January 2020 Vapor Product Rule Changes

Vapor Products: Complete Rules

Types of licensees
Added “delivery sales” to the list of licensees to whom the chapter applies. WAC 314-35-010

Definitions
Created and established definitions for “domicile,” “control,” “financial institution,” and “profit” for clarity. WAC 314-35-015

Licensing requirements
Clarifies and more concisely describes licensing requirements for all vapor product licensees, including background investigation, and premise inspection. WAC 314-35-020

Insurance requirements
Requires vapor product licensees to obtain commercial general liability insurance, to increase and protect public safety. WAC 314-35-021

Vapor product license transfer and relocation
Establishes requirements for transfer, or relocation of a vapor product license, in addition to ownership or location changes of a licensed vapor product business. WAC 314-35-023

Vapor product packaging and labeling
Describes vapor product packaging and labeling requirements, consistent with RCW 70.345.075 WAC 314-35-024

Vapor product applicant and licensee hearing rights
Describes applicant and licensee hearing rights language consistent with the applicable provisions of the Administrative Procedures Act, chapter 34.05 RCW. WAC 314-35-025

Qualifying for a vapor product license
Establishes a framework and guidelines to determine which true party(ies) of interest must be qualitied to be listed on a vapor product license, consistent with RCW 70.345.020(4). WAC 314-35-027

Vapor product licensee recordkeeping requirements
Clarifies and more concisely describes recordkeeping requirements. Adds recordkeeping requirements established in E2SHB 1873 regarding the requirement to provide the board with a list of names and addresses of all vapor product representatives and distributors. WAC 314-35-030

Age-restricted vapor products retailer license locations
Updates existing rule to incorporate age of sale requirements of EHB 1074, increasing age of sale from eighteen to twenty-one. WAC 314-35-040

Vapor product licensee responsibilities
Establishes a framework to guide licensee, employee and patron conduct that aligns with liquor and marijuana regulation, including but not limited to Titles 9, 9A RCW, chapters 69.50, 70.155, 70.158, 70.345, 82.24, and 82.26 RCW. WAC 314-35-045

Vapor product license suspensions and revocations
Establishes a framework and guidelines effectuating the requirements of RCW 70.345.180 regarding penalties, sanctions and actions against licensees. WAC 314-35-050

Transportation
Establishes a framework and guiding requirements for the transportation of vapor products in Washington State as described in E2SHB 1873, including invoice and or delivery ticket requirements, and the provision of WSLCB authority to stop a vehicle and inspect for contraband vapor products. WAC 314-35-053

Seizure of cannabinoid vapor products
Consistent with the statutory authority provided in E2SHB 1873, establishes a process for the WSLCB to seize, without warrant, any vapor product given or offered for sale containing cannabinoids as provided in RCW 70.345.030. WAC 314-35-055

Seizure of vapor products
Consistent with the statutory authority provided in E2SHB 1873, establishes a process for the WSLCB to seize, without warrant, any vapor product in the possession of a person acting as a distributor, delivery seller, manufacturer or retailer of vapor products, and who is not licensed as required by statute and regulation. Provides that seized products are subject to forfeiture. Establishes conveyance forfeitures, and exceptions. WAC 314-35-060

Forfeiture
Consistent with the statutory authority and direction provided in E2SHB 1873, establishes a process and guidelines for property made subject to forfeiture by seizure. WAC 314-35-065

Penalty structure
Establishes a penalty structure consistent with the framework of the redesigned marijuana licensee penalty framework. Establishes three distinct penalty categories:

  • Category I: Violations that create a direct or immediate threat to public health, safety, or both;
  • Category II: Violations that create a potential threat to public health, safety, or both; and
  • Category III: Regulatory violations.

Consistent with the authority provided in chapter 70.345 RCW, describes aggravating and mitigating factors that the board may consider when assessing penalties. WAC 314-35-070

Category I. Establishes list of violations and associated penalties that may result in license cancellation, consistent with the provisions of chapter 70.345 RCW, RCW 26.28.080, chapter 82.24 RCW, chapter 82.26 RCW, and others. WAC 314-35-075

Category II. Establishes list of violations and associated penalties that create a potential threat to public health, safety, or both, consistent with the provisions of chapter 70.345 RCW. WAC 314-35-080

Category III. Establishes list of regulatory violations and associated penalties consistent with the provisions of chapter 70.345 RCW. WAC 314-35-085
 

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