VirginiaSB6202026 Regular SessionSenateWALLET

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

Sponsored By: Adam P. Ebbin (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 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

30 provisions identified: 10 benefits, 13 costs, 7 mixed.

Tobacco retailers can lose their permits

Retail tobacco permit holders can be held liable for employees’ or agents’ job-related violations. The Board can suspend or revoke permits for listed tobacco-law, criminal, drug, violence, military-discrimination, and tax violations. Certified local taxes must be at least 90 days overdue; tiny amounts, genuine pending appeals or corrections, and approved payment plans are excluded. Sales-volume violations or cigarette-inventory seizures during the prior year are also grounds. The Board must suspend or revoke permits for specified illegal gambling-device activity or fraud against government through covered reports, tax returns, or records.

Tobacco sellers face stricter age checks

Sellers cannot knowingly sell tobacco or smoking hemp to people under 21, use vending machines, or sell without required government photo ID. Stores must post under-21 warning signs; for covered retail sales other than cigars and pipe tobacco, buyers appearing under 30 need photo-ID or approved technology checks. Mail and internet sellers must verify age through an age-and-identity database and require someone 21 or older to sign at delivery. Retail tobacco violations carry $1,000 for a first offense, $5,000 for a second within three years, and $10,000 for a third or later within three years; the Board can suspend or revoke permits for repeat violations. For employee violations of the tobacco and hemp age rules, the establishment pays the section’s penalty and the employee pays an additional $100.

Tobacco penalties include costs and waivers

When suspending a tobacco permit, the Board can impose civil penalties or require payment of investigation and proceeding costs. Penalty caps are $2,000 for a first violation and $5,000 for a second within five years. For sales to prohibited buyers, those caps rise to $3,000 and $6,000; investigation and proceeding costs can reach $25,000. The Board can accept a civil charge and hearing waiver instead of suspension for designated first offenses using a three-year lookback. It can waive designated penalties after five violation-free years, but not for knowing, willful violations.

Unauthorized tobacco purchases and sales are crimes

Buying retail tobacco products from an unauthorized seller is a Class 1 misdemeanor. Selling without a retail tobacco permit is also a Class 1 misdemeanor unless the subtitle otherwise allows the sale. The law preserves the stated resale-purchase exception for manufacturers or distributors licensed by Virginia’s Department of Taxation.

Localities can limit tobacco shop locations

Local governments can regulate tobacco shops and locations selling tobacco or hemp products intended for smoking. They can ban covered locations within 1,000 linear feet of a child day center or school. These ordinances cannot affect holders of the specified valid alcohol license or covered locations operating before July 1, 2024.

Permit loss triggers tobacco inventory deadlines

Retailers whose tobacco permits are suspended or revoked have 60 days to dispose of covered inventory through allowed sales. Resale transactions generally require Board permission, and sales to authorized resale buyers require payment of any excise tax due. For other permit endings, the Board must allow at least 60 days. Products remaining after the deadline are contraband and subject to forfeiture.

Tobacco retailers must keep inspection records

Retail tobacco permit holders must keep separate purchase records, preserve invoices as Board rules require, and record daily sales quantities and prices. Establishments and records are open to inspection during reasonable hours; records unavailable at another time must be supplied within 24 hours. Unreasonably refusing an authorized records inspection is a Class 2 misdemeanor. Permittees handling liquid nicotine or vapor products must keep covered records for three years; failure to allow or cooperate with an audit, inspection, or investigation costs $1,000 per day. Specified officials and courts can access these nicotine records, but they are exempt from public-records disclosure.

Tobacco retailers need separate store permits

Covered retailers must apply before selling, keep application details current, and display a separate, nontransferable permit at each location. Coverage includes nicotine products, electronic smoking devices, accessories, blunt or hemp wraps, glass pipes, and cigarette delivery sellers. Stores selling only cigars and pipe tobacco, plus specified FDA-authorized medical products, are excluded. Applicants face background checks; the Board can waive specified checks and forms for listed people for good cause. The Board can deny permits for listed age, conviction, ownership, financial, location, sales-volume, or seized-inventory grounds; required fees must be paid.

Tobacco retailers pay application and renewal fees

A tobacco permit application costs a nonrefundable $400, or $300 for holders of the specified Virginia alcohol license. The fee is due with the application; fingerprint costs and the separate state permit fee are additional. Retail permit holders also pay an annual renewal fee set by the Board, which can establish and collect permit fees. If the Board allows late renewal instead of reapplication, the first 30 days cost the greater of $25 or 10% of the renewal fee. During the next 45 days, the penalty is the greater of $100 or 25%.

Tobacco sellers face licensing and taxes

Sellers inside or outside Virginia need a remote retail seller license before remotely selling cigars or pipe tobacco to Virginia consumers. Sellers must check whether they meet Virginia’s economic nexus thresholds, which determine their tax connection to the state. Sellers meeting those thresholds must register for a dealer’s certificate and collect and remit excise tax. Those using the actual-cost-list method must provide a certified list for each product code for the next calendar year and update it quarterly as products are added. Holding a retail tobacco permit does not remove otherwise applicable state or local taxes and fees.

Higher certification fees for nicotine manufacturers

Manufacturers must certify each liquid nicotine or nicotine vapor product sold for retail sale in Virginia every year. They must provide FDA marketing approval or qualifying marketing or application records. Initial certification costs $5,000 per product, up from $2,000. Annual recertification costs $2,500 per product, up from $500. Manufacturers must report material certification changes to the Attorney General within 30 days.

Unlisted nicotine products face costly enforcement

Beginning December 31, 2025, liquid nicotine and nicotine vapor products offered for retail sale must appear in Virginia’s Attorney General directory. Minimum civil penalties per unlisted product are $5,000 for a first violation, $10,000 for a second, and $15,000 for a third. Unlisted products sold, offered or held for sale, or imported for personal use are subject to seizure, forfeiture, and destruction. The person whose products are confiscated pays seizure and disposal costs. Retailers and wholesalers face scheduled or surprise compliance checks by the Attorney General or an agent.

Temporary tobacco operators pay and assume liabilities

The Board can issue temporary permits allowing qualified people to operate with privileges held by a prior tobacco permit holder. Qualifying auction buyers or people lawfully entitled to possession can receive up to 60 days, or longer as the Board determines. Agreement-based operators can receive 120 days or longer while applying for the same premises, with the prior holder’s written consent. If the prior holder owes state or local taxes or has pending covered charges, the temporary operator must accept that liability. The fee equals one-twelfth of combined application and permit fees, rounded to cents, multiplied by months granted.

Buyers see total costs before agreeing

Before a consumer agrees to buy a covered good or continuous service, the seller must disclose the total cost. The total must include all mandatory fees and charges. This applies to goods and continuous services defined in § 59.1-207.45.

Consent required for sensitive health data

Obtaining, sharing, selling, or spreading personally identifying reproductive or sexual health information without the consumer’s consent is a prohibited practice.

Drivers get ignition interlock advertising safeguards

Vendors need Virginia Alcohol Safety Action Program Commission approval to advertise ignition interlock systems. Ads cannot target someone before a finding of guilt. Other advertising must clearly state that it is not affiliated with a government agency. Commission-approved vendor ads, pamphlets, or kiosk ads at Commission-approved locations are exempt.

Home mold removal requires certified providers

Providers cannot sell or offer professional mold removal for homes without nationally or internationally recognized mold-remediation certification. They must also follow one of the specified EPA or ANSI-accredited standards.

Medical debt protections gain added enforcement

Beginning July 1, 2026, violations of the Medical Debt Protection Act are prohibited consumer practices. This adds consumer-protection enforcement for conduct covered by that Act.

Shoppers get compliant food nutrition labels

Sellers cannot sell food with an FDA-required nutrition label that fails to meet federal labeling rules in 21 C.F.R. Part 101. The rule applies only to food required to carry a nutrition label.

Added enforcement against unfair real estate agreements

Violations of the Unfair Real Estate Service Agreement Act are prohibited consumer practices. This adds consumer-protection enforcement for conduct covered by that Act.

Some older tobacco enforcement rules end

The Department of Taxation’s separate power to suspend or revoke licenses for repeat tobacco and hemp age-rule violations is removed. The law also removes the retail tobacco cross-reference to the former consumer-law enforcement framework. For tax-licensed distributors, mandatory repeat-violation suspension or revocation remains for subsections B and C, but no longer includes subsection A. These changes do not remove the underlying age rules or other applicable enforcement powers.

More violations trigger consumer protection enforcement

Violations of the nicotine product chapter are prohibited practices under Virginia’s Consumer Protection Act. The law also covers violations of §§ 4.1-253, 4.1-356, 4.1-357, and 59.1-293.15 through 59.1-293.22. It covers violations of § 59.1-466.8, subsection F of § 36-96.3:1, and Chapter 58 (§ 59.1-607 et seq.). Willful violations of § 59.1-444.4 also qualify. These classifications make consumer-protection enforcement available for the covered violations.

Virginia funds recurring youth tobacco checks

Virginia’s tobacco regulator must conduct an unannounced underage-buyer check for every retail tobacco permit holder at least every 24 months. Beginning October 1, 2026, it must also check within six months after a Board order confirms a violation. Tax officials must share retailer-identifying information for enforcement, with disclosure limited to specified uses and recipients. A special fund keeps unspent money year to year and pays only tobacco permit administration and enforcement costs; no funding amount is stated. The Authority and Attorney General must agree on coordination by July 1, 2026, and jointly fund implementation from tobacco license and penalty revenues.

Underage tobacco and smoking hemp are restricted

People under 21 cannot possess tobacco products or hemp products intended for smoking. Exceptions cover work deliveries, approved medical research, and possession needed for law-enforcement duties. For the retail tobacco possession rule, seizure and forfeiture of the products are the only penalty. Anyone who knows or has reason to know someone is under 21 cannot buy, give, or help provide retail tobacco products to them. The same work, research, and law-enforcement exceptions apply; an individual violation carries $100, and the products can be seized.

Online nicotine deliveries face new limits

Liquid nicotine and nicotine vapor products ordered online generally cannot be delivered directly to consumers. Delivery must be to a retail dealer, subject to the statutory exception in Virginia’s tobacco tax law.

Kratom buyers get age and label safeguards

Sellers cannot sell or offer kratom products to anyone younger than 21. Kratom labels must list all ingredients and include the required health and FDA disclaimer.

Earlier liquid nicotine packaging rule ended

The covered retail-sales rule applied only before July 1, 2024, and required child-resistant liquid nicotine containers. The packaging requirement also becomes void when federal legislation or final federal rules requiring this packaging take effect. A Class 4 misdemeanor required knowing, or having reason to know, that a container failed the standards. Good-faith reliance on manufacturer information was a defense. Manufacturers and wholesalers distributing containers intended for use outside Virginia were exempt.

Tobacco stores face packaging and sign rules

Cigarettes must be sold in sealed, manufacturer-provided packages bearing the required health warning. Every retail tobacco establishment must clearly post signs stating that sales to people under 21 are prohibited. The locality’s attorney can bring a civil action seeking up to $500 per violation.

Nicotine sellers get inventory transition windows

Retailers have 60 days after the directory’s first public release to sell existing unlisted stock or return it for disposal. Distributors and wholesalers have the same 60 days to remove and return unlisted products intended for Virginia sales. After a product leaves the directory, retailers, distributors, and wholesalers have 30 days to sell it or return it to the manufacturer for disposal. That period increases from 21 days. After the 30-day window, removed products are subject to seizure.

Separate nicotine licenses and safeguards repealed

The law repeals the separate per-location license for businesses selling or dealing liquid nicotine or nicotine vapor products. Associated application fees, background checks, and license penalties are also repealed. The repeal removes that licensing system’s age-check and distributor-retailer recordkeeping rules, not all nicotine regulation. The Department’s monthly list remains limited to licensed tobacco-product distributors and remote retail sellers.

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

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 94 • No: 4

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: 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

Read third time and passed Senate Block Vote

Yes: 39 • No: 0

Senate vote • 2/16/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote • 2/16/2026

Constitutional reading dispensed Block Vote (on 3rd reading)

Yes: 39 • No: 0

Senate vote • 2/16/2026

Rehabilitation and Social Services Substitute rejected

Yes: 0 • 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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