Capitol Fax.com - Your Illinois News Radar

*** UPDATED x1 *** Heidner’s video gaming license pulled

Wednesday, Dec 18, 2019 - Posted by Rich Miller

* To think this man was at one point just months away from owning a racino…

The Illinois Gaming Board has moved to strip video gambling operator Rick Heidner of his license after accusing him of offering a $5 million “illegal inducement” to the owner of a chain of gambling parlors, records show.

State officials filed the action Tuesday, saying they had learned that Heidner, who operates Gold Rush Amusements, had offered the money after the owners of Laredo Hospitality told him they were moving to pull his video gambling machines from 44 of their gambling parlors, according to the complaint for disciplinary action filed with the board by its staff. The Tribune obtained the complaint through an open records request.

During a Nov. 16, 2018, meeting at a Rosemont steakhouse between Heidner and the CEO of Laredo, the executive told Heidner that after a recent ownership change, Laredo would be severing its relationship with Gold Rush, according to the complaint.

Two weeks later, Heidner met with Laredo’s new owner, Daniel Fischer, and offered to buy Laredo for $5 million more than Fischer had just paid for the company, according to the complaint. Fischer declined the offer, according to the complaint.

Heidner then sent a series of text messages to Laredo’s former CEO, Gary Leff, detailing the offer, the Gaming Board says.

Man, that is a huge video gaming empire which just went kerplop. Go read the rest.

*** UPDATE *** The Tribune has updated its story…

[Heidner spokesman Randall Samborn] called the allegations against Heidner “an orchestrated smear campaign,” describing Heidner as the victim of an “illegal inducement” paid by one of his competitors to replace Gold Rush at Laredo’s locations. He said they are related to an ongoing lawsuit.

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Question of the day: Golden Horseshoe Awards

Wednesday, Dec 18, 2019 - Posted by Rich Miller

* The 2019 Golden Horseshoe Award for Best Legislative Liaison goes to one of the crowd’s favorites Carter Harms…

Carter Harms is the best. I got to work with him on an issue this session, it was one of the best experiences I’ve had working with a state agency. He’s smart, kind, and a pleasure to work with.

You can’t get a much stronger recommendation than that.

* The 2019 Golden Horseshoe Award for Best “Do-Gooder” lobbyist goes to Kathy Drea…

I think strong consideration has to be given to Kathy Drea of the American Lung Association. She’s been on the front lines of the anti-tobacco effort for decades. And her cause just came off the best legislative session in a generation: Tobacco 21, cigarette tax Increase, and registration of all e-cigarette retailers passed during the Spring session. And then, they came back and got important changes to the marijuana legalization bill in veto that clarified how the law works with the Smoke Free Illinois Act.

She’s compiled an amazing record, and she’s a great person too.

That do-gooder pick was one of the most difficult so far. But Kathy did have one heck of a year.

…Adding… Kathy told me this afternoon that she put in her notice that she’s retiring. So, she’s going out on top.

* On to today’s categories…

* Best US Representative

* Best Elected Statewide Officeholder

Statewides can include US Senators, by the way. Please explain your nominations or they won’t count and please nominate in both categories or I may ignore your opinion. But, most of all, have fun!

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Did Syverson’s guest violate Senate rules?

Wednesday, Dec 18, 2019 - Posted by Rich Miller

* Mark Maxwell at WCIA…

In a brazen move that violated Senate rules, state Senator Dave Syverson (R-Rockford) brought Rock and Roll Hall of Fame musician Rick Nielsen, the guitarist for Cheap Trick, onto the chamber floor in May during a sensitive time when his colleagues were considering whether or not to approve a Rockford casino and when Nielsen was lobbying support for one.

Nielsen stands to gain significant personal wealth if the Illinois Gaming Board approves the Hard Rock casino bid because his wife invested in the project. Nielsen is also in business with Syverson through the Stockholm Inn in Rockford.

On May 15th, Nielsen visited the statehouse to build support for the Rockford casino project. During his visit, he staged a public press conference from the statehouse press room, sought an audience with the governor, and passed out guitar picks to legislators on the floor in the House and Senate, all in support of approving a Rockford casino.

“I’m trying to help in the gaming industry,” Nielsen told TV cameras during his visit. “I came down here to see if I could kick it in the butt a little bit.” […]

According to Senate rules, “No person who is directly or indirectly interested in defeating or promoting any pending legislative measure, if required to be registered as a lobbyist, is allowed access to the floor of the Senate at any time during the session.”

According to the Illinois Secretary of State’s office, Nielsen never registered as a lobbyist. Had Nielsen registered as a lobbyist, he certainly would have been banned from entering the chamber. A Senate spokesman said, “The Secretary of the Senate was not aware of any reason he should not be a guest on the Senate floor.”

You could make an argument that Nielsen should’ve registered as a lobbyist. A press conference is not lobbying. But handing out those guitar picks thing could’ve been over the line. Still, I’m not sure there was a brazen violation of the Senate’s rules if that is an open question.

Either way, another day, another Syverson story. Not good.

…Adding… The Senator never should’ve allowed his floor guest to hand out these guitar picks…

Senator Syverson insists Rick Nielsen was not lobbying on the floor of the Senate, but look at the message on the guitar picks he handed out to lawmakers during a sensitive time when they were considering whether or not to approve a Rockford casino: https://t.co/Bk6Se0J6RK pic.twitter.com/sR0SpCBYux

— Mark Maxwell (@MarkMaxwellTV) December 18, 2019

36 Comments

*** UPDATED x4 *** Chicago delay would be boon for suburban dispensaries

Wednesday, Dec 18, 2019 - Posted by Rich Miller

* Politico…

Turns out Ald. Jason Ervin and some members of the Black Caucus may not be the only ones supporting a delay in selling recreational marijuana in Chicago. Lobbyists for two white-owned cannabis companies would benefit if Chicago held off on selling cannabis.

MedMen Enterprises, which has an Oak Park dispensary, and Green Thumb Industries (GTI,) with dispensaries in Joliet and Naperville, have a heavy lobbyist contingent in City Hall this week as aldermen debate whether to push back the sale of recreational weed until July 1 in an effort to ensure diversity among dispensary ownership.

MedMen and GTI don’t have an immediate stake in a Jan. 1 opening in Chicago. So why should they care when sales begin?

The two companies are in line to open secondary dispensary locations in Chicago in mid-2020. They’re currently going through the zoning and start-up process, which takes months. By delaying Chicago’s start-date for recreational sales, MedMen and GTI would be able to open at the same time as the current dispensary owners — Cresco Labs, Columbia Care and 4Front.

OK, that may well be true, but it misses the point that Oak Park is on Chicago’s border. If the city’s implementation is delayed, MedMen’s Oak Park dispensary is gonna do blockbuster business.

* Sun-Times…

Chicago sales of recreational marijuana would be pushed back until July 1 under an ordinance that squeaked through a City Council committee Tuesday at the behest of black aldermen demanding diversity among dispensary ownership.

The 10 to 9 vote by the City Council’s Committee on Contract Oversight and Equity was a political embarrassment to Mayor Lori Lightfoot, whose administration tried desperately to appease the Black Caucus during negotiations that continued during the meeting. […]

Ald. Gilbert Villegas (36th), the mayor’s floor leader, was asked whether there are 26 votes in the full City Council to approve the six-month delay.

“Looking at the roll calls, I think right now the votes are there to have a delay, yes,” Villegas said.

* Tribune…

After the vote, Lightfoot released a statement saying her administration’s been working with the Black Caucus to make changes and criticized them for the vote. Delaying sales, Lightfoot said, “will have a multitude of unintended consequences, including fueling illegal sales, placing the start of a new industry at the same time when our full public safety resources must be dedicated to combatting summer violence, and most importantly, stripping money from the social equity funds intended to benefit Black and Brown entrepreneurs.”

“I have repeatedly asked the members of the Black Caucus to devise a strategy that addresses equity. Instead, we have primarily been met with a litany of complaints, but no tangible solutions. Crossing our arms and walking away is a tactic, not a strategy and is not only unacceptable but irresponsible,” Lightfoot added. “We have a tremendous opportunity to come together to do the work necessary to fulfill our vision of truly equitable legalization. Cannabis will be legalized across the State of Illinois starting on Jan. 1, and I have no intention of Chicago being left behind. It is unfortunate that the Black Caucus has chosen to remain on the sidelines.” […]

In particular, they are upset that the 11 medicinal cannabis dispensaries that get to immediately expand to recreational sales on Jan. 1 under state law are overwhelmingly white-owned establishments. And the early returns on other applicants for recreational licenses in Chicago show few minority owners.

“We would never, as a body, allow anything to pass through this with this magnitude of economic impact, and not have (minority) participation,” [Black Caucus Chairman Jason Ervin] said during an earlier hearing on his ordinance. “Every bond deal that goes through here, we’re hawks on if there’s African American, Latino participation. Every other type of financial transaction that comes through this body, we have these same questions, and this same question needs to be asked about … adult-use cannabis here in the city of Chicago.”

* Um, alderman, do you remember this 2017 story?…

A strip club owner and trucking executive plans to open a medical marijuana dispensary soon just south of the Illinois Medical District.

After nixing plans to open in Fulton Market, businessman Perry Mandera plans to open The Herbal Care Center, or THC Center for short, at 1301 S. Western Ave. in Chicago. […]

Ald. Jason Ervin (28th), whose ward includes the site, said he doesn’t have any objection to the dispensary opening there. […]

But under pressure from neighbors, Ald. Walter Burnett Jr. (27th) said in March 2015 the plan for a Fulton Market dispensary would be “very hard” to support, effectively killing it.

That dispensary, which Ervin approved in his ward after Burnett rejected it, is set to begin adult-use sales on January 1.

*** UPDATE *** Maybe cooler heads can eventually prevail…

NOW: Pot ordinance has been delayed by aldermen for a future meeting. pic.twitter.com/xg7nQEh3Ov

— Paris Schutz (@paschutz) December 18, 2019

Aldermen Gil Villegas and Brendan Reilly were the aldermen who used the parliamentary maneuver to delay today’s vote

— Paris Schutz (@paschutz) December 18, 2019

*** UPDATE 2 *** Hmm…

Now we are holding a roll call vote on whether to impose the the six-month delay on the sale of recreational marijuana.

— The Daily Line (@thedailylinechi) December 18, 2019

Beale: "We need a piece of this. And if we don't get a piece of this, no one should get a piece of this."

— The Daily Line (@thedailylinechi) December 18, 2019

*** UPDATE 3 *** This debate is really over the top…

Nothing could be further from the truth. https://t.co/qwxWCqCgrF

— Emily Bittner (@emily_bittner) December 18, 2019

*** UPDATE 4 *** Sales will commence on January 1st…

Delay fails 29-19. So recreational weed sales set to commence Jan. 1.

— John Byrne (@_johnbyrne) December 18, 2019