BP BHEAD INT S

AN ACT Relating to access to tobacco by minors; amending RCW 82.24.520, 82.24.530, 82.24.550, and 82.24.560; adding new sections to chapter 82.24 RCW; creating a new section; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that the leading cause of preventable death is tobacco use. Further, the legislature recognizes the high rate of smoking prevalence by youth and young pregnant women in our state. The vast majority of new smokers are teenagers or younger children. The earlier a child starts using tobacco the more likely that he or she will be unable to quit.

The legislature finds that youth obtain tobacco products with ease. Tobacco products that are provided free or at nominal charge are likely to fall into the hands of youth, and the sale of single cigarettes are more affordable to youth. The effective enforcement of the prohibition of sales to minors is essential. By the time Washington state youth become high school seniors, one out of every four is an addicted smoker.

NEW SECTION. Sec. 2. (1) The definitions set forth in RCW 82.24.010 shall apply to sections 3 through 12 of this act, except that "department" refers to the Washington state department of health.

(2) "Board" as used in sections 3 through 12 of this act refers to the Washington state board of health.

(3) "Minor" as used in sections 3 through 12 of this act refers to an individual who is less than eighteen years old.

NEW SECTION. Sec. 3. A person that holds a license issued under RCW 82.24.520 or 82.24.530 shall:

(1) Display the license or a copy of the license in a prominent location at the outlet for which the license is issued; and

(2) Display a sign concerning the prohibition of tobacco sales to minors.

Such sign shall:

(a) Be posted so that it is clearly visible to a person purchasing tobacco products from the licensee;

(b) Be designed and produced by the department to read: "THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER AGE 18 IS STRICTLY PROHIBITED BY STATE LAW, PHOTO ID REQUIRED"; and

NEW SECTION. Sec. 4. No person shall sell or permit to be sold a tobacco product through a vending machine unless the device is located fully within premises from which minors are prohibited and not less than ten feet from all entrance or exit ways to and from each premise.

NEW SECTION. Sec. 5. No person shall sell or permit to be sold a tobacco product not in the original unopened package or container to which the stamps required by RCW 82.24.060 have been affixed.

This section does not apply to a retail business that specializes in the sale of loose leaf tobacco and generates a minimum of sixty percent of annual gross sales from the sale of tobacco products.

NEW SECTION. Sec. 6. No retailer, wholesaler, tobacco manufacturer, or agent thereof, shall give or distribute cigarettes or other tobacco products to a person at no cost.

NEW SECTION. Sec. 7. No person shall give or distribute cigarettes or other tobacco products to a person at a reduced price by a coupon if the coupon is redeemed in a manner that does not require an in-person transaction between a buyer and seller.

NEW SECTION. Sec. 8. The board may adopt rules necessary for the enforcement of sections 3 through 7 of this act. Minimum standards shall ensure enforcement in a manner to reduce the extent to which tobacco products are available to individuals under the age of eighteen.

NEW SECTION. Sec. 9. The youth tobacco account is created in the state treasury. All fees collected in RCW 82.24.520 and 82.24.530 shall be deposited in this account.

Expenditures from the account may be used only for the purposes of sections 3 through 13 of this act.

Moneys appropriated from the youth tobacco account to the department shall be used by the department for implementation of sections 3 through 13 of this act, including collection and reporting of data regarding enforcement and prevention efforts.

Funds collected by local health departments from the imposition of civil penalties under this chapter shall be retained by them and used for enforcement and prevention efforts.

NEW SECTION. Sec. 10. The department of health and the department of revenue shall enter into an interagency agreement for payment of the cost of administering the tobacco wholesaler, retailer, and vending machine licensing systems out of the funds appropriated to the department of health from the youth tobacco account.

The department shall use funds appropriated to it to contract with local health departments for youth tobacco prevention and education activities and for enforcement of sections 3 through 13 of this act. The department shall set forth requirements for data reporting regarding enforcement and prevention activities.

NEW SECTION. Sec. 11. Local health departments shall enforce the provisions of this chapter and shall have authority to enforce provisions of RCW 82.24.500. Local health departments have full power and authority to revoke or suspend the license or permit of any wholesale or retail cigarette or tobacco dealer for the purposes of enforcing this chapter.

Local health departments or duly recognized agents of a local health department have full power and authority to enter a place of business where tobacco products are sold for the purpose of enforcing the provisions of this chapter.

NEW SECTION. Sec. 12. (1) The local health officer may suspend or revoke a retailer's license held by a business at a location within the health officer's geographical jurisdiction, or may impose a civil penalty as set forth in subsection (2) of this section, if the health officer finds that the licensee has violated RCW 26.28.080(4), or section 3, 4, 5, 6, or 7 of this act.

(2) The sanctions that a local health officer may impose against a person licensed under RCW 82.24.530 based upon one or more findings may not exceed the following:

(a) For violation of RCW 26.28.080(4) or section 3 of this act:

(i) A civil penalty of one hundred dollars for the first violation within any two-year period;

(ii) A civil penalty of three hundred dollars for the second violation within any two-year period;

(iii) A civil penalty of one thousand dollars and suspension of the license for a period of six months for the third violation within any two-year period;

(iv) A civil penalty of one thousand five hundred dollars and suspension of the license for a period of twelve months for the fourth violation within any two-year period;

(v) Revocation of the license with no possibility of reinstatement for a period of five years for the fifth or more violation within any two-year period;

(b) For violations of section 4 of this act, a civil penalty in the amount of one hundred dollars for each day upon which such violation occurred;

(i) A civil penalty of one hundred dollars for the first violation within any two-year period;

(ii) A civil penalty of three hundred dollars for the second violation within any two-year period;

(iii) A civil penalty of one thousand dollars and suspension of the license for a period of six months for the third violation within any two-year period;

(iv) A civil penalty of one thousand five hundred dollars and suspension of the license for a period of twelve months for the fourth violation within any two-year period;

(v) Revocation of the license with no possibility of reinstatement for a period of five years for the fifth or more violation within any two-year period;

(d) For violations of section 6 of this act, a civil penalty in the amount of three hundred dollars for each violation;

(e) For violations of section 7 of this act, a civil penalty in the amount of one thousand dollars for each violation.

(3) The local health officer may impose a civil penalty upon any person other than a licensed cigarette retailer if the health officer finds that the person has violated RCW 26.28.080(4), or section 3, 4, 5, 6, or 7 of this act within the health officer's geographical jurisdiction.

(4) The civil penalty that a local health officer may impose based upon one or more findings under subsection (3) of this section may not exceed the following:

(a) For violation of RCW 26.28.080(4) or section 5 of this act, one hundred dollars for each violation;

(b) For violations of section 4 of this act, one hundred dollars for each day upon which such violation occurred;

(d) For violations of section 6 of this act, three hundred dollars for each violation;

(e) For violations of section 7 of this act, one thousand dollars for each violation.

(5) The local health officer may issue a cease and desist order to a person who is found by the local health officer to have violated or intending to violate the provisions of sections 3 through 13 of this act or of RCW 82.24.500, requiring the person to cease the specified conduct that is in violation. The issuance of a cease and desist order does not preclude the imposition of other sanctions authorized by this statute or any other provision of law.

(6) The local health officer may seek injunctive relief to enforce the provisions of RCW 82.24.500 or sections 3 through 13 of this act. The health officer may initiate legal action to collect civil penalties imposed under chapter . . ., Laws of 1993 (this act) if the penalties have not been paid within thirty days after imposition of the penalties. In an action filed by the local health officer under the provisions of sections 3 through 13 of this act, the court may, in addition to any other relief, award the health officer reasonable attorneys' fees and costs.

(7) An order issued by the local health officer under the provisions of this section may be appealed to the local board of health. The appeal shall be conducted de novo, and the health officer shall have the burden of proving by a preponderance of the evidence the violations set forth in the order.

Sec. 13. RCW 82.24.520 and 1986 c 321 s 6 are each amended to read as follows:

(1) A fee of ((~~six hundred fifty~~)) thirteen hundred dollars shall accompany each wholesaler's license application or license renewal application. If a wholesaler sells or intends to sell cigarettes at two or more places of business, whether established or temporary, a separate license with a license fee of ((~~one hundred fifteen~~)) two hundred fifty dollars shall be required for each additional place of business.

(2) Each license, or certificate thereof, and such other evidence of license as the department of revenue requires, shall be exhibited in the place of business for which it is issued and in such manner as is prescribed for the display of a master license.

(3) The department of revenue shall require each licensed wholesaler to file with the department a bond in an amount not less than one thousand dollars to guarantee the proper performance of the duties and the discharge of the liabilities under this chapter. The bond shall be executed by such licensed wholesaler as principal, and by a corporation approved by the department of revenue and authorized to engage in business as a surety company in this state, as surety. The bond shall run concurrently with the wholesaler's license.

Sec. 14. RCW 82.24.530 and 1986 c 321 s 7 are each amended to read as follows:

A fee of ((~~ten~~)) ninety-three dollars shall accompany each retailer's license application or license renewal application. A separate license is required for each place of business at which the retailer operates. A fee of ((~~one~~)) thirty additional dollars for each vending machine shall accompany each application or renewal for a license issued to a retail dealer operating a cigarette vending machine.

Sec. 15. RCW 82.24.550 and 1986 c 321 s 9 are each amended to read as follows:

(1) The department of revenue shall enforce the provisions of this chapter except RCW 82.24.500, which will be enforced by the local health departments. The department of revenue may adopt, amend, and repeal rules necessary to enforce and administer the provisions of this chapter. The department of revenue has full power and authority to revoke or suspend the license or permit of any wholesale or retail cigarette dealer in the state upon sufficient cause appearing of the violation of this chapter or upon the failure of such licensee to comply with any of the provisions of this chapter.

(2) A license shall not be suspended or revoked except upon notice to the licensee and after a hearing as prescribed by the department of revenue. The department of revenue, upon a finding by same, that the licensee has failed to comply with any provision of this chapter or any rule promulgated thereunder, shall, in the case of the first offender, suspend the license or licenses of the licensee for a period of not less than thirty consecutive business days, and, in the case of a second or plural offender, shall suspend the license or licenses for a period of not less than ninety consecutive business days nor more than twelve months, and, in the event the department of revenue finds the offender has been guilty of willful and persistent violations, it may revoke the license or licenses.

(3) Any person whose license or licenses have been so revoked may apply to the department of revenue at the expiration of one year for a reinstatement of the license or licenses. The license or licenses may be reinstated by the department of revenue if it appears to the satisfaction of the department of revenue that the licensee will comply with the provisions of this chapter and the rules promulgated thereunder.

(4) A person whose license has been suspended or revoked shall not sell cigarettes or permit cigarettes to be sold during the period of such suspension or revocation on the premises occupied by the person or upon other premises controlled by the person or others or in any other manner or form whatever.

(5) Any determination and order by the department of revenue, and any order of suspension or revocation by the department of revenue of the license or licenses, or refusal to reinstate a license or licenses after revocation shall be reviewable by an appeal to the superior court of Thurston county. The superior court shall review the order or ruling of the department of revenue and may hear the matter de novo, having due regard to the provisions of this chapter and the duties imposed upon the department of revenue.

Sec. 16. RCW 82.24.560 and 1986 c 321 s 10 are each amended to read as follows:

Except as specified in section 9 of this act, all fees and penalties received or collected by the department of revenue pursuant to this chapter shall be paid to the state treasurer, to be credited to the ((~~general fund~~)) youth tobacco account.

NEW SECTION. Sec. 17. Sections 2 through 12 of this act are each added to chapter 82.24 RCW.

NEW SECTION. Sec. 18. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.