Capitol Fax.com - Your Illinois News Radar » Hold everything?
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Hold everything?

Wednesday, Aug 26, 2009 - Posted by Rich Miller

* Is the capital project funding in jeopardy? Time will tell, but if nothing else, this development won’t make it easier to sell bonds

Blackhawks owner Rocky Wirtz on Tuesday filed a lawsuit claiming Gov. Pat Quinn and other state leaders violated the Illinois Constitution when they passed legislation to increase taxes on alcohol and expand gambling to fund the governor’s $31-billion public works program.

The suit, filed in Cook County Circuit Court, claims the 2009 Capital Program rolls too many subjects into one bill and fails to adhere to a uniformity clause, because the new law imposes “arbitrary, widely disproportionate new taxes on beer, wine and spirits.” Mr. Wirtz, president of Wirtz Beverage Illinois LLC, wants a judge to declare the new law unconstitutional and stop the “use of state funds and resources in the operation and administration and regulation of programs created by legislation.” […]

Mr. Wirtz claims the higher rates will raise taxes on beer 22% and up to 90% for wine and spirits, and that state lawmakers have failed to provide “coherent rationale” for the “vastly disproportionate” increases.

More

The Wirtz suit could pose a greater threat to the public works plan, which would be hard to launch if a court blocked or stalled implementation of the tax hikes or gambling expansion. Legal challenges were expected when Gov. Pat Quinn signed the measures into law this summer. But in Wirtz, the program now has an opponent with broad political influence and the deep pockets necessary to mount an effective court fight. […]

The newly filed Wirtz lawsuit contends lawmakers violated several dictates of the Illinois Constitution in stitching together the building program, most prominently a mandate that legislation on substantive matters not pertain to a mishmash of unrelated subjects.

The suit also claims the video poker program, which would allow bars across the state to install video poker machines linked to the state through a closed-circuit Internet connection, violates federal gambling rules.

A companion plan to hire a private management firm to run the Illinois lottery similarly runs afoul of federal law, the suit alleges.

In essence, pretty much every single dollar raised to fund the capital bill is now being challenged.

* This is without a doubt the greatest problem with the new video gaming law…

The state’s top gambling regulator said [yesterday] it will be “absolutely impossible” to meet a mid-September deadline for drafting rules needed to roll out legalized video poker around Illinois. […]

“The video gaming statute creates not only a new branch of gaming, it creates an entirely new industry of gaming,” Jaffe said, estimating as many as 15,000 businesses across the state would be eligible to install gambling machines. “We are working on rules, but there is no way in the world that we will rush to finish rules like that unless we have the knowledge to do it and the ability to do it.”

The Gaming Board has no experience with stuff like this. The project probably should’ve been given to the Lottery, which already has a statewide network of machines and somewhat similar experience. The South Dakota video gaming law handed over authority to its Lottery, and things seem to be going pretty well there.

But keep in mind that the Gaming Board, like any state entity, is a bureaucracy, and bureaucracies always want as many resources as possible…

Jaffe said he was “disappointed but not surprised” that lawmakers failed to provide funding to get the program off the ground. The gaming board estimates it would need at least 75 additional staff members and $10 million just to implement the program. It would take even more resources to properly monitor and regulate, which he said poses a whole other set of problems.

* Somebody left this comment on the blog today, and I checked the IP address so I’m comfortable front-paging it…

Heard [Quinn] is also issuing an amendatory veto to reduce the number of signatures required for towns put the video gaming issue on the ballot. Using a horse racing related bill. Don’t know why he just didn’t AV the original bill if he wants that.

Expect more of this stuff.

* Related…

* Critics urge state to reconsider video

* Taxes going up on candy, shampoo, liquor

       

8 Comments
  1. - Beans - Wednesday, Aug 26, 09 @ 10:31 am:

    AV’ing the original bill would have held it up ’til veto session. This way he can have the capital cake but eat the populist anti-gambling icing too.


  2. - Anonymous - Wednesday, Aug 26, 09 @ 10:31 am:

    =============
    Taxes going up on candy, shampoo, liquor
    =============

    Sounds like we need a song from V-Man ala Alan Jackson’s “Everything I Love” to make a REAL statement re: our feelings about the increased taxes.


  3. - wordslinger - Wednesday, Aug 26, 09 @ 10:51 am:

    Unless the state goes double-barreled with its GO or a portion of existing revenues — sales and/or gas tax — to provide additional coverage, I don’t think there’s a market for the cap bonds while the proposed revenue sources are in question.

    I doubt if the suit has merit — I’m pretty sure the GA knows how to draft a revenue bill. The first move by the state is to get it tossed with prejudice as quickly as possible.

    But what a brilliant pr move by Rocky Wirtz, friend of every Joe Sixpack who’s a potential Blackhawk ticket buyer. He learned a lot from his old man’s mistakes, and every pr moves he’s made to date has paid off at the gate.

    Every day, it appears the video gaming portion of the revenues will be a lot smaller and a lot further down the road than projected. Looks like the folks who are currently profiting from illegal gambling will stay in business for quite some time.


  4. - Ghost - Wednesday, Aug 26, 09 @ 11:43 am:

    And down the rabbit hole we go.

    The problem with the Wirtz suit is the court consider public policy impacts of a restarining order (such as the possible loss of stimulus money etc which may never be recovered, need for the jobs etc) AND the State can ask the court to order Wirtz to put up a bond to cover any losses it incurs if the temp restarining order isgranted, but Wirtz ultimatly fails. i.e. wirtz could be placed on the hook for any lossed stimulus funds, and any economic losses incured from delays in the capital project. this is discretionary, but I wonder how interested Wirtz will be if he has to cover the States losses.


  5. - unclesam - Wednesday, Aug 26, 09 @ 12:50 pm:

    The AV allowing the changes to local government referrendum on video gaming was issued to SB 1595.


  6. - Chi Gal - Wednesday, Aug 26, 09 @ 1:04 pm:

    I guess we can frame this photo. Quinn and Wirtz probably won’t be taking in any more games together this coming season! Oh well, Quinn was never a hockey-guy anyway.

    http://images.google.com/imgres?imgurl=http://media.ca
    nada.com/fae0b6fd-d281-4d23-840e-569bef1c674c
    /wirtz510.jpg&imgrefurl=http://www.faceoff.
    com/story.html%3Fid%3D347bc622-58c8-4770-8ef
    d-ed6c83b4e74f&usg=__KrLXUV9d4bQN4SN8s
    Wwk7zNgNHc=&h=420&w=510&sz
    =82&hl=en&start=1&um=1&tb
    nid=MzMBt3uChPHM9M:&tbnh=108&tbnw=131&prev=
    /images%3Fq%3Dquinn%2Bwirtz%26hl
    %3Den%26sa%3DN%26um%3D1


  7. - TheBoss - Wednesday, Aug 26, 09 @ 3:48 pm:

    There is a provision in HB255, the bill that among other things, purports to legalize video poker, that requires 25% of the eligible voters to sign a petition for a referendum banning video poker in the municipality. Gov. Quinn could not use his amendatory veto power on the provision for at least two reasons. One, General Assembly inserted into HB255’s companion appropriation bill, HB312, a provision stating that if anything is changed in HB255, HB312 has no effect, regardless of whether the Governor signs it. Two, conversely, the General Assembly put a provision into HB255 providing that it did not take effect at all unless all of the appropriations bill HB312 became law. This is unprecedented in Illinois law. Essentially, the Legislature tried to tie the Governor’s hands such that he could not exercise his constitutional veto powers. And they did it so to lock up the pork projects members wanted.


  8. - Ricketts Field - Wednesday, Aug 26, 09 @ 9:35 pm:

    Go Rocky!!!


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* Isabel’s afternoon briefing
* Things that make you go 'Hmm'
* Did Dan Proft’s independent expenditure PAC illegally coordinate with Bailey's campaign? The case will go before the Illinois Elections Board next week
* PJM's massive fail
* $117.7B In Economic Activity: Illinois Hospitals Are Essential To Communities And Families
* It’s just a bill
* Showcasing The Retailers Who Make Illinois Work
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today's edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Pritzker calls some of Bears proposals 'probably non-starters,' refuses to divert state dollars intended for other purposes (Updated)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller