HB 2382 — Concerning excise taxes on cigarettes, vapor products, and tobacco products.

(13) "Sale" has the same meaning as provided in RCW 70.345.010.

(14) "Taxpayer" means a person liable for the tax imposed by this chapter.

(15) "Vapor product" means any noncombustible product containing a solution or other consumable substance((, regardless of whether it)) that contains nicotine, which employs a mechanical heating element, battery, or electronic circuit regardless of shape or size that can be used to produce vapor from the solution or other substance, including an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

The term also includes any cartridge or other container of liquid nicotine, solution, or other consumable substance, ((regardless of whether it)) that contains nicotine, that is intended to be used with or in a device that can be used to deliver aerosolized or vaporized nicotine to a person inhaling from the device and is sold for such purpose.

(a) The term does not include:

(i) Any product approved by the United States food and drug administration for sale as a tobacco cessation product, medical device, or for other therapeutic purposes when such product is marketed and sold solely for such an approved purpose;

(ii) Any product that will become an ingredient or component in a vapor product manufactured by a distributor;

((or)) (iii) Any product that meets the definition of cannabis, useable cannabis, cannabis concentrates, cannabis-infused products, cigarette, or tobacco products;

or (iv) Any product, solution, or other consumable substance that would meet the definition of vapor product except for the product, p.

5 SHB 2382 solution, or other consumable substance does not contain any nicotine.

(b) For purposes of this subsection (15):

(i) "Cigarette" has the same meaning as provided in RCW 82.24.010;

and (ii) "Cannabis," "useable cannabis," "cannabis concentrates," and "cannabis-infused products" have the same meaning as provided in RCW 69.50.101.

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(b) For all tobacco products except those covered under separate provisions of this subsection, ninety-five percent of the taxable salesp. price.

The3 taxHB imposed2382 onsales aprice. product under this subsection must be reduced by ((fifty)) 50 percent if that same product is issued a modified risk tobacco product order by the secretary of the United States department of health and human services pursuant to Title 21 U.S.C.

The tax imposed on a product under this subsection must be reduced by ((fifty)) 25 percent if that same product is issued a modified risk tobacco product order by the secretary of the United States department of health and human services pursuant to Title 21 U.S.C.

387k(g)(1), or by ((twenty-five)) 2512.5 percent if that same product is issued a modified risk tobacco product order by the secretary of the United States department of health and human services pursuant to Title 21 U.S.C.

and p.(d) For little cigars, an amount per cigar equal to the cigarette tax under chapter 82.24 RCW.

6 SHB 2382 (d) For little cigars, an amount per cigar equal to the cigarette tax under chapter 82.24 RCW.

7.6.

Thep. foundational public health services account is created in the state treasury.

4 HB 2382 The foundational public health services account is created in the state treasury.

Moneys in the account are to be used to fund:fund :

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8.

RCW 43.348.080 and 2025 c 199 s 5 are each amended to read as follows:

(1) The Andy Hill cancer research endowment fund match transfer account is created in the custody of the state treasury to be used solely and exclusively for the program created in RCW 43.348.040.

Moneys in the account may be spent only after appropriation.

The purpose of the account is to provide state matching funds and other state appropriations for the fund and administrative costs.

p.

7 SHB 2382 Expenditures to fund or reimburse the program administrator are not subject to the requirements of subsection (5) of this section.

(2) The legislature must appropriate a state match, up to a maximum of ten million dollars annually, beginning July 1, 2016, and each July 1st following the end of the fiscal year from tax collections and penalties generated from enforcement of state taxes on cigarettes and other tobacco products by the state liquor and cannabis board or other federal, state or local law or tax enforcement agency, as determined by the department of revenue.

Tax collections include any cigarette tax, other tobacco product tax, and retail sales and use tax.

Any amounts ((deposited into this account)) collected from the tax imposed under RCW 82.25.010 in excess of ((the cap provided in this subsection)) $10,000,000 annually for deposit into the Andy Hill cancer research endowment fund match transfer account must be deposited into the foundational public health services account created in RCW 82.25.015.

To the extent the tax imposed under RCW 82.25.010 results in less than $10,000,000 annually to the Andy Hill cancer research endowment fund match transfer account, the remaining amount to reach $10,000,000 annually must be deposited into this account from the additional tax in section 1 of this act.

(3) Revenues to the account must consist of deposits into the account, taxes imposed on vapor products under RCW 82.25.010, legislative appropriations, and any gifts, grants, or donations received by the department for this purpose.

Revenues to the account may also consist of revenues from the additional tax in section 1 of this act as provided in section 1(2)(d) of this act and subsection (2) of this section.

(4) Each fiscal biennium, the legislature must appropriate to the department of commerce such amounts as estimated to be the balance of the match transfer account to provide state matching funds.

(5) Expenditures from the account may be made only upon receipt of proof from the program administrator of committed nonstate or private contributions for cancer research, prevention, or care supported by the match transfer account or advancement of the program.

Expenditures from the match transfer account, in the form of matching funds, may not exceed the total amount of committed nonstate or private contributions.

(6) The department and board must enter into an appropriate agreement with the program administrator to demonstrate exchange of p.

8 SHB 2382 consideration for the expenditures from the match transfer account that are subject to subsection (5) of this section.

(7) Moneys expended into the account in fiscal year 2023 pursuant to section 706, chapter 297, Laws of 2022 are not subject to the requirements of subsections (5) and (6) of this section.

(8) Moneys expended into the match transfer account for the purposes of implementing RCW 43.348.090 are not subject to the requirements of subsections (5) and (6) of this section.

9.7.

This act takes effect July 1, 2027.2026.

95 SHBHB 2382