VirginiaSB6202026 Regular SessionSenateWALLET

Va. ABC Authority; permitting of retail tobacco product retailers, etc.

Sponsored By: Adam P. Ebbin (Democratic)

Became Law

Summary

Virginia Alcoholic Beverage Control Authority; permitting of retail tobacco product retailers; purchase, possession, and sale of retail tobacco products; penalties; report. Transitions and provides a more comprehensive structure for the current licensing and enforcement responsibilities related to liquid nicotine and retail tobacco products from the Department of Taxation to a permitting system administered by the Virginia Alcoholic Beverage Control Authority. The bill requires the Board of Directors of the Virginia Alcoholic Beverage and Control Authority to conduct an unannounced buyer operation at least once every 24 months to verify that a permittee, defined in the bill, is not selling retail tobacco products to persons under 21 years of age. Portions of the bill have a delayed effective date of October 1, 2026. This bill is identical to HB 308.

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Bill Overview

Analyzed Economic Effects

17 provisions identified: 3 benefits, 7 costs, 7 mixed.

Tobacco recordkeeping, audits, and fines

Manufacturers, wholesalers, retail licensees, retail tobacco permittees, shippers, and delivery‑authorized sellers must keep full, separate records. Special agents may inspect premises and records during reasonable hours, and electronic records must be quickly retrievable. Retailers who handle liquid nicotine or vape products must keep related records for three years and allow Attorney General audits. Refusing or failing to cooperate with an audit or inspection triggers a $1,000 penalty for each day of noncooperation, collected like a tax.

Licenses and fees for tobacco and vape sellers

If you make, distribute, or retail liquid nicotine or vape products in Virginia, you need a license for each location. The state runs background checks and may require FBI fingerprints. Operating without a required license is a $400 penalty. Selling to under-21 buyers brings fines of at least $1,000, then $5,000 plus a 30-day suspension, then $10,000 plus license loss for three years. Tobacco distributors, including out-of-state shippers to Virginia retailers, must also get a distributor license for each location, with application or renewal fees up to $750. The fee for a temporary retail tobacco permit is charged at one-twelfth of the combined application and permit fee for each month granted, and the Board may revoke it quickly for cause.

Hearings, penalty caps, and waivers

Before the Board fines you or suspends or revokes your permit, it must give notice and let you inspect the evidence it plans to use. You can seek judicial review under the Administrative Process Act and appeal to the Court of Appeals. The Board can accept consent agreements, set penalty schedules, and waive some first‑offense penalties, but not for willful violations. Civil penalty caps apply: up to $2,000 for a first violation ($3,000 if you sold to a prohibited person) and up to $5,000 for a second ($6,000 if you sold to a prohibited person). The Board may also charge its investigation and proceeding costs, up to $25,000.

Stricter under-21 tobacco and vape rules

The law bans selling, giving, or buying tobacco or smoking hemp for anyone under 21. Stores must check a photo ID for anyone who appears under 30. Online and mail sales must verify age through a database and get an adult signature at delivery. A first violation is $500; later violations within three years are $2,500. Employees also face $100 per sale. People under 21 may not possess these products. Police can seize them. Exceptions apply for work deliveries, approved research, or police duties.

Stronger tools to police tobacco sales

Violating key tobacco laws now counts as a fraudulent practice under the Virginia Consumer Protection Act. The Attorney General or local attorneys can ask a circuit court to stop violations with temporary or permanent orders, and courts can order forfeiture. Authorities may run scheduled or surprise compliance checks. The Tax Commissioner must share dealer and retailer data with the ABC Board to aid enforcement. Tax and law-enforcement agencies and the Attorney General can obtain required nicotine sales records, and those records are exempt from public disclosure. Counterfeit cigarettes and the equipment used to sell them can be seized or destroyed. Older nicotine sections are repealed to consolidate the rules.

Retail tobacco permit and fees

To sell tobacco in Virginia, each store must hold a retail tobacco permit for that location and post it. You file an application with a background check and pay a nonrefundable fee: $400, or $300 if you already have an ABC alcohol license, plus fingerprint costs. The Board sets an annual renewal fee, and the permit does not replace other state or local taxes or licenses. Late renewal penalties apply: within 30 days, pay the fee plus $25 or 10% (whichever is more); within the next 45 days, $100 or 25% (whichever is more). The Board does not issue a permit until the required fees are paid.

Why your permit can be denied

The Board may refuse a permit if you are under 21; have felony or recent tobacco‑sale convictions; misstate facts; hide owners; lack financial responsibility; or the site fails local rules or is likely to harm the community (for example, near schools or hospitals). It may also deny if investigators found you exceeded legal volume limits or had inventory seized in the past year. After a permit is issued, the Board can suspend or revoke it for many violations, such as misrepresentation, rule violations, illegal gambling or drugs on the premises, being a common nuisance, or failing to stop serious crimes by patrons. The Board must suspend or revoke if you allowed an illegal gambling device on site or defrauded a government agency with false reports or records.

Only listed vapes can be sold

Beginning December 31, 2025, only liquid nicotine or nicotine vapor products listed in the Attorney General's directory may be sold in Virginia. Any unlisted product offered or held for sale is contraband and can be seized and destroyed. Manufacturers must pay $5,000 per product for the first certification (or after a lapse) and $2,500 per product each year for recertification.

Stronger age checks and delivery rules

You may not sell retail tobacco to anyone under 21, and you must check a government photo ID or use ID‑scanning tech if the buyer looks under 30. You must post a clear sign that under‑21 sales are illegal; cigarettes must be sold only in sealed manufacturer packages with required warnings. For delivery sales, you must verify age before the first delivery, give required buyer notices, and accept only payment tied to the buyer’s name; signature rules apply when a commercial service verifies ID. Online orders for liquid nicotine or vape products generally may be delivered only to a retail dealer. Knowingly selling liquid‑nicotine containers without child‑resistant packaging is a Class 4 misdemeanor; this applied to retail sales before July 1, 2024, with a good‑faith manufacturer‑reliance defense. Local attorneys can enforce sign and packaging rules with civil penalties up to $500.

Training, records, and short-term permits for tobacco shops

The Board can issue temporary retail tobacco permits so a buyer at foreclosure or auction can operate up to 60 days, or a new operator under a lease or contract can operate up to 120 days while a full permit is processed. For contract cases, the prior permittee must consent unless the new operator takes on any prior taxes or penalties. Retailers must train employees on the law, age checks, and penalties, and keep the records the state requires. Distributors and retailers must keep invoices that list each nicotine product, the tax on each item, and total taxes paid for audits. If a retail tobacco permit ends, the business generally has 60 days to sell remaining stock to in-state permitted sellers or, if the Board allows, to out-of-state buyers. Any excise tax due must be paid. Leftover stock is forfeited.

ABC gains broader alcohol powers

The Alcoholic Beverage Control Board can set and collect fees, make rules, enter contracts, and hire staff. It can buy, import, and sell alcohol, run distilleries and warehouses, and grant, suspend, or revoke licenses and retail tobacco permits.

Only listed nicotine vapes can be sold

Beginning December 31, 2025, liquid nicotine and vape products may be sold in Virginia only if the product appears in the Attorney General’s public directory. Manufacturers must file a yearly certification for each product showing FDA marketing authorization, that it was marketed in the U.S. as of August 8, 2016, or that a PMTA was filed by September 9, 2020 and is still under review. Manufacturers must report material FDA changes within 30 days and nonresident manufacturers must keep a Virginia agent for service. The AG can remove noncompliant products; firms get 10 business days after notice to prove compliance. Penalties include $1,000 per day per product offered in violation, plus civil penalties of at least $5,000, $10,000, and $15,000 for first, second, and third violations. When the directory first posts, retailers, distributors, and wholesalers get 60 days to sell, remove, or return unlisted inventory. After removal periods, unlisted products are contraband and can be seized at the owner’s cost. Sellers must notify buyers of removed products and refund the purchase price unless a contract says otherwise; false certifications are a Class 3 misdemeanor.

Cities can ban shops near schools

Local governments may ban tobacco and smoking‑hemp shops within 1,000 feet of schools and child day centers. These local rules cannot push out shops that had a valid license or were operating before July 1, 2024. Each locality decides whether to adopt and enforce these limits.

Public seller lists and data limits

The state posts a monthly public list of licensed tobacco distributors, remote sellers, and nicotine‑product makers and dealers. The Board may use tax and inspection data only to build and maintain a retail‑dealer list for enforcing underage‑sales laws. Sharing is tightly limited, and unauthorized disclosure by Board staff is a Class 2 misdemeanor.

Under‑21 possession and furnishing banned

Anyone under 21 may not possess retail tobacco products, with limited exceptions for work deliveries, approved research, and law‑enforcement duties. Tobacco held in violation is contraband and can be seized; seizure is the only penalty. It is also illegal to buy for, give, or help provide retail tobacco to someone known or reasonably believed to be under 21. An individual who furnishes to under‑21 pays a $100 civil penalty, and products may be seized.

Unlicensed sales and purchases banned

It is a Class 1 misdemeanor to sell retail tobacco products without a retail tobacco permit, except as the law allows. It is also a Class 1 misdemeanor to buy retail tobacco products from anyone other than a permitted retailer.

New fund to pay for enforcement

Virginia creates a Retail Tobacco Enforcement Fund to pay for permit administration, unannounced compliance checks, and related costs. The Attorney General and local attorneys can recover investigation costs, case costs, and attorney fees. Money recovered for a locality goes to its general fund; money the Attorney General collects is used to run and enforce this law.

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Sponsors & Cosponsors

Sponsor

  • Adam P. Ebbin

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 585 • No: 56

Senate vote 4/22/2026

Senate concurred in Governor's recommendation

Yes: 37 • No: 2

House vote 4/22/2026

House concurred in Governor's recommendation

Yes: 94 • No: 4

House vote 3/14/2026

Conference report agreed to by House

Yes: 93 • No: 3

Senate vote 3/13/2026

Conference report agreed to by Senate

Yes: 37 • No: 2

Senate vote 3/11/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

Senate vote 3/9/2026

House substitute rejected by Senate

Yes: 0 • No: 40

House vote 3/5/2026

Passed House with substitute

Yes: 95 • No: 3

House vote 3/2/2026

Reported from Appropriations

Yes: 21 • No: 1

House vote 2/26/2026

Reported from General Laws with substitute and referred to Appropriations

Yes: 20 • No: 1

Senate vote 2/16/2026

Constitutional reading dispensed Block Vote (on 3rd reading)

Yes: 39 • No: 0

Senate vote 2/16/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/16/2026

Rehabilitation and Social Services Substitute rejected

Yes: 0 • No: 0

Senate vote 2/16/2026

Read third time and passed Senate Block Vote

Yes: 39 • No: 0

Senate vote 2/12/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/12/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/11/2026

Reported from Finance and Appropriations with substitute

Yes: 15 • No: 0

Senate vote 2/6/2026

Reported from Rehabilitation and Social Services with substitute and rereferred to Finance and Appropriations

Yes: 15 • No: 0

Actions Timeline

  1. House concurred in Governor's recommendation (94-Y 4-N 0-A)

    4/22/2026House
  2. Senate concurred in Governor's recommendation (37-Y 2-N 0-A)

    4/22/2026Senate
  3. Acts of Assembly Chapter text (CHAP1021)

    4/22/2026Governor
  4. Reenrolled bill text (SB620ER2)

    4/22/2026Senate
  5. Approved by Governor-Chapter 1021 (Effective - see bill)

    4/22/2026Governor
  6. Signed by President

    4/22/2026Senate
  7. Signed by Speaker

    4/22/2026House
  8. Governor's recommendation adopted

    4/22/2026Governor
  9. Governor's recommendation received by Senate

    4/12/2026Governor
  10. Fiscal Impact Statement from Department of Planning and Budget (SB620)

    4/6/2026Senate
  11. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  12. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026Senate
  13. Signed by Speaker

    3/31/2026House
  14. Bill text as passed Senate and House (SB620ER)

    3/30/2026Senate
  15. Enrolled

    3/30/2026Senate
  16. Signed by President

    3/30/2026Senate
  17. Conference report agreed to by House (93-Y 3-N 0-A)

    3/14/2026House
  18. Conference report agreed to by Senate (37-Y 2-N 0-A)

    3/13/2026Senate
  19. Conference Report released

    3/13/2026
  20. House Conferees: Hope, Carroll, Fowler

    3/12/2026House
  21. Conferees appointed by House

    3/12/2026House
  22. Senate acceded to request Block Vote (40-Y 0-N 0-A)

    3/11/2026Senate
  23. Conferees appointed by Senate

    3/11/2026Senate
  24. Senate Conferees: VanValkenburg, Salim, Reeves

    3/11/2026Senate
  25. House requested conference committee

    3/10/2026House

Bill Text

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