Upstarts Upset the Tobacco Cart (washingtonpost.com): "Numerous states are considering or have adopted legislation aimed at increasing the price of discount cigarettes and protecting the market share of the 'Big Four' tobacco companies -- Philip Morris, Lorillard, Brown & Williamson and R.J. Reynolds. The Big Four are vowing a push this year in the Virginia General Assembly....
[S]tates such as Virginia, which is struggling with a budget deficit, have a powerful reason to go along with the Big Four: money.
In a settlement reached six years ago, major tobacco companies agreed to make annual payments to the states estimated at more than $235 billion over 25 years. Those payments are tied to the sales of the participating companies; if they lose market share, the states lose money.
'We need to guarantee a continuing flow of revenue that we use to help balance Virginia's budget and pay for health care and economic development in the tobacco-dependent regions,' said Sen. Charles R. Hawkins (R-Pittsylvania), who plans to introduce legislation targeting the independents. "