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Code of Virginia

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Code of Virginia
Title 4.1. Alcoholic Beverage and Cannabis Control
Subtitle II. Cannabis Control Act
Chapter 12. Prohibited Practices by Licensees
7/21/2026

Chapter 12. Prohibited Practices by Licensees.

§ 4.1-1200. Illegal cultivation, etc., of marijuana or marijuana products by licensees; penalty..

A. No licensee or any agent or employee of such licensee shall:

1. Cultivate, process, transport, sell, or test any marijuana or marijuana products other than that which such license or this subtitle authorizes him to cultivate, process, transport, sell, or test;

2. Sell marijuana or marijuana products to any person other than a person to whom such license or this subtitle authorizes him to sell;

3. Cultivate, process, transport, sell, or test marijuana or marijuana products that such license or this subtitle authorizes him to sell, but in any place or in any manner other than such license or this subtitle authorizes him to cultivate, process, transport, sell, or test;

4. Cultivate, process, transport, sell, or test any marijuana or marijuana products when forbidden by this subtitle;

5. Keep or allow to be kept on the licensed premises any marijuana or marijuana products other than that which he is authorized to cultivate, process, transport, sell, or test by such license or by this subtitle;

6. Keep any marijuana or marijuana product other than in the container in which it was purchased by him; or

7. Allow a person younger than 21 years of age to be employed by or volunteer for such licensee.

B. Any person convicted of a violation of this section is guilty of a Class 1 misdemeanor.

C. The Authority shall revoke the license of any licensee who knowingly and willfully causes or permits the conduct of a person convicted of a violation of this section. No license shall be reissued to a licensee whose license is revoked pursuant to this subsection or for the licensed premises where such revocation occurred for a period of at least 10 years.

2026, Sp. Sess. I, c. 1.

§ 4.1-1201. Prohibited acts by employees of licensees; civil penalty..

A. In addition to the provisions of § 4.1-1200, no licensee, or his agent or employee shall use or consume any marijuana or marijuana products (i) on the licensed premises, except for certain sampling for quality control purposes in accordance with Board regulations or (ii) while on duty and in a position that is involved in the selling of marijuana or marijuana products to consumers.

B. No licensee or his agent or employee shall make any gift of any marijuana or marijuana products.

C. Any person convicted of a violation of this section shall be subject to a civil penalty in an amount not to exceed $500. Upon a second or subsequent violation of this section, (i) if the person convicted is licensee, the Board shall revoke any license held by the licensee and (ii) if the person convicted is an agent of the licensee or employee, the Board shall require the licensee to terminate such agent or employee's employment. Any such licensee, agent, or employee convicted of a second or subsequent violation of this section shall be prohibited from obtaining any marijuana establishment license and employment at a marijuana establishment.

2026, Sp. Sess. I, c. 1.

§ 4.1-1202. Sale of; purchase for resale; marijuana or marijuana products from a person without a license; penalty..

Except as otherwise provided in § 4.1-807, no retail marijuana store licensee shall purchase for resale or sell any marijuana, marijuana products, immature marijuana plants, or marijuana seeds purchased from anyone other than a marijuana cultivation facility or marijuana processing facility.

Any person convicted of a violation of this section is guilty of a Class 1 misdemeanor.

2026, Sp. Sess. I, c. 1.

§ 4.1-1203. Prohibiting transfer of marijuana or marijuana products by certain licensees; penalty..

A. No licensed marijuana establishment shall transfer any marijuana or marijuana products from one licensed place of business to another licensed place of business unless (i) such licensed marijuana establishment is authorized to transfer marijuana or marijuana products from one licensed place of business to another licensed place of business and the transfer is completed by the licensee or an employee of the licensee or (ii) such transfer is completed by a marijuana transporter licensee.

B. Any person convicted of a violation of this section is guilty of a Class 1 misdemeanor.

2026, Sp. Sess. I, c. 1.

§ 4.1-1204. Illegal advertising materials; civil penalty..

No person subject to the jurisdiction of the Board shall induce, attempt to induce, or consent to any licensee selling, renting, lending, buying for, or giving to any person any advertising materials or decorations under circumstances prohibited by this title or Board regulations.

Any person found by the Board to have violated this section shall be subject to a civil penalty as authorized in § 4.1-903.

2026, Sp. Sess. I, c. 1.

§ 4.1-1205. Failure of licensee to pay tax or to deliver, keep, and preserve records and accounts or to allow examination and inspection; penalty..

A. No licensee shall fail or refuse to (i) pay any tax provided for in § 4.1-1004; (ii) deliver, keep, and preserve such records, invoices, and accounts as are required by § 4.1-703 or Board regulation; or (iii) allow such records, invoices, and accounts or his place of business to be examined and inspected in accordance with § 4.1-703. Any person convicted of a violation of this subsection is guilty of a Class 1 misdemeanor.

B. After reasonable notice to a licensee that failed to make a return or pay taxes due, the Authority may suspend or revoke any license of such licensee that was issued by the Authority.

C. The Authority shall revoke the license of any licensee who knowingly and willfully violates subsection A and is convicted for such violation.

2026, Sp. Sess. I, c. 1.

§ 4.1-1206. Nonpayment of marijuana tax; penalties..

A. No person shall make a sale taxable under § 4.1-1004 without paying all applicable taxes due. No retail marijuana store or microbusiness licensee shall purchase, receive, transport, store, or sell any marijuana or marijuana products on which such retailer has reason to know such tax has not been paid and may not be paid. Any person convicted of a violation of this subsection is guilty of a Class 1 misdemeanor.

B. Any person who fails to file a return required for a tax due under § 4.1-1004 is subject to a civil penalty to be added to the tax in the amount of five percent of the proper tax due if the failure is for not more than 30 days, with an additional five percent for each additional 30 days, or fraction thereof, during which the failure continues. Such civil penalty shall not exceed 25 percent in the aggregate. In addition to any civil penalty imposed pursuant to this subsection, the Authority shall revoke the license of any licensee who knowingly and willfully violates this subsection for a period of three years.

C. In the case of a false or fraudulent return, where willful intent exists to defraud the Commonwealth of any tax due on marijuana or marijuana products, a civil penalty of 50 percent of the amount of the proper tax due shall be assessed. Such penalty shall be in addition to any penalty imposed under subsection B. It shall be prima facie evidence of willful intent to defraud the Commonwealth when any person reports its taxable sales to the Authority at 50 percent or less of the actual amount. In addition to any civil penalty imposed pursuant to this subsection, the Authority shall revoke the license of any licensee who knowingly and willfully violates this subsection for a period of three years.

D. If any check tendered for any amount due under § 4.1-1004 or this section is not paid by the bank on which it is drawn, and the person that tendered the check fails to pay the Authority the amount due within five days after the Authority gives it notice that such check was returned unpaid, the person that tendered the check is guilty of a violation of § 18.2-182.1. In addition to any civil penalty imposed pursuant to this subsection, the Authority shall revoke the license of any licensee who knowingly and willfully violates this subsection for a period of three years.

E. All penalties shall be payable to the Authority and if not so paid shall be collectible in the same manner as if they were a part of the tax imposed.

2026, Sp. Sess. I, c. 1.