RD3 - Annual Executive Summary of Interim Activity of the Tobacco Indemnification and Community Revitalization Commission - FY13: 07/01/12 - 01/8/13


    Executive Summary:
    New Publication Links

    FY12 Annual Report: http://www.tic.virginia.gov/pdfs/Annual%20Reports/2012%20-%20OGC_TIC%20Report%202012-web.pdf

    The Tobacco Indemnification and Community Revitalization Commission is a 31-member body created by the 1999 General Assembly. Its mission is the promotion of economic growth and development in tobacco-dependent communities, using proceeds of the national tobacco settlement.

    Mission:

    “The Commission is established for the purposes of determining the appropriate recipients of moneys in the Tobacco Indemnification and Community Revitalization Fund and causing distribution of such moneys for the purposes provided in this chapter, including using moneys in the Fund to (i) provide payments to tobacco farmers 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 and (ii) revitalize tobacco dependent communities.”
    (Section 3.2-3101, Code of Virginia)

    Status of Indemnification of Tobacco Farmers:

    The Commission compensates tobacco producers and quota owners for their losses due to the decline in tobacco quota from the 1995-98 average through 2002, the effective year of the federal tobacco quota buyout. In January 2012, the Commission announced that would reach the end of its indemnification obligation in 2012. The 2012 payment was the final distribution of Indemnification funds, and the Commission satisfied its statutory obligation to indemnify burley and flue-cured producers and quota owners. From its inception through the end of fiscal year 2012, the Commission has made available $309 million in addition to the $170 million from other sources for indemnifying losses. For fiscal year 2012, the Commission made available over $10 million for indemnification of these losses and over 47,000 claims were processed.

    Status of Revitalization of Tobacco Dependent Communities:

    Communities and citizens throughout the Southside and Southwest regions of Virginia continue to experience significant economic distress as a direct consequence of historical dependence on tobacco production, textile and furniture manufacturing and coal production. In today’s environment, where markets are largely global and employment is increasingly knowledge-based, the Commission seeks to accelerate regional transformation so that all residents enjoy expansive opportunities for education and employment, while communities benefit from economic diversification and enhanced prosperity.

    Revitalization is accomplished through eight grant programs that make awards to local governments, government entities, and non-profit organizations. Grant programs include: Agribusiness, Education, Megasite, Research and Development, Southside and Southwest Economic Development, Special Projects, and Tobacco Region Opportunity Fund (TROF). The Commission prioritizes projects that maximize leveraging from applicants and other partner organizations, and gives preference to projects that have regional participation and generate the most significant economic outcomes – primarily measured in terms of new jobs, income and taxable private capital investment - for the residents, businesses and localities in the tobacco region.

    Life to Date: 1,578 grants approved and nearly $940 million obligated
    FY13 to Date: 51 grants approved and nearly $62 million obligated
    FY13 TROF to date: 15 grants approved totaling nearly $1.64 million

    Meeting Summary

    Meetings are held three times per year, during which grants proposals are reviewed and approved and policy changes are discussed and implemented.

    Two Commission Meetings:
    9/27/12 in Wytheville, VA
    1/8/13 in Richmond, VA

    Two Executive Committee Meetings:
    9/26/12 in Wytheville, VA
    1/7/13 in Richmond, VA

    Two Research and Development Committee Meetings:
    9/27/12 in Wytheville, VA
    12/13/12 in Roanoke, VA

    Two Special Projects Committee Meetings:
    9/26/12 in Wytheville, VA
    12/11/12 in Roanoke, VA

    Two Education Committee Meetings:
    9/13/12 in Roanoke, VA
    1/7/13 in Richmond, VA

    Two Southside Economic Development Committee Meetings:
    9/26/12 in Wytheville, VA
    12/13/12 in Roanoke, VA

    Four Southwest Economic Development Committee Meetings:
    8/10/12 in Abingdon, VA
    9/13/12 in Roanoke, VA
    9/26/12 in Wytheville, VA
    1/9/13 in Richmond, VA

    Two Agribusiness Committee Meetings:
    12/11/12 in Roanoke, VA
    1/7/13 in Richmond, VA