*** UPDATED x1 *** Shimkus won’t run again
Friday, Aug 30, 2019 - Posted by Rich Miller
* KMOX with the exclusive…
Illinois GOP Rep. John Shimkus announced Friday on the Mark Reardon Show that he will not run for reelection in 2020.
In his 12th term right now, Shimkus was reelected in 2018 with more than 70% of the vote. He has represented Illinois’ 15th Congressional District since 2013, before that he was represented Illinois’ 19th Congressional District, since 2003.
Well, he finally term-limited himself. /s
Any idea who might run for that seat now?
…Adding… Scott Kennedy fills us in…
Sen. Jason Plummer has wanted that seat for a very long time.
…Adding… Keep an eye on retiring Sen. Dale Righter. Yes, he voted for the 2017 income tax hike, but he voted against the tax hikes to fund the capital bill this year. Why would he do that if he wasn’t running again and needed help for his district? Food for thought.
…Adding… From his Facebook page…
As Illinois candidates begin to circulate petitions next week, now is the time for me to announce that I will not be seeking re-election.
It has been the honor of my lifetime to be asked by the people of Illinois to represent them in our nation’s capitol. Each day I have tried to do this as best as I possibly could, and my success lies squarely at the feet of my incredible staff in Illinois and Washington, DC.
I will leave the political field knowing that I have served honorably and, with the help of many, accomplished a lot for my constituents, our state, and our nation.
Serving in Congress has been a blessing, but it has also been a sacrifice for my wife Karen, and our boys. Now young men, David, Joshua and Daniel continue to make me proud. I regret the times I have been away from the four of them and thank them for their constant love and support.
My family and I thank you for allowing us the honor to serve. Our dedication to our country, our state, our church, and our community will not waiver as we embark on the next chapter of life. God bless you, and God bless America.
*** UPDATE *** Not sure what to make of this…
Businessman Willie Wilson, who finished fourth in this year’s historically crowded race for Chicago mayor, said Friday he’s planning to run for the U.S. Senate next year.
Wilson, who’s been known for tapping into his personal wealth to help people pay their property taxes, said he’s going to run as an independent in hopes of unseating Illinois’ incumbent Democratic U.S. Sen. Dick Durbin in 2020.
“I’m still a Democrat and when I ran for president I still supported the Democratic Party, but this is the way to go,” Wilson told The Spin.
The 71-year-old Wilson has run for high-profile political offices before without success. He ran for Chicago mayor in 2015 and 2019, and got on the ballot in a handful of states when he ran for president in 2016.
Durbin received 53.5 percent of the vote in 2014.
…Adding… Press release…
Wilson will officially launch his campaign for United States Senator for the people of Illinois. Wilson is committed to making things better for ALL Illinoisans, but in particular minorities who feel lost and forgotten. “I am sick and I am tired of the same ol’ politicians like Senator Dick Durbin taking advantage of minorities, having not been fair and his record reflecting that… the same ol’ guard propping themselves up on the backs of minorities and selling them down the river. I MUST stand up for those who feel they do not matter or do not have a voice… for those who can’t seem to get a fair shake. His record shows he has taken the minority vote for granted and hasn’t put anything back of significance in the 20+ years he’s been a U.S. Senator. He hasn’t done nearly enough for prison reform and economic development in minority communities, but Durbin has supported sanctuary cities. Why hasn’t he given the same attention to the areas of prison reform and economic development as well as to Reparations for those of African American Descendants of Slaves? He has totally been unfair. The time has come that we all have equal access and be treated fairly, once and for all. And that is why I am running for United States Senator – to represent ALL people regardless of race, creed or color,” says a committed Willie Wilson.
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* At one point in her Sun-Times editorial board interview yesterday, Mayor Lori Lightfoot had this to say about her idea to create a progressive rate on the real estate transfer tax, for which she’ll need Statehouse approval…
Everybody pays the same amount regardless of the value of their home. We think that’s regressive and unfair. What we’d like to see is a progressive ramp that gives relief to homeowners at the lower end of the housing market value and make people upstream pay more of their fair share.
* But Lightfoot was also asked if she thought it was politically tough to get Downstaters on board for pension help for the city at the same time that the Democrats are trying to pass a progressive income tax…
We have to look at the entire eco-system of what’s happening. If we don’t get help from Springfield, we have limited options. And you know that one of those options is property taxes - a huge property tax given the size of the deficit for next year.
So we have to think about the timing of that. Right? We go first. Twice. This year, next year before the voters go to the polls to approve the Fair Tax. So we have to take the long view of what that’s going to mean. And I’m also mindful of the fact that in this state the vast majority of high net worth earners live in the city of Chicago.
We can’t keep taxing the hell out of all of our people who make substantial income. That’s not right. That’s not fair. It’s not gonna work.
What I think she’s trying to say here is that if upper-income folks get hit with two big property tax hikes between now and next November, they’re gonna rebel at the polls against the progressive income tax. OK, but they’re still a minority, including in the city, and Lightfoot herself is trying to impose her own progressive tax.
And that last little bit about the poor put-upon rich people was a big political mistake. You can probably bet a lot of money that this quote is gonna wind up in a TV ad against the Pritzker graduated income tax. And you can also bet that the legislators who voted to put that tax proposal on the ballot are not going to be pleased with the mayor.
[Hat tip: Rachel Hinton
*** UPDATE 1 *** Good questions by Tina…
A source close to the mayor worked quickly to walk back that statement, reasserting that Lightfoot supports a graduated income tax structure for the state. But is this Lightfoot’s power play? Get in the way of a plan the governor is spending millions on, so the city can get its needed casino and pension help?
The state-city power struggle came into full view during Lightfoot’s address, in which she tied the city’s woes to getting help from Springfield.
* Meanwhile, over at Crain’s Chicago Business…
Mayor Lori Lightfoot today declared “unsustainable” the 3 percent annual compound pension COLA many city workers and retirees have been promised—and hinted she would not object if further conversations occurred about amending the pension clause in the Illinois Constitution to allow change. […]
Not only labor unions but Gov. J.B. Pritzker oppose doing that, and Lightfoot—who in other settings has said workers should not have their benefits reduced—said today that “I’m not advocating for a constitutional amendment.” […]
But a few minutes later, Lightfoot said that even if such efforts succeed, the current COLA is “unsustainable.” Asked if she’d like the constitution to be amended, Lightfoot replied that, “I’d like to put as many options as possible on the table.”
In response to another question, Lightfoot said she did not mean to imply that other pension efforts short of amending the constitution were useless, but that in today’s economy, “3 percent compounded is a tough climb.”
Pick a lane, please.
*** UPDATE 2 *** Michael Crowley at the mayor’s office…
As the Mayor has repeatedly made clear, she believes that our pension obligations are not optional. This administration is committed to finding ways to shore up the sustainability of our pension funds – including the COLA. We must secure the retirement of our working people by partnering with our allies from the State to identify progressive revenue streams. Mayor Lightfoot remains opposed to a constitutional amendment on pensions.
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* The full speech is here. Press release…
Mayor Lori E. Lightfoot today addressed residents on the state of the City, the City’s finances and the projected 2020 budget deficit during a live primetime speech delivered at Harold Washington Library. In an unprecedented act of transparency before the official City budget address in October, the Mayor appeared before residents to provide an overview of the city’s current financial state, including: a historic $838 million gap projected for 2020, measures taken to date to address the City’s long-term and short-term financial obligations, and the work remaining to put Chicago on track for a balanced and sustainable financial future.
During the speech, Mayor Lightfoot outlined her vision for strengthening the City by building stronger and safer communities, expanding access to education and vital services, and creating opportunities for working families – starting first by working to create structural reforms within City government that will contribute to Chicago’s long-term financial stability. Importantly, her reforms strive to make Chicago work for working-class families and create a model of good governance. These reforms include: fines and fees reforms, passing the Fair Workweek and an Ethics ordinance, and ensuring that Chicago remains a welcoming City.
“Today I am shining a light on Chicago’s current financial conditions. I want residents to know the full extent of the City’s finances and the path we plan to take to address our long-standing fiscal challenges,” said Mayor Lightfoot. “The 2020 Corporate Fund budget shortfall will be $838 million. And while I recognize this is a steep hill to climb, I am committing to residents that, together, we will do the hard work of finding sustainable solutions that will lead our city to long-term financial stability.”
In the address, the Mayor outlined her administration’s efforts to identify over $100 million in savings and efficiencies over the first 100 days and the work that remains to balance next year’s budget. These efficiencies include the elimination of $1.4 billion in short term borrowing, a review of departmental use of overtime and absenteeism, and implementation of a citywide hiring freeze allowing the city to work with departments to identify additional efficiencies in the coming weeks.
The City has begun to make progress in addressing its costs for 2020 and beyond by implementing structural reforms that drive down costs and improve financial stability, including: a complete overhaul of the $100 million workers’ compensation program, which is expected to reduce claims costs and improve services for workers; release of a new healthcare RFP to revisit competitive costs for the $471 million-a-year program; changes to refinance old debt for better rates; and the creation of the first citywide enterprise risk management system, led by Chief Risk Officer Tamika Puckett, which will seek to cut down on the high cost of legal settlements.
And within weeks of taking office, Mayor Lightfoot secured legislative approvals to authorize a casino in Chicago, which would generate a dedicated revenue source to finance underfunded police and fire pensions. The administration is now committed to working with State legislators on the taxation structure to ensure a Chicago casino will represent a structural solution for long-term sustainability.
The 2020 budget forecast reveals that The Corporate Fund, or the City’s operating fund, represented more than $3.8 billion, or more than 34 percent of the City’s $10.67 billion budget in 2019. This forecast reveals that in 2020, the pension, personnel and healthcare costs that make up a significant part of the Corporate Fund expenses will comprise 70 percent of the budget shortfall, while debt and legal settlement costs make up an additional 22 percent of the structural deficit.
As part of the annual budgeting process, the City is utilizing a zero-based budgeting method, where departments formulate 2020 budget proposals to request funding for programs and services in support of their core mission. New investments will be balanced with department savings, reforms and operational efficiencies in an effort to streamline existing processes and uphold a high quality of services for residents across all neighborhoods.
* More…
…Adding… From her speech…
We are exploring revenue options to address rampant congestion that solves the problems of traffic, pollution and other issues, while simultaneously bringing in a fair source of funding.
And…
*** UPDATE *** Emily Bittner in the governor’s office…
The governor is committed to creating an environment in the state where all cities can thrive, because Illinois succeeds when its cities succeed. In the weeks ahead, as Chicago pursues assistance from the legislature, it will be important for the mayor to reach out to leaders and lawmakers across the state and across the aisle to build a coalition for her ideas. The governor looks forward to working with these stakeholders as the General Assembly weighs all these ideas carefully.
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* Breaking news from the Bond Buyer’s Illinois reporter…
Background on the legal action is here, here, here and here.
This post will be updated.
*** UPDATE 1 *** Emily Bittner in the governor’s office…
The administration is pleased that the judge repudiated this sham lawsuit brought on by the same far-right actors whose pathological desire to bankrupt the state brought us four years of devastation under Bruce Rauner.
*** UPDATE 2 *** Comptroller Susana A. Mendoza…
We’re very pleased that Judge Jack Davis did the right thing and threw out this completely frivolous ‘political stump speech’ of a lawsuit. Now that it is clear that Illinois Policy Institute CEO John Tillman and the Warlander hedge fund filed this phony lawsuit just to try to sabotage Illinois’ credit rating for personal financial gain and headlines, anyone who has supported the IPI in the past should rethink their support. Under the new leadership of Governor Pritzker and the steady resolve and financial stewardship of the Comptroller’s Office, the state of Illinois is fixing its finances and the bond rating agencies are recognizing this.
*** UPDATE 3 *** Annie Thompson at the attorney general’s office…
As we stated in our written submissions and oral argument, the plaintiffs waited nearly two decades after the first bonds were issued and billions of dollars were paid into the pension funds, and then waited several years after the second bonds were issued and payments were made on the backlog of bills owed to the state’s service providers and other vendors. The delay alone demonstrates that the petition was always without merit. We are pleased with the court’s decision to deny the plaintiffs leave to file a taxpayer action that, according to the court, “resembles far more of a political stump speech than it does a legal pleading” that “would result in an unjustified interference with the application of public funds.”
*** UPDATE 4 *** The full order is here.
*** UPDATE 5 *** John Tillman…
“I strongly disagree with the Court’s decision, will appeal and am confident that I will prevail. It was premature for the Court to decide the case on the merits at the petition stage. Moreover, I disagree with the court’s conclusion that whether general obligation bonds have a specific purpose is a purely political question. The Illinois Supreme Court has ruled that the judiciary is in fact required to determine whether a challenged purpose is specific or not, and has done so on other occasions.”
John Tillman took on the lawsuit as an independent individual and concerned citizen. It is not an organizational initiative of the Illinois Policy Institiute.
*** UPDATE 6 *** Ted Hampton, Vice President and Senior Credit Officer of Moody’s…
The judge’s ruling today denying a lawsuit that sought to invalidate some of Illinois’ general obligation debt is positive for the state and in line with our view that the plaintiffs’ argument lacked merit. However, an appeal by the plaintiffs could still complicate the state’s near-term debt issuance plans.
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Pritzker has hairline fracture
Thursday, Aug 29, 2019 - Posted by Rich Miller
* Sun-Times…
Sneed has learned Gov. J.B. Pritzker has a hairline fracture to his left femur.
The upshot: He is under doctor’s orders to rest and recover for the next four to six weeks.
Sneed is also told the governor, who does not know how the fracture occurred, is in “good spirits” and will find it difficult to take it easy. […]
His recovery will require some bedrest, but he plans to go into his office in Chicago. He won’t be going to Springfield anytime soon. The fall veto session is not until later this fall.
I’ve been hearing that he’s complained about a sore knee. It’s one reason he decided to ride and not walk in the Du Quoin State Fair parade. But he walked the entire length of the Illinois State Fair parade and walked all over the fairgrounds and did a bunch of public appearances which required him to stand. He must’ve been miserable.
Anyway, best of luck for a quick recovery. And, dude, obey your doctors.
…Adding… From the governor’s office…
* Governor Pritzker has a hairline fracture to his left femur, so under doctors’ orders, he will be resting and recovering for the next four to six weeks. Governor Pritzker is in good spirits and will be receiving frequent daily updates from his staff and agency heads, and he will be fully engaged in conducting the business of the state.
* Governor Pritzker received this injury some time ago, but it became significantly worse in recent weeks as he attended numerous public events where he stood or walked significant distances. This includes attending and walking around both state fairs.
* This won’t require surgery.
* The Governor is not certain what caused the injury, but he has been experiencing knee pain for several weeks.
* Aside from this injury, the Governor is in good physical health.
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*** LIVE COVERAGE ***
Thursday, Aug 29, 2019 - Posted by Rich Miller
* I had one issue after another this morning. I’m working to resolve everything and finish up the subscriber edition. In the meantime, follow along with ScribbleLive…
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* Press release…
Today, Congressman Bill Foster (D-IL) issued the following statement in support of the U.S. House of Representatives opening an impeachment inquiry of President Donald Trump:
“I take no pleasure in announcing my support for the House to begin an impeachment inquiry into the President of the United States.
“I have wrestled with this decision over the past several months as I’ve listened to my constituents and reviewed the evidence presented by Special Counsel Robert Mueller, including his direct testimony to Congress.
“On the Financial Services Committee, on which I serve, I have seen President Trump attempt to block legitimate Congressional investigations into the role of foreign money in transactions by the Trump Organization, Deutsche Bank, and others.
“I have watched with horror as President Trump has perpetrated an assault on American values. In word and deed, President Trump has demonstrated an utter disregard for the rule of law and the fundamental principles that make up the foundation of our democracy.
“The Mueller report details several occasions – at least ten – where President Trump took actions to obstruct the Special Counsel’s investigation into Russian interference in our 2016 elections.
“Our Constitution vests Congress with the unique obligation to perform oversight of the federal government, including of the President and his administration. Under our system of checks and balances, no person – not even the President – should be above the law or immune from facing the consequences of their actions.”
* Sun-Times…
Foster is the 11th member of the Illinois congressional delegation to announce explicit support for an impeachment inquiry; the state sends 13 Democrats and five Republicans to the House.
The two other Illinois Democrats in the House, Reps. Cheri Bustos and Dan Lipinski, are following more closely the lead of House Speaker Nancy Pelosi and have more cautious positions, with a bottom line for both that they back the Trump-related investigations being conducted by five committees, including the House Judiciary panel.
House Judiciary Committee Chairman Jerrold Nadler, D-N.Y., is pursuing an investigation “into obstruction, corruption and abuse of power by Trump and his associates” in order to “determine whether to recommend articles of impeachment against the President.”
* Greg Hinz…
That leaves Lipinski, who in a separate statement said he’s standing with House Speaker Nancy Pelosi. “We don’t need and should not have an official ‘impeachment inquiry’ vote in the House at this time, I have been and continue to be in support of the investigative work that is being done in the House committees.”
Added Lipinski, “Right now, I think the best way to remove President Trump from office is voting him out in the 2020 election. This may change as the work of House committees continue, but if the House impeached the president now, it could backfire because the president would be able to say that he was persecuted by the Democratic House but exonerated by the Senate.”
I’ve asked the Marie Newman campaign for comment.
*** UPDATE *** Marie Newman…
I believe there is ample justification for an impeachment inquiry and I think that voters in my district are looking for a leader who will, at all costs, defend and uphold the Constitution. It’s unfortunate to see Dan Lipinski standing apart from other Democrats while President Trump continues to abuse power and exhibit blatant disregard for the Constitution. An official impeachment inquiry will bolster ongoing investigations in the House and make it clear to President Trump and his administration that no one is above the law.
Also, here’s another Dem candidate, Abe Matthew…
Congress must open an impeachment inquiry based on the actions of President Trump, as set forth in the Mueller Report. It is precisely the role of Congress to act as fact-finder in determining what role the President Trump played in Russia’s 2016 interference in our elections and to what extent the President obstructed justice in the ensuing investigation.
Our democracy can multi-task. Congress can conduct hearings related to an impeachment inquiry while we the people work to put a Democrat back in the White House. The people elected their members of Congress on the assumption that those members would be able to handle the wide array of issues facing our nation. Regardless of an impeachment inquiry’s ultimate result, it is imperative that Congress fulfills it’s obligation to investigate and give the American people some finality to this dark chapter in our nation’s history.
Rush Darwish…
“It’s no surprise that Dan Lipinski stands apart from 11 Democratic colleagues from Illinois and refuses to support opening impeachment proceedings against Donald Trump. Dan Lipinski has stood firmly in support of components of Donald Trump’s racist and backward agenda when it comes to healthcare, women’s rights, and immigration. Leadership is about taking a stand with courage, doing the right thing - not playing it politically safe with an upcoming election. This silence from Lipinski is just another example of why we need to elect more bold, independent Democrats like who will fight Trump and not bow to party leadership on either side.”
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* Las Vegas Advisor last month…
JP Morgan‘s Daniel Politzer expects Churchill Downs to be a winner thrice over in Illinois: first, a lower tax rate on table games, starting in 2020; second, a potential 800 additional gaming positions at Rivers Casino Des Plaines (which will probably require physical expansion: it’s pretty packed in there); third, slots at Arlington Park, though Politzer thinks Churchill Downs may sell the latter now its real estate is more valuable, among several other options: “we could envision a scenario whereby CHDN would opt to sell its 336 acres of land at Arlington Park, utilize a 1031 exchange to limit tax leakage, and pursue an additional casino license in Illinois (potentially with Rush Street Gaming/Neil Bluhm; the Waukegan license seems most logical, in our view …).”
Since Arlington and Rivers are only 15 minutes apart, Churchill Downs might look askance at the obvious cannibalization. Arlington’s capacity will also be capped at 1,200 gaming positions, unlike Waukegan. Rivers can also absorb a nearby competitor, as its per-position numbers are out of sight, the most impressive I’ve ever seen in gaming: $800/win/slot/day and $7,300/win/table/day. Politzer estimates that the tax cut will translate into $45 million extra a year in cash flow, too. Churchill Downs bought 61% of Rivers at a well-above-average 11.25X cash flow, but one easily see why it was worth it. With the tax cut, that multiple goes down to 8.3X, closer to industry average. That number could go yet lower still if Rivers maxes out its gaming positions.
As for competition from the 4,000-position mega-casino in Chicago, “We acknowledge concern that a Chicago casino could be a negative for Rivers/Waukegan, but see potential for the political stars to once again align and the casino (if even feasible at the proposed 67% tax rate) being located on Chicago’s south side.”
* Crain’s last month…
With the looming super-saturation of the Chicago-area casino business, one theory is that Churchill Downs will opt to focus on its Rivers Casino stake, a pure-play gambling option, and one that comes with Rivers co-founder and Chicago real estate magnate Neil Bluhm, whom Carstanjen, 51, has said he values for his local political savvy.
“Local political savvy.”
Just the other day, Churchill Downs and Neil Bluhm’s Rush Street Gaming, put in a bid to jointly operate Waukegan’s casino.
* Today in Crain’s…
The owner of Arlington International Racecourse is threatening to close the storied horse track despite winning long-sought authority to add gambling options there.
Louisville-based Churchill Downs blames prohibitive tax rates that would penalize it relative to competing Chicago-area casinos, it said.
* The proximity to Bluhm’s Rivers Casino is clearly an issue, however. From the company’s press release…
All options will be considered, including moving the racing license to another community in the Chicagoland area or elsewhere in the state.
* Churchill Downs’ CEO did complain about taxes in the press release, but that was about the new state-mandated payments to horsemen…
Arlington would enter this market with an effective tax rate that would be approximately 17.5% - 20% higher than the existing Chicagoland casinos due to contributions to the Thoroughbred purse account.
* The Illinois Thoroughbred Horsemen’s Association was not amused…
We are stunned and profoundly disappointed by Churchill Downs’ decision not to pursue supplemental gaming at Arlington Park in order to do its part to grow jobs and economic opportunity for thousands of Illinois men and women both at the track and throughout the state’s agribusiness community.
For more than a decade, Arlington has lobbied Illinois governors and legislators for permission to offer casino-style games as a means to boost revenue at the track and generate funds to significantly improve the quality of horsemen’s purses. Indeed, Arlington in recent years elevated its lobbying push by insisting that the track be granted the authority to offer table games – in addition to slots – to ensure its racino would be economically feasible.
Yet now that it is finally poised to operate both slots and table games, as a direct result of the gaming law recently approved, Arlington’s parent Churchill Downs has, astoundingly, declined to apply for the license necessary to operate a racino. The company evidently plans to instead abandon its commitment to racing in Illinois and focus solely on its stake in the Rivers Casino and potentially other Illinois casinos not yet developed. Churchill has snubbed not only the working men and women of thoroughbred horse racing whose collective livelihood depends on live racing, but also all of the elected officials it has so intensely lobbied over the last decade.
As a consequence of its abrupt change in course to the detriment of this state and its taxpayers, Churchill immediately should be denied the enormous financial advantages it enjoys by virtue of its now-annulled commitment to Illinois racing. Those include Arlington’s considerable property tax break ($2.47 million this year), the track’s recapture subsidy ($4.47 million in 2019 alone, straight from horsemen’s purses), and the chance to apply for a sports betting license linked to Arlington (a form of gaming that will do nothing to benefit purses).
In clear contrast, Hawthorne Race Course has applied for its racino license and has, moreover, made clear its plan to maximize the benefit of that license for thoroughbred racing.
* More…
CDI’s decision not to move ahead at Arlington triggers another portion of the new law relating to the number of “gaming positions” allowed at each racino.
The law states: “Each applicant for an organization gaming license shall specify in its application for licensure the number of gaming positions it will operate, up to the applicable limitation … Any unreserved gaming positions that are not specified shall be forfeited and retained by the [Illinois Gaming Board].”
The board then is required to “allocate expeditiously the unreserved gaming positions to requesting organization gaming licensees in a manner that maximizes revenue to the State.”
Churchill Downs wants to protect Rivers, but slots at Arlington would threaten Rivers. So, it complains about taxation, blames the horsemen and hints that it will move the track elsewhere. And Rivers could wind up with even more gaming positions in the process.
…Adding… The Mayor is correct…
Arlington Heights Mayor Tom Hayes said he interprets the announcement as a corporate decision about Churchill Downs’ unwillingness to compete with its gambling operations at River Casino in Des Plaines.
That company should probably be broken up.
*** UPDATE *** Emily Bittner in the governor’s office…
This represents a significant reversal from the years and years of race track owners seeking additional ways to generate revenue to keep their operations working. In fact, the gaming legislation provides several opportunities for significant additional revenues, including table games and slots. Just as importantly, the legislation allows the racing industry to flourish instead of facing more years of decline. Just to be clear: actions taken around gaming will be done to benefit the people of Illinois, not solely for the bottom line of individual operators.
My question was: Should the Illinois Gaming Board break up the Churchill Downs/Rivers partnership? Not exactly an answer.
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*** UPDATED x1 *** Let’s get it together, please
Wednesday, Aug 28, 2019 - Posted by Rich Miller
* Molly Parker…
The law allows current medical cannabis dispensary operators to seek a license to sell recreational marijuana, so long as they continue to provide products for medical use. The idea in allowing the medical marijuana dispensaries the ability to also sell recreational marijuana was to ensure the state has at least a minimum number of facilities open and operating on Jan. 1.
But some medical dispensaries may need to change locations. That could mean moving down the block where parking is better, or to another city entirely, if the one where the operator is presently located decides to prohibit recreational sales.
The law allows municipalities the ability to opt out, as well as implement zoning requirements, much like with liquor stores. Yet the state’s regulatory agency recently informed medical dispensary operators that if they move locations, they forgo their ability to receive a license for adult use recreational sales.
This narrow interpretation of the law runs counter to lawmakers’ intent, according to a letter from two of the bill’s sponsors sent to Pritzker late last week. It also represents an about-face by the Illinois Department of Financial and Professional Regulation, which issues the licenses.
What the what?
* There are other worries…
Advocates are concerned that the state has not yet set up a funding program meant to make it easier for those with marijuana-related arrests on their records to start businesses in the industry. The application process for 75 new dispensaries opens Oct. 1, and time is running out, they say.
The applications will be the first path into the industry for entrepreneurs who don’t already operate a marijuana facility, and those applicants could face stumbling blocks if there isn’t clarity on the promised financial aid.
“People are … working on their plans, they’re working on their locations, they’re working on what they can work on, but they don’t know how much money they have to spend,” said Edie Moore, executive director of Chicago NORML, a marijuana reform nonprofit that has been working with people preparing to apply for licenses.
The state’s Department of Commerce and Economic Opportunity is charged with establishing the grant and loan program. Spokeswoman Charity Greene said it will issue details on the program, including loan and grant sizes, by the time the state begins accepting applications.
*** UPDATE *** From the governor’s office…
August 27, 2019
Senator Steans and Representative Cassidy:
Thank you for sharing your concerns about the Department of Financial and Professional Regulation’s implementation of certain provisions of the Cannabis Regulation and Tax Act. Your dedication to this issue and leadership during the legislative session led to the most equity-centric law in the nation to legalize adult-use cannabis. Now through implementation, I am confident that we can build a safe, successful and equitable adult-use cannabis market.
The early access to market for existing medical dispensaries was intended to ensure that the State has a minimum number of facilities open and operating on January 1, 2020, and to allow the State to use funding from those early facilities to build a fund for social equity programs. Keeping equity in mind, however, the Act was also designed to balance this early growth for existing medical dispensaries with our commitment to bringing in new applicants through the social equity program.
With an understanding of the existing medical dispensaries’ current capacities, we struck that balance by providing the opportunity for existing medical dispensaries to open two adult use dispensaries before any new businesses can enter the market: one at their current medical dispensary and one at a different location. The language of the bill distinguishes between these two dispensaries. The statute specifically provides that the first is to be opened at “any medical cannabis dispensing location in operation on the effective date,” Section 15-15(a), and the second may be opened at “a secondary site…within any BLS region that shares territory with the dispensing organization district to which the medical cannabis dispensing organization is assigned,” Section 15-20(b).
This language allows for early expansion by the existing medical dispensaries but, importantly, seeks to ensure that they do not completely dominate the new market before new dispensaries can enter the market in July 2020. Any implementation of the early approval program by the Department of Financial and Professional Regulation must maintain this balance between early growth and social equity that was written into the law.
I appreciate the concerns that you and the medical cannabis industry have raised regarding medical dispensaries in operation on the effective date located in municipalities that ultimately opt out of adult-use cannabis or that impose zoning restrictions that prevent adult-use sales at the current medical dispensary sites. Medical dispensaries in such a situation are still permitted early access to the new adult-use market by opening a secondary site under the Act while continuing to operate their existing medical dispensary. At this time, the Department does not know how many medical dispensaries will not have the opportunity to operate at their current sites as many municipalities are still considering how to proceed. The Department will continue to monitor the situation to assess and my office is more than willing to discuss potential solutions with you when we have a better understanding of the scope of the problem.
We value your input as we work through implementation of this historic legislation and we look forward to continuing this conversation about how to ensure success for all aspects of this new industry.
Sincerely,
JB Pritzker
* And there’s this…
Hope Smith said her 19-year-old daughter uses medical cannabis to alleviate a qualifying medical condition. She said her daughter was able to get more precise doses of the medicine by vaping or smoking it as opposed to other cannabis products.
After the governor signed the medical cannabis expansion measure making the pilot program permanent and adding conditions, Smith said she was told by her dispensary that the updated law no longer allows the sale of smokable products to adults younger than 21.
Smith said that needs to change for her daughter’s sake.
“The medical marijuana and dispensaries, and the diseases, for people that are able to buy it and are able to get the right medicine, I don’t want my child to turn to buying flower or vape on the street, I don’t want her to use an opioid,” Smith said. “Because those are unsafe.”
State Rep. Bob Morgan, D-Deerfield, sponsored the medical cannabis expansion measure the governor signed.
“There was a good intention behind [the change aligning with Tobacco 21] … but as with anything, there are unintended consequences with new legislation and I think this is a great example of the potential harm that can happen to individuals when you start to conflate different topics,” Morgan said.
* But check this out…
Former Chicago Ald. Ameya Pawar wants to get into the cannabis business with a restaurant entrepreneur, a doctor and a political consultant. They’re angling for one of the 75 new licenses to operate a retail dispensary in Chicago once recreational use of marijuana becomes legal next year.
Pawar and his partners, including political consultant and fundraiser Hanah Jubeh, have come up with an over-the-top plan that combines elements of dining, spa and medicine with marijuana sales.
“We’re focused on total wellness,” says Pawar, a former 47th Ward alderman who briefly ran for governor in 2017 and then lost the city treasurer race in April. “It’s going to be a place where you could get a massage or take a yoga class, get a bite to eat and stop at the dispensary on your way out.”
* More…
Additional partners to join Pawar and Weiner include:
* Dr. George Chiampas, an emergency room doctor and medical director of the Chicago Marathon
* Nikki Hayes, president of Laborers International Union of North America, Local 1001
* Hanah Jubeh, a political consultant and fundraiser. […]
Pawar told Crain’s he plans to apply for social equity applicant status and aims to hire more than 50 percent of his staffers from areas affected by the war on drugs.
44 Comments
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New laws
Wednesday, Aug 28, 2019 - Posted by Rich Miller
* Almost exactly four years ago…
It’s a time-honored tradition for Illinois governors to invite lawmakers, journalists and members of the public to ceremonial bill signings, an easy way for the chief executive to take credit for accomplishments and create a sense that he’s getting things done. Rauner has signed more than 400 bills into law since he took office in January. He has held zero public signing ceremonies.
Asked why that’s the case, Rauner spokesman Lance Trover did not directly answer the question but did say the “work of the General Assembly is not done.”
The governor’s allies in the General Assembly put a finer point on it: The stalemate has set up a situation where Rauner has tried to keep the focus on his agenda and the pressure on Democrats to pass it. Highlighting the achievements of others would detract from that effort.
“Bill signings are ceremonial, and they’re meant to be almost like victory laps,” said House Republican leader Jim Durkin of Western Springs. “I don’t see any reason why anybody would be celebrating what has happened in Springfield until we get a budget done.”
And that refusal to celebrate any victory - small or large - continued almost unabated for years. He refused to take a win on just about anything until he had to declare defeat last November.
* Capitol News Illinois today…
Democratic Gov. J.B. Pritzker on Tuesday signed the final three bills of the 599 sent to him by the Illinois General Assembly during the spring legislative session.
Per the final tally, Pritzker signed 591 of the bills into law, while vetoing seven and sending one back to the General Assembly with an amendatory veto. The General Assembly will return in late October and early November to discuss new legislation and consider overriding any of the vetoes.
Among the final measures signed by the governor this week was the Home Energy Affordability and Transparency Act, which aims to provide greater regulation on alternative energy providers, many of whom go door to door locking customers into high energy rates.
Unlike Rauner, Pritzker has held numerous bill signing events. There have been exceptions, however. He didn’t have any sort of event when he signed Leader Durkin’s Sterigenics-related bill into law, for instance.
…Adding… Pritzker deputy press secretary…
* Related…
* CUB Statement On Gov. Pritzker Signing HEAT Act
* Public companies in Illinois will soon have to disclose racial, gender makeup of corporate boards
* IL bars and restaurants can now fill growlers and crowlers: A growler is a 64 ounce resealable jug, a crowler is a 32 ounce can that breweries use to serve to-go beer .
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