Discount cigarette companies, Liggett Vector Brands and XCaliber International, have sued the state over the provision of Proposition EE that would set a minimum price for cigarettes. #copolitics

"Philip Morris wanted Section 10 added to the Bill because it would severely damage the ability of discount cigarette manufacturers to compete with Philip Morris and would solidify Philip Morris’s market dominance in Colorado." Section 10 sets minimum price per pack. #copolitics

Proposition EE is the ballot question asking to raise cigarette and tobacco taxes, while creating a nicotine/vaping tax. It also would set a minimum price for cigarettes, which is what this lawsuit is about. #copolitics

According to the lawsuit, Liggett sells Pyramid cigarettes at an average price of $5.28/pack in Colorado.

Vector sells Eagle 20's at $4.59/pack (avg).

XCaliber sells Echo at $5.40/pack (avg) & Edgefield at $4/pack (avg). #copolitics

Lawsuit says Marlboro sells for $6.55/pack (avg), increasing to $7.65/pack from tax increase section of EE, not the minimum price mandate. "If Section 10 is enforced, the retail price of Plaintiffs’ products will be artificially raised, benefitting Philip Morris." #copolitics

"Had CO sought to raise cig prices more than the taxes will, (CO) could have done so w/o interfering w/interstate commerce through minimum markups...Doing so would have served (CO's) goal of raising prices & generating more revenue, without harming Plaintiffs or their customers."

The lawsuit isn't challenging all of Proposition EE from taking effect, if passed. It's only challenging the part (Section 10) about a minimum price for cigarettes. #copolitics

The lawsuit points out that Altria - parent company of Philip Morris - spent $17M in 2016 to help fight Amendment 72 in Colorado, the tobacco tax hike that failed 53%/47%. Altria has spent $0 on Proposition EE. #copolitics

The lawsuit is a really interesting read, but @JesseAPaul has done some great digging into the last minute passage of the bill (House Bill 1427) that ended up on our ballots because it's a tax hike question. https://coloradosun.com/2020/10/13/proposition-ee-modified-risk-tobacco-products/ #copolitics