Virginia Law

Article 4. Permitting and Restrictions for Tobacco Retailers.

The Board may grant a retail tobacco permit to a tobacco retailer that shall authorize the retail tobacco permittee to sell retail tobacco products in a retail tobacco establishment. The privilege of any retail tobacco permittee to sell retail tobacco products shall extend to such retail tobacco permittee and to all agents or employees of such retail tobacco permittee for the purpose of selling retail tobacco products under such permit. Such retail tobacco permittee may be held liable for any violation of this article or any Board regulation committed by his agents or employees in connection with their employment.

2026, cc. 1021, 1044.

A. Each retail tobacco permit granted by the Board shall designate the place where such retail sales will be located. A separate retail tobacco permit shall be required for each separate place of business. Each retail tobacco permit shall be posted in a location conspicuous to the public at the place where such retail sales will be located.

B. No retail tobacco permit shall be transferable from one tobacco retailer to another, or from one place to another.

C. The privileges conferred by any retail tobacco permit granted by the Board shall continue until the last day of the twelfth month next ensuing, except the retail tobacco permit may be sooner terminated for any cause for which the Board would be entitled to refuse to grant a retail tobacco permit, by operation of law, voluntary surrender, or order of the Board.

The Board may permit a retail tobacco permittee who fails to pay:

1. The required retail tobacco permit fee covering the continuation or reissuance of its permit by midnight of the fifteenth day of the twelfth month following the granting of the retail tobacco permit, to pay the fee in lieu of reapplying, provided payment of the fee is made within 30 days following that date and is accompanied by a civil penalty of $25 or 10 percent of such fee, whichever is greater; and

2. The civil penalty pursuant to subdivision 1 to pay the fee in lieu of reapplying, provided payment of the fee is made within 45 days following the 30 days specified in subdivision 1 and is accompanied by a civil penalty of $100 or 25 percent of such fee, whichever is greater.

Such civil penalties collected by the Board shall be deposited in accordance with § 4.1-116.

2026, cc. 1021, 1044.

A. Prior to selling any retail tobacco product, all persons with such intent shall file with the Board an application for a retail tobacco permit on a form prescribed by the Board and a statement in writing by the applicant swearing and affirming that all of the information contained therein is true. This section shall apply to all persons intending to sell any retail tobacco product, including (i) persons that hold a Retail Sales and Use Tax Exemption Certificate for Stamped Cigarettes Purchased for Resale or an Other Tobacco Products Distributor's License; (ii) retail dealers of liquid nicotine and nicotine vapor products; and (iii) persons that hold any other similar permit issued by the Department of Taxation.

B. The provisions of subsection A shall not apply to the continuance of retail tobacco permits granted under this article; however, such retail tobacco permittees shall file and maintain with the Board a current, accurate record of the information required by the Board pursuant to subsection A and notify the Board of any changes to such information in accordance with Board regulations.

C. The Board shall conduct a background investigation, to include a criminal history records search, which may include a fingerprint-based national criminal history records search, on each applicant for a tobacco retail permit that includes a completed personal data form and a criminal history records search. The Board may waive, for good cause shown, the requirement of a criminal history records search and a completed personal data form for (i) law-enforcement officers and (ii) directors, nonmanaging members, or limited partners of any applicant corporation, limited liability company, or limited partnership.

D. An applicant for a tobacco retail permit shall pay an application fee in the amount of $400, plus any cost charged to the Department of State Police by the Federal Bureau of Investigation or the Central Criminal Records Exchange for the processing of fingerprints for such applicant's criminal history records search required by the Board. However, any applicant who holds a license to sell alcoholic beverages issued by the Authority pursuant to Article 2 of Chapter 2 shall pay an application fee in the amount of $300. The application fee shall be in addition to the state permit fee required pursuant to § 4.1-244 of the Code of Virginia and shall not be refunded. Each applicant shall pay such application fee at the time the application for a tobacco retail permit is filed.

2026, cc. 1021, 1044.

A. The annual renewal fee on retail tobacco permits shall be in an amount set by the Board and apply to all persons permitted to sell any retail tobacco product, including (i) persons that hold a Retail Sales and Use Tax Exemption Certificate for Stamped Cigarettes Purchased for Resale or an Other Tobacco Products Distributor's License; (ii) retail dealers of liquid nicotine and nicotine vapor products; and (iii) persons that hold any other similar permit issued by the Department of Taxation.

B. Nothing in this article shall exempt any retail tobacco permittee from any other tax or fee imposed by this article, state merchants' license, state restaurant license, or any other state tax. Every retail tobacco permittee, in addition to the taxes imposed by this article, shall be liable to state merchants' license taxation, state restaurant license taxation, and other state or local taxation applicable to retail tobacco products.

2026, cc. 1021, 1044.

The Board may refuse to grant any retail tobacco permit if it has reasonable cause to believe that:

1. The applicant, or if the applicant is a partnership, any general partner thereof, or if the applicant is an association, any member thereof, or any limited partner of 10 percent or more with voting rights, or if the applicant is a corporation, any officer, director, or shareholder owning 10 percent or more of its capital stock, or if the applicant is a limited liability company, any member-manager or any member owning 10 percent or more of the membership interest of the limited liability company:

a. Is not 21 years of age or older;

b. Has been convicted in any court of a felony or any crime or offense involving moral turpitude under the laws of any state or of the United States;

c. Has been convicted, within the five years immediately preceding the date of the application for such retail tobacco permit, of a violation of any law applicable to the manufacture, transportation, possession, use, or sale of retail tobacco products;

d. Is not a person of good moral character and repute;

e. Is not the legitimate owner of the business proposed to be licensed, or other persons have ownership interests in the business that have not been disclosed;

f. Has not demonstrated financial responsibility sufficient to meet the requirements of the business proposed to be permitted;

g. Has demonstrated, either by his police record or by his record as a former licensee or retail tobacco permittee of the Board, a lack of respect for law and order;

h. Has misrepresented a material fact in applying to the Board for a retail tobacco permit;

i. Has defrauded or attempted to defraud the Board or any federal, state, or local government or governmental agency or authority by making or filing any report, document, or tax return required by statute or regulation that is fraudulent or contains a false representation of a material fact, or has willfully deceived or attempted to deceive the Board or any federal, state, or local government or governmental agency or authority by making or maintaining business records required by statute or regulation that are false and fraudulent;

j. Has violated or allowed the violation of any provision of this article or Article 4 (§ 4.1-355 et seq.) of Chapter 3 in his establishment in the one year prior to application for a retail tobacco permit or while his application for a retail tobacco permit is pending;

k. Is a police officer with police authority in the political subdivision within which the establishment designated in the application is located;

l. Is physically unable to carry on the business for which the application for a retail tobacco permit is filed or has been adjudicated incapacitated; or

m. Is a member, agent, or employee of the Board.

2. The place to be occupied by the applicant:

a. Does not conform to the requirements of the governing body of the locality in which such place is located with respect to sanitation, health, construction, or equipment, or to any similar requirements established by the laws of the Commonwealth or by Board regulation;

b. Is so located that granting a retail tobacco permit and operation thereunder by the applicant would result in violations of this article, Board regulations, or violation of the laws of the Commonwealth or local ordinances relating to peace and good order;

c. Is so located with respect to any church; synagogue; hospital; public, private, or parochial school or institution of higher education; public or private playground or other similar recreational facility; or state, local, or federal government-operated facility that the operation of such place under such retail tobacco permit will adversely affect or interfere with the normal, orderly conduct of the affairs of such facilities or institutions;

d. Is so located with respect to any residence or residential area that the operation of such place under such retail tobacco permit will adversely affect real property values or substantially interfere with the usual quietude and tranquility of such residence or residential area; or

e. Is so constructed, arranged, or illuminated that law-enforcement officers and special agents of the Board are prevented from ready access to and reasonable observation of any room or area within which retail tobacco products are to be sold.

3. There exists any law, ordinance, or regulation of the United States, the Commonwealth, or any political subdivision thereof that warrants refusal by the Board to grant a retail tobacco permit.

4. The Board is not authorized under this article to grant such retail tobacco permit.

5. The Board, the Department of Taxation, or investigators with the Office of the Attorney General have found that the applicant exceeded the legal volume limits set by § 58.1-1017.1 during the prior year.

6. Investigators with the Office of the Attorney General seized cigarette inventory, as authorized by § 2.2-509.1, from the applicant during the prior year.

2026, cc. 1021, 1044.

The Board shall refuse to grant any retail tobacco permit authorized by this article until the retail tobacco permit fee required by § 4.1-244 is paid to the Board.

2026, cc. 1021, 1044.

A. The action of the Board in granting or refusing to grant any retail tobacco permit shall be subject to review in accordance with the Administrative Process Act (§ 2.2-4000 et seq.), except as provided in subsections B and C. Review shall be limited to the evidential record of the proceedings provided by the Board. Both the petitioner and the Board shall have the right to appeal to the Court of Appeals from any order of the court.

B. The Board may refuse a hearing on any application for the granting of any retail tobacco permit, provided that the:

1. Permit for the applicant was refused or revoked within a period of 12 months;

2. Permit for any premises was refused or revoked at such premises within a period of 12 months;

3. Applicant, within the immediately preceding 12 months, has allowed his retail tobacco permit to expire for nonpayment of the retail tobacco permit fee and, at the time of the expiration of such permit, there was a pending and unadjudicated charge, either before the Board or in any court, against the retail tobacco permittee alleging a violation of this article; or

4. Applicant received a restricted retail tobacco permit pursuant to subsection C of § 4.1-252 and reapplies for a lesser-restricted retail tobacco permit at the same location within 12 months of the date of the issuance of the restricted retail tobacco permit.

C. If an applicant has permitted a retail tobacco permit to expire for nonpayment of the retail tobacco permit fee, and at the time of expiration there remained unexecuted any period of suspension imposed upon the retail tobacco permittee by the Board, the Board may refuse a hearing on an application for a new retail tobacco permit until after the date on which the suspension period would have been executed had the retail tobacco permit not have been permitted to expire.

2026, cc. 1021, 1044.

The Board may suspend or revoke any retail tobacco permit if it has reasonable cause to believe that:

1. The retail tobacco permittee, or if the retail tobacco permittee is a partnership, any general partner thereof, or if the retail tobacco permittee is an association, any member thereof, or any limited partner of 10 percent or more with voting rights, or if the retail tobacco permittee is a corporation, any officer, director, or shareholder owning 10 percent or more of its capital stock, or if the retail tobacco permittee is a limited liability company, any member-manager or any member owning 10 percent or more of the membership interest of the limited liability company:

a. Has misrepresented a material fact in applying to the Board for such retail tobacco permit;

b. Within the five years immediately preceding the date of the hearing held in accordance with § 4.1-250, has (i) been convicted of a violation of any law, ordinance, or regulation of the Commonwealth, of any locality in the Commonwealth, of any state, or of the United States applicable to the manufacture, transportation, possession, use, or sale of retail tobacco products; (ii) violated any provision of this article; (iii) violated or failed or refused to comply with any regulation, rule, or order of the Board; (iv) failed or refused to comply with any of the conditions or restrictions of the retail tobacco permit granted by the Board; or (v) violated, failed, or refused to comply with Article 4 (§ 4.1-355 et seq.) of Chapter 3;

c. Has been convicted in any court of a felony or of any crime or offense involving moral turpitude under the laws of any state or of the United States;

d. Is not the legitimate owner of the business conducted under the retail tobacco permit granted by the Board, or other persons have ownership interests in the business that have not been disclosed;

e. Cannot demonstrate financial responsibility sufficient to meet the requirements of the business conducted under the retail tobacco permit granted by the Board;

f. Has been intoxicated or under the influence of some self-administered drug while upon the permitted premises;

g. Subsequent to the granting of his original retail tobacco permit, has demonstrated by his police record a lack of respect for law and order;

h. Is physically unable to carry on the business conducted under such retail tobacco permit or has been adjudicated incapacitated;

i. Has possessed any illegal gambling device, as defined in § 18.2-325, upon the permitted premises;

j. Has upon the permitted premises (i) illegally possessed, distributed, sold, or used or has knowingly allowed any employee or agent, or any other person, to illegally possess, distribute, sell, or use marijuana, controlled substances, imitation controlled substances, drug paraphernalia, or controlled paraphernalia as those terms are defined in Articles 1 (§ 18.2-247 et seq.) and 1.1 (§ 18.2-265.1 et seq.) of Chapter 7 of Title 18.2 and the Drug Control Act (§ 54.1-3400 et seq.); (ii) laundered money in violation of § 18.2-246.3; or (iii) conspired to commit any drug-related offense in violation of Article 1 or 1.1 of Chapter 7 of Title 18.2 or the Drug Control Act. The provisions of this subdivision shall also apply to any conduct related to the operation of the permitted business that facilitates the commission of any of the offenses set forth herein;

k. Has failed to take reasonable measures to prevent (i) the permitted premises, (ii) any premises immediately adjacent to the permitted premises that are owned or leased by the retail tobacco permittee, or (iii) any portion of public property immediately adjacent to the permitted premises from becoming a place where patrons of the establishment commit criminal violations of Article 1 (§ 18.2-30 et seq.), 2 (§ 18.2-38 et seq.), 2.1 (§ 18.2-46.1 et seq.), 2.2 (§ 18.2-46.4 et seq.), 3 (§ 18.2-47 et seq.), 4 (§ 18.2-51 et seq.), 5 (§ 18.2-58 et seq.), 6 (§ 18.2-59 et seq.), or 7 (§ 18.2-61 et seq.) of Chapter 4 of Title 18.2; Article 2 (§ 18.2-266 et seq.) of Chapter 7 of Title 18.2; Article 3 (§ 18.2-346 et seq.) or 5 (§ 18.2-372 et seq.) of Chapter 8 of Title 18.2; or Article 1 (§ 18.2-404 et seq.), 2 (§ 18.2-415), or 3 (§ 18.2-416 et seq.) of Chapter 9 of Title 18.2, and such violations lead to arrests that are so frequent and serious as to reasonably be deemed a continuing threat to public safety; or

l. Has failed to take reasonable measures to prevent an act of violence resulting in death or serious bodily injury, or a recurrence of such acts, from occurring on (i) the permitted premises, (ii) any premises immediately adjacent to the permitted premises that is owned or leased by the retail tobacco permittee, or (iii) any portion of public property immediately adjacent to the permitted premises.

2. The place occupied by the retail tobacco permittee:

a. Does not conform to the requirements of the governing body of the locality in which such establishment is located with respect to sanitation, health, construction, or equipment or to any similar requirements established by the laws of the Commonwealth or by Board regulations;

b. Has been adjudicated a common nuisance under the provisions of this subtitle or § 18.2-258; or

c. Has become a meeting place or rendezvous for illegal gambling, illegal users of narcotics, drunks, prostitutes, pimps, panderers, or habitual law violators or has become a place where illegal drugs are regularly used or distributed. The Board may consider the general reputation in the community of such establishment in addition to any other competent evidence in making such determination.

3. The retail tobacco permittee or any employee of the retail tobacco permittee discriminated against any member of the Armed Forces of the United States by prices charged or otherwise.

4. Any cause exists for which the Board would have been entitled to refuse to grant such retail tobacco permit had the facts been known.

5. The retail tobacco permittee is delinquent for a period of 90 days or more in the payment of any taxes, or any related penalties or interest, lawfully imposed by the locality where the permitted business is located, as certified by the treasurer, commissioner of the revenue, or finance director of such locality, unless (i) the outstanding amount is de minimis; (ii) the retail tobacco permittee has pending a bona fide application for correction or appeal with respect to such taxes, penalties, or interest; or (iii) the retail tobacco permittee has entered into a payment plan approved by the same locality to settle the outstanding liability.

6. The Board, the Department of Taxation, or investigators with the Office of the Attorney General found that the retail tobacco permittee (i) exceeded the legal volume limits set by § 58.1-1017.1 during the prior year or (ii) committed any violation of § 59.1-293.20.

7. Investigators with the Office of the Attorney General seized cigarette inventory pursuant to § 2.2-509.1 from the retail tobacco permittee during the prior year.

8. Any other cause authorized by this article.

2026, c. 1021, 1044.

The Board shall suspend or revoke any retail tobacco permit if it finds that:

1. A retail tobacco permittee has violated or permitted the violation of § 18.2-331, relating to the illegal possession of a gambling device, upon the premises for which the Board has granted a retail tobacco permit for the sale of retail tobacco products to the public.

2. A retail tobacco permittee has defrauded or attempted to defraud the Board or any federal, state, or local government or governmental agency or authority by making or filing any report, document, or tax return required by statute or regulation that is fraudulent or contains a willfully or knowingly false representation of a material fact or has willfully deceived or attempted to deceive the Board, or any federal, state, or local government or governmental agency or authority by making or maintaining business records required by statute or regulation that are false or fraudulent.

2026, cc. 1021, 1044.

A. 1. Except for temporary retail tobacco permits issued pursuant to § 4.1-252, before the Board may impose a civil penalty or suspend or revoke any retail tobacco permit, reasonable notice of such proposed or contemplated action shall be given to the retail tobacco permittee in accordance with the provisions of § 2.2-4020.

2. Notwithstanding the provisions of § 2.2-4022, the Board shall, upon written request by the retail tobacco permittee, permit the retail tobacco permittee to inspect and copy or photograph all (i) written or recorded statements made by the retail tobacco permittee or copies thereof or the substance of any oral statements made by the retail tobacco permittee or a previous or present employee of the retail tobacco permittee to any law-enforcement officer, the existence of which is known by the Board and upon which the Board intends to rely as evidence in any adversarial proceeding under this chapter against the retail tobacco permittee and (ii) designated books, papers, documents, tangible objects, buildings, or places, or copies or portions thereof, that are within the possession, custody, or control of the Board and upon which the Board intends to rely as evidence in any adversarial proceeding under this chapter against the retail tobacco permittee. In addition, any subpoena for the production of documents issued to any person at the request of the retail tobacco permittee or the Board pursuant to § 4.1-103 shall provide for the production of the documents sought within 10 working days, notwithstanding anything to the contrary in § 4.1-103.

3. If the Board fails to provide for inspection or copying under this section for the retail tobacco permittee after a written request, the Board shall be prohibited from introducing into evidence any items the retail tobacco permittee would have lawfully been entitled to inspect or copy under this section.

4. The action of the Board in suspending or revoking any retail tobacco permit or in imposing a civil penalty shall be subject to judicial review in accordance with the Administrative Process Act (§ 2.2-4000 et seq.). Such review shall extend to the entire evidential record of the proceedings provided by the Board in accordance with the Administrative Process Act. An appeal shall lie to the Court of Appeals from any order of the court. Notwithstanding § 8.01-676.1, the final judgment or order of the circuit court shall not be suspended, stayed, or modified by such circuit court pending appeal to the Court of Appeals. Neither mandamus nor injunction shall lie in any such case.

B. In suspending any retail tobacco permit, the Board may impose, as a condition precedent to the removal of such suspension or any portion thereof, a requirement that the retail tobacco permittee pay the cost incurred by the Board in investigating the retail tobacco permittee and in holding the proceeding resulting in such suspension, or it may impose and collect such civil penalties as it deems appropriate. In no event shall the Board impose a civil penalty exceeding $2,000 for the first violation occurring within the five years immediately preceding the date of the violation or $5,000 for the second violation occurring within the five years immediately preceding the date of the second violation. However, if the violation involved selling retail tobacco products to a person prohibited from purchasing such retail tobacco products, the Board may impose a civil penalty not to exceed $3,000 for the first violation occurring within the five years immediately preceding the date of the violation and $6,000 for a second violation occurring within the five years immediately preceding the date of the second violation in lieu of such suspension or any portion thereof, or both. The Board may also impose a requirement that the retail tobacco permittee pay for the cost incurred by the Board, not to exceed $25,000, in investigating the retail tobacco permittee and in holding the proceeding resulting in the violation in addition to any suspension or civil penalty incurred.

C. Following notice to (i) the retail tobacco permittee of a hearing that may result in the suspension or revocation of the retail tobacco permit or (ii) the applicant of a hearing to resolve a contested application, the Board may accept a consent agreement as authorized in subdivision 21 of § 4.1-103. The notice shall advise the retail tobacco permittee or applicant of the option to (a) admit the alleged violation or the validity of the objection; (b) waive any right to a hearing or an appeal under the Administrative Process Act; and (c) (1) accept the proposed restrictions for operating under the retail tobacco permit, (2) accept the period of suspension of the permitted privileges within the Board's parameters, (3) pay a civil penalty in lieu of the period of suspension or any portion of the suspension as applicable, or (4) proceed to a hearing.

D. The Board may, by regulation or written order:

1. Designate those (i) objections to an application or (ii) alleged violations that will proceed to an initial hearing;

2. Designate the violations for which a waiver of a hearing and payment of a civil charge in lieu of suspension may be accepted for a first offense occurring within three years immediately preceding the date of the violation;

3. Establish a schedule of penalties for such offenses that prescribes the appropriate suspension of a retail tobacco permit and the civil charge acceptable in lieu of such suspension; and

4. Establish a schedule of offenses for which any penalty may be waived upon a showing that the retail tobacco permittee has had no prior violations within five years immediately preceding the date of the violation. No waiver shall be granted by the Board, however, for a retail tobacco permittee's willful and knowing violation of this article or Board regulations.

E. Notwithstanding any provisions to the contrary in this section or in Article 3 (§ 2.2-4018 et seq.) of the Administrative Process Act, retail tobacco permittees shall be subject to the provisions of § 4.1-225.1.

2026, cc. 1021, 1044.

A. Retail tobacco products owned by or in possession of, or for sale by, any retail tobacco permittee at the time the retail tobacco permit of such retail tobacco permittee is suspended or revoked may be disposed of as follows:

1. Sold to persons in the Commonwealth who are permitted to sell such retail tobacco products; or

2. Upon retail tobacco permits granted by the Board and conditions specified by the Board, sold to persons outside the Commonwealth for resale outside the Commonwealth upon retail tobacco permits granted by the Board.

B. Upon retail tobacco permits granted by the Board and upon payment of any excise tax due thereon, retail tobacco products owned and in possession of, or either, or for sale by, any retail tobacco permittee at the time the retail tobacco permit of such retail tobacco permittee is suspended or revoked may be sold to any person authorized to purchase the same for resale.

C. All retail tobacco products owned by or in possession of any retail tobacco permittee whose retail tobacco permit is suspended or revoked shall be disposed of by such retail tobacco permittee in accordance with the provisions of this section within 60 days from the date of such suspension or revocation.

D. Retail tobacco products owned by, or in possession of, or for sale by any retail tobacco permittee whose retail tobacco permit has been terminated other than by suspension or revocation may be disposed of in accordance with subsection A or B within such time as the Board deems proper. Such period shall not be less than 60 days.

E. All retail tobacco products owned by or remaining in the possession of any retail tobacco permittee described in subsection A, B, or D after the expiration of such period shall be deemed contraband and forfeited to the Commonwealth in accordance with the provisions of § 4.1-338.

2026, cc. 1021, 1044.

A. The Board may grant the following temporary permits which shall authorize:

1. Any person who (i) purchases at a foreclosure, secured creditor's, or judicial auction sale the premises or property of a retail tobacco permittee or (ii) has become lawfully entitled to the possession of the permitted premises to continue to operate the retail tobacco establishment to the same extent as a retail tobacco permittee for a period not to exceed 60 days or for such longer period as determined by the Board. Such retail tobacco permit shall be temporary and shall confer the privileges of any retail tobacco permits held by the previous owner to the extent determined by the Board. Such temporary retail tobacco permit may be issued in advance, conditioned on the above requirements.

2. Any person who, through contract, lease, concession, license, management or similar agreement (collectively, the contract), becomes lawfully entitled to the use and control of the premises of a retail tobacco permittee to continue to operate the retail tobacco establishment to the same extent as a retail tobacco permittee, provided such person has made application to the Board for a retail tobacco permit at the same premises. The temporary retail tobacco permit shall (i) confer the privileges of any retail tobacco permits held by the previous owner to the extent determined by the Board and (ii) be valid for a period of 120 days or for such longer period as may be necessary as determined by the Board pending the completion of the processing of the temporary retail tobacco permittee's retail tobacco permit application. No temporary retail tobacco permit shall be issued without the written consent of the previous retail tobacco permittee. No temporary retail tobacco permit shall be issued under the provisions of this subdivision if the previous retail tobacco permittee owes any state or local taxes, or has any pending charges for violation of this article or any Board regulation, unless the temporary retail tobacco permittee agrees to assume the liability of the previous retail tobacco permittee for the taxes or any penalty for the pending charges. An application for a temporary retail tobacco permit may be filed prior to the effective date of the contract, in which case the temporary retail tobacco permit, when issued, shall become effective on the effective date of the contract. Upon the effective date of the temporary retail tobacco permit, (a) the temporary retail tobacco permittee shall be responsible for compliance with the provisions of this article and any Board regulation and (b) the previous retail tobacco permittee shall not be held liable for any violation of this article or any Board regulation committed by, or any errors or omissions of, the temporary retail tobacco permittee.

B. Every application for a temporary retail tobacco permit granted pursuant to this section shall be on a form prescribed by the Board. The fee for a temporary retail tobacco permit shall be one-twelfth of the combined retail tobacco permit application fee and retail tobacco permit fee computed to the nearest cent and multiplied by the number of months for which the temporary retail tobacco permit is granted.

C. The decision to refuse to grant a temporary retail tobacco permit shall not be subject to a hearing. A temporary retail tobacco permit may be revoked summarily by the Board for any cause set forth in § 4.1-248 without complying with subsection A of § 4.1-250. Revocation of a temporary retail tobacco permit shall be effective upon service of the order of revocation upon the temporary retail tobacco permittee or upon the expiration of three business days after the order of the revocation has been mailed to the temporary retail tobacco permittee at either his residence or the address given for the business in the application. No further notice shall be required.

2026, cc. 1021, 1044.

A. Every retail tobacco permittee that receives, stores, sells, handles, or transports liquid nicotine or nicotine vapor products shall preserve all invoices, books, papers, canceled checks, or other documents relating to the purchase, sale, exchange, receipt, or transportation of all liquid nicotine or nicotine vapor products for a period of three years. All such invoices, books, papers, canceled checks, or other documents shall be subject to audit or inspection at any time by any duly authorized representative of the Attorney General.

B. Any person who violates the provisions of subsection A is guilty of a Class 2 misdemeanor.

C. The Department of Taxation shall impose a penalty of $1,000 for each day that a person fails or refuses to allow or cooperate with an audit, inspection, or investigation of such records. Such penalty shall be collected as other taxes are collected. Upon a person's refusal to cooperate with an audit, inspection, or investigation, the Attorney General may apply to the Circuit Court for the City of Richmond for injunctive relief.

D. The Department of Taxation, the Attorney General, any other law-enforcement agency of the Commonwealth, or any federal law-enforcement agency conducting a criminal investigation involving the trafficking of liquid nicotine or nicotine vapor products may access at any time the records required to be preserved by this section. Copies of such records shall be provided to such officials or agencies upon request. Any court, investigatory grand jury, or special grand jury that has been impaneled in accordance with the provisions of Chapter 13 (§ 19.2-191 et seq.) of Title 19.2 may access such records if relevant to any proceedings therein. Such records shall be exempt from disclosure under the Virginia Freedom of Information Act (§ 2.2-3700 et seq.). Investigators of the Attorney General may accompany and participate with other law-enforcement officials engaging in enforcement action relating to such trafficking.

2026, cc. 1021, 1044.

There is hereby created in the state treasury a special nonreverting fund to be known as the Retail Tobacco Enforcement Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All revenues accruing to the Fund pursuant to this article, all funds appropriated for such purpose, and any gifts, donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purposes of funding the Authority's direct and indirect costs of tobacco retail permit administration; enforcement program, including unannounced compliance checks; and administrative costs pursuant to this article. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Chief Executive Officer of the Authority.

2026, cc. 1021, 1044.