Chapter 3.32 CIGARETTE CODE

(e) “Essential government services” means services provided by the Puyallup Tribe, including, but not limited to, administration, public facilities, fire, police, public health, education, job services, sewer, water, environmental and land use, transportation, utility services, and economic development.

(f) “Member” means an enrolled member of the Puyallup Tribe.

(g) “Reservation” means the area recognized as the Puyallup Indian Reservation by the United States Department of the Interior.

(h) “Tribal enterprise” means any business owned by the Tribe.

(i) “Tribe” or “Tribal” means or refers to the Puyallup Tribe.

(j) “Trust land” means lands held in trust by the United States for the benefit of an enrolled Tribal member or the Tribe. [Ord. 020505B (05/02/05); prior code § 3.07.010]

3.32.020 Privilege of operating a cigarette retail shop.

In order to promote the further economic development of the Tribe, to clearly establish and exercise the Tribe’s authority to regulate the conduct and operation of cigarette retail shops within the Reservation, and in order to maintain compliance with the Cigarette Compact, the Council hereby declares that the Tribe has the authority to grant, deny, or withdraw the privilege of operating a cigarette retail shop within the Reservation, except as limited by applicable law. [Ord. 020505B (05/02/05); prior code § 3.07.020]

3.32.030 Condition for continuation.

The grant of the privilege of operating a cigarette retail shop within the Reservation is conditioned upon the business’s compliance with this chapter and other applicable laws of the Tribe. [Ord. 020505B (05/02/05); prior code § 3.07.030]

3.32.040 Revocation, modification or alteration of privilege.

The Council hereby reserves the right to revoke this grant of privilege of operating a cigarette retail shop within the Reservation; to modify, limit, or otherwise alter the extent of this grant; and to establish and enact such laws relating to the establishment or conduct of cigarette retail shops within the Reservation as it may deem desirable. [Ord. 020505B (05/02/05); prior code § 3.07.040]

Subchapter 2. Licensing Generally and Fees

3.32.050 License required.

Any member operating a cigarette retail shop on the Reservation must first apply for and receive a cigarette retail license from the Tribe. Expired or revoked cigarette retail licenses must be renewed before operation of a cigarette retail shop may continue. No member shall operate a cigarette retail shop on the Puyallup Indian Reservation without a cigarette retail license. Any individual selling cigarettes on trust land must first obtain a cigarette retail license. [Ord. 020505B (05/02/05); prior code § 3.07.110]

3.32.060 Eligible persons.

Any member, 21 years of age or older, who agrees to comply with this chapter and other applicable laws of the Tribe, and who is not otherwise prohibited from operating a cigarette retail shop on the Reservation, may obtain a cigarette retail license. [Res. 260522D (05/26/22); Ord. 020505B (05/02/05); prior code § 3.07.120]

3.32.070 License term.

Each license shall expire 12 months from the effective date of the cigarette retail license. [Ord. 020505B (05/02/05); prior code § 3.07.130]

3.32.080 License processing fee.

Application for a cigarette retail license shall be made by submitting a nonrefundable processing fee of $100.00 to the Department. The processing fee shall be credited toward the licensee’s annual cigarette retail license fee. [Ord. 020505B (05/02/05); prior code § 3.07.140]

3.32.090 Annual licensing fee.

An annual license fee of $250.00 shall be imposed upon every person operating a cigarette retail shop on the Reservation. Such fees must be paid in full to the Department prior to the issuance of a cigarette retail license. Failure to pay such fee shall be cause to withhold a cigarette retail license. [Ord. 020505B (05/02/05); prior code § 3.07.150]

3.32.100 Nonpayment penalty.

Failure to obtain a cigarette retail license, or failure to pay the license fee within 30 days after the day on which it is due, shall render the business subject to a penalty of 50 percent of the amount of the licensing fee for the first month of delinquency and an additional penalty of 10 percent for each succeeding month of delinquency; provided, that the total penalty shall not exceed the license fee. These nonpayment penalties shall not be credited toward the licensee’s annual cigarette retail license fee. [Ord. 020505B (05/02/05); prior code § 3.07.160]

3.32.110 Duplicate license fee.

A duplicate license must be obtained in the event that the original license is lost, stolen or destroyed. A duplicate license fee of $50.00 shall be imposed upon every issuance of a duplicate license. [Ord. 020505B (05/02/05); prior code § 3.07.160]

Subchapter 3. Licensing Procedures

3.32.120 Application – Forms and documents.

The completion of the following forms and documents shall be required of all persons applying for a cigarette retail license:

(a) An application form;

(b) An acknowledgement form; should the trust property be held in trust for multiple beneficial owners, proper acknowledgement of the proposed use of the land must be obtained from all beneficial owners;

(d) Evidence of Tribal affiliation. [Ord. 160905A (09/16/05); Ord. 020505B (05/02/05); prior code § 3.07.210]

3.32.130 Application – Information required.

The following information shall be required of all persons applying for a cigarette retail license:

(a) The name of the applicant;

(b) The Tribal affiliation of the applicant;

(d) The anticipated date of commencement of business;

(e) The name of the business if other than the name of the applicant;

(f) The name and address of the beneficial owner(s) of the real property where the business is (or will be) located;

(g) The names and addresses of all agents and managers currently employed at the applicant’s business locations for which a cigarette retail license is sought;

(h) The location of all distribution and all sales locations, or offices, or other places of business on and off the Reservation of any applicant, beneficial owner, manager, and officer of said business;

(i) The signature of the applicant; and

(j) Such other information as the Council may from time to time require. [Ord. 020505B (05/02/05); prior code § 3.07.220]

3.32.140 Application denial.

An application shall be denied if:

(a) The Department does not timely receive all of the required forms and documents;

(b) The Department does not timely receive all applicable fees;

(c) The applicant’s license has been suspended or revoked and the matter relating to the suspension or revocation has not been resolved;

(d) The applicant is currently in nonconformance with Tribal law; or

(e) The applicant is otherwise prohibited from operating a cigarette retail shop on the Puyallup Indian Reservation.

An application may be resubmitted at a later date, when any such defect is corrected and eligibility is established. [Ord. 020505B (05/02/05); prior code § 3.07.230]

3.32.150 License renewal.

All licenses shall be renewed, and the annual license fee shall be due 30 days prior to the expiration of a current cigarette retail license. The Department is authorized, but not required, to mail forms for license renewal. Failure of any business to receive such form shall not excuse the business from applying for and securing the cigarette retail license, nor from paying of the licensing fee due. [Ord. 020505B (05/02/05); prior code § 3.07.240]

3.32.160 License transfer.

Licenses issued pursuant to the terms of this chapter shall not be assignable or transferable in the event of sale or transfer of such business to other ownership or for any other purpose. [Ord. 020505B (05/02/05); prior code § 3.07.250]

3.32.170 License posting.

Every cigarette retail business shall keep and post the cigarette retail license issued to the business pursuant to this chapter on the premises of the business. [Ord. 020505B (05/02/05); prior code § 3.07.260]

3.32.180 Separate licenses for multiple locations.

A separate license must be obtained for each cigarette retail shop location. [Ord. 020505B (05/02/05); prior code § 3.07.270]

3.32.190 Dual businesses at the same location.

A separate license shall be required for the sale of liquor and a separate business license shall be required for the sale of any other goods sold at the location of a licensed cigarette retail shop. [Ord. 020505B (05/02/05); prior code § 3.07.280]

3.32.200 Compliance with Tribal zoning regulations.

The address of the real property where the business is (or will be) located must comply with Tribal zoning regulations. [Ord. 020505B (05/02/05); prior code § 3.07.290]

Subchapter 4. Cigarette Taxation

3.32.210 Administration and collection.

The Puyallup Tribal Council grants the authority for administration and collection of the Tribal cigarette tax to the Department. [Ord. 020505B (05/02/05); prior code § 3.07.310]

3.32.220 Applicability.

The Tribal cigarette tax shall apply to the retail sale of cigarettes by cigarette retail shops and Tribal enterprises. [Ord. 020505B (05/02/05); prior code § 3.07.320]

3.32.230 Amount of tax.

The Tribal cigarette tax shall be $11.75 per carton of 200 cigarettes and shall increase dollar for dollar with subsequent increases in the state cigarette tax. [Ord. 020505B (05/02/05); prior code § 3.07.330]

3.32.240 Exemption – Gross proceeds tax.

All sales of cigarettes shall be exempt from the Tribe’s gross proceeds tax or any other Tribal tax. [Ord. 020505B (05/02/05); prior code § 3.07.340]

3.32.250 Record of revenue required.

Each cigarette retail shop shall be required to maintain accurate and complete records of revenue obtained from the sale of cigarettes. Such records must be delivered to the Department on a quarterly basis. The records must be delivered in a clear and concise form.

(a) Required Disclosures.

(1) Gross revenue from the sale of 20-cigarette packs of cigarettes;

(2) Pack sales of 20-cigarette packs;

(3) Gross revenue from the sale of 25-cigarette packs of cigarettes; and

(4) Pack sales of 25-cigarette packs.

The Department retains the right to request such records at any time deemed necessary for the administration of this chapter. The cigarette retail shop will be provided one business week to produce such records in these instances. [Ord. 020505B (05/02/05); prior code § 3.07.350]

3.32.260 Proceeds sharing.

The Tribe will share the cigarette tax proceeds with the state of Washington in accordance with the Compact. [Ord. 020505B (05/02/05); prior code § 3.07.360]

3.32.270 Essential government services.

Tribal cigarette tax revenue shall be used for essential government services, as defined by the Compact. [Ord. 020505B (05/02/05); prior code § 3.07.370]

Subchapter 5. Compliance Program

3.32.280 Purpose.

The purpose of the compliance program is to monitor compliance with Tribal law and with the Cigarette Compact. [Ord. 020505B (05/02/05); prior code § 3.07.410]

3.32.290 Applicability.

By engaging in the retail sale of cigarettes, both cigarette retail shops and Tribal enterprises are subject to the compliance program. [Ord. 020505B (05/02/05); prior code § 3.07.415]

3.32.300 Administration.

The Department is responsible for the administration of this program. The Department, at its option and subject to state approval, may contract with an independent third party to perform compliance checks. [Ord. 020505B (05/02/05); prior code § 3.07.420]

3.32.310 Compliance checks.

In general, the compliance program will monitor and investigate cigarette retail shops and Tribal enterprises in regard to:

(a) Sales to any person under the age of 21;

(b) Sales of unstamped cigarettes;

(d) Sales of cigarettes obtained from unauthorized sources;

(e) Pricing compliance;

(f) Mail order and internet sales; and

(g) Other requirements and limitations of Tribal law. [Res. 260522D (05/26/22); Ord. 020505B (05/02/05); prior code § 3.07.425]

3.32.320 Sale to any person under the age of 21 prohibited.

Neither cigarette retail shops nor Tribal enterprises shall sell or give, or permit to be sold or given, cigarettes to any person under the age of 21 years. [Res. 260522D (05/26/22); Ord. 020505B (05/02/05); prior code § 3.07.430]

3.32.330 Sale to any person under the age of 21 prohibition sign to be posted.

Each cigarette retail shop and Tribal enterprise shall display a sign concerning the prohibition of tobacco sales to minors.

Such sign shall:

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

(b) Be designed and produced by the Department to read: “THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER THE AGE OF 21 IS STRICTLY PROHIBITED BY TRIBAL LAW. PHOTO IDENTIFICATION IS REQUIRED FOR PURCHASE OF TOBACCO PRODUCTS”; and

(c) Be provided free of charge by the Department. [Res. 260522D (05/26/22); Ord. 020505B (05/02/05); prior code § 3.07.431]

3.32.340 Age identification requirement.

Where there may be a question of a person’s right to purchase or obtain tobacco products by reason of age, the retailer, or agent thereof, shall require the purchaser to present picture identification that shows the purchaser’s age and bears his or her signature. [Ord. 020505B (05/02/05); prior code § 3.07.432]

3.32.350 Sale to any person under the age of 21 – Penalty.

The sale of cigarettes to any person under the age of 21 or failure of a cigarette retail shop or Tribal enterprise to post the required prohibition sign shall result in the below-defined immediate penalties:

(a) The first offense shall result in a monetary penalty of $100.00;

(b) The second offense shall result in a monetary penalty of $300.00;

(d) The fourth offense shall result in a suspension of business operations for two days and a monetary penalty of $500.00;

(e) The fifth offense shall result in a suspension of business operations for five days and a monetary penalty of $500.00;

(f) The sixth offense shall result in a suspension of business operations for 10 days and a monetary penalty of $500.00;

(g) The seventh offense shall result in license suspension for three months and a monetary penalty of $1,000;

(h) The eighth offense shall result in license revocation for six months and a monetary penalty of $1,500;

(i) The ninth offense shall result in license suspension for one year and a monetary penalty of $2,000; and

(j) The tenth offense shall result in license suspension for three years and a monetary penalty of $2,500. [Res. 260522D (05/26/22); Ord. 241006E (10/24/06); Ord. 020505B (05/02/05); prior code § 3.07.433]

3.32.360 Sale of unstamped cigarettes.

Neither cigarette retail shops nor Tribal enterprises shall sell unstamped cigarettes. [Ord. 020505B (05/02/05); prior code § 3.07.440]

3.32.370 Stamp compliance.

Cigarettes sold by cigarette retail shops and Tribal enterprises must bear the proper Tribal stamp. Two types of stamps will exist, one for packages containing 20 cigarettes, and one for packages containing 25 cigarettes. Each pack of cigarettes sold must bear the proper Tribal stamp, a 20 stamp for the sale of 20 packs and a 25 stamp for the sale of 25 packs. [Ord. 020505B (05/02/05); prior code § 3.07.441]

3.32.380 Sale of unstamped or improperly stamped cigarettes – Penalty.

The sale of unstamped cigarettes or improperly stamped cigarettes by either a cigarette retail shop or a Tribal enterprise shall result in the below-defined immediate penalties:

(a) The first offense shall result in a monetary penalty of $500.00;

(b) The second offense shall result in license suspension for six months and a monetary penalty of $1,000;

(c) The third offense shall result in license revocation for one year, a monetary penalty of $1,500 and subject to criminal prosecution;

(d) The fourth offense shall result in license revocation for three years, a monetary penalty of $2,500 and subject to criminal prosecution; and

(e) The fifth offense shall result in license revocation for five years, a monetary penalty of $5,000 and subject to criminal prosecution. [Ord. 020505B (05/02/05); prior code § 3.07.442]

3.32.390 Sale of cigarettes to reseller prohibited.

Neither cigarette retail shops nor Tribal enterprises shall knowingly sell cigarettes to a cigarette reseller. [Ord. 020505B (05/02/05); prior code § 3.07.450]

3.32.400 Resale prohibition sign to be posted.

Each cigarette retail shop and Tribal enterprise shall display a sign concerning the prohibition of resale of cigarettes purchased from a cigarette retail shop.

Such sign shall:

(a) Be posted so that it is clearly visible to anyone purchasing cigarettes from the licensee;

(b) Be designed and produced by the Department to read: “THE RESALE OF CIGARETTES PURCHASED FROM A TRIBALLY LICENSED CIGARETTE RETAILER IS STRICTLY PROHIBITED”; and

3.32.410 Sale of cigarettes to reseller – Penalty.

The sale of cigarettes to a cigarette reseller by a cigarette retail shop or a Tribal enterprise shall result in the below-defined immediate penalties:

(a) The first offense shall result in a monetary penalty of $500.00;

(b) The second offense shall result in license suspension for six months and a monetary penalty of $1,000;

(d) The fourth offense shall result in license revocation for three years, a monetary penalty of $2,500 and subject to criminal prosecution; and

(e) The fifth offense shall result in license revocation for five years, a monetary penalty of $5,000 and subject to criminal prosecution. [Ord. 020505B (05/02/05); prior code § 3.07.452]

3.32.420 Sale of cigarettes obtained from unauthorized sources.

Neither cigarette retail shops nor Tribal enterprises shall sell cigarettes obtained from unauthorized sources. [Ord. 020505B (05/02/05); prior code § 3.07.460]

3.32.430 Authorized sources.

A cigarette retail shop is permitted to purchase cigarettes at wholesale only from:

(a) State-licensed wholesalers; or

(b) The Tribe, acting as a wholesaler. [Ord. 020505B (05/02/05); prior code § 3.07.461]

3.32.440 Sale of cigarettes obtained from unauthorized sources – Penalty.

The sale of cigarettes obtained from unauthorized sources by a cigarette retail shop or a Tribal enterprise shall result in the below-defined immediate penalties:

(a) The first offense shall result in license revocation for one year and a monetary penalty of $1,000;

(b) The second offense shall result in license revocation for two years and a monetary penalty of $1,500;

(c) The third offense shall result in license revocation for three years, a monetary penalty of $2,500 and subject to criminal prosecution; and

(d) The fourth offense shall result in license revocation for five years, a monetary penalty of $5,000 and subject to criminal prosecution. [Ord. 020505B (05/02/05); prior code § 3.07.462]

3.32.450 Delivery requirement.

Cigarette retail shops shall have all cigarettes delivered to their Tribally licensed retail locations by the authorized source that sells the cigarettes to the cigarette retail shop. Cigarette retail shops are prohibited from picking up their orders from any source. [Ord. 250506 (05/25/06); prior code § 3.07.463]

3.32.460 Penalty for violating delivery requirement.

Failure to comply with the delivery requirement shall result in the removal of the authorized source from the list of authorized sources. In addition, failure to comply with the delivery requirement shall result in the below-defined immediate penalties, which will be imposed on the cigarette retail shop:

(a) The first offense shall result in license revocation for one year and a monetary penalty of $1,000;

(b) The second offense shall result in license revocation for two years and a monetary penalty of $1,500;

(d) The fourth offense shall result in license revocation for five years, a monetary penalty of $5,000 and subject to criminal prosecution. [Ord. 250506 (05/25/06); prior code § 3.07.464]

3.32.470 Pricing compliance.

The retail sale price of any cigarette must not be less than the price paid by the retailer for the cigarette, and such price must include the full amount of the cigarette tax imposed on the cigarette. [Ord. 020505B (05/02/05); prior code § 3.07.470]

3.32.480 Sale of cigarettes below minimum price requirement – Penalty.

The sale of cigarettes below minimum price requirement by a cigarette retail shop or a Tribal enterprise shall result in the below-defined immediate penalties:

(a) The first offense shall result in a monetary penalty of $100.00;

(b) The second offense shall result in a monetary penalty of $300.00;

(d) The fourth offense shall result in license revocation for one year and monetary penalty of $1,500; and

(e) The fifth offense shall result in license revocation for five years and monetary penalty of $2,500. [Ord. 020505B (05/02/05); prior code § 3.07.471]

3.32.490 Sale by mail order or through the Internet.

Cigarette retail shops and Tribal enterprises are strictly prohibited from engaging in mail order or the Internet sale of cigarettes. [Ord. 020505B (05/02/05); prior code § 3.07.480]

3.32.500 Sale of cigarettes by mail order or Internet – Penalty.

Sale of cigarettes by mail order or Internet by a cigarette retail shop or a Tribal enterprise shall result in the below-defined immediate penalties:

(a) The first offense shall result in a license revocation for three years, a monetary penalty of $2,500 and subject to criminal prosecution; and

(b) The second offense shall result in a license revocation for five years, a monetary penalty of $5,000 and subject to criminal prosecution. [Ord. 020505B (05/02/05); prior code § 3.07.481]

3.32.510 Failure or refusal to pay monetary penalties – Suspension of license.

The failure or refusal to pay monetary penalties shall result in the immediate suspension of a cigarette retail license. A license will be suspended until the Department receives payment of the monetary penalties. [Ord. 020505B (05/02/05); prior code § 3.07.490]

3.32.520 Collection of information.

Each cigarette retail shop may be required from time to time to submit to a compliance review. Each cigarette retail shop shall be required to provide, when directed by the Department, information and access that will enable the Department to determine whether the shop is in compliance with the requirements of this chapter and Tribal law. Compliance reviews shall consist of a review, by the Department or by a third party, of the cigarette retail shop’s books and records, the cigarette retail shop’s premises, inventory and other items deemed necessary by the Tribe. [Ord. 020505B (05/02/05); prior code § 3.07.491]

3.32.530 Failure or refusal to provide required information or access – Penalty.

The failure or refusal to provide required information or access by a retail cigarette shop or Tribal enterprise shall result in the below-defined immediate penalties:

(a) The first offense shall result in license suspension until compliance;

(b) The second offense shall result in license suspension for one year;

(d) The fourth offense shall result in license revocation for five years. [Ord. 020505B (05/02/05); prior code § 3.07.492]

3.32.540 Penalties to run consecutively.

All penalties prescribed in this Subchapter 5 shall run consecutively. [Ord. 250506 (05/25/06); prior code § 3.07.493]

Subchapter 6. Administrative and Judicial Procedure

3.32.550 Administrative procedure.

The Department shall follow the administrative procedure outlined below in events of apparent and actual violation:

(a) Notice of Apparent or Actual Violation. Penalties will be immediate and a written notice of apparent or actual violation will be provided to the licensee.

(b) Determination by the Department. The Department shall provide the licensee with relevant documentation of the apparent or actual violation. The licensee shall have the opportunity to provide the Department with additional relevant information and shall have the opportunity to meet with the Department Director to review the claim. The Department shall consider all relevant information in making a final decision regarding the apparent or actual violation. The final decision must be made based on a preponderance of the evidence. Upon reaching a final decision the licensee shall be provided with written documentation of the Department’s decision.

(c) Discretion to Reduce Penalty. The Department Director shall have the authority to reduce the designated penalty if sufficient evidence is made available to the Director to show that the violation was incidental or unintentional. [Ord. 020505B (05/02/05); prior code § 3.07.510]

3.32.560 Post-deprivation hearing.

A cigarette retail licensee shall have the opportunity to appeal the Department’s decision to suspend or revoke a cigarette retail license. Such appeals shall be heard by the Puyallup Tribal Court at a post-deprivation hearing. The decision by the Puyallup Tribal Court shall be final. [Ord. 020505B (05/02/05); prior code § 3.07.520]

3.32.570 Judicial – Civil enforcement.

A decision by the Department may be appealed to the Puyallup Tribal Court. In addition, the Puyallup Tribal Court shall hear civil cases brought by the Tribe to enforce civil penalties prescribed under this chapter. The Puyallup Tribal Court’s rules of civil procedure and other applicable Court rules shall apply. [Ord. 020505B (05/02/05); prior code § 3.07.530]

3.32.580 Judicial – Criminal enforcement.

A decision made by the Department shall authorize the Puyallup Tribal Prosecutor’s Office to criminally prosecute in instances where the penalty provides for criminal prosecution. The decision to prosecute will be at the discretion of the Tribal Prosecutor. The Department shall provide relevant information to the Prosecutor’s Office. The Puyallup Tribal Court’s rules of criminal procedure and other applicable Court rules shall apply. [Ord. 020505B (05/02/05); prior code § 3.07.540]

Subchapter 7. Miscellaneous

3.32.590 Noncompliance – Report to Department.

Any person who possesses knowledge of noncompliance shall provide such information to the Department. Failure to provide such information to the Department may subject that person to the penalties prescribed in this chapter and other Tribal ordinances as they may apply. [Ord. 020505B (05/02/05); prior code § 3.07.610]

3.32.600 Noncompliance – Waiver of privilege and protection.

Continued noncompliance with this chapter by any person will result in a waiver of the person’s privileges and protection under this chapter. [Ord. 020505B (05/02/05); prior code § 3.07.620]

3.32.610 Illegal substances – Zero tolerance.

The Tribe has a zero tolerance policy with regard to illegal substances. Any illegal substances found on the premises or sold on the premises of a cigarette retail shop shall result in the immediate revocation of a cigarette retail license. [Ord. 020505B (05/02/05); prior code § 3.07.630]

3.32.620 Severability.

If any provision of this chapter, or its application to any person or circumstance, is held invalid by the Puyallup Tribal Court, the remainder of this chapter shall remain in effect. [Ord. 020505B (05/02/05); prior code § 3.07.640]