2006 Code of Virginia § 58.1-1021.04:1 - Distributor\'s license; penalty.

58.1-1021.04:1. Distributor's license; penalty.

A. No person shall engage in the business of selling or dealing in tobaccoproducts as a distributor in the Commonwealth without first having received aseparate license from the Department for each location or place of business.Each application for a distributor's license shall be accompanied by a fee tobe prescribed by the Department. Every application for such license shall bemade on a form prescribed by the Department and the following informationshall be provided on the application:

1. The name and address of the applicant. If the applicant is a firm,partnership or association, the name and address of each of its members shallbe provided. If the applicant is a corporation, the name and address of eachof its principal officers shall be provided;

2. The address of the applicant's principal place of business;

3. The place or places where the business to be licensed is to be conducted;and

4. Such other information as the Department may require for the purpose ofthe administration of this article.

B. A person outside the Commonwealth who ships or transports tobacco productsto retailers in the Commonwealth, to be sold by those retailers, may makeapplication for license as a distributor, be granted such a license by theDepartment, and thereafter be subject to all the provisions of this article.Once a license is granted pursuant to this section, such person shall beentitled to act as a licensed distributor and, unless such person maintains aregistered agent pursuant to Chapter 9, 10, 12 or 14 of Title 13.1 or Chapter2.1 or 2.2 of Title 50, shall be deemed to have appointed the Clerk of theState Corporation Commission as the person's agent for the purpose of serviceof process relating to any matter or issue involving the person and arisingunder the provisions of this article.

The Department shall conduct a background investigation, to include aVirginia Criminal History Records search, and fingerprints of the applicant,or the responsible principals, managers, and other persons engaged inhandling tobacco products at the licensable locations, that shall besubmitted to the Federal Bureau of Investigation if the Department deems aNational Criminal Records search necessary, on applicants for licensure astobacco products distributors. The Department may refuse to issue adistributor's license or may suspend, revoke or refuse to renew adistributor's license issued to any person, partnership, corporation, limitedliability company or business trust, if it determines that the principals,managers, and other persons engaged in handling tobacco products at thelicensable location of the applicant have been (i) found guilty of any fraudor misrepresentation in any connection; (ii) convicted of robbery, extortion,burglary, larceny, embezzlement, fraudulent conversion, gambling, perjury,bribery, treason, or racketeering; or (iii) convicted of a felony. Anyone whoknowingly and willfully falsifies, conceals or misrepresents a material factor knowingly and willfully makes a false, fictitious or fraudulent statementor representation in any application for a distributor's license to theDepartment, shall be guilty of a Class 1 misdemeanor. The Department mayestablish an application or renewal fee not to exceed $750 to be retained bythe Department to be applied to the administrative and other costs ofprocessing distributor's license applications, conducting backgroundinvestigations and issuing distributor's licenses. Any amount collectedpursuant to this section in excess of such costs as of June 30 in evennumbered years shall be reported to the State Treasurer and deposited intothe state treasury.

C. Upon receipt of an application in proper form and payment of the requiredlicense fee, the Department shall, unless otherwise provided by this article,issue to the applicant a license, which shall permit the licensee to engagein business as a distributor at the place of business shown on the license.Each license, or a copy thereof, shall be prominently displayed on thepremises covered by the license. No license shall be transferable to anyother person. Distributor's licenses issued pursuant to this section shall bevalid for a period of three years from the date of issue unless revoked bythe Department in the manner provided herein. The Department may at any timerevoke the license issued to any distributor who is found guilty of violatingor noncompliance with any of the provisions of this chapter, or any of therules of the Department adopted and promulgated under authority of thischapter.

D. The Department shall compile and maintain a current list of licenseddistributors. The list shall be updated on a monthly basis, and published onthe Department's official Internet website, available to any interested party.

(2005, c. 71.)