                                 CODE OF VIRGINIA

QUALIFICATION FOR PERMIT TO AFFIX VIRGINIA REVENUE STAMPS; PENALTY (§
58.1-1011)

A. Only manufacturers, wholesale dealers and retail dealers may be permitted as
stamping agents. It shall be unlawful for any person to purchase, possess or
affix Virginia revenue stamps without first obtaining a permit to do so from the
Department. Every manufacturer, wholesale dealer or retail dealer who desires to
qualify as a stamping agent with the Department shall make application to the
Department on forms prescribed for this purpose, which shall be supplied upon
request. The application forms will require such information relative to the
nature of business engaged in by the applicant as the Department deems necessary
to the qualifying of the applicant as a stamping agent. The Department shall
conduct a background investigation, to include a Virginia Criminal History
Records search, and fingerprints of the applicant, or its responsible
principals, managers, and other persons engaged in handling and stamping
cigarettes at the licensable locations, that shall be submitted to the Federal
Bureau of Investigation if the Department determines a National Criminal Records
search is necessary, on applicants for licensure as cigarette tax stamping
agents. The Department may refuse to issue a stamping permit or may suspend,
revoke or refuse to renew a stamping permit issued to any person, partnership,
corporation, limited liability company or business trust, if it determines that
any principal, manager, or other persons engaged in handling and stamping
cigarettes at the licensable location of the applicant has been (i) found guilty
of any fraud or 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 who knowingly and willfully falsifies, conceals or misrepresents a
material fact or knowingly and willfully makes a false, fictitious or fraudulent
statement or representation in any application for a stamping permit to the
Department is guilty of a Class 1 misdemeanor. The Department may establish an
application or renewal fee not to exceed $750 to be retained by the Department
to be applied to the administrative and other costs of processing stamping agent
applications, conducting background investigations and issuing stamping permits.
Any application or renewal fees collected pursuant to this section in excess of
such costs as of June 30 in even-numbered years shall be reported to the State
Treasurer and deposited into the state treasury. If the Department after review
of his application believes the manufacturer, wholesale dealer or retail dealer
is qualified, the Department shall issue to the applicant a permit qualifying
him as a stamping agent, as defined in this chapter, and he shall be allowed the
discount on purchases of Virginia revenue stamps as set out herein for stamping
agents purchasing stamps for their individual use. Such stamping agent shall be
authorized to affix Virginia revenue stamps, and in addition, if the applicant
qualifies as a wholesale dealer, that shall be so noted on the permit issued by
the Department. Permits issued pursuant to this section shall be valid for a
period of three years from the date of issue unless revoked by the Department in
the manner provided herein. The Department shall not sell Virginia revenue
stamps to any person or entity unless and until the Department has issued that
person or entity a permit to affix Virginia revenue stamps. The Department may
promulgate regulations governing the issuance, suspension and revocation of
stamping agent permits. The Department may at any time revoke the permit issued
to any stamping agent as herein provided who is not in compliance with any of
the provisions of this chapter or any of the rules of the Department adopted and
promulgated under authority of this chapter.

B. The Department shall compile and maintain a list of licensed cigarette
stamping agents. The list shall be updated monthly and shall be available upon
request to any federal, state, or local law-enforcement agency.

HISTORY: Code 1950, § 58-757.10; 1960, c. 392, § 10; 1984, c. 675; 2004, c.
1029; 2005, c. 28; 2016, cc. 227, 344.