RD725 - Report of the Virginia Alcoholic Beverage Control Authority on the Assessment of a Licensing Scheme for Liquid Nicotine – October 31, 2023


Executive Summary:

During the 2023 session of the General Assembly, SB 1350 and HB 2296 were introduced by Senator Ebbin and Delegate Hope respectively. The legislation proposed to establish a licensing scheme for liquid nicotine product retailers. The purpose of the legislation was to reduce underage sales of nicotine vapor products, codify best practices relating to the sale of these products, codify a tax to be imposed, and to bolster enforcement mechanisms necessary to address underage sales and tax compliance.

The legislation as introduced was not enacted. Rather, the original legislation was amended to a Section 1 bill and requested the Secretary of Finance to undertake a study to assess a licensing scheme for liquid nicotine. During the Governor’s review of legislation, it was determined that Virginia ABC should undertake the study rather than the Secretary of Finance. During the reconvened session, that amendment was adopted; and during the interim, Virginia ABC convened stakeholders to study the issue.

Virginia ABC solicited participation from the various groups noted in the study legislation, sought out other parties to participate, and invited others to participate that had been brought to our attention by Senator Ebbin.

Approximately 25 individuals representing retailers, public health organizations, tobacco and vaporized nicotine companies and wholesalers generously provided their time and talent to the task. A list of the participating stakeholders is attached as Appendix 1.