010; and8
(b) "Vapor product" has the same meaning as provided in RCW 9
70.345.010. 10
NEW SECTION. Sec. 3. The definitions in this section apply 11
throughout this chapter unless the context clearly requires 12
otherwise.13
(1) "Entertainment vapor product" means any vapor product that 14
has interactive gaming or entertainment features including, but not 15
limited to, allowing a user to play music or audio, display photos or 16
video, play virtual games, or display other animations on the device.17
(2) "Flavored tobacco or nicotine product" means any tobacco or 18
nicotine product that imparts: 19
(a) A taste or smell, other than the taste or smell of tobacco, 20
distinguishable by an ordinary consumer either before or during the 21
consumption of such tobacco product including, but not limited to, 22
the taste or smell of fruit, chocolate, vanilla, honey, candy, cocoa, 23
dessert, alcoholic beverage, mint, wintergreen, menthol, herb, or 24
spice; or 25
(b) A cooling or numbing sensation distinguishable by an ordinary 26
consumer either before or during the consumption of such tobacco 27
product. 28
(3) "Nicotine" means any form of the chemical nicotine, including 29
any salt or complex, regardless of whether the chemical is naturally 30
or synthetically derived, and includes nicotinic alkaloids and 31
nicotine analogs. 32
(4) "Retailer" means any person engaged in the business of 33
selling tobacco or nicotine products or vapor products to ultimate 34
consumers. 35
(5)(a) "Tobacco or nicotine product" means any:36
(i) Product containing, made of, or derived from tobacco or 37
nicotine that is intended for human consumption or is likely to be 38
consumed, whether inhaled, absorbed, or ingested by any other means 39
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including, but not limited to, a cigarette, a cigar, pipe tobacco, 1
chewing tobacco, snuff, snus, or alternative nicotine product;2
(ii) Vapor product and any substance that may be aerosolized or 3
vaporized by such product, whether or not the substance contains 4
nicotine; or 5
(iii) Component, part, or accessory of a product described in 6
this subsection (5), regardless of whether such component, part, or 7
accessory contains tobacco or nicotine including, but not limited to, 8
filters, rolling papers, blunt or hemp wraps, hookahs, flavor 9
enhancers, mouthpieces, or pipes. 10
(b) "Tobacco or nicotine product" does not mean:11
(i) Drugs, devices, or combination products authorized for sale 12
by the United States food and drug administration, as those terms are 13
defined in the federal food, drug, and cosmetic act (21 U.S.C. Sec. 14
301 et seq.) as it exists on the effective date of this section; or15
(ii) Any product regulated under chapter 69.50 RCW that meets the 16
definition of cannabis, useable cannabis, cannabis concentrates, or 17
cannabis-infused products as those terms are defined in RCW 18
69.50.101. 19
(6) "Vapor product" has the same meaning as in RCW 70.345.010.20
NEW SECTION. Sec. 4. (1) Beginning July 1, 2027, no retailer 21
may sell, offer for sale, display, market, or advertise for sale in 22
this state, any flavored tobacco or nicotine product or entertainment 23
vapor product.24
(2)(a) There is a rebuttable presumption that a tobacco or 25
nicotine product is a flavored tobacco or nicotine product if any 26
communication by or on behalf of the manufacturer or retailer 27
indicates that the product imparts a: 28
(i) Taste or smell other than the taste or smell of tobacco; or29
(ii) Cooling or numbing sensation. 30
(b) Evidence of such communication may include, but is not 31
limited to, the use of terms such as "cool," "chill," "ice," "fresh," 32
"arctic," or "frost" to describe the product. 33
(3) This section does not apply to flavored shisha sold within 34
premises from which persons under the age of 21 are prohibited.35
NEW SECTION. Sec. 5. (1) The department of health shall 36
develop, implement, and maintain a statewide flavored tobacco and 37
nicotine products and entertainment vapor products prevention and 38
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awareness campaign to address the use of such products. The campaign 1
must educate the public about the health risks and addictive nature 2
of flavored tobacco and nicotine products, include outreach to both 3
youth and adults aimed at preventing use, and be consistent with best 4
practices identified by the centers for disease control and 5
prevention. The department, in consultation with the health care 6
authority, may also include messaging focused on tobacco and nicotine 7
addiction and prevention and resources for addiction treatment and 8
services. The department shall report to the appropriate committees 9
of the legislature regarding the status of such education campaign by 10
January 1, 2027. 11
(2) This section expires July 1, 2027. 12
NEW SECTION. Sec. 6. (1) In addition to the liquor and cannabis 13
board's other powers and authorities, the liquor and cannabis board 14
may enforce the provisions of this chapter. The liquor and cannabis 15
board may revoke or suspend the license of any retailer or wholesaler 16
in accordance with the provisions of RCW 70.155.100.17
(2) The liquor and cannabis board must adopt rules to implement 18
the requirements of this chapter and for compliance education for 19
licensed retailers, distributors, and manufacturers and their 20
employees relating to abating violations of this chapter and rules 21
adopted under this chapter. 22
NEW SECTION. Sec. 7. It is an unfair or deceptive practice 23
under RCW 19.86.020 for any retailer to sell, offer for sale, 24
display, market, or advertise for sale any flavored tobacco or 25
nicotine product or any entertainment vapor product in this state in 26
violation of section 4 of this act. The legislature finds that the 27
practices covered by this chapter are matters vitally affecting the 28
public interest for the purpose of applying the consumer protection 29
act, chapter 19.86 RCW. A violation of this chapter is not reasonable 30
in relation to the development and preservation of business and is an 31
unfair or deceptive act in trade or commerce and an unfair method of 32
competition for the purpose of applying the consumer protection act, 33
chapter 19.86 RCW.34
NEW SECTION. Sec. 8. In recognition of the sovereign authority 35
of tribal governments, the governor may seek government-to-government 36
consultations with federally recognized Indian tribes regarding 37
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prohibiting the sale or offer for sale of any flavored tobacco or 1
nicotine product or entertainment vapor product, and the display, 2
marketing, or advertising for sale of such products, in compacts 3
entered into under RCW 43.06.455, 43.06.465, 43.06.466, and 43.06.505 4
through 43.06.515. 5
Sec. 9. RCW 70.155.010 and 2019 c 15 s 3 are each amended to 6
read as follows: 7
The definitions set forth in RCW 82.24.010 apply to this chapter. 8
In addition, for the purposes of this chapter, unless otherwise 9
required by the context: 10
(1) "Board" means the Washington state liquor and cannabis board.11
(2) "Internet" means any computer network, telephonic network, or 12
other electronic network. 13
(3) "Nicotine" means any form of the chemical nicotine, including 14
any salt or complex, regardless of whether the chemical is naturally 15
or synthetically derived, and includes nicotinic alkaloids and 16
nicotine analogs.17
(4) "Sample" means a tobacco product distributed to members of 18
the general public at no cost or at nominal cost for product 19
promotion purposes. 20
(((4))) (5) "Sampling" means the distribution of samples to 21
members of the public. 22
(((5))) (6) "Tobacco product" means a product that contains 23
tobacco or nicotine and is intended for human use, including any 24
product defined in RCW 82.24.010(2) or 82.26.010(((21))) (23), except 25
that for the purposes of RCW 70.155.140 only, "tobacco product" does 26
not include cigars defined in RCW 82.26.010 as to which ((one 27
thousand)) 1,000 units weigh more than three pounds . "Tobacco 28
product" includes alternative nicotine products as defined in RCW 29
82.26.010. 30
(((6))) (7) "Vapor product" has the same meaning as defined in 31
RCW 70.345.010. 32
Sec. 10. RCW 70.155.020 and 2019 c 15 s 5 are each amended to 33
read as follows: 34
A person who holds a license issued under RCW 82.24.520 or 35
82.24.530 shall: 36
(1) Display the license or a copy in a prominent location at the 37
outlet for which the license is issued; ((and))38
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(2) Display a sign concerning the prohibition of tobacco sales to 1
persons under the age of ((twenty-one)) 21. 2
Such sign shall: 3
(a) Be posted so that it is clearly visible to anyone purchasing 4
tobacco products from the licensee; 5
(b) Be designed and produced by the department of health to read: 6
"THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER AGE 21 IS STRICTLY 7
PROHIBITED BY STATE LAW. PHOTO ID REQUIRED UPON REQUEST"; and8
(c) Be provided free of charge by the liquor and cannabis board ; 9
and10
(3) Display a sign concerning the prohibition of the sale of 11
flavored tobacco and nicotine products in this state. The sign must:12
(a) Be posted so that it is clearly visible to anyone purchasing 13
tobacco products from the licensee;14
(b) Be designed and produced by the department of health to read: 15
"THE SALE OF FLAVORED TOBACCO AND NICOTINE PRODUCTS IN THIS STATE IS 16
STRICTLY PROHIBITED BY STATE LAW"; and17
(c) Be provided free of charge by the liquor and cannabis board.18
Sec. 11. RCW 70.155.090 and 2006 c 14 s 4 are each amended to 19
read as follows: 20
(1) ((Where there may be a question of a person's right to 21
purchase or obtain tobacco products by reason of age, the )) A 22
retailer or agent ((thereof,)) shall require the purchaser of a 23
tobacco product to present any one of the following officially issued 24
identification that shows the purchaser's age and bears his or her 25
signature and photograph: (a) Liquor control authority card of 26
identification of a state or province of Canada; (b) driver's 27
license, instruction permit, or identification card of a state or 28
province of Canada; (c) "identicard" issued by the Washington state 29
department of licensing under chapter 46.20 RCW; (d) United States 30
military identification; (e) passport; (f) enrollment card, issued by 31
the governing authority of a federally recognized Indian tribe 32
located in Washington, that incorporates security features comparable 33
to those implemented by the department of licensing for Washington 34
drivers' licenses. At least ((ninety)) 90 days prior to 35
implementation of an enrollment card under this subsection, the 36
appropriate tribal authority shall give notice to the board. The 37
board shall publish and communicate to licensees regarding the 38
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implementation of each new enrollment card; or (g) merchant marine 1
identification card issued by the United States coast guard.2
(2) It is a defense to a prosecution under RCW 26.28.080 that the 3
person making a sale reasonably relied on any of the officially 4
issued identification as defined in subsection (1) of this section. 5
The liquor ((control)) and cannabis board shall waive the suspension 6
or revocation of a license if the licensee clearly establishes that 7
he or she acted in good faith to prevent violations and a violation 8
occurred despite the licensee's exercise of due diligence.9
Sec. 12. RCW 70.155.100 and 2023 c 398 s 4 are each amended to 10
read as follows: 11
(1) The liquor and cannabis board may suspend or revoke a 12
retailer's license issued under RCW 82.24.510(1)(b) or 13
82.26.150(1)(b) held by a business at any location, or may impose a 14
monetary penalty as set forth in subsection (3) of this section, if 15
the liquor and cannabis board finds that the licensee has violated 16
RCW 26.28.080, 70.155.020, 70.155.030, 70.155.040, 70.155.050, 17
70.155.070, ((or)) 70.155.090, or section 4 of this act.18
(2) Any retailer's licenses issued under RCW 70.345.020 to a 19
person whose license or licenses under chapter 82.24 or 82.26 RCW 20
have been suspended or revoked for violating RCW 26.28.080 or section 21
4 of this act must also be suspended or revoked during the period of 22
suspension or revocation under this section. 23
(3) The sanctions that the liquor and cannabis board may impose 24
against a person licensed under RCW 82.24.530 or 82.26.170 based upon 25
one or more findings under subsection (1) of this section may not 26
exceed the following: 27
(a) For violations of RCW 70.155.020 or 21 C.F.R. Sec. 1140.14, 28
and for violations of RCW 70.155.040 occurring on the licensed 29
premises: 30
(i) A monetary penalty of $200 for the first violation within any 31
three-year period; 32
(ii) A monetary penalty of $600 for the second violation within 33
any three-year period; 34
(iii) A monetary penalty of $2,000 and suspension of the license 35
for a period of six months for the third violation within any three-36
year period; 37
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(iv) A monetary penalty of $3,000 and suspension of the license 1
for a period of 12 months for the fourth violation within any three-2
year period; 3
(v) Revocation of the license with no possibility of 4
reinstatement for a period of five years for the fifth or more 5
violation within any three-year period; 6
(b) For violations of RCW 26.28.080 or section 4 of this act:7
(i) A monetary penalty of (($1,000)) $2,000 for the first 8
violation within any three-year period; 9
(ii) A monetary penalty of (($2,500)) $4,000 and suspension of 10
the license for a period of 30 days for the second violation within 11
any three-year period; 12
(iii) A monetary penalty of (($5,000)) $8,000 and suspension of 13
the license for a period of six months for the third violation within 14
any three-year period; 15
(iv) A monetary penalty of (($10,000)) $12,000 and suspension of 16
the license for a period of 12 months for the fourth violation within 17
any three-year period; 18
(v) ((Revocation)) A monetary penalty of $20,000 and revocation 19
of the license with no possibility of reinstatement for a period of 20
five years for the fifth or more violation within any three-year 21
period; 22
(c) If the board finds that a person licensed under chapter 82.24 23
or 82.26 RCW and RCW 70.345.020 has violated RCW 26.28.080 or section 24
4 of this act , each subsequent violation of either of the person's 25
licenses counts as an additional violation within that three-year 26
period; 27
(d) For violations of RCW 70.155.030, a monetary penalty in the 28
amount of $100 for each day upon which such violation occurred;29
(e) For violations of RCW 70.155.050, a monetary penalty in the 30
amount of $600 for each violation; 31
(f) For violations of RCW 70.155.070, a monetary penalty in the 32
amount of $2,000 for each violation. 33
(4) The liquor and cannabis board may impose a monetary penalty 34
upon any person other than a licensed cigarette or tobacco product 35
retailer if the liquor and cannabis board finds that the person has 36
violated RCW 26.28.080, 70.155.020, 70.155.030, 70.155.040, 37
70.155.050, 70.155.070, or 70.155.090. 38
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(5) The monetary penalty that the liquor and cannabis board may 1
impose based upon one or more findings under subsection (4) of this 2
section may not exceed the following: 3
(a) For violation of RCW 26.28.080 or 70.155.020, $100 for the 4
first violation and $200 for each subsequent violation;5
(b) For violations of RCW 70.155.030, $200 for each day upon 6
which such violation occurred; 7
(c) For violations of RCW 70.155.040, $200 for each violation;8
(d) For violations of RCW 70.155.050, $600 for each violation;9
(e) For violations of RCW 70.155.070, $2,000 for each violation.10
(6) The liquor and cannabis board may develop and offer a class 11
for retail clerks and use this class in lieu of a monetary penalty 12
for the clerk's first violation. 13
(7) The liquor and cannabis board may issue a cease and desist 14
order to any person who is found by the liquor and cannabis board to 15
have violated or intending to violate the provisions of this chapter, 16
RCW 26.28.080, 82.24.500, or 82.26.190 requiring such person to cease 17
specified conduct that is in violation. The issuance of a cease and 18
desist order does not preclude the imposition of other sanctions 19
authorized by this statute or any other provision of law.20
(8) The liquor and cannabis board may seek injunctive relief to 21
enforce the provisions of RCW 26.28.080, 82.24.500, 82.26.190 or this 22
chapter. The liquor and cannabis board may initiate legal action to 23
collect civil penalties imposed under this chapter if the same have 24
not been paid within ((thirty)) 30 days after imposition of such 25
penalties. In any action filed by the liquor and cannabis board under 26
this chapter, the court may, in addition to any other relief, award 27
the liquor and cannabis board reasonable attorneys' fees and costs.28
(9) All proceedings under subsections (1) through (7) of this 29
section shall be conducted in accordance with chapter 34.05 RCW.30
(10) The liquor and cannabis board may reduce or waive either the 31
penalties or the suspension or revocation of a license, or both, as 32
set forth in this chapter where the elements of proof are inadequate 33
or where there are mitigating circumstances. Mitigating circumstances 34
may include, but are not limited to, an exercise of due diligence by 35
a retailer. Further, the board may exceed penalties set forth in this 36
chapter based on aggravating circumstances. 37
Sec. 13. RCW 70.345.030 and 2019 c 445 s 211 are each amended to 38
read as follows: 39
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(1)(a) No person may engage in or conduct business as a retailer, 1
distributor, or delivery seller in this state without a valid license 2
issued under this chapter, except as otherwise provided by law. Any 3
person who sells vapor products to ultimate consumers by a means 4
other than delivery sales must obtain a retailer's license under this 5
chapter. Any person who meets the definition of distributor under 6
this chapter must obtain a distributor's license under this chapter. 7
Any person who conducts delivery sales of vapor products must obtain 8
a delivery sale license. 9
(b) A retailer may obtain vapor products only from a licensed 10
distributor. A retailer that obtains vapor products from any person 11
that is not licensed under this chapter, including directly from a 12
manufacturer, must be licensed both as a retailer and a distributor 13
under this chapter and is liable for the tax imposed under RCW 14
82.25.010 with respect to the vapor products acquired from the 15
unlicensed person that are held for sale, handling, or distribution 16
in this state.17
(c) A violation of this subsection is punishable as a class C 18
felony according to chapter 9A.20 RCW. Products offered for sale in 19
violation of this subsection are contraband and subject to seizure in 20
accordance with RCW 82.25.095.21
(2) No person engaged in or conducting business as a retailer, 22
distributor, or delivery seller in this state may refuse to allow the 23
enforcement officers of the board, on demand, to make full inspection 24
of any place of business or vehicle where any of the vapor products 25
regulated under this chapter are sold, stored, transported, or 26
handled, or otherwise hinder or prevent such inspection. A person who 27
violates this subsection is guilty of a gross misdemeanor.28
(3) Any person licensed under this chapter as a distributor, any 29
person licensed under this chapter as a retailer, and any person 30
licensed under this chapter as a delivery seller may not operate in 31
any other capacity unless the additional appropriate license is first 32
secured, except as otherwise provided by law. A violation of this 33
subsection is a misdemeanor. 34
(4) No person engaged in or conducting business as a retailer, 35
distributor, or delivery seller in this state may sell or give, or 36
permit to sell or give, a product that contains any amount of any 37
cannabinoid, synthetic cannabinoid, cathinone, or methcathinone, 38
unless otherwise provided by law. A violation of this subsection (4) 39
is punishable according to RCW 69.50.401. 40
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(5) The penalties provided in this section are in addition to any 1
other penalties provided by law for violating the provisions of this 2
chapter or the rules adopted under this chapter. 3
Sec. 14. RCW 70.345.040 and 2016 sp.s. c 38 s 7 are each amended 4
to read as follows: 5
A fee of ((one hundred fifty dollars )) $1,000 must accompany each 6
vapor product distributor's license application or license renewal 7
application under RCW 70.345.020. If a distributor sells or intends 8
to sell vapor products at two or more places of business, whether 9
established or temporary, a separate license with a license fee of 10
((one hundred dollars )) $1,000 is required for each additional place 11
of business. 12
Sec. 15. RCW 70.345.050 and 2016 sp.s. c 38 s 8 are each amended 13
to read as follows: 14
(((1))) A fee of ((one hundred seventy-five dollars )) $1,000 must 15
accompany each vapor product retailer's license application or 16
license renewal application under RCW 70.345.020. A separate license 17
is required for each separate location at which the retailer 18
operates. 19
(((2) A retailer applying for, or renewing, both a vapor products 20
retailer's license under RCW 70.345.020 and retailer's license under 21
RCW 82.24.510 may pay a combined application fee of two hundred fifty 22
dollars for both licenses.))23
Sec. 16. RCW 70.345.060 and 2016 sp.s. c 38 s 10 are each 24
amended to read as follows: 25
A fee of ((two hundred fifty dollars )) $1,000 must accompany each 26
vapor product delivery sale license application or license renewal 27
application under RCW 70.345.020. 28
Sec. 17. RCW 70.345.070 and 2019 c 15 s 6 are each amended to 29
read as follows: 30
(1) Except as provided in subsection (2) of this section, a 31
person who holds a retailer's license issued under this chapter must 32
display a sign concerning the prohibition of vapor product sales to 33
persons under the age of ((twenty-one)) 21. Such sign must:34
(a) Be posted so that it is clearly visible to anyone purchasing 35
vapor products from the licensee; 36
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(b) Be designed and produced by the department of health to read: 1
"The sale of vapor products to persons under age ((twenty-one)) 21 is 2
strictly prohibited by state law. Photo id required upon request;" 3
and 4
(c) Be provided free of charge by the department of health.5
(2) For persons also licensed under RCW 82.24.510 or 82.26.150, 6
the board may issue a sign to read: "The sale of tobacco or vapor 7
products to persons under age ((twenty-one)) 21 is strictly 8
prohibited by state law. Photo id required upon request." The sign 9
must be provided free of charge by the board. 10
(3) A person who holds a retailer's license issued under this 11
chapter must display a sign concerning the prohibition of the sale of 12
flavored tobacco and nicotine products and entertainment vapor 13
products in this state. Such sign shall:14
(a) Be posted so that it is clearly visible to anyone purchasing 15
vapor products or entertainment vapor products from the licensee;16
(b) Be designed and produced by the department of health to read: 17
"THE SALE OF FLAVORED TOBACCO AND NICOTINE PRODUCTS AND ENTERTAINMENT 18
VAPOR PRODUCTS IN THIS STATE IS STRICTLY PROHIBITED BY STATE LAW"; 19
and20
(c) Be provided free of charge by the liquor and cannabis board.21
(4) A person who holds a license issued under this chapter must 22
display the license or a copy in a prominent location at the outlet 23
for which the license is issued. 24
Sec. 18. RCW 70.345.120 and 2016 sp.s. c 38 s 15 are each 25
amended to read as follows: 26
(1) ((When there may be a question of a person's right to 27
purchase or obtain vapor products by reason of age, the )) A retailer 28
or agent thereof, must require the purchaser of a vapor product to 29
present any one of the following officially issued forms of 30
identification that shows the purchaser's age and bears his or her 31
signature and photograph: (a) Liquor control authority card of 32
identification of a state or province of Canada; (b) driver's 33
license, instruction permit, or identification card of a state or 34
province of Canada; (c) "identicard" issued by the Washington state 35
department of licensing under chapter 46.20 RCW; (d) United States 36
military identification; (e) passport; (f) enrollment card, issued by 37
the governing authority of a federally recognized Indian tribe 38
located in Washington, that incorporates security features comparable 39
p. 14 HB 2068
to those implemented by the department of licensing for Washington 1
drivers' licenses. At least ((ninety)) 90 days prior to 2
implementation of an enrollment card under this subsection, the 3
appropriate tribal authority must give notice to the board. The board 4
must publish and communicate to licensees regarding the 5
implementation of each new enrollment card; or (g) merchant marine 6
identification card issued by the United States coast guard.7
(2) It is a defense to a prosecution under RCW 26.28.080 that the 8
person making a sale reasonably relied on any of the officially 9
issued identification as defined in subsection (1) of this section. 10
The board must waive the suspension or revocation of a license if the 11
licensee clearly establishes that he or she acted in good faith to 12
prevent violations and a violation occurred despite the licensee's 13
exercise of due diligence. 14
Sec. 19. RCW 70.345.180 and 2016 sp.s. c 38 s 22 are each 15
amended to read as follows: 16
(1) The board may impose a monetary penalty as set forth in 17
subsection (2) of this section, if the board finds that the licensee 18
has violated RCW 26.28.080, section 4 of this act, or any other 19
provision of this chapter. 20
(2) Subject to subsection (3) of this section, the sanctions that 21
the board may impose against a person licensed under this chapter 22
based upon one or more findings under subsection (1) of this section 23
may not exceed the following: 24
(a) A monetary penalty of ((two hundred dollars )) $2,000 for the 25
first violation within any three-year period; 26
(b) A monetary penalty of ((six hundred dollars )) $4,000 for the 27
second violation within any three-year period and suspension of the 28
license for a period of 30 days for the second violation of RCW 29
26.28.080 or section 4 of this act within any three-year period;30
(c) A monetary penalty of ((two thousand dollars)) $8,000 for the 31
third violation within any three-year period and suspension of the 32
license for a period of six months for the third violation of RCW 33
26.28.080 or section 4 of this act within any three-year period;34
(d) A monetary penalty of ((three thousand dollars )) $12,000 for 35
the fourth or subsequent violation within any three-year period and 36
suspension of the license for a period of ((twelve)) 12 months for 37
the fourth violation of RCW 26.28.080 or section 4 of this act within 38
any three-year period; 39
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(e) ((Revocation)) A monetary penalty of $20,000 and revocation 1
of the license with no possibility of reinstatement for a period of 2
five years for the fifth or more violation within any three-year 3
period. 4
(3) If the board finds that a person licensed under this chapter 5
and chapter 82.24 or 82.26 RCW has violated RCW 26.28.080 or section 6
4 of this act , each subsequent violation of either of the person's 7
licenses counts as an additional violation within that three-year 8
period. 9
(4) Any retailer's licenses issued under chapter 82.24 or 82.26 10
RCW to a person whose vapor product retailer's license or licenses 11
have been suspended or revoked for violating RCW 26.28.080 or section 12
4 of this act must also be suspended or revoked during the period of 13
suspension or revocation under this section. 14
(5) The board may impose a monetary penalty upon any person other 15
than a licensed retailer if the board finds that the person has 16
violated RCW 26.28.080. 17
(6) The monetary penalty that the board may impose based upon one 18
or more findings under subsection (5) of this section may not exceed 19
((fifty dollars )) $50 for the first violation and ((one hundred 20
dollars)) $100 for each subsequent violation. 21
(7) The board may develop and offer a class for retail clerks and 22
use this class in lieu of a monetary penalty for the clerk's first 23
violation. 24
(8) The board may issue a cease and desist order to any person 25
who is found by the board to have violated or ((intending [intends])) 26
intends to violate the provisions of this chapter or RCW 26.28.080, 27
requiring such person to cease specified conduct that is in 28
violation. The issuance of a cease and desist order does not preclude 29
the imposition of other sanctions authorized by this statute or any 30
other provision of law. 31
(9) The board may seek injunctive relief to enforce the 32
provisions of RCW 26.28.080, section 4 of this act, or this chapter. 33
The board may initiate legal action to collect civil penalties 34
imposed under this chapter if the same have not been paid within 35
((thirty)) 30 days after imposition of such penalties. In any action 36
filed by the board under this chapter, the court may, in addition to 37
any other relief, award the board reasonable attorneys' fees and 38
costs. 39
p. 16 HB 2068
(10) All proceedings under subsections (1) through (8) of this 1
section must be conducted in accordance with chapter 34.05 RCW.2
(11) The board may reduce or waive either the penalties or the 3
suspension or revocation of a license, or both, as set forth in this 4
chapter where the elements of proof are inadequate or where there are 5
mitigating circumstances. Mitigating circumstances may include, but 6
are not limited to, an exercise of due diligence by a retailer. 7
Further, the board may exceed penalties set forth in this chapter 8
based on aggravating circumstances. 9
NEW SECTION. Sec. 20. A new section is added to chapter 70.345 10
RCW to read as follows: 11
(1) It is unlawful for any person to sell, give, deliver, or 12
furnish to a person in this state a product that contains a nicotine 13
analogue. 14
(2) Factors relevant to determining whether a substance is a 15
nicotine analogue include, but are not limited to, the marketing, 16
advertising, and labeling of the product. 17
(3) For the purposes of this section, "nicotine analogue" means a 18
substance: 19
(a) The chemical structure of which is substantially similar to 20
the chemical structure of nicotine; or 21
(b) That has, purports to have, or is represented to have, an 22
effect on the central nervous system that is similar to or greater 23
than the effect on the central nervous system of nicotine.24
CIGARETTE TAX25
NEW SECTION. Sec. 21. A new section is added to chapter 82.24 26
RCW to read as follows: 27
(1) In addition to the tax imposed upon the sale, use, 28
consumption, handling, possession, or distribution of cigarettes set 29
forth in RCW 82.24.020 and 82.24.026, there is imposed a tax in an 30
amount equal to $2 per package of cigarettes. 31
(2) Beginning December 2028, and every three years thereafter, 32
the department shall adjust the amount of the tax under this section 33
by multiplying the current amount by one plus the percentage by which 34
the most current consumer price index available on December 1st of 35
the current year exceeds the consumer price index for the prior 36-36
month period. If an adjustment under this subsection (2) would reduce 37
p. 17 HB 2068
the applicable amounts, the department may not adjust the applicable 1
amounts for use in the following year. The department shall publish 2
the adjusted applicable amounts on its public website by December 3
31st. The adjusted applicable amounts calculated under this 4
subsection (2) take effect for taxes due in the following calendar 5
year. 6
(3) The revenue collected under this section must be deposited as 7
follows: 8
(a) The first $5,000,000 must be deposited in the youth tobacco 9
and vapor products prevention account created in RCW 70.155.120; and10
(b) The remainder must be deposited into the general fund.11
(4) For purposes of this section, "consumer price index" means 12
the consumer price index for all urban consumers, all items, for the 13
Seattle area as calculated by the United States bureau of labor 14
statistics or its successor agency. 15
Sec. 22. RCW 82.24.520 and 2013 c 144 s 51 are each amended to 16
read as follows: 17
A fee of ((six hundred fifty dollars )) $1,000 must accompany each 18
wholesaler's license application or license renewal application. If a 19
wholesaler sells or intends to sell cigarettes at two or more places 20
of business, whether established or temporary, a separate license 21
with a license fee of ((one hundred fifteen dollars )) $1,000 is 22
required for each additional place of business. Each license, or 23
certificate thereof, and such other evidence of license as the 24
department of revenue requires, must be exhibited in the place of 25
business for which it is issued and in such manner as is prescribed 26
for the display of a business license issued under chapter 19.02 RCW. 27
The board must require each licensed wholesaler to file with the 28
department of revenue a bond in an amount not less than ((one 29
thousand dollars)) $1,000 to guarantee the proper performance of the 30
duties and the discharge of the liabilities under this chapter. The 31
bond must be executed by such licensed wholesaler as principal, and 32
by a corporation approved by the department of revenue and authorized 33
to engage in business as a surety company in this state, as surety. 34
The bond must run concurrently with the wholesaler's license.35
Sec. 23. RCW 82.24.530 and 2016 sp.s. c 38 s 9 are each amended 36
to read as follows: 37
p. 18 HB 2068
(((1))) A fee of ((one hundred seventy-five dollars )) $1,000 must 1
accompany each retailer's license application or license renewal 2
application. A separate license is required for each separate 3
location at which the retailer operates. A fee of ((thirty additional 4
dollars)) an additional $200 for each vending machine must accompany 5
each application or renewal for a license issued to a retail dealer 6
operating a cigarette vending machine. An additional fee of ((ninety-7
three dollars)) $500 must accompany each application or renewal for a 8
license issued to a retail dealer operating a cigarette-making 9
machine. 10
(((2) A retailer applying for, or renewing, both a retailer's 11
license under RCW 82.24.510 and a vapor products retailer's license 12
under RCW 70.345.020 may pay a combined application fee of two 13
hundred fifty dollars for both licenses.))14
VAPOR PRODUCTS TAX15
Sec. 24. RCW 82.25.005 and 2022 c 16 s 163 are each amended to 16
read as follows: 17
The definitions in this section apply throughout this chapter 18
unless the context clearly requires otherwise. 19
(1) (("Accessible container" means a container that is intended 20
to be opened. The term does not mean a closed cartridge or closed 21
container that is not intended to be opened such as a disposable e-22
cigarette.)) "Actual price" means the total amount of consideration 23
for which vapor products are sold, valued in money, whether received 24
in money or otherwise, including any charges by the seller necessary 25
to complete the sale such as charges for delivery, freight, 26
transportation, or handling.27
(2) "Affiliated" means related in any way by virtue of any form 28
or amount of common ownership, control, operation, or management.29
(3) "Board" means the Washington state liquor and cannabis board.30
(4) "Business" means any trade, occupation, activity, or 31
enterprise engaged in selling or distributing vapor products in this 32
state. 33
(5) "Distributor" means any person: 34
(a) Engaged in the business of selling vapor products in this 35
state who brings, or causes to be brought, into this state from 36
outside the state any vapor products for sale; 37
p. 19 HB 2068
(b) Who makes, manufactures, fabricates, or stores vapor products 1
in this state for sale in this state; 2
(c) Engaged in the business of selling vapor products outside 3
this state who ships or transports vapor products to retailers or 4
consumers in this state; or 5
(d) Engaged in the business of selling vapor products in this 6
state who handles for sale any vapor products that are within this 7
state but upon which tax has not been imposed. 8
(6) "Indian country" has the same meaning as provided in RCW 9
82.24.010. 10
(7) "Manufacturer" has the same meaning as provided in RCW 11
70.345.010. 12
(8) "Manufacturer's representative" means a person hired by a 13
manufacturer to sell or distribute the manufacturer's vapor products 14
and includes employees and independent contractors.15
(9) "Person" means: Any individual, receiver, administrator, 16
executor, assignee, trustee in bankruptcy, trust, estate, firm, 17
copartnership, joint venture, club, company, joint stock company, 18
business trust, municipal corporation, corporation, limited liability 19
company, association, or society; the state and its departments and 20
institutions; any political subdivision of the state of Washington; 21
and any group of individuals acting as a unit, whether mutual, 22
cooperative, fraternal, nonprofit, or otherwise. Except as provided 23
otherwise in this chapter, "person" does not include any person 24
immune from state taxation, including the United States or its 25
instrumentalities, and federally recognized Indian tribes and 26
enrolled tribal members, conducting business within Indian country.27
(10) "Place of business" means any place where vapor products are 28
sold or where vapor products are manufactured, stored, or kept for 29
the purpose of sale, including any vessel, vehicle, airplane, or 30
train. 31
(11) "Retail outlet" has the same meaning as provided in RCW 32
70.345.010. 33
(12) "Retailer" has the same meaning as provided in RCW 34
70.345.010. 35
(13) "Sale" has the same meaning as provided in RCW 70.345.010.36
(14)(a) "Taxable sales price" means:37
(i) In the case of a taxpayer that is not affiliated with the 38
manufacturer, distributor, or other person from whom the taxpayer 39
p. 20 HB 2068
purchased vapor products, the actual price for which the taxpayer 1
purchased the vapor products; 2
(ii) In the case of a taxpayer that purchases vapor products from 3
an affiliated manufacturer, affiliated distributor, or other 4
affiliated person, and that sells those vapor products to 5
unaffiliated distributors, unaffiliated retailers, or ultimate 6
consumers, the actual price for which that taxpayer sells those vapor 7
products to unaffiliated distributors, unaffiliated retailers, or 8
ultimate consumers;9
(iii) In the case of a taxpayer that sells vapor products only to 10
affiliated distributors or affiliated retailers, the price, 11
determined as nearly as possible according to the actual price, that 12
other distributors sell similar vapor products of like quality and 13
character to unaffiliated distributors, unaffiliated retailers, or 14
ultimate consumers;15
(iv) In the case of a taxpayer that is a manufacturer selling 16
vapor products directly to ultimate consumers, the actual price for 17
which the taxpayer sells those vapor products to ultimate consumers;18
(v) In the case of a taxpayer that has acquired vapor products 19
under a sale, the price, determined as nearly as possible according 20
to the actual price, that the taxpayer or other distributors sell the 21
same vapor products or similar vapor products of like quality and 22
character to unaffiliated distributors, unaffiliated retailers, or 23
ultimate consumers; or24
(vi) In any case where (a)(i) through (v) of this subsection do 25
not apply, the price, determined as nearly as possible according to 26
the actual price, that the taxpayer or other distributors sell the 27
same vapor products or similar vapor products of like quality and 28
character to unaffiliated distributors, unaffiliated retailers, or 29
ultimate consumers.30
(b) For purposes of (a)(i) and (ii) of this subsection only, 31
"person" includes both persons as defined in subsection (9) of this 32
section and any person immune from state taxation, including the 33
United States or its instrumentalities, and federally recognized 34
Indian tribes and enrolled tribal members, conducting business within 35
Indian country.36
(c) The department may adopt rules regarding the determination of 37
taxable sales price under this subsection.38
(15) "Taxpayer" means a person liable for the tax imposed by this 39
chapter. 40
p. 21 HB 2068
(((15))) (16) "Vapor product" means any noncombustible product 1
containing a solution or other consumable substance, regardless of 2
whether it contains nicotine, which employs a mechanical heating 3
element, battery, or electronic circuit regardless of shape or size 4
that can be used to produce vapor from the solution or other 5
substance, including an electronic cigarette, electronic cigar, 6
electronic cigarillo, electronic pipe, entertainment vapor product or 7
flavored tobacco or nicotine product as those terms are defined in 8
section 3 of this act, or similar product or device. The term also 9
includes any cartridge or other container of liquid nicotine, 10
solution, or other consumable substance, regardless of whether it 11
contains nicotine, that is intended to be used with or in a device 12
that can be used to deliver aerosolized or vaporized nicotine to a 13
person inhaling from the device and is sold for such purpose.14
(a) The term does not include: 15
(i) Any product approved by the United States food and drug 16
administration for sale as a tobacco cessation product, medical 17
device, or for other therapeutic purposes when such product is 18
marketed and sold solely for such an approved purpose;19
(ii) Any product that will become an ingredient or component in a 20
vapor product manufactured by a distributor; or 21
(iii) Any product that meets the definition of cannabis, useable 22
cannabis, cannabis concentrates, cannabis-infused products, 23
cigarette, or tobacco products. 24
(b) For purposes of this subsection (((15))) (16):25
(i) "Cigarette" has the same meaning as provided in RCW 26
82.24.010; and 27
(ii) "Cannabis," "useable cannabis," "cannabis concentrates," and 28
"cannabis-infused products" have the same meaning as provided in RCW 29
69.50.101. 30
Sec. 25. RCW 82.25.010 and 2019 c 445 s 102 are each amended to 31
read as follows: 32
(1)(((a))) There is levied and collected a tax upon the sale, 33
use, consumption, handling, possession, or distribution of all vapor 34
products in this state ((as follows:35
(i) All vapor products other than those taxed under (a)(ii) of 36
this subsection are taxed at a rate equal to twenty-seven cents per 37
milliliter of solution, regardless of whether it contains nicotine, 38
p. 22 HB 2068
and a proportionate tax at the like rate on all fractional parts of a 1
milliliter thereof. 2
(ii) Any accessible container of solution, regardless of whether 3
it contains nicotine, that is greater than five milliliters, is taxed 4
at a rate equal to nine cents per milliliter of solution and a 5
proportionate tax at the like rate on all fractional parts of a 6
milliliter thereof.7
(b) The tax in this section must be imposed based on the volume 8
of the solution as listed by the manufacturer )) at the rate of 95 9
percent of the taxable sales price. 10
(2)(a) The tax under this section must be collected at the time 11
the distributor: (i) Brings, or causes to be brought, into this state 12
from without the state vapor products for sale; (ii) makes, 13
manufactures, fabricates, or stores vapor products in this state for 14
sale in this state; (iii) ships or transports vapor products to 15
retailers or consumers in this state; or (iv) handles for sale any 16
vapor products that are within this state but upon which tax has not 17
been imposed. 18
(b) The tax imposed under this section must also be collected by 19
the department from the consumer of vapor products where the tax 20
imposed under this section was not paid by the distributor on such 21
vapor products. 22
(3)(a) The moneys collected under this section must be deposited 23
as follows: 24
(i) ((Fifty)) For the first $25,000,000 per calendar year 25
collected under this section, 50 percent into the Andy Hill cancer 26
research endowment fund match transfer account created in RCW 27
43.348.080((; and28
(ii) Fifty percent )) and 50 percent must be deposited into the 29
foundational public health services account created in RCW 82.25.015; 30
and31
(ii) Any additional moneys collected under this section must be 32
deposited in the general fund. 33
(b) The funding provided under this subsection is intended to 34
supplement and not supplant general fund investments in cancer 35
research and foundational public health services. 36
Sec. 26. RCW 82.25.030 and 2019 c 445 s 106 are each amended to 37
read as follows: 38
p. 23 HB 2068
(1) Every distributor must keep at each place of business 1
complete and accurate records for that place of business, including 2
itemized invoices, of vapor products held, purchased, manufactured, 3
brought in or caused to be brought in from without the state, or 4
shipped or transported to retailers in this state, and of all sales 5
of vapor products made. 6
(2) These records must show the names and addresses of 7
purchasers, the inventory of all vapor products including quantity of 8
vapor products by brand , and other pertinent papers and documents 9
relating to the purchase, sale, or disposition of vapor products. All 10
invoices and other records required by this section to be kept must 11
be preserved for a period of five years from the date of the invoices 12
or other documents or the date of the entries appearing in the 13
records. 14
(3) At any time during usual business hours the department, 15
board, or its duly authorized agents or employees may enter any place 16
of business of a distributor, without a search warrant, and inspect 17
the premises, the records required to be kept under this chapter, and 18
the vapor products contained therein, to determine whether or not all 19
the provisions of this chapter are being fully complied with. If the 20
department, board, or any of its agents or employees are denied free 21
access or are hindered or interfered with in making such examination, 22
the registration certificate issued under RCW 82.32.030 of the 23
distributor at such premises are subject to revocation by the 24
department, and any licenses issued under chapter 70.345, 82.26, or 25
82.24 RCW are subject to suspension or revocation by the board.26
(4) The department or the board may share information obtained 27
under this section that is deemed relevant to the potential violation 28
of the laws of other jurisdictions with the duly authorized agents of 29
those jurisdictions.30
Sec. 27. RCW 82.25.095 and 2019 c 445 s 119 are each amended to 31
read as follows: 32
(1) In all cases of seizure of any vapor products made subject to 33
forfeiture under this chapter, the department or board must proceed 34
as provided in RCW 82.24.135. 35
(2) When vapor products are forfeited under this chapter, the 36
department or board may: 37
(a) Retain the property for official use or upon application by 38
any law enforcement agency of this state, another state, or the 39
p. 24 HB 2068
District of Columbia, or of the United States for the exclusive use 1
of enforcing this chapter or the laws of any other state or the 2
District of Columbia or of the United States; ((or))3
(b) Destroy the vapor products; or4
(c) Sell the vapor products at public auction to the highest 5
bidder after due advertisement. Before delivering any of the goods to 6
the successful bidder, the department or board must require the 7
purchaser to pay the proper amount of any tax due. The proceeds of 8
the sale must be first applied to the payment of all proper expenses 9
of any investigation leading to the seizure and of the proceedings 10
for forfeiture and sale, including expenses of seizure, maintenance 11
of custody, advertising, and court costs. The balance of the proceeds 12
and all money must be deposited in the general fund of the state. 13
Proper expenses of investigation include costs incurred by any law 14
enforcement agency or any federal, state, or local agency.15
(3) The department or the board may return any property seized 16
under the provisions of this chapter when it is shown that there was 17
no intention to violate the provisions of this chapter. When any 18
property is returned under this section, the department or the board 19
may return the property to the parties from whom they were seized if 20
and when such parties have paid the proper amount of tax due under 21
this chapter. 22
Sec. 28. RCW 82.25.110 and 2019 c 445 s 122 are each amended to 23
read as follows: 24
(1) Preexisting inventories of vapor products are subject to the 25
tax imposed in RCW 82.25.010. All retailers and other distributors 26
must report the tax due ((under RCW 82.25.010)) on preexisting 27
inventories of vapor products on a form, as prescribed by the 28
department, on or before ((October 31, 2019 )) January 31, 2026 , and 29
the tax due on such preexisting inventories must be paid on or before 30
((January 31, 2020)) April 30, 2026. 31
(2) Reports under subsection (1) of this section not filed with 32
the department by ((October 31, 2019 )) January 31, 2026 , are subject 33
to a late filing penalty equal to the greater of ((two hundred fifty 34
dollars)) $250 or ((ten)) 10 percent of the tax due under RCW 35
82.25.010 on the taxpayer's preexisting inventories.36
(3) The department must notify the taxpayer of the amount of tax 37
due under RCW 82.25.010 on preexisting inventories, which is subject 38
to applicable penalties under RCW 82.32.090 (2) through (7) if unpaid 39
p. 25 HB 2068
after ((January 31, 2020 )) April 30, 2026 . Amounts due in accordance 1
with this section are not considered to be substantially underpaid 2
for the purposes of RCW 82.32.090(2). 3
(4) Interest, at the rate provided in RCW 82.32.050(2), must be 4
computed daily beginning ((February 1, 2020 )) May 1, 2026 , on any 5
remaining tax due under RCW 82.25.010 on preexisting inventories 6
until paid. 7
(5) A retailer required to comply with subsection (1) of this 8
section is not required to obtain a distributor license as otherwise 9
required under chapter 70.345 RCW as long as the retailer:10
(a) Does not sell vapor products other than to ultimate 11
consumers; and 12
(b) Does not meet the definition of "distributor" in RCW 13
82.25.005 other than with respect to the sale of that retailer's 14
preexisting inventory of vapor products. 15
(6) Taxes may not be collected under RCW 82.25.010 from consumers 16
with respect to any vapor products acquired before ((October 1, 17
2019)) January 1, 2026. 18
(7) For purposes of this section, " tax due on preexisting 19
((inventory)) inventories" means ((an)) the difference in tax due 20
under RCW 82.25.010 as of December 31, 2025, and January 1, 2026, on 21
the inventory of vapor products located in this state as of the 22
moment that ((RCW 82.25.010)) this section takes effect and held by a 23
distributor for sale, handling, or distribution in this state.24
TOBACCO TAX25
Sec. 29. RCW 82.26.010 and 2020 c 139 s 31 are each amended to 26
read as follows: 27
The definitions in this section apply throughout this chapter 28
unless the context clearly requires otherwise. 29
(1) "Actual price" means the total amount of consideration for 30
which tobacco products are sold, valued in money, whether received in 31
money or otherwise, including any charges by the seller necessary to 32
complete the sale such as charges for delivery, freight, 33
transportation, or handling. 34
(2) "Affiliated" means related in any way by virtue of any form 35
or amount of common ownership, control, operation, or management.36
(3) "Alternative nicotine product" means any noncombustible 37
product containing nicotine that is intended for human consumption, 38
p. 26 HB 2068
whether chewed, absorbed, dissolved, or ingested by any other means. 1
It does not include a vapor product or a product regulated as a drug 2
or device by the food and drug administration.3
(4) "Board" means the liquor and cannabis board.4
(((4))) (5) "Business" means any trade, occupation, activity, or 5
enterprise engaged in for the purpose of selling or distributing 6
tobacco products in this state. 7
(((5))) (6) "Cigar" means a roll for smoking that is of any size 8
or shape and that is made wholly or in part of tobacco, irrespective 9
of whether the tobacco is pure ((or flavored)), adulterated, or mixed 10
with any other ingredient, if the roll has a wrapper made wholly or 11
in greater part of tobacco. "Cigar" does not include a cigarette.12
(((6))) (7) "Cigarette" has the same meaning as in RCW 82.24.010.13
(((7))) (8) "Department" means the department of revenue.14
(((8))) (9) "Distributor" means (a) any person engaged in the 15
business of selling tobacco products in this state who brings, or 16
causes to be brought, into this state from without the state any 17
tobacco products for sale, (b) any person who makes, manufactures, 18
fabricates, or stores tobacco products in this state for sale in this 19
state, (c) any person engaged in the business of selling tobacco 20
products without this state who ships or transports tobacco products 21
to retailers in this state, to be sold by those retailers, (d) any 22
person engaged in the business of selling tobacco products in this 23
state who handles for sale any tobacco products that are within this 24
state but upon which tax has not been imposed. 25
(((9))) (10) "Flavored tobacco or nicotine product" means the 26
same as defined in section 3 of this act.27
(11) "Indian country" means the same as defined in chapter 82.24 28
RCW. 29
(((10))) (12) "Little cigar" means a cigar that has a cellulose 30
acetate integrated filter. 31
(((11))) (13) "Manufacturer" means a person who manufactures and 32
sells tobacco products. 33
(((12))) (14) "Manufacturer's representative" means a person 34
hired by a manufacturer to sell or distribute the manufacturer's 35
tobacco products, and includes employees and independent contractors.36
(((13))) (15) "Moist snuff" means tobacco that is finely cut, 37
ground, or powdered; is not for smoking; and is intended to be placed 38
in the oral, but not the nasal, cavity. 39
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(((14))) (16) "Person" means any individual, receiver, 1
administrator, executor, assignee, trustee in bankruptcy, trust, 2
estate, firm, copartnership, joint venture, club, company, joint 3
stock company, business trust, municipal corporation, the state and 4
its departments and institutions, political subdivision of the state 5
of Washington, corporation, limited liability company, association, 6
society, any group of individuals acting as a unit, whether mutual, 7
cooperative, fraternal, nonprofit, or otherwise. The term excludes 8
any person immune from state taxation, including the United States or 9
its instrumentalities, and federally recognized Indian tribes and 10
enrolled tribal members, conducting business within Indian country.11
(((15))) (17) "Place of business" means any place where tobacco 12
products are sold or where tobacco products are manufactured, stored, 13
or kept for the purpose of sale, including any vessel, vehicle, 14
airplane, train, or vending machine. 15
(((16))) (18) "Retail outlet" means each place of business from 16
which tobacco products are sold to consumers. 17
(((17))) (19) "Retailer" means any person engaged in the business 18
of selling tobacco products to ultimate consumers.19
(((18))) (20)(a) "Sale" means any transfer, exchange, or barter, 20
in any manner or by any means whatsoever, for a consideration, and 21
includes and means all sales made by any person. 22
(b) The term "sale" includes a gift by a person engaged in the 23
business of selling tobacco products, for advertising, promoting, or 24
as a means of evading the provisions of this chapter.25
(((19))) (21)(a) "Taxable sales price" means: 26
(i) In the case of a taxpayer that is not affiliated with the 27
manufacturer, distributor, or other person from whom the taxpayer 28
purchased tobacco products, the actual price for which the taxpayer 29
purchased the tobacco products; 30
(ii) In the case of a taxpayer that purchases tobacco products 31
from an affiliated manufacturer, affiliated distributor, or other 32
affiliated person, and that sells those tobacco products to 33
unaffiliated distributors, unaffiliated retailers, or ultimate 34
consumers, the actual price for which that taxpayer sells those 35
tobacco products to unaffiliated distributors, unaffiliated 36
retailers, or ultimate consumers; 37
(iii) In the case of a taxpayer that sells tobacco products only 38
to affiliated distributors or affiliated retailers, the price, 39
determined as nearly as possible according to the actual price, that 40
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other distributors sell similar tobacco products of like quality and 1
character to unaffiliated distributors, unaffiliated retailers, or 2
ultimate consumers; 3
(iv) In the case of a taxpayer that is a manufacturer selling 4
tobacco products directly to ultimate consumers, the actual price for 5
which the taxpayer sells those tobacco products to ultimate 6
consumers; 7
(v) In the case of a taxpayer that has acquired tobacco products 8
under a sale as defined in subsection (((18))) (20)(b) of this 9
section, the price, determined as nearly as possible according to the 10
actual price, that the taxpayer or other distributors sell the same 11
tobacco products or similar tobacco products of like quality and 12
character to unaffiliated distributors, unaffiliated retailers, or 13
ultimate consumers; or 14
(vi) In any case where (a)(i) through (v) of this subsection do 15
not apply, the price, determined as nearly as possible according to 16
the actual price, that the taxpayer or other distributors sell the 17
same tobacco products or similar tobacco products of like quality and 18
character to unaffiliated distributors, unaffiliated retailers, or 19
ultimate consumers. 20
(b) For purposes of (a)(i) and (ii) of this subsection only, 21
"person" includes both persons as defined in subsection (((14))) (16) 22
of this section and any person immune from state taxation, including 23
the United States or its instrumentalities, and federally recognized 24
Indian tribes and enrolled tribal members, conducting business within 25
Indian country. 26
(c) The department may adopt rules regarding the determination of 27
taxable sales price under this subsection. 28
(((20))) (22) "Taxpayer" means a person liable for the tax 29
imposed by this chapter. 30
(((21))) (23) "Tobacco products" means cigars, cheroots, stogies, 31
periques, granulated, plug cut, crimp cut, ready rubbed, and other 32
smoking tobacco, snuff, snuff flour, cavendish, plug and twist 33
tobacco, fine-cut and other chewing tobaccos, shorts, refuse scraps, 34
clippings, cuttings and sweepings of tobacco, flavored tobacco or 35
nicotine products, alternative nicotine products, and other kinds and 36
forms of tobacco, prepared in such manner as to be suitable for 37
chewing or smoking in a pipe or otherwise, or both for chewing and 38
smoking, and any other product, regardless of form, that contains 39
tobacco and is intended for human consumption or placement in the 40
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oral or nasal cavity or absorption into the human body by any other 1
means, but does not include cigarettes as defined in RCW 82.24.010.2
(((22))) (24) "Unaffiliated distributor" means a distributor that 3
is not affiliated with the manufacturer, distributor, or other person 4
from whom the distributor has purchased tobacco products.5
(((23))) (25) "Unaffiliated retailer" means a retailer that is 6
not affiliated with the manufacturer, distributor, or other person 7
from whom the retailer has purchased tobacco products.8
Sec. 30. RCW 82.26.020 and 2019 c 445 s 404 are each amended to 9
read as follows: 10
(1) There is levied and collected a tax upon the sale, handling, 11
or distribution of all tobacco products in this state at the 12
following rate: 13
(a) ((For cigars except little cigars, ninety-five percent of the 14
taxable sales price of cigars, not to exceed sixty-five cents per 15
cigar;16
(b) For all tobacco products except those covered under separate 17
provisions of this subsection, ninety-five percent of the taxable 18
sales price. The tax imposed on a product under this subsection must 19
be reduced by fifty percent if that same product is issued a modified 20
risk tobacco product order by the secretary of the United States 21
department of health and human services pursuant to Title 21 U.S.C. 22
Sec. 387k (g)(1), or by twenty-five percent if that same product is 23
issued a modified risk tobacco product order by the secretary of the 24
United States department of health and human services pursuant to 25
Title 21 U.S.C. Sec. 387k (g)(2). The tax reduction applies during the 26
period the modified risk tobacco product order is in effect;27
(c) For moist snuff, as established in this subsection (1)(c) and 28
computed on the net weight listed by the manufacturer:29
(i) On each single unit consumer-sized can or package whose net 30
weight is one and two-tenths ounces or less, a rate per single unit 31
that is equal to the greater of 2.526 dollars or eighty-three and 32
one-half percent of the cigarette tax under chapter 82.24 RCW 33
multiplied by twenty; or34
(ii) On each single unit consumer-sized can or package whose net 35
weight is more than one and two-tenths ounces, a proportionate tax at 36
the rate established in (c)(i) of this subsection (1) on each ounce 37
or fractional part of an ounce; and38
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(d))) Except as provided in (b) of this subsection, 95 percent of 1
the taxable sales price.2
(b) For little cigars, an amount per cigar equal to the cigarette 3
tax under chapter 82.24 RCW. 4
(2) Taxes under this section must be imposed at the time the 5
distributor (a) brings, or causes to be brought, into this state from 6
without the state tobacco products for sale, (b) makes, manufactures, 7
fabricates, or stores tobacco products in this state for sale in this 8
state, (c) ships or transports tobacco products to retailers in this 9
state, to be sold by those retailers, or (d) handles for sale any 10
tobacco products that are within this state but upon which tax has 11
not been imposed. 12
(3) The moneys collected under this section must be deposited 13
into the state general fund. 14
Sec. 31. RCW 82.26.030 and 2010 1st sp.s. c 22 s 7 are each 15
amended to read as follows: 16
It is the intent and purpose of this chapter to levy a tax on all 17
tobacco products sold, used, consumed, handled, or distributed within 18
this state and to collect the tax from the distributor as defined in 19
RCW 82.26.010. It is the further intent and purpose of this chapter 20
to impose the tax once, and only once, on all tobacco products for 21
sale in this state, but nothing in this chapter may be construed to 22
exempt any person taxable under any other law or under any other tax 23
imposed under ((Title 82 RCW )) this title . It is the further intent 24
and purpose of this chapter that the distributor who first possesses 25
the tobacco product in this state is the distributor liable for the 26
tax ((and that (1) for moist snuff the tax will be based on the net 27
weight listed by the manufacturer and (2) in most other instances the 28
tax will be based on the actual price that the distributor paid for 29
the tobacco product, unless the distributor is affiliated with the 30
seller)). 31
Sec. 32. RCW 82.26.060 and 2019 c 445 s 205 are each amended to 32
read as follows: 33
(1) Every distributor must keep at each place of business 34
complete and accurate records for that place of business, including 35
itemized invoices, of tobacco products held, purchased, manufactured, 36
brought in or caused to be brought in from without the state, or 37
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shipped or transported to retailers in this state, and of all sales 1
of tobacco products made. 2
(2) These records must show the names and addresses of 3
purchasers, the inventory of all tobacco products including quantity 4
of tobacco products by brand , and other pertinent papers and 5
documents relating to the purchase, sale, or disposition of tobacco 6
products. All invoices and other records required by this section to 7
be kept must be preserved for a period of five years from the date of 8
the invoices or other documents or the date of the entries appearing 9
in the records. 10
(3) At any time during usual business hours the department, 11
board, or its duly authorized agents or employees, may enter any 12
place of business of a distributor, without a search warrant, and 13
inspect the premises, the records required to be kept under this 14
chapter, and the tobacco products contained therein, to determine 15
whether or not all the provisions of this chapter are being fully 16
complied with. If the department, board, or any of its agents or 17
employees, are denied free access or are hindered or interfered with 18
in making such examination, the registration certificate issued under 19
RCW 82.32.030 of the distributor at such premises is subject to 20
revocation, and any licenses issued under this chapter or chapter 21
82.24 or 70.345 RCW are subject to suspension or revocation, by the 22
department or board. 23
(4) The department or the board may share information obtained 24
under this section that is deemed relevant to the potential violation 25
of the laws of other jurisdictions with the duly authorized agents of 26
those jurisdictions.27
Sec. 33. RCW 82.26.160 and 2005 c 180 s 12 are each amended to 28
read as follows: 29
(1) A fee of ((six hundred fifty dollars )) $1,000 shall accompany 30
each distributor's license application or license renewal 31
application. If a distributor sells or intends to sell tobacco 32
products at two or more places of business, whether established or 33
temporary, a separate license with a license fee of ((one hundred 34
fifteen dollars)) $1,000 shall be required for each additional place 35
of business. 36
(2) The fees imposed under subsection (1) of this section do not 37
apply to any person applying for a distributor's license or for 38
renewal of a distributor's license if the person has a valid 39
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wholesaler's license under RCW 82.24.510 for the place of business 1
associated with the distributor's license application or license 2
renewal application. 3
Sec. 34. RCW 82.26.170 and 2016 sp.s. c 38 s 28 are each amended 4
to read as follows: 5
(1) A fee of ((one hundred seventy-five dollars )) $1,000 shall 6
accompany each retailer's license application or license renewal 7
application. A separate license is required for each separate 8
location at which the retailer operates. 9
(2) The fee imposed under subsection (1) of this section does not 10
apply to any person applying for a retailer's license or for renewal 11
of a retailer's license if the person has a valid retailer's license 12
under RCW 82.24.510 for the place of business associated with the 13
retailer's license application or renewal application.14
(((3) A retailer applying for, or renewing, both a retailer's 15
license under RCW 82.26.170 and a vapor products retailer's license 16
under RCW 70.345.020 may pay a combined application fee of two 17
hundred fifty dollars for both licenses.))18
Sec. 35. RCW 82.26.190 and 2020 c 139 s 34 are each amended to 19
read as follows: 20
(1)(a) No person may engage in or conduct business as a 21
distributor or retailer in this state after September 30, 2005, 22
without a valid license issued under this chapter. Any person who 23
sells tobacco products to persons other than ultimate consumers or 24
who meets the definition of distributor under RCW 82.26.010(((8))) 25
(9)(d) must obtain a distributor's license under this chapter. Any 26
person who sells tobacco products to ultimate consumers must obtain a 27
retailer's license under this chapter. Products offered for sale in 28
violation of this subsection are contraband and subject to seizure in 29
accordance with RCW 82.25.095.30
(b) A violation of this subsection (1) is punishable as a class C 31
felony according to chapter 9A.20 RCW. 32
(2)(a) No person engaged in or conducting business as a 33
distributor or retailer in this state may: 34
(i) Refuse to allow the department or the board, on demand, to 35
make a full inspection of any place of business where any of the 36
tobacco products taxed under this chapter are sold, stored, or 37
handled, or otherwise hinder or prevent such inspection;38
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(ii) Make, use, or present or exhibit to the department or the 1
board any invoice for any of the tobacco products taxed under this 2
chapter that bears an untrue date or falsely states the nature or 3
quantity of the goods invoiced; or 4
(iii) Fail to produce on demand of the department or the board 5
all invoices of all the tobacco products taxed under this chapter 6
within five years prior to such demand unless the person can show by 7
satisfactory proof that the nonproduction of the invoices was due to 8
causes beyond the person's control. 9
(b) No person, other than a licensed distributor or retailer, may 10
transport tobacco products for sale in this state for which the taxes 11
imposed under this chapter have not been paid unless:12
(i) Notice of the transportation has been given as required under 13
RCW 82.26.140; 14
(ii) The person transporting the tobacco products actually 15
possesses invoices or delivery tickets showing the true name and 16
address of the consignor or seller, the true name and address of the 17
consignee or purchaser, and the quantity and brands of tobacco 18
products being transported; and 19
(iii) The tobacco products are consigned to or purchased by a 20
person in this state who is licensed under this chapter.21
(c) A violation of this subsection (2) is a gross misdemeanor.22
(3) Any person licensed under this chapter as a distributor, and 23
any person licensed under this chapter as a retailer, may not operate 24
in any other capacity unless the additional appropriate license is 25
first secured. A violation of this subsection (3) is a misdemeanor.26
(4) The penalties provided in this section are in addition to any 27
other penalties provided by law for violating the provisions of this 28
chapter or the rules adopted under this chapter. 29
Sec. 36. RCW 82.26.200 and 2020 c 139 s 35 are each amended to 30
read as follows: 31
(1) A retailer may obtain tobacco products only from a licensed 32
distributor. A retailer that obtains tobacco products from ((an 33
unlicensed distributor or any other )) a person that is not licensed 34
under this chapter , including directly from a manufacturer, must be 35
licensed both as a retailer and a distributor under this chapter and 36
is liable for the tax imposed under RCW 82.26.020 with respect to the 37
tobacco products acquired from the unlicensed person that are held 38
for sale, handling, or distribution in this state. For the purposes 39
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of this subsection, "person" includes both persons defined in RCW 1
82.26.010(((14))) (16) and any person immune from state taxation, 2
such as the United States or its instrumentalities, and federally 3
recognized Indian tribes and enrolled tribal members, conducting 4
business within Indian country. 5
(2) Every distributor licensed under this chapter must sell 6
tobacco products to retailers located in Washington only if the 7
retailer has a current retailer's license under this chapter.8
Sec. 37. RCW 82.26.240 and 2005 c 180 s 21 are each amended to 9
read as follows: 10
(1) In all cases of seizure of any tobacco products made subject 11
to forfeiture under this chapter, the department or board shall 12
proceed as provided in RCW 82.24.135. 13
(2) When tobacco products are forfeited under this chapter, the 14
department or board may: 15
(a) Retain the property for official use or upon application by 16
any law enforcement agency of this state, another state, or the 17
District of Columbia, or of the United States for the exclusive use 18
of enforcing this chapter or the laws of any other state or the 19
District of Columbia or of the United States; ((or))20
(b) Destroy the tobacco products; or21
(c) Sell the tobacco products at public auction to the highest 22
bidder after due advertisement. Before delivering any of the goods to 23
the successful bidder, the department or board shall require the 24
purchaser to pay the proper amount of any tax due. The proceeds of 25
the sale shall be first applied to the payment of all proper expenses 26
of any investigation leading to the seizure and of the proceedings 27
for forfeiture and sale, including expenses of seizure, maintenance 28
of custody, advertising, and court costs. The balance of the proceeds 29
and all money shall be deposited in the general fund of the state. 30
Proper expenses of investigation include costs incurred by any law 31
enforcement agency or any federal, state, or local agency.32
(3) The department or the board may return any property seized 33
under the provisions of this chapter when it is shown that there was 34
no intention to violate the provisions of this chapter. When any 35
property is returned under this section, the department or the board 36
may return the property to the parties from whom they were seized if 37
and when such parties have paid the proper amount of tax due under 38
this chapter. 39
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CODIFICATION1
NEW SECTION. Sec. 38. Sections 1 and 3 through 8 of this act 2
constitute a new chapter in Title 70 RCW.3
NEW SECTION. Sec. 39. Sections 21, 24, 25, 28, 30, and 31 of 4
this act take effect January 1, 2026.5
NEW SECTION. Sec. 40. RCW 82.26.260 (Tobacco product code — Tax 6
payment and exemption verification) and 2010 1st sp.s. c 22 s 6 are 7
each repealed.8
NEW SECTION. Sec. 41. If any provision of this act or its 9
application to any person or circumstance is held invalid, the 10
remainder of the act or the application of the provision to other 11
persons or circumstances is not affected.12
--- END ---
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