A House of Delegates subcommittee recommended approval Friday of legislation that would declare retail businesses with roll-your-own cigarette machines to be manufacturers.
The legislation is backed by major cigarette companies and a host of trade groups, but it has faced vocal opposition from a few tobacco shop owners in Virginia who say it would put them out of business. An Ohio company that makes and sells roll-your-own machines is fighting the legislation.
Altria Group Inc., the parent company of cigarette maker Philip Morris USA, argues the legislation is needed because roll-your-own businesses are not subject to cigarette excise taxes and other regulations imposed on large cigarette manufacturers.
"The purpose of the bill is to ensure that anyone making cigarettes in a retail establishment has to play by the same rules that everyone else in the business has to play by," John Rainey, a lobbyist for Altria, told the House finance subcommittee.
The subcommittee voted 5-0 to recommend that the full finance committee advance the legislation, though one committee member, Del. Robert D. Orrock Sr., R-Caroline, expressed sympathy for retailers who have installed the $32,500 machines in their stores.
"The net effect (of the legislation) would be that if a tobacco shop has invested in one of these large machines, it would now make a good boat anchor," Orrock said.
Two roll-your-own cigarette shop owners spoke against the legislation, and one customer charged that the legislation is an example of big companies "bullying" smaller businesses.
"If the bill passes, no more of my money will go to big tobacco," said Monica Arnold, a customer of a Virginia Beach roll-your-own shop. "I'll roll my own cigarettes at home."
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