Don't be so sure about Virginia. I thought the same thing about TN. Currently Virginia just requires a separate non smoking section for restaurants seating more than 50 people. Upstairs smoking downstairs not smoking fits the current requirements.
Now TN's law is
Restaurants/Bars: Smoking is prohibited in restaurants unless they do not allow people under 21 to enter at all times. A person must submit an acceptable form of identification to gain entry. This and other provisions of the Tennessee Code preempt the entire field of legislation concerning the regulation of tobacco products. Any law or regulation enacted or promulgated after March 15, 1994 by any agency or political subdivision of the state is void.
TENN. CODE ANN. §§ 39-17-1801 to 39-17-1810 (2008) & 39-17-1551 (1994).
is a great source for all the smoking laws in the country. They are anti-tobacco but they have all the laws listed. Tax on Shisha Tobacco in TN is fairly low actually. It falls under other tobacco products and the tobacco tax on that is 6.6% of the wholesale price. I don't know why more tobacco stores don't carry it here. It seems like it would be profitable.