SB 5986 — Establishing a tax on vapor and heated tobacco products to fund cancer research and support local public health.

(c) a seller with a valid delivery sale license under chapter 70.345 RCW;

or (d) a person who has given notice to the board in advance of the commencement of transportation.(2) When transporting vapor products for sale, the person must have in his or her actual possession, or cause to have in the actual possession of those persons transporting such vapor products on his or her behalf, invoices or delivery tickets for the vapor products, which must show the true name and address of the consignor or seller, the true name and address of the consignee or purchaser, and the quantity and brands of the vapor products being transported.(3) In any case where the department or the board, or any peace officer of the state, has knowledge or reasonable grounds to believe that any vehicle is transporting vapor products in violation of this section, the department, board, or peace officer is authorized to stop the vehicle and to inspect it for contraband vapor products.(4) This section does not apply to a motor carrier or freight forwarder as defined in Title 49 U.S.C.

Sec.

13102 or an air carrier as defined in Title 49 U.S.C.

Sec.

40102.NEW SECTION.  Sec.

115.

The board must compile and maintain a current record of the names of all distributors, retailers, and delivery sales licenses under chapter 70.345 RCW and the status of their license or licenses.

The information must be updated on a monthly basis and published on the board's official internet web site.

This information is not subject to the confidentiality provisions of RCW 82.32.330 and must be disclosed to manufacturers, distributors, retailers, and the general public upon request.NEW SECTION.  Sec.

116.

(1) No person engaged in or conducting business as a distributor or retailer in this state may:(a) Make, use, or present or exhibit to the department or the board any invoice for any of the vapor products taxed under this chapter that bears an untrue date or falsely states the nature or quantity of the goods invoiced;

or(b) Fail to produce on demand of the department or the board all invoices of all the vapor products taxed under this chapter within five years prior to such demand unless the person can show by satisfactory proof that the nonproduction of the invoices was due to causes beyond the person's control.(2)(a) No person, other than a licensed distributor, retailer or delivery sales licensee, or manufacturer's representative, may transport vapor products for sale in this state for which the taxes imposed under this chapter have not been paid unless:(i) Notice of the transportation has been given as required under section 114 of this act;(ii) The person transporting the vapor products actually possesses invoices or delivery tickets showing the true name and address of the consignor or seller, the true name and address of the consignee or purchaser, and the quantity and brands of vapor products being transported;

and(iii) The vapor products are consigned to or purchased by a person in this state who is licensed under chapter 70.345 RCW.(b) A violation of this subsection (2) is a gross misdemeanor.(3) Any person licensed under chapter 70.345 RCW as a distributor, and any person licensed under chapter 70.345 RCW as a retailer, may not operate in any other capacity unless the additional appropriate license is first secured, except as otherwise provided by law.

A violation of this subsection (3) is a misdemeanor.(4) The penalties provided in this section are in addition to any other penalties provided by law for violating the provisions of this chapter or the rules adopted under this chapter.(5) This section does not apply to a motor carrier or freight forwarder as defined in Title 49 U.S.C.

Sec.

13102 or an air carrier as defined in Title 49 U.S.C.

Sec.

40102.NEW SECTION.  Sec.

117.

(1) A retailer that obtains vapor products from an unlicensed distributor or any other person that is not licensed under chapter 70.345 RCW must be licensed both as a retailer and a distributor and is liable for the tax imposed under section 102 of this act with respect to the vapor products acquired from the unlicensed person that are held for sale, handling, or distribution in this state.

For the purposes of this subsection, "person" includes both persons defined in this act and any person immune from state taxation, such as the United States or its instrumentalities, and federally recognized Indian tribes and enrolled tribal members, conducting business within Indian country.(2) Every distributor licensed under chapter 70.345 RCW may sell vapor products to retailers located in Washington only if the retailer has a current retailer's license under chapter 70.345 RCW.NEW SECTION.  Sec.

118.

A manufacturer that has manufacturer's representatives who sell or distribute the manufacturer's vapor products in this state must provide the board a list of the names and addresses of all such representatives and must ensure that the list provided to the board is kept current.

A manufacturer's representative is not authorized to distribute or sell vapor products in this state unless the manufacturer that hired the representative has a valid distributor's license under chapter 70.345 RCW and that manufacturer provides the board a current list of all of its manufacturer's representatives as required by this section.

A manufacturer's representative must carry a copy of the distributor's license of the manufacturer that hired the representative at all times when selling or distributing the manufacturer's vapor products.NEW SECTION.  Sec.

119.

(1) Any vapor products in the possession of a person selling vapor products in this state acting as a distributor or retailer and who is not licensed as required under chapter 70.345 RCW, or a person who is selling vapor products in violation of RCW 82.24.550(6), may be seized without a warrant by any agent of the department, agent of the board, or law enforcement officer of this state.

Any vapor products seized under this subsection are deemed forfeited.(2) Any vapor products in the possession of a person who is not a licensed distributor, delivery seller, manufacturer's representative, or retailer and who transports vapor products for sale without having provided notice to the board required under section 114 of this act, or without invoices or delivery tickets showing the true name and address of the consignor or seller, the true name and address of the consignee or purchaser, and the quantity and brands of vapor products being transported may be seized and are subject to forfeiture.(3) All conveyances, including aircraft, vehicles, or vessels that are used, or intended for use to transport, or in any manner to facilitate the transportation, for the purpose of sale or receipt of vapor products under subsection (2) of this section, may be seized and are subject to forfeiture except:(a) A conveyance used by any person as a common or contract carrier having in actual possession invoices or delivery tickets showing the true name and address of the consignor or seller, the true name of the consignee or purchaser, and the quantity and brands of the vapor products transported, unless it appears that the owner or other person in charge of the conveyance is a consenting party or privy to a violation of this chapter;(b) A conveyance subject to forfeiture under this section by reason of any act or omission of which the owner establishes to have been committed or omitted without his or her knowledge or consent;

or(c) A conveyance encumbered by a bona fide security interest if the secured party neither had knowledge of nor consented to the act or omission.(4) Property subject to forfeiture under subsections (2) and (3) of this section may be seized by any agent of the department, the board, or law enforcement officer of this state upon process issued by any superior court or district court having jurisdiction over the property.

Seizure without process may be made if:(a) The seizure is incident to an arrest or a search warrant or an inspection under an administrative inspection warrant;

or(b) The department, board, or law enforcement officer has probable cause to believe that the property was used or is intended to be used in violation of this chapter and exigent circumstances exist making procurement of a search warrant impracticable.(5) This section may not be construed to require the seizure of vapor products if the department's agent, board's agent, or law enforcement officer reasonably believes that the vapor products are possessed for personal consumption by the person in possession of the vapor products.(6) Any vapor products seized by a law enforcement officer must be turned over to the board as soon as practicable.(7) This section does not apply to a motor carrier or freight forwarder as defined in Title 49 U.S.C.

Sec.

13102 or an air carrier as defined in Title 49 U.S.C.

Sec.

40102.NEW SECTION.  Sec.

120.

(1) In all cases of seizure of any vapor products made subject to forfeiture under this chapter, the department or board must proceed as provided in RCW 82.24.135.(2) When vapor products are forfeited under this chapter, the department or board may:(a) Retain the property for official use or upon application by any law enforcement agency of this state, another state, or the District of Columbia, or of the United States for the exclusive use of enforcing this chapter or the laws of any other state or the District of Columbia or of the United States;

or(b) Sell the vapor products at public auction to the highest bidder after due advertisement.

Before delivering any of the goods to the successful bidder, the department or board must require the purchaser to pay the proper amount of any tax due.

The proceeds of the sale must be first applied to the payment of all proper expenses of any investigation leading to the seizure and of the proceedings for forfeiture and sale, including expenses of seizure, maintenance of custody, advertising, and court costs.

The balance of the proceeds and all money must be deposited in the general fund of the state.

Proper expenses of investigation include costs incurred by any law enforcement agency or any federal, state, or local agency.(3) The department or the board may return any property seized under the provisions of this chapter when it is shown that there was no intention to violate the provisions of this chapter.

When any property is returned under this section, the department or the board may return the property to the parties from whom they were seized if and when such parties have paid the proper amount of tax due under this chapter.NEW SECTION.  Sec.

121.

When the department or the board has good reason to believe that any of the vapor products taxed under this chapter are being kept, sold, offered for sale, or given away in violation of the provisions of this chapter, it may make affidavit of facts describing the place or thing to be searched, before any judge of any court in this state, and the judge must issue a search warrant directed to the sheriff, any deputy, police officer, or duly authorized agent of the department or the board commanding him or her diligently to search any building, room in a building, place, or vehicle as may be designated in the affidavit and search warrant, and to seize the vapor products and hold them until disposed of by law.NEW SECTION.  Sec.

122.

(1)(a) Where vapor products upon which the tax imposed by this chapter has been reported and paid are shipped or transported outside this state by the distributor to a person engaged in the business of selling vapor products, to be sold by that person, or are returned to the manufacturer by the distributor or destroyed by the distributor, or are sold by the distributor to the United States or any of its agencies or instrumentalities, or are sold by the distributor to any Indian tribal organization, credit of such tax may be made to the distributor in accordance with rules prescribed by the department.(b) For purposes of this subsection (1), the following definitions apply:(i) "Indian distributor" means a federally recognized Indian tribe or tribal entity that would otherwise meet the definition of "distributor" under section 101 of this act, if federally recognized Indian tribes and tribal entities were not excluded from the definition of "person" in section 101 of this act.(ii) "Indian retailer" means a federally recognized Indian tribe or tribal entity that would otherwise meet the definition of "retailer" under section 101 of this act, if federally recognized Indian tribes and tribal entities were not excluded from the definition of "person" in section 101 of this act.(iii) "Indian tribal organization" means a federally recognized Indian tribe, or tribal entity, and includes an Indian distributor or retailer that is owned by an Indian who is an enrolled tribal member conducting business under tribal license or similar tribal approval within Indian country.(2) Credit allowed under this section must be determined based on the tax rate in effect for the period for which the tax imposed by this chapter, for which a credit is sought, was paid.NEW SECTION.  Sec.

123.

(1) Preexisting inventories of vapor products are subject to the tax imposed in section 102 of this act.

All retailers and other distributors must report the tax due under section 102 of this act on preexisting inventories of vapor products on a form, as prescribed by the department, on or before October 31, 2019, and the tax due on such preexisting inventories must be paid on or before January 31, 2020.(2) Reports under subsection (1) of this section not filed with the department by October 31, 2019, are subject to a late filing penalty equal to the greater of two hundred fifty dollars or ten percent of the tax due under section 102 of this act on the taxpayer's preexisting inventories.(3) The department must notify the taxpayer of the amount of tax due under section 102 of this act on preexisting inventories, which is subject to applicable penalties under RCW 82.32.090 (2) through (7) if unpaid after January 31, 2020.

Amounts due in accordance with this section are not considered to be substantially underpaid for the purposes of RCW 82.32.090(2).(4) Interest, at the rate provided in RCW 82.32.050(2), must be computed daily beginning February 1, 2020, on any remaining tax due under section 102 of this act on preexisting inventories until paid.(5) A retailer required to comply with subsection (1) of this section is not required to obtain a distributor license as otherwise required under chapter 70.345 RCW as long as the retailer:(a) Does not sell vapor products other than to ultimate consumers;

and(b) Does not meet the definition of "distributor" in section 101 of this act other than with respect to the sale of that retailer's preexisting inventory of vapor products.(6) Taxes may not be collected under section 102 of this act from consumers with respect to any vapor products acquired before the effective date of this section.(7) For purposes of this section, "preexisting inventory" means an inventory of vapor products located in this state as of the moment that section 102 of this act takes effect and held by a distributor for sale, handling, or distribution in this state.Part IIConforming AmendmentsSec.

c 38 s 29 are each amended to read as follows:(1) The liquor and cannabis board may issue subpoenas in connection with any investigation, hearing, or proceeding for the production of books, records, and documents held under this chapter or chapters 70.155, 70.158, 70.345, 82.24, ((and)) 82.26 ((RCW)), and 82.--- RCW (the new chapter created in section 505403 of this act), and books and records of common carriers as defined in RCW 81.80.010, or vehicle rental agencies relating to the transportation or possession of cigarettes, vapor products, or other tobacco products.(2) The liquor and cannabis board may designate individuals authorized to sign subpoenas.(3) If any person is served a subpoena from the board for the production of records, documents, and books, and fails or refuses to obey the subpoena for the production of records, documents, and books when required to do so, the person is subject to proceedings for contempt, and the board may institute contempt of court proceedings in the superior court of Thurston county or in the county in which the person resides.Sec.

However, all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law ((shall))must be remitted as provided in chapter 3.62 RCW as now exists or is later amended.(2) In addition to any and all other powers granted, the board ((shall have))has the power to enforce the penal provisions of this title and the penal laws of this state relating to the manufacture, importation, transportation, possession, distribution and sale of liquor.(3) In addition to the other duties under this section, the board ((shall))must enforce chapters 82.24 ((and)), 82.26 ((RCW)), and 82.--- RCW (the new chapter created in section 505403 of this act).(4) The board may appoint and employ, assign to duty and fix the compensation of, officers to be designated as liquor enforcement officers.

They ((shall)) have the power and authority to serve and execute all warrants and process of law issued by the courts in enforcing the penal provisions of this title or of any penal law of this state relating to the manufacture, importation, transportation, possession, distribution and sale of liquor, and the provisions of chapters 82.24 ((and)), 82.26 ((RCW)), and 82.--- RCW (the new chapter created in section 505403 of this act).

They ((shall)) have the power to arrest without a warrant any person or persons found in the act of violating any of the penal provisions of this title or of any penal law of this state relating to the manufacture, importation, transportation, possession, distribution and sale of liquor, and the provisions of chapters 82.24 ((and)), 82.26 ((RCW)), and 82.--- RCW (the new chapter created in section 505403 of this act).Sec.

RCW 82.32.300 and 1997 c 420 s 9 are each amended to read as follows:(1) The administration of this and chapters 82.04 through 82.27 RCW of this title is vested in the department ((of revenue which shall)), which must prescribe forms and rules of procedure for the determination of the taxable status of any person, for the making of returns and for the ascertainment, assessment and collection of taxes and penalties imposed thereunder.(2) The department ((of revenue shall))must make and publish rules and regulations, not inconsistent therewith, necessary to enforce provisions of this chapter and chapters 82.02 through 82.23B and 82.27 RCW, and the liquor ((control))and cannabis board ((shall))must make and publish rules necessary to enforce chapters 82.24 ((and)), 82.26 ((RCW)), and 82.--- RCW (the new chapter created in section 505403 of this act), which ((shall have))has the same force and effect as if specifically included therein, unless declared invalid by the judgment of a court of record not appealed from.(3) The department may employ such clerks, specialists, and other assistants as are necessary.

In the alternative, before a seller delivers an initial purchase to any person, the seller must first obtain from the prospective customer an electronic certification, such as by email, that includes a declaration that, at a minimum, the prospective customer is over the minimum age required for the legal sale of a vapor product, and the credit or debit card used for payment has been issued in the purchaser's name.(7) A delivery sale licensee must include on shipping documents a clear and conspicuous statement which includes, at a minimum, that the package contains vapor products, Washington law prohibits sales to those under the minimum age established by this chapter, and violations may result in sanctions to both the licensee and the purchaser.(8)purchaser.(8)(a) A delivery sale licensee must collect the tax imposed under RCW 82.08.020 and chapter 82.--- RCW (the new chapter created in section 403 of this act) on sales of vapor products to consumers in Washington.(b) For purposes of this subsection (8), "vapor products" has the same meaning as provided in section 101 of this act.(9) A person who knowingly violates this section is guilty of a class C felony, except that the maximum fine that may be imposed is five thousand dollars.(((9)))(10) In addition to or in lieu of any other civil or criminal remedy provided by law, a person who has violated this section is subject to a civil penalty of up to five thousand dollars for each violation.

and(e) For heated tobacco products, forty cents per ounce of tobacco, plus a proportionate tax at the like rate on any fractional parts of ana ounce.gram.

The tax on heated tobacco products is imposed based on the net weight of tobacco as listed by the manufacturer.(2) TheAny tax imposed on a product under this chapter must be reduced by fifty percent iffor thatany same product isas issuedto which a modified risk tobacco product order has been issued by the secretary of the United States department of health and human services pursuant to Title 21 U.S.C.

and(ii) Fifty percent into the foundational public health services account created in section 104 of this act.Part IVTribalIVMiscellaneous CompactingSec.ProvisionsNEW SECTION.  Sec.

RCW 43.06.450 and 2001 c 235 s 1 are each amended to read as follows:The legislature intends to further the government-to-government relationship between the state of Washington and Indians in the state of Washington by authorizing the governor to enter into contracts concerning the sale of cigarettes and vapor products.

The legislature finds that these cigarette tax and vapor product tax contracts will provide a means to promote economic development, provide needed revenues for tribal governments and Indian persons, and enhance enforcement of the state's cigarette tax ((law))and vapor product tax, ultimately saving the state money and reducing conflict.

In addition, it is the intent of the legislature that the negotiations and the ensuing contracts ((shall)) have no impact on the state's share of the proceeds under the master settlement agreement entered into on November 23, 1998, by the state.

Chapter 235, Laws of 2001 ((does))and this act do not constitute a grant of taxing authority to any Indian tribe nor ((does it))do they provide precedent for the taxation of non-Indians on fee land.NEW SECTION.  Sec.

402.

A new section is added to chapter 43.06 RCW to read as follows:(1) The governor may enter into vapor product tax contracts concerning the sale of vapor products.

All vapor product tax contracts must meet the requirements for vapor product tax contracts under this section.(2) Vapor product tax contracts must be in regard to retail sales in which Indian retailers make delivery and physical transfer of possession of the vapor products from the seller to the buyer within Indian country, and are not in regard to transactions by non-Indian retailers.

In addition, contracts must provide that retailers may not sell or give, or permit to be sold or given, vapor products to any person who is under the state legal age for the purchase of vapor products.(3) A vapor product tax contract with a tribe must provide for a tribal vapor product tax in lieu of all state vapor product taxes and state and local sales and use taxes on sales of vapor products in Indian country by Indian retailers.

The tribe may allow an exemption for sales to tribal members.(4) Vapor product tax contracts must provide that retailers must purchase vapor products only from:(a) Wholesalers or manufacturers licensed to do business in the state of Washington;(b) Out-of-state wholesalers or manufacturers who, although not licensed to do business in the state of Washington, agree to comply with the terms of the vapor product tax contract, are certified to the state as having so agreed, and do in fact so comply.

However, the state may in its sole discretion exercise its administrative and enforcement powers over such wholesalers or manufacturers to the extent permitted by law;(c) A tribal wholesaler that purchases only from a wholesaler or manufacturer described in (a), (b), or (d) of this subsection;

and(d) A tribal manufacturer.(5) Vapor product tax contracts must be for renewable periods of no more than eight years.(6) Vapor product tax contracts must include provisions for compliance, such as transport and notice requirements, inspection procedures, recordkeeping, and audit requirements.(7) Tax revenue retained by a tribe must be used for essential government services.

Use of tax revenue for subsidization of vapor products and food retailers is prohibited.(8) The vapor product tax contract may include provisions to resolve disputes using a nonjudicial process, such as mediation.(9) The governor may delegate the power to negotiate vapor product tax contracts to the department of revenue.

The department of revenue must consult with the liquor and cannabis board during the negotiations.(10) Information received by the state or open to state review under the terms of a contract is subject to the provisions of RCW 82.32.330.(11) It is the intent of the legislature that the liquor and cannabis board and the department of revenue continue the division of duties and shared authority under chapter 82.--- RCW (the new chapter created in section 505 of this act) and therefore the liquor and cannabis board is responsible for enforcement activities that come under the terms of chapter 82.--- RCW (the new chapter created in section 505 of this act).(12) Each vapor product tax contract must include a procedure for notifying the other party that a violation has occurred, a procedure for establishing whether a violation has in fact occurred, an opportunity to correct such violation, and a provision providing for termination of the contract should the violation fail to be resolved through this process, such termination subject to mediation should the terms of the contract so allow.

A contract must provide for termination of the contract if resolution of a dispute does not occur within twenty-four months from the time notification of a violation has occurred.

Intervening violations do not extend this time period.

In addition, the contract must include provisions delineating the respective roles and responsibilities of the tribe, the department of revenue, and the liquor and cannabis board.(13) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.(a) "Essential government services" means services such as tribal administration, public facilities, fire, police, public health, education, job services, sewer, water, environmental and land use, transportation, utility services, and economic development.(b) "Indian country" has the same meaning as provided in RCW 82.24.010.(c) "Indian retailer" or "retailer" means:(i) A retailer wholly owned and operated by an Indian tribe;(ii) A business wholly owned and operated by a tribal member and licensed by the tribe;

or(iii) A business owned and operated by the Indian person or persons in whose name the land is held in trust.(d) "Indian tribe" or "tribe" means a federally recognized Indian tribe located within the geographical boundaries of the state of Washington.(e) "Vapor products" has the same meaning as provided in section 101 of this act.NEW SECTION.  Sec.

403.

A new section is added to chapter 43.06 RCW to read as follows:(1) The governor is authorized to enter into vapor product tax contracts with federally recognized Indian tribes located within the geographical boundaries of the state of Washington.

Each contract adopted under this section must provide that the tribal vapor product tax rate be one hundred percent of the state vapor product tax and state and local sales and use taxes.

The tribal vapor product tax is in lieu of the state vapor product tax and state and local sales and use taxes, as provided in section 402(3) of this act.(2) A vapor product tax contract under this section is subject to section 402 of this act.NEW SECTION.  Sec.

404.

A new section is added to chapter 43.06 RCW to read as follows:(1) The governor may enter into a vapor product tax agreement with the Puyallup Tribe of Indians concerning the sale of vapor products, subject to the limitations in this section.

The legislature intends to address the uniqueness of the Puyallup Indian reservation and its selling environment through pricing and compliance strategies, rather than through the imposition of equivalent taxes.

The governor may delegate the authority to negotiate a vapor product tax agreement with the Puyallup Tribe to the department of revenue.

The department of revenue must consult with the liquor and cannabis board during the negotiations.(2) Any agreement must require the tribe to impose a tribal vapor product tax with a tax rate that is ninety percent of the state vapor product tax.

This tribal tax is in lieu of the combined state and local sales and use taxes and the state vapor product tax, and as such these state taxes are not imposed during the term of the agreement on any transaction governed by the agreement.

The tribal vapor product tax must increase or decrease at the time of any increase or decrease in the state vapor product tax so as to remain at a level that is ninety percent of the rate of the state vapor product tax.(3) The agreement must include a provision requiring the tribe to transmit thirty percent of the tribal tax revenue on all vapor products sales to the state.

The funds must be transmitted to the state treasurer on a quarterly basis for deposit by the state treasurer into the general fund.

The remaining tribal tax revenue must be used for essential government services, as that term is defined in section 402 of this act.(4) The agreement is limited to retail sales in which Indian retailers make delivery and physical transfer of possession of the vapor products from the seller to the buyer within Indian country, and are not in regard to transactions by non-Indian retailers.

In addition, agreements must provide that retailers may not sell or give, or permit to be sold or given, vapor products to any person who is under the state legal age for the purchase of vapor products.(5)(a) The agreement must include a provision to price and sell the vapor products so that the retail selling price is not less than the price paid by the retailer for the vapor products.(b) The tribal tax is in addition to the retail selling price.(c) The agreement must include a provision to assure the price paid to the retailer includes the tribal tax.(d) If the tribe is acting as a distributor to tribal retailers, the retail selling price must not be less than the price the tribe paid for such vapor products plus the tribal tax.(6)(a) The agreement must include provisions regarding enforcement and compliance by the tribe in regard to enrolled tribal members who sell vapor products and must describe the individual and joint responsibilities of the tribe, the department of revenue, and the liquor and cannabis board.(b) The agreement must include provisions for tax administration and compliance, such as transport and notice requirements, inspection procedures, recordkeeping, and audit requirements.(c) The agreement must include provisions for sharing of information among the tribe, the department of revenue, and the liquor and cannabis board.(7) The agreement must provide that retailers must purchase vapor products only from distributors or manufacturers licensed to do business in the state of Washington.(8) The agreement must be for a renewable period of no more than eight years.(9) The agreement must include provisions to resolve disputes using a nonjudicial process, such as mediation, and must include a dispute resolution protocol.

The protocol must include a procedure for notifying the other party that a violation has occurred, a procedure for establishing whether a violation has in fact occurred, an opportunity to correct such violation, and a provision providing for termination of the agreement should the violation fail to be resolved through this process, such termination subject to mediation should the terms of the agreement so allow.

An agreement must provide for termination of the agreement if resolution of a dispute does not occur within twenty-four months from the time notification of a violation has occurred.

Intervening violations do not extend this time period.(10) Information received by the state or open to state review under the terms of an agreement is subject to RCW 82.32.330.(11) It is the intent of the legislature that the liquor and cannabis board and the department of revenue continue the division of duties and shared authority under chapter 82.--- RCW (the new chapter created in section 505 of this act).(12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.(a) "Indian country" has the same meaning as provided in RCW 82.24.010.(b) "Indian retailer" or "retailer" means:(i) A retailer wholly owned and operated by an Indian tribe;

or(ii) A business wholly owned and operated by an enrolled tribal member and licensed by the tribe.(c) "Indian tribe" or "tribe" means the Puyallup Tribe of Indians, which is a federally recognized Indian tribe located within the geographical boundaries of the state of Washington.(d) "Vapor products" has the same meaning as provided in section 101 of this act.NEW SECTION.  Sec.

405.

A new section is added to chapter 82.08 RCW to read as follows:(1) The tax levied by RCW 82.08.020 does not apply to sales of vapor products by an Indian retailer during the effective period of a vapor product tax contract subject to section 403 of this act or a vapor product tax agreement under section 404 of this act.(2) The definitions in section 402 of this act apply to this section.NEW SECTION.  Sec.

406.

A new section is added to chapter 82.12 RCW to read as follows:(1) The provisions of this chapter do not apply in respect to the use of vapor products sold by an Indian retailer during the effective period of a vapor product tax contract subject to section 403 of this act or a vapor product tax agreement under section 404 of this act.(2) The definitions in section 402 of this act apply to this section.Part VMiscellaneous ProvisionsNEW SECTION.  Sec.

501.

A new section is added to chapter 82.32 RCW to read as follows:(1) By October 15, 2020, and by each October 15th thereafter, the department must estimate any increase in state general fund revenue collections for the immediately preceding fiscal year resulting from the taxes imposed in chapter .

., Laws of 2019 (this act).

The department must promptly notify the state treasurer of these estimated amounts.(2) Beginning November 1, 2020, and by each November 1st thereafter, the state treasurer must transfer from the general fund the estimated amount determined by the department under subsection (1) of this section for the immediately preceding fiscal year as follows:(a) Through November 1, 2024, fifty percent into the Andy Hill cancer research fund created in RCW 43.348.060 and fifty percent into the foundational public health services account created in section 104 of this act;

and(b) Beginning November 1, 2025, one hundred percent into the foundational public health services account created in section 104 of this act.(3) The department may not make any adjustments to an estimate under subsection (1) of this section after the state treasurer makes the corresponding distribution under subsection (2) of this section based on the department's estimate.NEW SECTION.  Sec.

502.

The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act.NEW SECTION.  Sec.

503.

504.402.

505.403.

Part I of this act constitutes a new chapter in Title 82 RCW.NEWRCW.--- SECTION.  Sec.END ---

506.

This act takes effect October 1, 2019.--- END ---