Tag: Virginia

  • Virginia Commission Mulls Grant Requests

    Virginia Commission Mulls Grant Requests

    Photo: Sarah Vogelsong | Virginia Mercury

    Virginia’s Tobacco Region Revitalization Commission has $12 million to spend on energy projects as part of a legislative mandate to revitalize the economies of two regions that are no longer receiving economic benefits from the tobacco industry, reports Virginia Mercury.

    The Energy Ingenuity Committee, at the commission’s last meeting, discussed applications it received for two rounds of the funds that opened this year. A third round of funds is expected to open following the commission’s next meeting scheduled for September.

    “We rolled it out earlier this year,” said Jerry Silva, director of regional energy development and innovation for the commission. “We really did not know what the application level would be.”

    The Tobacco Region Revitalization Commission was formed in 1999 with 28 legislative and citizen members representing Southside and Southwest Virginia. The commission allocates funds from the 1998 Master Settlement Agreement, which was the beginning of the demise of the tobacco industry’s footprint in the two regions.  

    The Energy Ingenuity Fund was recently created by the commission to help increase economic activity surrounding energy development projects. The fund allocated $6 million to each of the two regions and solicited energy development projects.

    To apply for the grants, applicants must be a government entity or nonprofit, have one-for-one matching funds and identify the number of jobs that could be created by the project. Private companies can apply for the grants as long as they partner with a locality to create economic incentives.

    There is a pre-application phase where applicants present ideas to Silva on what the funds could go toward before staff determine what needs more information and what can be submitted as a full application. Silva received 17 pre-applications in round one, with three moving forward to a full vote in May. Round two saw 11 pre-applications, with four expected to move to a vote in September.

    “These are projects that we’re trying to help bridge opportunities that would normally not be opportunities unless we helped them,” Silva said. “We’re trying to make sure we’re the best stewards of the commission’s money and dollars. We want to fund viable projects.”

  • Virginia Proposes Approved Product List

    Virginia Proposes Approved Product List

    Virginia has long been the epicenter of the tobacco industry; now, two bills that would ban flavored vaping products have been filed with the state’s General Assembly.

    Sponsors say Virginia should step in where Washington has been ineffective in blocking unregulated flavored e-cigarettes, such as Elf Bar disposables, off of store shelves.

    The bills, House Bill 1069 and Senate Bill 550, call for a fine of $1,000 a day for each product sold that the U.S. Food and Drug Administration has not authorized to be marketed in the U.S.

    The Attorney General would maintain a directory of legal products, much like Alabama and Louisiana. Products not listed in that directory could not be legally sold in Virginia.

    The bill states any retailer and wholesaler that sells or distributes any liquid nicotine or nicotine vapor product in the state is subject to scheduled or unscheduled compliance checks carried out by the Attorney General’s Office for enforcement purposes.

    Manufacturers must certify, in a filing with the Attorney General, that an FDA marketing authorization order covers their product or is exempt from that because it was sold in the U.S. before 2016 or subject to a premarket tobacco product application dating from before 2020.

    “It’s a public health issue,” said Del. Rodney Willett, who sponsored the House of Delegates bill.

    “They’re targeting kids with the flavors,” he said, according to media reports. “When I walk into a convenience store, I’m just stunned by the number of these products that are for sale.”

  • Easy street: smoke smugglers net nearly $2 million a truckload

    Wanna make a quick $1,944,000? Buy a truckload of cigarettes in Virginia and sell them in New York.

    Yeah, it’s illegal. But that’s how much can be made from selling a tractor trailer’s worth (that’s 800 cases, each holding 600 packs of cigarettes) of low-tax Virginia cigarettes in high-tax New York, based on estimates from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

    And that’s exactly what criminals are doing, according to a story posted on CNN.com

    In 2011, more than 60 percent of all cigarettes sold in New York were smuggled in from another state, according to the Mackinac Center for Public Policy, a free-market think tank. That’s up from about 36 percent in 2006.

    It’s not just happening in New York. Mackinac says 15 states have smuggling rates that top 20 percent. Add in counterfeit cigarettes from overseas, and ATF estimates the lost government revenue at more than $5 billion a year.

    Mackinac and others pin the blame on rising state taxes, and say things could get even worse if President Obama’s proposed 94-cent-a-pack cigarette tax hike goes through. Anti-smoking groups say the smuggling numbers are inflated, and that the public health benefits of fewer smokers – the ones dissuaded by pricey packs – far outweigh any lost revenue or other effects of smuggling.