VirginiaHB3082026 Regular SessionHouseWALLET

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

Sponsored By: Patrick A. Hope (Democratic)

Signed by Governor

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

23 provisions identified: 3 benefits, 16 costs, 4 mixed.

Nicotine sellers face checks and license penalties

Liquid nicotine and nicotine vapor sellers inside or outside Virginia must verify buyers’ legal age. For buyers appearing under 30, sellers must check government photo identification or use an independent database service for orders. Underage sales and sales without a valid license carry minimum penalties measured within 36 months. The first violation costs at least $1,000; the second costs at least $5,000 and brings a 30-day suspension. The third costs at least $10,000, license revocation, and three-year license ineligibility; after an underage sale, sellers must use specified identification-authentication technology for buyers appearing under 30.

Tobacco sellers face stricter age checks

Sellers may not knowingly, or with reason to believe, sell tobacco or smoking-hemp products to someone under 21; vending-machine sales are prohibited. In-person sales require government photo identification proving age 21; tobacco rules also require checks for buyers appearing under 30, with a cigar and pipe tobacco exception. Covered mail and internet sales require database age checks before sale and a delivery signature from someone at least 21. Retail tobacco penalties are $1,000 for a first violation, $5,000 for a second, and $10,000 for a third or later violation within three years; repeat violations can cost the permit. A separate tobacco and smoking-hemp rule sets $500 for a first violation and $2,500 for later violations within three years. Under that separate rule, an employee violation brings the establishment’s penalty plus an extra $100 for the employee.

Tobacco retailers face penalties and settlement options

When suspending a permit, the Board may impose penalties capped at $2,000 for a first violation and $5,000 for a second. Sales to prohibited buyers raise those caps to $3,000 and $6,000; violation counts use a five-year lookback. Investigation and proceeding costs may reach $25,000. The Board may offer hearings, accepted restrictions, or civil charges instead of suspension for designated first offenses within three years. It may waive specified penalties after five violation-free years, but never for willful and knowing violations.

Tobacco buyers must use authorized sellers

People in Virginia must buy retail tobacco products from an authorized retail tobacco permit holder. Buying from an unauthorized seller is a Class 1 misdemeanor. This rule places criminal liability on the buyer, not just the seller.

Nicotine products face directory sales limits

The law states a December 31, 2025 start for banning sales, distribution, resale imports, and retail offers of unlisted nicotine products. The supplied effective date for this provision is October 1, 2026, distinct from that stated start date. Retailers, distributors, and wholesalers have 60 days after the Attorney General first posts the directory to sell or return unlisted stock. Unlisted products may be seized and forfeited, including products imported for personal use. Beginning October 1, 2026, unregistered nonresident manufacturers must continuously maintain a Virginia legal agent, report the appointment, and meet replacement deadlines to qualify for the directory. A deemed appointment of the Secretary of the Commonwealth does not satisfy that listing requirement.

Tobacco shoppers face tighter delivery limits

Liquid nicotine or nicotine vapor products ordered online may be delivered only to a retail dealer, not directly to consumers. Before a first cigarette delivery sale, the seller must obtain a signed certification that the buyer is at least 21. The certification must also confirm the address and include required age-restricted-sales statements. The seller must try to verify the information through a qualifying database or obtain an image of government identification, and give required notice. Payment must come from a card issued in the buyer’s name or a check drawn on the buyer’s account.

New tobacco shops face local location limits

Virginia localities may adopt ordinances regulating tobacco retailers and sellers of hemp products intended for smoking. They may prohibit covered locations within 1,000 linear feet of a child day center or public, private, or parochial school. This authority does not affect qualifying licensees or covered locations operating before July 1, 2024.

Tobacco retailers face permit loss

The Board may deny permits for applicants under 21, listed convictions, false information, hidden ownership, weak financial responsibility, or unsuitable premises. Listed conduct by owners or officers can also disqualify an applicant. It may suspend or revoke permits for tobacco violations, fraud, illegal gambling or drug activity, specified nearby crime, or discrimination against military members. Local tax debt unpaid for at least 90 days also qualifies, except tiny debts, pending valid appeals or corrections, and approved payment plans. Volume-limit violations and cigarette seizures look back one year; findings of specified illegal gambling-device conduct or government fraud require suspension or revocation.

Tobacco retailers must allow records inspections

Tobacco retailers must allow Board agents to inspect premises and business records during reasonable hours. Record checks generally occur from 9 a.m. to 5 p.m., or public business hours when those hours do not fit. Records unavailable for an inspection at another time must be provided within 24 hours of the request. Permit holders handling liquid nicotine or nicotine vapor products must keep related records for three years and allow authorized checks. Missing required records is a Class 2 misdemeanor; failure or refusal to cooperate with an audit, inspection, or investigation costs $1,000 per day.

Tobacco retailers need location-based permits

Retailers must apply to Virginia’s Alcoholic Beverage Control Board before selling covered tobacco, nicotine, vaping products, components, or accessories. Businesses selling only cigars and pipe tobacco are excluded, as are FDA-authorized medical products. Applications require a sworn statement and background checks; national fingerprint checks are possible, with good-cause waivers for listed groups. Existing permit holders need not reapply, but must update their information; businesses may be liable for employees’ work-related violations. Unauthorized sales are Class 1 misdemeanors, subject to stated exceptions, including qualifying licensed manufacturers and distributors.

Tobacco retailers pay application and renewal fees

A tobacco permit application costs a nonrefundable $400, or $300 for applicants holding the specified alcoholic-beverage license. Fingerprint costs and the state permit fee are additional; the Board sets an annual renewal fee not stated here. Each location needs a separate, nontransferable, posted permit, generally lasting through the last day of the twelfth month after grant. The first 30-day late-payment window starts after midnight on the fifteenth day of that month and adds the greater of $25 or 10% of the fee. The following 45-day window adds the greater of $100 or 25%; paying the required fee and penalty allows continuation or reissuance without reapplying.

Removed nicotine products trigger refunds and deadlines

Beginning October 1, 2026, manufacturers have 10 business days after noncompliance notice to show eligibility for the product directory. After removal, retailers, distributors, and wholesalers have 30 days to sell the product or return it for disposal. Sellers must notify purchasers at delivery and refund the purchase price unless a contract or purchase agreement provides otherwise. Removed products become subject to seizure after 30 days.

Consumers gain enforcement for tobacco violations

Violations of the listed tobacco and nicotine requirements count as prohibited practices under Virginia’s consumer protection law. Beginning October 1, 2026, violations of the liquid nicotine and nicotine vapor product chapter also fall under that law. These changes bring covered conduct into the state’s consumer-protection enforcement framework. These provisions do not set a specific payment or refund amount.

Nicotine businesses lose separate licensing requirement

The law removes the separate Department license for each location handling or selling liquid nicotine or nicotine vapor products. It also removes that license’s applications, background checks, renewals, and license-term rules. The former $400 penalty for operating without that separate license is removed. This repeal does not remove the retail tobacco permit requirements described elsewhere in the law.

Virginia funds regular underage tobacco checks

Virginia establishes a Retail Tobacco Enforcement Fund whose unused money remains available rather than reverting to the general treasury. Money is limited to permit administration, enforcement, unannounced compliance checks, and related costs; no fund amount is specified. Expenditures require a written request signed by the Authority’s chief executive and payment through Comptroller warrants. Beginning October 1, 2026, the Board must conduct an unannounced underage-buyer operation at every permit holder at least once every 24 months. After an order confirming the specified sales violation, another operation is required within six months.

Under-21 tobacco possession and gifts restricted

People under 21 may not possess covered tobacco products or hemp products intended for smoking. Exceptions cover employment deliveries, qualifying approved research, and law-enforcement duties. Products may be seized and forfeited when lawful possession is not established; seizure is the sole penalty under the retail-tobacco possession section. People who know or should know a recipient is under 21 may not buy, give, or help provide retail tobacco products. An individual violation of that supply rule carries a $100 civil penalty, with the same stated work, research, and law-enforcement exceptions.

Retailers must clear stock after permit loss

Retailers whose tobacco permits are suspended or revoked have 60 days to dispose of covered stock through authorized sales. For other permit endings, the Board sets a period of at least 60 days. Allowed channels include qualifying resale transactions in Virginia or outside the state, with any required excise tax paid. Stock left after the deadline becomes contraband and is forfeited to Virginia.

Smoking products require sealed packages and warnings

Cigarettes and hemp products intended for smoking must be sold in manufacturer-sealed packages bearing required health warnings. Retailers offering tobacco or smoking-hemp products must post clear signs prohibiting sales to people under 21. Localities may seek civil penalties up to $500; recovered sign-violation penalties go to the locality. The supplied liquid-nicotine child-resistant packaging provision applied to retail sales only before July 1, 2024, so it is not presented as a current retail requirement. That historical rule made knowing violations Class 4 misdemeanors, ended upon specified federal packaging requirements, and excepted good-faith manufacturer reliance and manufacturer or wholesaler supplies intended for use outside Virginia.

Higher fees and rules for nicotine manufacturers

Beginning October 1, 2026, manufacturers must certify each liquid nicotine or nicotine vapor product sold at retail in Virginia annually. Products must have FDA marketing approval, have been marketed in the United States as of August 8, 2016, or have a qualifying application filed by September 9, 2020. That application must remain under review or have no final decision in effect. Initial fees rise from $2,000 to $5,000 per product; annual renewal fees rise from $500 to $2,500 when no uncertified period intervenes. Manufacturers must provide the required FDA evidence and notify the Attorney General within 30 days after a material change.

Tobacco sellers face training and tougher penalties

Beginning October 1, 2026, tobacco retailers must attest that employees received training on tobacco laws, age-21 sales rules, acceptable identification, and penalties. Liquid nicotine and nicotine vapor retailers and wholesalers face scheduled or unannounced checks by the Attorney General or an agent. Penalties for offering unlisted products replace the prior $1,000-per-day, per-product fine. Minimum penalties per product are $5,000 for a first violation, $10,000 for a second, and $15,000 for a third. Investigation costs, court action costs, and attorney fees may also be recovered. Recoveries from specified local actions go to local general funds; Attorney General assessments and certification fees support administration and enforcement.

Tobacco sellers face licensing and tax records

Sellers inside or outside Virginia must get a license for remote cigar or pipe tobacco sales to Virginia consumers. Sellers must check whether they meet Virginia’s business activity thresholds. Those meeting the thresholds must register for a dealer’s certificate and collect and remit excise tax. Sellers using the actual-cost-list method must submit certified costs for each product code and update quarterly as new codes are added. Distributors and retailers must keep invoices or receipts for liquid nicotine and nicotine vapor transactions between them. Records must show product types, tax due on each product, and total taxes paid. Businesses must provide these records to Virginia’s Department of Taxation when needed for audits, compliance, or enforcement.

Temporary tobacco permits carry fees and limits

The Virginia ABC Board can grant temporary tobacco permits so qualifying buyers or new operators can continue business while seeking regular permits. Qualifying auction buyers or people entitled to possession can receive up to 60 days, with longer periods allowed by the Board. Operators taking control under an agreement can receive 120 days or longer while their application is processed. They must apply for the same premises and obtain the previous permit holder’s written consent. Unpaid state or local taxes or pending charges generally block an agreement-based permit unless the new operator assumes the relevant liability. The Board decides which prior privileges carry over. The fee equals the combined regular application and permit fees divided by 12, rounded to cents, then multiplied by months granted.

Tobacco seller lists balance access and privacy

The Tax Commissioner must share identifying tobacco-retailer information with the Board to maintain an enforcement list. The Board may use that information only for the list; disclosure is restricted, with stated government, law-enforcement, licensing, and penalty exceptions. Improper disclosure and unreasonable refusal of an authorized records inspection are Class 2 misdemeanors. Separately, the Department of Taxation must publish a current list of licensed tobacco distributors and remote sellers on its website. That public list must be updated monthly.

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

House vote • 4/22/2026

House concurred in Governor's recommendation Block Vote

Yes: 99 • No: 0

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 37 • No: 2

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

Passed Senate with substitute Block Vote

Yes: 40 • No: 0

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 • 3/5/2026

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

Subcommittee recommends reporting with amendment(s)

Yes: 7 • No: 0

House vote • 2/13/2026

Reported from Appropriations with amendment(s)

Yes: 22 • 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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