Tobacco, nicotine, & 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, and 82.26.240; 5
adding new sections to chapter 70.345 RCW; and prescribing penalties.6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
Sec. 1. RCW 26.28.080 and 2019 c 15 s 1 are each amended to read 8
as follows: 9
(1) A person who sells or gives, or permits to be sold or given, 10
to any person under the age of ((twenty-one)) 21 years any cigar, 11
cigarette, cigarette paper or wrapper, tobacco in any form, 12
alternative nicotine product, or a vapor product is guilty of a gross 13
misdemeanor and is liable for a fine of up to $5,000.14
(2) It is not a defense to a prosecution for a violation of this 15
section that the person acted, or was believed by the defendant to 16
act, as agent or representative of another. 17
(3) For the purposes of this section, "vapor product" has the 18
same meaning as provided in RCW 70.345.010. 19
(4) For the purposes of this section, "alternative nicotine 20
product" has the same meaning as provided in RCW 82.26.010.21
S-0587.1
SENATE BILL 5526
State of Washington 69th Legislature 2025 Regular Session
By Senators Liias, Braun, Saldaña, Chapman, King, C. Wilson, Gildon,
Stanford, Schoesler, Boehnke, Conway, Cortes, Harris, Krishnadasan,
Nobles, Pedersen, and Valdez
Read first time 01/27/25. Referred to Committee on Labor & Commerce.
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Sec. 2. RCW 70.155.010 and 2019 c 15 s 3 are each amended to 1
read as follows: 2
The definitions set forth in RCW 82.24.010 apply to this chapter. 3
In addition, for the purposes of this chapter, unless otherwise 4
required by the context: 5
(1) "Board" means the Washington state liquor and cannabis board.6
(2) "Internet" means any computer network, telephonic network, or 7
other electronic network. 8
(3) "Sample" means a tobacco product distributed to members of 9
the general public at no cost or at nominal cost for product 10
promotion purposes. 11
(4) "Sampling" means the distribution of samples to members of 12
the public. 13
(5) "Tobacco product" means an alternative nicotine product as 14
defined in RCW 82.26.010(3) or a product that contains tobacco and is 15
intended for human use, including any product defined in RCW 16
82.24.010(2) or 82.26.010(((21))) (22), except that for the purposes 17
of RCW 70.155.140 only, "tobacco product" does not include cigars 18
defined in RCW 82.26.010 as to which ((one thousand )) 1,000 units 19
weigh more than three pounds. 20
(6) "Vapor product" has the same meaning as defined in RCW 21
70.345.010. 22
Sec. 3. RCW 70.155.090 and 2006 c 14 s 4 are each amended to 23
read as follows: 24
(((1) Where there may be a question of a person's right to 25
purchase or obtain tobacco products by reason of age, the )) A 26
retailer or agent ((thereof,)) shall require the purchaser of a 27
tobacco product or vapor product to present any one of the following 28
officially issued identification that shows the purchaser's age and 29
bears his or her signature and photograph: (a) Liquor control 30
authority card of identification of a state or province of Canada; 31
(b) driver's license, instruction permit, or identification card of a 32
state or province of Canada; (c) "identicard" issued by the 33
Washington state department of licensing under chapter 46.20 RCW; (d) 34
United States military identification; (e) passport; (f) enrollment 35
card, issued by the governing authority of a federally recognized 36
Indian tribe located in Washington, that incorporates security 37
features comparable to those implemented by the department of 38
licensing for Washington drivers' licenses. At least ((ninety)) 90 39
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days prior to implementation of an enrollment card under this 1
subsection, the appropriate tribal authority shall give notice to the 2
board. The board shall publish and communicate to licensees regarding 3
the implementation of each new enrollment card; or (g) merchant 4
marine identification card issued by the United States coast guard.5
(2) It is a defense to a prosecution under RCW 26.28.080 that the 6
person making a sale reasonably relied on any of the officially 7
issued identification as defined in subsection (1) of this section. 8
The liquor ((control)) and cannabis board shall waive the suspension 9
or revocation of a license if the licensee clearly establishes that 10
he or she acted in good faith to prevent violations and a violation 11
occurred despite the licensee's exercise of due diligence.12
Sec. 4. RCW 70.155.100 and 2023 c 398 s 4 are each amended to 13
read as follows: 14
(1) The liquor and cannabis board may suspend or revoke a 15
retailer's license issued under RCW 82.24.510(1)(b) or 16
82.26.150(1)(b) held by a business at any location, or may impose a 17
monetary penalty as set forth in subsection (3) of this section, if 18
the liquor and cannabis board finds that the licensee has violated 19
RCW 26.28.080, 70.155.020, 70.155.030, 70.155.040, 70.155.050, 20
70.155.070, or 70.155.090. 21
(2) Any retailer's licenses issued under RCW 70.345.020 to a 22
person whose license or licenses under chapter 82.24 or 82.26 RCW 23
have been suspended or revoked for violating RCW 26.28.080 must also 24
be suspended or revoked during the period of suspension or revocation 25
under this section. 26
(3) The sanctions that the liquor and cannabis board may impose 27
against a person licensed under RCW 82.24.530 or 82.26.170 based upon 28
one or more findings under subsection (1) of this section may not 29
exceed the following: 30
(a) For violations of RCW 70.155.020 or 21 C.F.R. Sec. 1140.14, 31
and for violations of RCW 70.155.040 occurring on the licensed 32
premises: 33
(i) A monetary penalty of $200 for the first violation within any 34
((three-year)) two-year period; 35
(ii) A monetary penalty of $600 for the second violation within 36
any ((three-year)) two-year period; 37
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(iii) A monetary penalty of $2,000 and suspension of the license 1
for a period of six months for the third violation within any 2
((three-year)) two-year period; 3
(iv) A monetary penalty of $3,000 and suspension of the license 4
for a period of 12 months for the fourth violation within any 5
((three-year)) two-year period; 6
(v) ((Revocation)) A monetary penalty of $5,000 and revocation of 7
the license with no possibility of reinstatement for a period of five 8
years for the fifth or more violation within any ((three-year)) two-9
year period; 10
(b) For violations of RCW 26.28.080: 11
(i) A monetary penalty of (($1,000)) $1,500 for the first 12
violation within any ((three-year)) two-year period;13
(ii) A monetary penalty of (($2,500)) $3,000 for the second 14
violation within any ((three-year)) two-year period;15
(iii) A monetary penalty of (($5,000)) $6,000 and suspension of 16
the license for a period of six months for the third violation within 17
any ((three-year)) two-year period; 18
(iv) A monetary penalty of (($10,000)) $12,000 and suspension of 19
the license for a period of 12 months for the fourth violation within 20
any ((three-year)) two-year period; 21
(v) ((Revocation)) A monetary penalty of $15,000 and revocation 22
of the license with no possibility of reinstatement for a period of 23
five years for the fifth or more violation within any ((three-year)) 24
two-year period; 25
(c) If the board finds that a person licensed under chapter 82.24 26
or 82.26 RCW and RCW 70.345.020 has violated RCW 26.28.080, each 27
subsequent violation of either of the person's licenses counts as an 28
additional violation within that ((three-year)) two-year period;29
(d) For violations of RCW 70.155.030, a monetary penalty in the 30
amount of $100 for each day upon which such violation occurred;31
(e) For violations of RCW 70.155.050, a monetary penalty in the 32
amount of $600 for each violation; 33
(f) For violations of RCW 70.155.070, a monetary penalty in the 34
amount of $2,000 for each violation. 35
(4) The liquor and cannabis board may impose a monetary penalty 36
upon any person other than a licensed cigarette or tobacco product 37
retailer if the liquor and cannabis board finds that the person has 38
violated RCW 26.28.080, 70.155.020, 70.155.030, 70.155.040, 39
70.155.050, 70.155.070, or 70.155.090. 40
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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. 5. RCW 70.345.010 and 2022 c 16 s 135 are each amended to 38
read as follows: 39
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The definitions in this section apply throughout this chapter 1
unless the context clearly requires otherwise. 2
(1) "Board" means the Washington state liquor and cannabis board.3
(2) "Business" means any trade, occupation, activity, or 4
enterprise engaged in for the purpose of selling or distributing 5
vapor products in this state. 6
(3) "Child care facility" has the same meaning as provided in RCW 7
70A.320.020. 8
(4) "Closed system nicotine container" means a sealed, prefilled, 9
and disposable container of nicotine in a solution or other form in 10
which such container is inserted directly into an electronic 11
cigarette, electronic nicotine delivery system, or other similar 12
product, if the nicotine in the container is inaccessible through 13
customary or reasonably foreseeable handling or use, including 14
reasonably foreseeable ingestion or other contact by children.15
(5) "Delivery sale" means any sale of a vapor product to a 16
purchaser in this state where either: 17
(a) The purchaser submits the order for such sale by means of a 18
telephonic or other method of voice transmission, the mails or any 19
other delivery service, or the internet or other online service; or20
(b) The vapor product is delivered by use of the mails or of a 21
delivery service. The foregoing sales of vapor products constitute a 22
delivery sale regardless of whether the seller is located within or 23
without this state. "Delivery sale" does not include a sale of any 24
vapor product not for personal consumption to a retailer.25
(6) "Delivery seller" means a person who makes delivery sales.26
(7) "Distributor" has the same meaning as in RCW 82.25.005.27
(8) "Liquid nicotine container" means a package from which 28
nicotine in a solution or other form is accessible through normal and 29
foreseeable use by a consumer and that is used to hold soluble 30
nicotine in any concentration. "Liquid nicotine container" does not 31
include closed system nicotine containers. 32
(9) "Manufacturer" means a person who manufactures and sells 33
vapor products. 34
(10) "Person" means any individual, receiver, administrator, 35
executor, assignee, trustee in bankruptcy, trust, estate, firm, 36
copartnership, joint venture, club, company, joint stock company, 37
business trust, municipal corporation, the state and its departments 38
and institutions, political subdivision of the state of Washington, 39
corporation, limited liability company, association, society, any 40
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group of individuals acting as a unit, whether mutual, cooperative, 1
fraternal, nonprofit, or otherwise. 2
(11) "Place of business" means any place where vapor products are 3
sold or where vapor products are manufactured, stored, or kept for 4
the purpose of sale. 5
(12) "Playground" means any public improved area designed, 6
equipped, and set aside for play of six or more children which is not 7
intended for use as an athletic playing field or athletic court, 8
including but not limited to any play equipment, surfacing, fencing, 9
signs, internal pathways, internal land forms, vegetation, and 10
related structures. 11
(13) "Retail outlet" means each place of business from which 12
vapor products are sold to consumers. 13
(14) "Retailer" means any person engaged in the business of 14
selling vapor products to ultimate consumers. 15
(15)(a) "Sale" means any transfer, exchange, or barter, in any 16
manner or by any means whatsoever, for a consideration, and includes 17
and means all sales made by any person. 18
(b) The term "sale" includes a gift by a person engaged in the 19
business of selling vapor products, for advertising, promoting, or as 20
a means of evading the provisions of this chapter.21
(16) "School" has the same meaning as provided in RCW 22
70A.320.020. 23
(17) "Self-service display" means a display that contains vapor 24
products and is located in an area that is openly accessible to 25
customers and from which customers can readily access such products 26
without the assistance of a salesperson. A display case that holds 27
vapor products behind locked doors does not constitute a self-service 28
display. 29
(18) "Vapor product" means any noncombustible product that may 30
contain nicotine and that employs a heating element, power source, 31
electronic circuit, or other electronic, chemical, or mechanical 32
means, regardless of shape or size, that can be used to produce vapor 33
or aerosol from a solution or other substance. 34
(a) "Vapor product" includes any electronic cigarette, electronic 35
cigar, electronic cigarillo, electronic pipe, or similar product or 36
device and any vapor cartridge or other container that may contain 37
nicotine in a solution or other form that is intended to be used with 38
or in an electronic cigarette, electronic cigar, electronic 39
cigarillo, electronic pipe, or similar product or device.40
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(b) "Vapor product" does not include any product that meets the 1
definition of cannabis, useable cannabis, cannabis concentrates, 2
cannabis-infused products, cigarette, alternative nicotine products, 3
or tobacco products. 4
(c) For purposes of this subsection (18), "cannabis," "useable 5
cannabis," "cannabis concentrates," and "cannabis-infused products" 6
have the same meaning as provided in RCW 69.50.101.7
(22) "Alternative nicotine product" has the same meaning as 8
provided in RCW 82.26.010.9
(23) "FDA" means the United States food and drug administration.10
(24) "Timely filed premarket tobacco product application" means 11
an application pursuant to 21 U.S.C. Sec. 387j for a vapor product 12
containing nicotine derived from tobacco marketed in the United 13
States as of August 8, 2016, that was submitted to the United States 14
food and drug administration on or before September 9, 2020, and 15
accepted for filing.16
Sec. 6. RCW 70.345.030 and 2019 c 445 s 211 are each amended to 17
read as follows: 18
(1)(a) No person may engage in or conduct business as a retailer, 19
distributor, or delivery seller in this state without a valid license 20
issued under this chapter, except as otherwise provided by law. Any 21
person who sells vapor products to ultimate consumers by a means 22
other than delivery sales must obtain a retailer's license under this 23
chapter. Any person who meets the definition of distributor under 24
this chapter must obtain a distributor's license under this chapter. 25
Any person who conducts delivery sales of vapor products must obtain 26
a delivery sale license. 27
(b) A retailer may obtain vapor products only from a licensed 28
distributor. A retailer that obtains vapor products from any person 29
that is not licensed under this chapter, including directly from a 30
manufacturer, must be licensed both as a retailer and a distributor 31
under this chapter and is liable for the tax imposed under RCW 32
82.25.010 with respect to the vapor products acquired from the 33
unlicensed person that are held for sale, handling, or distribution 34
in this state.35
(c) A violation of this subsection is punishable as a class C 36
felony according to chapter 9A.20 RCW. 37
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(d) Products offered for sale in violation of this subsection are 1
contraband and subject to seizure. The provisions of RCW 82.25.095 2
apply to seized products.3
(2) No person engaged in or conducting business as a retailer, 4
distributor, or delivery seller in this state may refuse to allow the 5
enforcement officers of the board, on demand, to make full inspection 6
of any place of business or vehicle where any of the vapor products 7
regulated under this chapter are sold, stored, transported, or 8
handled, or otherwise hinder or prevent such inspection. A person who 9
violates this subsection is guilty of a gross misdemeanor.10
(3) Any person licensed under this chapter as a distributor, any 11
person licensed under this chapter as a retailer, and any person 12
licensed under this chapter as a delivery seller may not operate in 13
any other capacity unless the additional appropriate license is first 14
secured, except as otherwise provided by law. A violation of this 15
subsection is a misdemeanor. 16
(4) No person engaged in or conducting business as a retailer, 17
distributor, or delivery seller in this state may sell or give, or 18
permit to sell or give, a product that contains any amount of any 19
cannabinoid, synthetic cannabinoid, cathinone, or methcathinone, 20
unless otherwise provided by law. A violation of this subsection (4) 21
is punishable according to RCW 69.50.401. 22
(5) The penalties provided in this section are in addition to any 23
other penalties provided by law for violating the provisions of this 24
chapter or the rules adopted under this chapter. 25
NEW SECTION. Sec. 7. A new section is added to chapter 70.345 26
RCW to read as follows: 27
(1) By October 1, 2025, and annually thereafter, every 28
manufacturer of a vapor product that contains nicotine that is sold 29
for retail sale in this state or to a consumer in this state, whether 30
directly or through a distributor, wholesaler, retailer, delivery 31
seller, or similar intermediary or intermediaries, shall execute and 32
deliver to the board a certification, under penalty of perjury on a 33
form and in a manner prescribed by the board, that the manufacturer 34
is compliant with this chapter and that, for each vapor product sold 35
for retail sale in this state or to a consumer in this state:36
(a) The manufacturer has received a marketing granted order for 37
the vapor product from the FDA pursuant to 21 U.S.C. Sec. 387j;38
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(b) The manufacturer submitted a timely filed premarket tobacco 1
product application for the vapor product to the FDA pursuant to 21 2
U.S.C. Sec. 387j, and the application either remains under review by 3
the FDA or has received a denial order that has been and remains 4
stayed by the FDA or court order, rescinded by the FDA, or vacated by 5
a court; or 6
(c) The manufacturer is not required to submit an additional 7
marketing granted order or premarket tobacco product application for 8
the vapor product because the vapor product merely reflects changes 9
to the name, brand style, or packaging of a vapor product that is 10
covered under (a) or (b) of this subsection. 11
(2) The certification form must separately list each brand name, 12
product name, category (e.g., disposable vapor product, power unit, 13
device, e-liquid cartridge, e-liquid pod), and flavor for each vapor 14
product containing nicotine that is sold in this state.15
(3) Each annual certification form must be accompanied by:16
(a) A copy of (i) the marketing granted order issued by the FDA 17
pursuant to 21 U.S.C. Sec. 387j, (ii) a copy of the acceptance letter 18
issued by the FDA pursuant to 21 U.S.C. Sec. 387j for a timely filed 19
premarket tobacco product application, or (iii) a document issued by 20
the FDA or by a court confirming that the premarket tobacco product 21
application has received a denial order that has been and remains 22
stayed by the FDA or court order, rescinded by the FDA, or vacated by 23
a court; and 24
(b) A payment of $1,000 for each vapor product containing 25
nicotine the first time a manufacturer submits an annual 26
certification form for that vapor product. A payment of $500 for each 27
vapor product containing nicotine each subsequent time a manufacturer 28
submits an annual certification form for that vapor product.29
NEW SECTION. Sec. 8. A new section is added to chapter 70.345 30
RCW to read as follows: 31
The information submitted by the manufacturer pursuant to section 32
7(3)(a) of this act is confidential and exempt from disclosure under 33
the public records act, chapter 42.56 RCW. The manufacturer may 34
redact certain confidential commercial or financial information 35
provided under such section. 36
NEW SECTION. Sec. 9. A new section is added to chapter 70.345 37
RCW to read as follows: 38
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A manufacturer required to submit a certification form pursuant 1
to section 7 of this act shall notify the board within 30 days of any 2
material change to the certification form, including the issuance or 3
denial of a marketing authorization or other order by the FDA 4
pursuant to 21 U.S.C. Sec. 387j, or any other order or action by the 5
FDA or any court that affects the ability of the vapor product 6
containing nicotine to be introduced or delivered into interstate 7
commerce for commercial distribution in the United States.8
NEW SECTION. Sec. 10. A new section is added to chapter 70.345 9
RCW to read as follows: 10
(1) Starting January 1, 2026, the board shall maintain and make 11
publicly available on its official website a directory that lists all 12
manufacturers and all vapor products containing nicotine, including 13
brand names, product names, categories (e.g., disposable vapor 14
product, e-liquid, e-liquid cartridge, e-liquid pod, power unit), and 15
flavors, for which certification forms have been submitted and as 16
approved by the board. 17
(2) The board shall update the directory at least monthly to 18
ensure accuracy, and shall establish a process to provide licensed 19
retailers, distributors, and other relevant parties notice of the 20
initial publication of the directory and changes made to the 21
directory in the prior month. 22
(3) No manufacturer or the manufacturer's vapor products 23
containing nicotine may be included or retained in the directory if 24
the board determines that any of the following apply:25
(a) The manufacturer failed to provide a complete and accurate 26
certification as required by section 7(1) of this act;27
(b) The manufacturer submitted a certification that does not 28
comply with the requirements of section 7 (2) and (3) of this act;29
(c) The manufacturer failed to include with its certification the 30
payment required by section 7(3)(b) of this act; 31
(d) The manufacturer sold vapor products containing nicotine in 32
this state required to be certified under this act during a period 33
when either the manufacturer or the vapor product had not been 34
certified and listed on the directory; or 35
(e) The information provided by the manufacturer in its 36
certification is determined by the board to contain false information 37
or contain material misrepresentations or omissions.38
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NEW SECTION. Sec. 11. A new section is added to chapter 70.345 1
RCW to read as follows: 2
(1) The board shall provide manufacturers notice and an 3
opportunity to cure deficiencies before removing manufacturers or 4
vapor products containing nicotine from the directory.5
(2) The board may not remove the manufacturer or its vapor 6
products containing nicotine from the directory until at least 30 7
days after the manufacturer has been given notice of an intended 8
action setting forth the reasons therefor. Notice shall be sufficient 9
and be deemed immediately received by a manufacturer if the notice is 10
sent either electronically or by facsimile to an electronic mail 11
address or facsimile number, as the case may be, provided by the 12
manufacturer in its most recent certification filed under section 7 13
(2) and (3) of this act. 14
(3) The manufacturer has 15 days from the date of service of the 15
notice of the board's intended action to cure the deficiencies or 16
otherwise establish that the manufacturer or its vapor products 17
containing nicotine should be included in the directory.18
(4) Retailers have 30 days following the removal of a 19
manufacturer or its vapor products containing nicotine from the 20
directory to sell such vapor products that were in the retailer's 21
inventory as of the date of removal. 22
(5) After 30 days following removal from the directory, the vapor 23
product containing nicotine of a manufacturer identified in the 24
notice of removal and intended for retail sale in this state or to a 25
consumer in this state are subject to seizure from distributors and 26
retailers, forfeiture from distributors and retailers, and 27
destruction or disposal, and may not be purchased or sold for retail 28
sale in this state or to a consumer in this state. The person from 29
whom the vapor products are confiscated bears the cost of such 30
seizure, forfeiture, and destruction or disposal. The provisions of 31
RCW 82.25.095 shall apply to seized vapor products.32
NEW SECTION. Sec. 12. A new section is added to chapter 70.345 33
RCW to read as follows: 34
(1) Except as provided in subsections (2) and (3) of this 35
section, beginning January 1, 2026, or on the date that the board 36
first makes the directory available for public inspection on its 37
official website, whichever is later, vapor products containing 38
nicotine not included in the directory may not be sold for retail 39
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sale in this state, either directly or through an importer, 1
distributor, wholesaler, retailer, or similar intermediary or 2
intermediaries. 3
(2) Each retailer has 60 days from the date that the board first 4
makes the directory available for inspection on its public website to 5
sell vapor products containing nicotine that were in its inventory 6
and not included in the directory or remove those vapor products from 7
inventory. 8
(3) Each distributor or wholesaler has 60 days from the date that 9
the board first makes the directory available for inspection on its 10
public website to remove those vapor products containing nicotine 11
intended for retail sale in the state and not included in the 12
directory from its inventory. 13
(4) After 60 days following publication of the directory, vapor 14
products containing nicotine not listed in the directory and intended 15
for retail sale in this state or to a consumer in this state are 16
subject to seizure, forfeiture, and destruction or disposal, and may 17
not be purchased or sold for retail sale in this state or to a 18
consumer in this state except as provided in subsections (2) and (3) 19
of this section. The person from whom the vapor products are 20
confiscated bears the cost of such seizure, forfeiture, and 21
destruction or disposal. 22
NEW SECTION. Sec. 13. A new section is added to chapter 70.345 23
RCW to read as follows: 24
(1) The following penalties apply to violations of Sections 7 25
through 17 of this act: 26
(a) In addition to or in lieu of any other civil or criminal 27
remedy provided by law, a retailer, distributor, wholesaler, or 28
importer who sells or offers for sale a vapor product containing 29
nicotine for retail sale in this state or to a consumer in this state 30
that is not included in the directory is subject to a civil penalty 31
of $500 for each individual vapor product containing nicotine offered 32
for sale in violation of sections 7 through 17 of this act.33
(b) For a second violation of this type within a 12-month period, 34
the civil penalty must be at least $750 but not more than $1,000 for 35
each vapor product containing nicotine and the licensee's license 36
shall be suspended for 30 days. 37
(c) For a third violation of this type within a 12-month period, 38
the civil penalty must be at least $1,000 but not more than $1,500 39
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for each vapor product containing nicotine and the licensee's license 1
shall be revoked. 2
(2) A manufacturer whose vapor products containing nicotine are 3
not listed in the directory and who causes the vapor products 4
containing nicotine that are not listed to be sold for retail sale in 5
this state, whether directly or through an importer, distributor, 6
wholesaler, retailer, or similar intermediary or intermediaries, is 7
subject to a civil penalty of $10,000 for each individual vapor 8
product offered for sale in violation of this section. In addition, 9
any manufacturer that falsely represents any information required by 10
a certification form shall be guilty of a class C misdemeanor for 11
each false representation. 12
(3) In an action to enforce this act, the state is entitled to 13
recover costs, including the costs of investigation, expert witness 14
fees, and reasonable attorneys' fees and costs. 15
(4) Vapor products containing nicotine offered for sale in 16
violation of sections 7 through 17 of this act are considered 17
contraband and may be seized and disposed of or destroyed by an 18
enforcement officer of the board. The person from whom the vapor 19
products are confiscated bears the cost of such seizure and disposal 20
or destruction, not the board. 21
(5) The board, acting in the name of the state, may seek recovery 22
of the penalty in a civil action in superior court.23
(6) The board may seek an injunction in superior court to 24
restrain a threatened or actual violation of this section and to 25
compel compliance with this section. 26
(7) A second or subsequent violation of sections 7 through 17 of 27
this act is not reasonable in relation to the development and 28
preservation of business and is an unfair and deceptive act or 29
practice and an unfair method of competition in the conduct of trade 30
or commerce in violation of RCW 19.86.020. Standing to bring an 31
action to enforce RCW 19.86.020 for violation of this section lies 32
solely with the attorney general. Remedies provided by chapter 19.86 33
RCW are cumulative and not exclusive. 34
NEW SECTION. Sec. 14. A new section is added to chapter 70.345 35
RCW to read as follows: 36
(1) Each retailer, distributor, and wholesaler that sells or 37
distributes vapor products containing nicotine in this state must be 38
subject to at least two unannounced compliance checks annually for 39
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purposes of enforcing this section. Unannounced follow-up compliance 1
checks of all noncompliant retailers, distributors, and wholesalers 2
must be conducted within 30 days after any violation of sections 7 3
through 17 of this act. 4
(2) The board must publish the results of all compliance checks 5
at least annually and must make the results available to the public 6
on request. 7
(3) The requirements of this section do not apply to an Indian 8
tribal organization, Indian retailer, or Indian distributor, as those 9
terms are defined in RCW 82.25.105. 10
NEW SECTION. Sec. 15. A new section is added to chapter 70.345 11
RCW to read as follows: 12
(1)(a) Any nonresident or foreign manufacturer that has not 13
registered to do business in the state as a foreign corporation or 14
business entity must, as a condition precedent to having its vapor 15
products containing nicotine included or retained in the directory, 16
appoint and continually engage without interruption the services of 17
an agent in this state to act as agent for the service of process on 18
whom all process, and any action or proceeding against it concerning 19
or arising out of the enforcement of sections 7 through 17 of this 20
act, may be served in any manner authorized by law. The service must 21
constitute legal and valid service of process on the manufacturer. 22
The manufacturer must provide the name, address, phone number, and 23
proof of the appointment and availability of the agent to the 24
satisfaction of the board. 25
(b) The manufacturer must provide notice to the board 30 days 26
prior to termination of the authority of an agent and must further 27
provide proof to the satisfaction of the board of the appointment of 28
a new agent no fewer than five days prior to the termination of an 29
existing agent appointment. In the event an agent terminates an 30
agency appointment, the manufacturer must notify the board of the 31
termination within five days and include proof to the satisfaction of 32
the board of the appointment of a new agent. 33
(c) Any manufacturer whose vapor products containing nicotine are 34
sold in this state, who has not appointed and engaged an agent as 35
required in this section, must be deemed to have appointed the 36
secretary of state as the agent and may be proceeded against in 37
courts of this state by service of process upon the secretary of 38
state. However, the appointment of the secretary of state as agent 39
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must not satisfy the condition precedent for having the vapor 1
products containing nicotine of the manufacturer included or retained 2
in the directory. 3
NEW SECTION. Sec. 16. A new section is added to chapter 70.345 4
RCW to read as follows: 5
(1) Any nonresident or foreign manufacturer that has not 6
registered to do business in the state as a foreign corporation or 7
business entity shall, as a condition precedent to having its name or 8
its vapor products containing nicotine listed and retained in the 9
directory, submit to the board a surety bond or other cash security 10
payable to the state of Washington in the amount of $25,000. The bond 11
must be posted by a corporate surety located within the United 12
States. 13
(2) The bond must be conditioned on the performance by the 14
manufacturer of all requirements and obligations imposed by this 15
section. A surety on a manufacturer's bond is liable up to the amount 16
of the bond, and the state may execute on such surety bond, for the 17
payment of fines and penalties imposed on the manufacturer under 18
section 13 of this act and for the costs of seizure and destruction 19
of products sold in violation of sections 7 through 17 of this act. 20
If the state executes on the surety bond, it may require the 21
manufacturer to provide an additional bond as a condition precedent 22
for retaining the manufacturer or its vapor products containing 23
nicotine in the directory. 24
(3) A surety on a bond furnished by a manufacturer as provided in 25
this section must be released and discharged from liability to the 26
state accruing on the bond after expiration of 60 days from the date 27
upon which such surety lodges with the board a written request to be 28
released and discharged. This provision does not relieve, release, or 29
discharge the surety from liability already accrued or which will 30
accrue before the expiration of the 60-day period. The board shall, 31
upon receiving any such request, notify the manufacturer who 32
furnished the bond. Unless the manufacturer, on or before the 33
expiration of the 60-day period, files with the board a new bond, 34
with the surety approved by and acceptable to the board, the board 35
shall remove the manufacturer and its vapor products containing 36
nicotine from the directory. 37
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NEW SECTION. Sec. 17. A new section is added to chapter 70.345 1
RCW to read as follows: 2
(1) The board may adopt by rule requirements necessary to 3
implement this chapter. 4
(2) By July 31, 2026, and annually thereafter, the board must 5
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
pursuant to this section. 10
NEW SECTION. Sec. 18. A new section is added to chapter 70.345 11
RCW to read as follows: 12
The vapor product enforcement account is created in the custody 13
of the state treasurer. All receipts from fees and penalties 14
collected pursuant to sections 7 through 17 of this act must be 15
deposited into the account. Expenditures from the account may be used 16
only for administration and enforcement of this chapter. Only the 17
director of the liquor and cannabis board or the director's designee 18
may authorize expenditures from the account. The account is subject 19
to allotment procedures under chapter 43.88 RCW, but an appropriation 20
is not required for expenditures. 21
NEW SECTION. Sec. 19. A new section is added to chapter 70.345 22
RCW to read as follows: 23
(1) It is unlawful for any person to sell, give, deliver, or 24
furnish to a person in this state a product that contains a nicotine 25
analogue. 26
(2) Violations of this section are subject to the following 27
penalties: 28
(a) A monetary penalty of $1,500 for the first violation within 29
any 12-month period; 30
(b) A monetary penalty of $3,000 for the second violation within 31
any 12-month period; 32
(c) A monetary penalty of $6,000 and suspension of the license 33
for a period of six months for the third violation within any 12-34
month period; 35
(d) A monetary penalty of $12,000 and suspension of the license 36
for a period of 12 months for the fourth violation within any 12-37
month period; 38
p. 17 SB 5526
(e) A monetary penalty of $15,000 and revocation of the license 1
with no possibility of reinstatement for a period of five years for 2
the fifth or more violation within any three-year period.3
(3) For the purposes of this section, "nicotine analogue" means a 4
substance: 5
(a)(i) The chemical structure of which is substantially similar 6
to the chemical structure of nicotine; or 7
(ii) Which has, purports to have, or is represented to have, an 8
effect on the central nervous system that is similar to or greater 9
than the effect on the central nervous system of nicotine.10
(b) Factors relevant to determining whether a substance is a 11
nicotine analogue include, but are not limited to, the marketing, 12
advertising and labeling of the substance, and whether the substance 13
has been manufactured, formulated, sold, distributed, or marketed 14
with the intent to avoid the provisions of this act and other 15
applicable provisions of law. 16
Sec. 20. RCW 82.25.030 and 2019 c 445 s 106 are each amended to 17
read as follows: 18
(1) Every distributor must keep at each place of business 19
complete and accurate records for that place of business, including 20
itemized invoices, of vapor products held, purchased, manufactured, 21
brought in or caused to be brought in from without the state, or 22
shipped or transported to retailers in this state, and of all sales 23
of vapor products made. 24
(2) These records must show the names and addresses of 25
purchasers, the inventory of all vapor products including quantity of 26
vapor products by brand , and other pertinent papers and documents 27
relating to the purchase, sale, or disposition of vapor products. All 28
invoices and other records required by this section to be kept must 29
be preserved for a period of five years from the date of the invoices 30
or other documents or the date of the entries appearing in the 31
records. 32
(3) At any time during usual business hours the department, 33
board, or its duly authorized agents or employees may enter any place 34
of business of a distributor, without a search warrant, and inspect 35
the premises, the records required to be kept under this chapter, and 36
the vapor products contained therein, to determine whether or not all 37
the provisions of this chapter are being fully complied with. If the 38
department, board, or any of its agents or employees are denied free 39
p. 18 SB 5526
access or are hindered or interfered with in making such examination, 1
the registration certificate issued under RCW 82.32.030 of the 2
distributor at such premises are subject to revocation by the 3
department, and any licenses issued under chapter 70.345, 82.26, or 4
82.24 RCW are subject to suspension or revocation by the board.5
(4) The department may share information obtained pursuant to 6
this section that is deemed relevant to the potential violation of 7
the laws of other jurisdictions with the duly appointed agents of 8
those jurisdictions.9
Sec. 21. RCW 82.25.095 and 2019 c 445 s 119 are each amended to 10
read as follows: 11
(1) In all cases of seizure of any vapor products made subject to 12
forfeiture under this chapter, the department or board must proceed 13
as provided in RCW 82.24.135. 14
(2) When vapor products are forfeited under this chapter, the 15
department or board may: 16
(a) Retain the property for official use or upon application by 17
any law enforcement agency of this state, another state, or the 18
District of Columbia, or of the United States for the exclusive use 19
of enforcing this chapter or the laws of any other state or the 20
District of Columbia or of the United States; ((or))21
(b) Destroy the vapor products; or22
(c) Sell the vapor products at public auction to the highest 23
bidder after due advertisement. Before delivering any of the goods to 24
the successful bidder, the department or board must require the 25
purchaser to pay the proper amount of any tax due. The proceeds of 26
the sale must be first applied to the payment of all proper expenses 27
of any investigation leading to the seizure and of the proceedings 28
for forfeiture and sale, including expenses of seizure, maintenance 29
of custody, advertising, and court costs. The balance of the proceeds 30
and all money must be deposited in the general fund of the state. 31
Proper expenses of investigation include costs incurred by any law 32
enforcement agency or any federal, state, or local agency.33
(3) The department or the board may return any property seized 34
under the provisions of this chapter when it is shown that there was 35
no intention to violate the provisions of this chapter. When any 36
property is returned under this section, the department or the board 37
may return the property to the parties from whom they were seized if 38
p. 19 SB 5526
and when such parties have paid the proper amount of tax due under 1
this chapter. 2
Sec. 22. RCW 82.26.010 and 2020 c 139 s 31 are each amended to 3
read as follows: 4
The definitions in this section apply throughout this chapter 5
unless the context clearly requires otherwise. 6
(1) "Actual price" means the total amount of consideration for 7
which tobacco products are sold, valued in money, whether received in 8
money or otherwise, including any charges by the seller necessary to 9
complete the sale such as charges for delivery, freight, 10
transportation, or handling. 11
(2) "Affiliated" means related in any way by virtue of any form 12
or amount of common ownership, control, operation, or management.13
(3)(a) "Alternative nicotine product" means any noncombustible 14
product containing nicotine derived from tobacco that is intended for 15
human consumption, whether chewed, absorbed, dissolved, or ingested 16
by any other means.17
(b) The term does not include a tobacco product, a vapor product, 18
or a product regulated as a drug or device by the United States food 19
and drug administration under chapter V of the federal food, drug, 20
and cosmetic act.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 SB 5526
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 SB 5526
(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 SB 5526
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)) 95 percent 32
of the taxable sales price of cigars, not to exceed ((sixty-five)) 65 33
cents per cigar; 34
(b) For all tobacco products except those covered under separate 35
provisions of this subsection and alternative nicotine products , 36
((ninety-five)) 95 percent of the taxable sales price. The tax 37
imposed on a product under this subsection must be reduced by 38
((fifty)) 50 percent if that same product is issued a modified risk 39
p. 23 SB 5526
tobacco product order by the secretary of the United States 1
department of health and human services pursuant to Title 21 U.S.C. 2
Sec. 387k (g)(1), or by ((twenty-five)) 25 percent if that same 3
product is issued a modified risk tobacco product order by the 4
secretary of the United States department of health and human 5
services pursuant to Title 21 U.S.C. Sec. 387k (g)(2). The tax 6
reduction applies during the period the modified risk tobacco product 7
order is in effect; 8
(c) For moist snuff, as established in this subsection (1)(c) and 9
computed on the net weight listed by the manufacturer:10
(i) On each single unit consumer-sized can or package whose net 11
weight is one and two-tenths ounces or less, a rate per single unit 12
that is equal to the greater of 2.526 dollars or ((eighty-three and 13
one-half)) 83.5 percent of the cigarette tax under chapter 82.24 RCW 14
multiplied by ((twenty)) 20; or 15
(ii) On each single unit consumer-sized can or package whose net 16
weight is more than one and two-tenths ounces, a proportionate tax at 17
the rate established in (c)(i) of this subsection (1) on each ounce 18
or fractional part of an ounce; and 19
(d) For little cigars, an amount per cigar equal to the cigarette 20
tax under chapter 82.24 RCW. 21
(2) Taxes under this section must be imposed at the time the 22
distributor (a) brings, or causes to be brought, into this state from 23
without the state tobacco products for sale, (b) makes, manufactures, 24
fabricates, or stores tobacco products in this state for sale in this 25
state, (c) ships or transports tobacco products to retailers in this 26
state, to be sold by those retailers, or (d) handles for sale any 27
tobacco products that are within this state but upon which tax has 28
not been imposed. 29
(3) The moneys collected under this section must be deposited 30
into the state general fund. 31
Sec. 24. 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
shipped or transported to retailers in this state, and of all sales 38
of tobacco products made. 39
p. 24 SB 5526
(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 pursuant to 22
this section that is deemed relevant to the potential violation of 23
the laws of other jurisdictions with the duly appointed agents of 24
those 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. 35
(b) A violation of this subsection (1) is punishable as a class C 36
felony according to chapter 9A.20 RCW. Products offered for sale in 37
violation of this subsection are contraband and subject to seizure. 38
The provisions of RCW 82.26.240 shall apply to seized products.39
p. 25 SB 5526
(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 SB 5526
unlicensed distributor or)) any ((other)) 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
p. 27 SB 5526
(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
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p. 28 SB 5526