VirginiaHB3082026 Regular SessionHouseWALLET

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

Sponsored By: Patrick A. Hope (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 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 SB 620.

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Bill Overview

Analyzed Economic Effects

21 provisions identified: 2 benefits, 13 costs, 6 mixed.

Keep nicotine records or pay $1,000 daily

If you handle liquid nicotine or vape products, you must keep related invoices and records for three years. The Attorney General can audit anytime. If you refuse to preserve or show required nicotine records, you can be charged with a Class 2 misdemeanor and fined $1,000 for each day you do not cooperate. All retail sellers must also keep accurate purchase, price, supplier, and invoice records, with electronic records retrievable on request.

Tougher penalties and inspections for retailers

The Board can suspend or revoke permits for many reasons, including rule violations, illegal gambling devices, fraud, or being 90+ days late on taxes. Fines can be up to $2,000 for a first violation and $5,000 for a second, or $3,000/$6,000 if you sold to someone barred from buying. The Board may recover investigative costs up to $25,000 and must give notice and let you see evidence. Agents can inspect stores and records during 9 a.m.–5 p.m. or posted hours; you must provide off‑site records within 24 hours. Refusing inspection can be a Class 2 misdemeanor. Seized stock after permit loss must be disposed of within 60 days or is forfeited. The Board can levy civil penalties, and the Tax Commissioner must share retailer data with the Board.

Only listed vape products may be sold

Beginning December 31, 2025, stores may sell liquid nicotine or vape products only if the exact product appears on the Attorney General’s public directory. Violations face $1,000 per day per product, plus civil penalties of at least $5,000, $10,000, and $15,000 for first, second, and third violations. Products not on the list are contraband and can be seized and destroyed. After the AG first posts the directory, retailers get 60 days to sell or remove nonlisted stock; if a listed product is later removed, retailers have 30 days to sell or return it. Investigators can run compliance checks and access retailer records for trafficking cases, and sales ordered online may be delivered only to a retail dealer. Nonresident manufacturers must appoint a Virginia agent for legal service to be listed.

Casinos cover extra ABC enforcement costs

A mixed‑beverage casino licensee must pay any ABC enforcement costs that are higher than the state license fee. The law does not explain how those extra costs are calculated.

Distributors need licenses and checks

Tobacco distributors must get a license for each location. Applicants face background checks and fingerprints, and possibly an FBI check. The Department can charge up to $750 for each application or renewal and can deny or revoke for listed offenses or fraud.

Licenses and records for remote tobacco sales

Anyone selling cigars or pipe tobacco to Virginia buyers from afar must get a remote retail seller license. If you meet economic‑nexus thresholds, you must register, collect, and pay excise tax. You must use an independent third‑party age check tied to government‑ID databases. Shippers must file monthly shipment reports, and delivery licensees must keep delivery records for two years and submit records monthly when excise tax is due, with quick turnaround on requests. Sellers who use the actual‑cost method must certify and update SKU cost lists.

Local bans near schools for new shops

Local governments may bar tobacco and hemp smoking product shops within 1,000 feet of a school or child day center. Existing shops open before July 1, 2024, and certain licensees keep operating. New locations must follow local limits.

Manufacturers must certify vape products, pay fees

By December 31, 2025, and every year after, manufacturers must certify each nicotine product sold in Virginia. You must show FDA authorization or that the product was on the U.S. market by August 8, 2016, or had a PMTA filed by September 9, 2020. Pay $5,000 per product for the first certification or resubmission and $2,500 per product each year to recertify. Report material changes within 30 days. False statements are a Class 3 misdemeanor.

Stronger under-21 tobacco rules and fines

Sellers may not sell tobacco or hemp smoking products to anyone under 21. They must check photo ID for anyone who looks under 30 and follow verification steps; vending machines cannot sell tobacco. Stores pay $500 for a first under‑21 sale and $2,500 for later violations within three years, and an employee who sells pays $100. People under 21 may not possess these products, and anyone who buys or gives them to a minor faces a $100 civil penalty. Liquid nicotine containers must be child‑resistant. Stores must keep cigarettes and hemp smoking products in sealed manufacturer packages and post signs that under‑21 sales are banned.

Retail tobacco permits: apply, pay, renew

You must apply before selling tobacco and sign a sworn form. Pay a nonrefundable application fee of $400, or $300 if you already hold an ABC alcohol license. The Board will not issue the permit until you pay the permit fee. Each location needs its own posted permit. Permits last one year, with an annual renewal fee set by the Board and late penalties if you pay late. Background checks and fingerprints are required, you must keep your information current, and owners are responsible for workers’ violations. Temporary permits can keep a store open during a foreclosure or contract transfer for set periods and fees. The Board may set permit fees and can grant, suspend, or revoke permits.

Stricter rules for retail tobacco permits

The Board can deny a retail tobacco permit for many reasons, including certain felonies, false statements, bad premises, recent violations, or seized stock. Permits cannot be transferred to a new owner or a new location, and holding a permit does not erase other state or local taxes and fees. Selling tobacco without a permit is a Class 1 misdemeanor. The Board can use retailer data for underage‑sales enforcement but cannot share it widely; improper sharing is a Class 2 misdemeanor.

Medical debt added to consumer law

Beginning July 1, 2026, breaking the Medical Debt Protection Act counts as a consumer protection violation. This gives patients stronger tools and remedies under Virginia’s Consumer Protection Act.

Counterfeit cigarettes can be seized

Law enforcement and the ABC Authority can seize, destroy, or forfeit counterfeit cigarettes and related equipment. Undercover operations must keep counterfeit goods under law‑enforcement control and not release them to the public.

Penalty for buying from unpermitted sellers

It is a Class 1 misdemeanor to buy retail tobacco products from anyone who is not an authorized retail tobacco seller.

Underage sales checks and age signs

ABC runs unannounced underage buyer checks at least once every 24 months. After a proven under‑21 sale, ABC runs another check within six months. You must sell cigarettes only in sealed manufacturer packages with health warnings and post signs that under‑21 sales are illegal. Localities can seek a civil penalty up to $500 for packaging or signage violations. Retail dealers must also attest they trained employees on the law, IDs, and penalties.

Alcohol makers must keep full records

Licensed alcohol manufacturers, bottlers, and wholesalers must keep full, separate records of alcohol they buy, make, bottle, sell, or ship. They must also keep required tax information as the Board’s rules require.

Board may require minimum food sales

The Board can set minimum food‑sales requirements for retail licensees. Stores may need to meet those levels to keep their license.

Stricter ID rules for mail cigarette sales

Before a first delivery sale to a consumer, sellers must get a signed age and address form and verify age. Verification must use a database with date of birth or an image of a government ID. Sellers must give the required notice and take payment only by a card in the buyer’s name or a check from the buyer’s account.

Funding and timelines to enforce new rules

The law creates a Retail Tobacco Enforcement Fund to pay for permits and unannounced compliance checks. The Virginia ABC and the Attorney General must sign an agreement by July 1, 2026 to coordinate enforcement and use license and penalty money. The Board must adopt implementing rules by December 1, 2026 with at least 60 days’ public notice. Parts of the act take effect October 1, 2026, and several older Code sections are repealed.

State liquor board fees and spirits sales

The state liquor board can set and change its fees and charges to cover its expenses. It can accept and spend grants and other funds as allowed by law. The board may buy, import, and sell distilled spirits (not beer or farm‑winery wine).

Child‑safe nicotine containers, with exceptions

Selling a liquid nicotine container you know is not child‑resistant is a Class 4 misdemeanor. Good‑faith reliance on manufacturer info is a defense. Containers for use outside Virginia are exempt, and the state rule ends if a federal mandate takes effect. Some retail rules for liquid nicotine only apply to sales before July 1, 2024.

Sponsors & Cosponsors

Sponsor

  • Patrick A. Hope

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 570 • No: 104

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 Block Vote

Yes: 99 • No: 0

House vote 3/14/2026

Conference report agreed to by House

Yes: 94 • No: 2

Senate vote 3/13/2026

Conference report agreed to by Senate

Yes: 37 • No: 2

Senate vote 3/11/2026

Senate insisted on substitute Block Vote

Yes: 40 • No: 0

House vote 3/10/2026

Senate substitute rejected by House

Yes: 1 • No: 97

Senate vote 3/9/2026

Rehabilitation and Social Services Substitute rejected

Yes: 0 • No: 0

Senate vote 3/9/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote 3/9/2026

Passed Senate with substitute Block Vote

Yes: 40 • No: 0

Senate vote 3/5/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 39 • No: 0

Senate vote 3/5/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 3/4/2026

Reported from Finance and Appropriations with substitute

Yes: 15 • No: 0

Senate vote 2/27/2026

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

Yes: 15 • No: 0

House vote 2/17/2026

Read third time and passed House

Yes: 95 • No: 0

House vote 2/13/2026

Reported from Appropriations with amendment(s)

Yes: 22 • No: 0

House vote 2/13/2026

Subcommittee recommends reporting with amendment(s)

Yes: 7 • No: 0

House vote 2/5/2026

Reported from General Laws with substitute and referred to Appropriations

Yes: 21 • No: 0

House vote 2/3/2026

Subcommittee recommends reporting with substitute and referring to Appropriations

Yes: 8 • No: 1

Actions Timeline

  1. Senate concurred in Governor's recommendation (37-Y 2-N 0-A)

    4/22/2026Senate
  2. House concurred in Governor's recommendation Block Vote (99-Y 0-N 0-A)

    4/22/2026House
  3. Acts of Assembly Chapter text (CHAP1044)

    4/22/2026Governor
  4. Reenrolled bill text (HB308ER2)

    4/22/2026House
  5. Approved by Governor-Chapter 1044 (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 House

    4/12/2026Governor
  10. Fiscal Impact Statement from Department of Planning and Budget (HB308)

    4/7/2026House
  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

    3/31/2026House
  13. Signed by Speaker

    3/31/2026House
  14. Bill text as passed House and Senate (HB308ER)

    3/30/2026House
  15. Enrolled

    3/30/2026House
  16. Signed by President

    3/30/2026Senate
  17. Conference report agreed to by House (94-Y 2-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. House acceded to request

    3/12/2026House
  23. Conferees appointed by Senate

    3/12/2026Senate
  24. Senate Conferees: VanValkenburg, Salim, Reeves

    3/12/2026Senate
  25. Senate insisted on substitute Block Vote (40-Y 0-N 0-A)

    3/11/2026Senate

Bill Text

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