Commission Purpose

Determining the appropriate recipients of moneys in the Tobacco Indemnification and Community Revitalization Fund, which will receive 50% of the of the annual amount received by the Commonwealth from the Master Settlement Agreement, to be used as follows:

• Provide payments to tobacco quota holders and producers as compensation for the adverse economic effects resulting from loss of investment in specialized tobacco equipment and barns and lost tobacco production opportunities associated with a decline in quota. Quota base is determined by averaging the basic burley and flue-cured quota as allocated by the USDA for the crop years 1995 through 1998. To the extent that such tobacco quota holders and producers are not otherwise compensated by a national tobacco community trust fund and to the extent moneys are available in the Fund, the Commission shall cause compensation to be paid in an amount equal to the total lost asset value in quota incurred annually (for quota holders), or for the economic loss resulting from any annual quota reduction (for tobacco producers).

• Revitalize tobacco dependent communities, in order to assist such communities in reducing their dependency on tobacco and tobacco-related business.

Thirty-one members will be appointed as follows:

• Speaker of the House of Delegates
• 6 state delegates 

• Privileges and Elections Committee of the Senate
• 4 state senators

• Governor
• 3 active flue-cured tobacco producers. 2 of those must be appointed from a list of 6 provided by the Commission’s General Assembly members.
• 3 active burley tobacco producers. 1 of those must be appointed from a list of 3 provided by the Commission’s General Assembly members.
• 11 citizen members, 3 from a list of 9 provided by the Commission’s General Assembly members.
• 1 representative of the Virginia Farm Bureau Federation from a list of at least 3 provided by Virginia Farm Bureau.

All of the appointed members of the Commission shall reside in the Southside and Southwest regions of the Commonwealth and shall be subject to confirmation by the General Assembly. To the extent feasible, appointments representing the Southside and Southwest regions shall be proportional to the tobacco quota production of each region. That ratio is approximately 3 to 1 (in gross receipts for flue-cured production compared to burley production).

 Three other members of the Commission are not subject to the residency requirement. These are:

• The Secretary of Commerce and Trade or his designee;
• The Secretary of Finance or his designee;
• The Commissioner of Agriculture and Consumer Affairs or his designee.

Terms are 4 years each with the possibility of 2 consecutive terms. The legislation provides for filling of unexpired terms for citizen and legislative members.

Initial appointments only are staggered as follows:

• 2 years: 1 active flue-cured tobacco producer, 1 active burley tobacco producer and 4 citizens;
• 3 years: 1 active flue-cured tobacco producer, 1 active burley tobacco producer and 4 citizens;
• 4 years: 1 active flue-cured tobacco producer, 1 active burley tobacco producer and 3 citizens.

Leadership

The Commission appoints from its membership a chairman and a vice-chairman. A majority of members of the Commission serving at any one time shall constitute a quorum for the transaction of business.

The Governor shall appoint an executive director subject to confirmation by the General Assembly. The compensation of the executive director shall be determined by the Commission, subject to approval by the Governor.