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Sun-Times: Feds also probing red-light cam company

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Robert Herguth, Mark Brown and Jon Seidel at the Sun-Times

Federal agents who blitzed several southwest suburban towns last week were asking questions about a politically connected red-light camera company, the Chicago Sun-Times has learned. […]

As part of the wide-ranging investigation, the feds executed search warrants at the village halls of McCook and Lyons last week as well as the insurance agency office of Lyons Mayor Chris Getty. The feds also interviewed the mayors of Summit and Crestwood, which has not been previously reported.

SafeSpeed’s CEO is Nikki Zollar, a former high-ranking state government official. One of the company’s paid consultants is Patrick Doherty, who is the chief of staff to Cook County Commissioner Jeff Tobolski. Tobolski doubles as the mayor of McCook. […]

The feds interviewed Summit Mayor Sergio Rodriguez about SafeSpeed last week, sources said. Summit has an arrangement with the company to operate two red-light cameras at a single intersection in town. Rodriguez did not return phone messages seeking comment.

Go read it all.

  12 Comments      


Feds searched for evidence in Sandoval’s office of “Interference with commerce by threats or violence”

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* If you look at the federal warrant served on Sen. Martin Sandoval’s Statehouse office last week, you’ll see they were looking for: “Evidence and instrumentalities concerning violation of Title 18, United States Code.”

Here’s the list of the sections the feds listed in the warrant with a brief explanation of each one from the US Department of Justice and other sources. Click the individual section links for more info

* 371 - The operative language is the so-called “defraud clause,” that prohibits conspiracies to defraud the United States. This clause creates a separate offense from the “offense clause” in Section 371. Both offenses require the traditional elements of Section 371 conspiracy, including an illegal agreement, criminal intent, and proof of an overt act.

* 666 - Section 666(b) requires that the organization, government or agency must have received, in any one year period, “benefits in excess of $10,000 under a Federal program involving a grant, contract, subsidy, loan, guarantee, insurance, or other form of Federal assistance.”

* 1341 - Mail fraud.

* 1343 - Wire fraud

* 1346 - Definition of “scheme or artifice to defraud”

* 1349 - “Any person who attempts or conspires to commit any offense under this chapter shall be subject to the same penalties as those prescribed for the offense, the commission of which was the object of the attempt or conspiracy.”

* 1951 - Interference with commerce by threats or violence

That last one is pretty chilling.

  17 Comments      


*** UPDATED x1 *** Redacted Sandoval search warrant released

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Sun-Times

A search warrant executed on State Sen. Martin Sandoval’s Capitol office last week shows federal authorities were looking into “items related to any official action taken in exchange for a benefit.”

Items included those related to five unnamed Illinois Department of Transportation employees, a highway company, several unnamed lobbyists, “any business owned and controlled by Martin Sandoval,” several municipalities and a political organization, among other entities. Names were redacted by state officials after the Sun-Times filed a Freedom of Information Act request last week to the office of the Illinois Senate Democrats.

Officials obtained several items from Sandoval’s office, including several iPhones, a laptop computer and an Apple computer, as well as a “Friends of Martin Sandoval” spreadsheet from December 2017, filed labeled “IDOT,” USB drives and shredded paper. They also seized a statement of economic and documents referencing the town of Cicero. Sandoval has had a lucrative contract for years with the town to provide translation services for the town newsletter.

* This is one gigantic probe…


* I transcribed the search warrant because it’s pretty interesting

1. Items related to [redacted] [redacted] [redacted] [redacted] [redacted] [redacted] Official A, [redacted] Official B, any business or partner related to any of those individuals, [redacted] Inc., [redacted] Official A’s company, [redacted] any employee, officer or representative of [redacted] [redacted] a [redacted] lounge, and/or any issue or supported by any of those businesses or individuals, including but not limited to [redacted] [redacted] .

2. Items related to [redacted] Lobbyist A, and or Lobbyist B.

3. Items related to [redacted] Inc., [redacted] Inc., any business owned or controlled by Martin Sandoval, any client of such business, any person or entity that has made payment to or agreed to make payment to any such business, any official action related to such businesses, Municipality 7 Attorney, Municipality 7 President, Municipality 7 President’s Political Organization, Municipality 7 Attorney’s law firm, and/or Political Action Committee 1.

4. Items related to [redacted] [redacted] [redacted] [redacted] [redacted] and/or Concrete Company A.

5. Items related to [redacted], [redacted], any employee officer, partner, representative, or business related to either of those individuals, [redacted] [redacted] Inc. [redacted], any employee officer, partner or representative of those businesses, [redacted] and/or any issue or supported by any of those businesses or individuals, including but not limited to [redacted].

6. Items related to [redacted], any employee officer, partner, representative, or business related to [redacted] [redacted] [redacted] LLC [redacted] Corporation, any employee, officer or representative of any of those businesses, and/or any issue or supported by any of those businesses or individuals.

7. Items related to Construction Company A Official 1, Highway Company A Official 1, Highway Company A Official 2, any employee, officer, partner, representative, or business related to either of those individuals, Construction Company A, Highway Company A, any employee, officer or representative of any of those businesses, and/or any issue or supported by any of those businesses or individuals.

8. Items related to [redacted], [redacted], [redacted] [redacted] [redacted] [redacted], [redacted] Associate A, [redacted] Associate B, [redacted] Associate C, any employee officer, partner or representative of those businesses related to any of those individuals, [redacted] Corporation, [redacted][redacted] LLC, [redacted] Corporation, [redacted] [redacted] [redacted] Inc., [redacted] Club, the [redacted] [redacted] Foundation, [redacted] Corporation, [redacted] Companies, [redacted] Ltd., [redacted][redacted] Associate A’s Company, any employee, officer or representative of any of those businesses, and/or any issue or supported by any of those businesses or individuals, including but not limited to [redacted].

9. Items related to [redacted] [redacted] any employee, officer or representative of any of those businesses, [redacted] Official A, [redacted] Official B, [redacted] Official C, [redacted] Official D, and/or any issue or supported by any of those businesses or individuals, including but not limited to [redacted].

10. Items related to IDOT Official A, IDOT Official B, IDOT Official D, IDOT Official E, and/or IDOT Official F.

11. Items related to any official action taken in exchange for a benefit.

Whew.

Wonder what the dealio is with IDOT Official C.

…Adding… Here’s the list of seized items

He had five mobile phones in his office?

*** UPDATE *** Jordan Abudayyeh at the Governor’s office…

This administration expects public servants to be held to the highest ethical standards, and it is unconscionable to use elected office for monetary gain in any way. State agencies will fully cooperate with any investigation. Corruption and self-dealing will not be tolerated, and employees who have fallen short of these ethical standards will be disciplined, up to and including termination, and should be held accountable to the fullest extent of the law.

  36 Comments      


Will County will be a hotbed of political activity next year

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Kankakee Daily Journal

Kankakee Mayor Chasity Wells-Armstrong is passing up the opportunity to apply for the soon-to-be-vacant Senate seat held by Democrat Toi Hutchinson.

Meanwhile, state Rep. Anthony DeLuca says he is interested in the position.

By state law, Democratic Party leaders in Hutchinson’s 40th District get to choose her replacement. She announced last week she was resigning to take a state job.

…Adding… Great point by Hannah…


Out of about 71 thousand votes Hutchinson received in 2016, Will County provided a not inconsequential 17 thousand of them.

* Man, there will be a lot of races in Will County next year, both in the primary and the general. Here’s Ted Slowik at the Daily Southtown

Former state Sen. Larry Walsh Sr., 71, a Democrat from Elwood, announced in August that he would not seek a fifth term as Will County executive. Walsh, who first won the countywide office in 2004, said he plans to serve out his term. Walsh, who was diagnosed with prostate cancer in 2014, has said he plans to focus on his health. […]

On the Democratic side, Walsh supports Nick Palmer, of Joliet, his longtime chief of staff. Palmer faces a primary challenge from 49th District state Sen. Jennifer Bertino-Tarrant, of Shorewood.

Three Republicans and a Democrat are already vying to replace Margo McDermed, of Mokena, as state representative for the 37th District. McDermed, 69, who was first elected to the seat in 2014, announced in July she would not seek another term. The district covers parts of Frankfort, Homer Glen, Joliet, Lockport, Mokena, New Lenox, Orland Park and Tinley Park. […]

Also last week, Democrat Pat McGuire, of Joliet, announced he would not seek reelection as state senator representing the 43rd District. McGuire previously served as Will County treasurer and on the Joliet Township High School District Board of Education.

So, that’s Hutchinson, the elder Walsh, Bertino-Tarant, McDermed and McGuire. Sen. Sue Rezin is running for Congress, so if she wins that seat will open up (and while the congressional race will mainly be focused elsewhere, Will County will still be important). And Rep. Grant Wehrli (R-Naperville) could find himself in the general election fight of his life next year (about 15 thousand total votes were cast in the Will County portion last year). There were less than 2,000 votes in freshman Rep. Anne M. Stava-Murray’s district within Will County last year, but every vote will matter in that district next year.

…Adding… I forgot to mention that people are lining up to run against GOP Rep. Mark Batinick as well, including Plainfield Trustee and ironworker Harry Benton. There were about 35 thousand votes cast in the Will County part of the district last year. And, of course, Rep. John Connor is running for Sen. McGuire’s seat, which opens up that House district.

  6 Comments      


Question of the day

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Four more reasons why this state needed a capital bill…


* The Question: What are the problematic state roads/bridges/etc. in your area that urgently need repair?

  30 Comments      


New laws

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Tribune

Illinois companies can no longer ask job applicants or their previous employers about their pay history under a law that took effect Sunday. Supporters say the measure will help close the pay gap between women and men.

Sarah Labadie, associate director of policy for Women Employed, a nonprofit advocating for equal pay for women in the workforce, said the main goal of the law is to restructure how companies pay their workers so that pay discrepancies aren’t perpetuated.

Rep. Anna Moeller, D-Elgin, who co-sponsored the legislation signed by Gov. J.B. Pritzker, said she hopes the new law will even the playing field.

“Women tend to make less than their male counterparts. If (a company is) basing it off past wages, it causes them to continue to get paid less. Employers will no longer be able to make wage offers by using previous wage history,” Moeller said.

The paper goes on to detail the new law.

* Progressive Railroading

Indiana Rail Road Co., the Association of American Railroads and the American Short Line and Regional Railroad Association have asked a federal judge to stop Illinois from enforcing a new law that requires a minimum of two crew members on trains.

In a lawsuit filed in Chicago federal court yesterday against the Illinois Commerce Commission, the railroad and associations argue that federal regulations preempt the crew-size law that Illinois Gov. J. B. Pritzker signed in August. The law is set to take effect Jan. 1, 2020.

Pritzker signed the law three months after the Federal Railroad Administration (FRA) determined that “no regulation of train-crew staffing is necessary or appropriate” for railroads to operate safely, according to the lawsuit.

“In recent decades, technological breakthroughs have allowed railroads to gradually decrease average crew sizes —from about five in the 1960s to just two today — while compiling an ever-improving record of safety,” the court filing states. “Now, the nation’s railroads are poised to deliver even safer and more efficient service.”

The lawsuit is here.

* Rep. Jeff Keicher (R-Sycamore)

Every October is Breast Cancer Awareness Month across the nation, but this year especially, we have reason to take notice of this cause here in our own community. Local breast cancer screening rates have fallen below the state and national average. DeKalb County’s breast cancer screening rate is 65%. The statewide average is 78%, according to data from the Centers for Disease Control and Prevention.

My family, like so many others in our community, has been impacted by women battling breast cancer. As a husband and father of a college age daughter, women’s health issues are a kitchen table issue in my house, just as I’m sure it is in homes across the State of Illinois. To help make a difference, I sponsored a bill this spring to broaden the availability of mammogram screening, SB 162.

On August 26, Governor Pritzker came to DeKalb to sign my bill into law at Northwestern Medicine Kishwaukee Hospital, which just last week celebrated the opening of their new Breast Health Center. Our new law requires both private insurance and Medicaid to cover several preventative measures to help women detect breast cancer. Mammograms, ultrasounds and MRIs will now be covered when deemed medically necessary by a physician, advanced practice nurse or physician assistant, effective January 1, 2020.

According to the Illinois Department of Public Health, upwards of ten thousand women in Illinois are diagnosed with breast cancer each year. With the new law increasing access to preventative care, early detection and treatment can help save lives.

My bill, which is now Public Act 101-0580, passed both the House of Representatives and State Senate unanimously this spring, making it a bipartisan achievement we can all be proud of. I would like to thank the breast cancer survivors and advocates whose support was pivotal in getting this new law passed. Together we will continue to make major strides to prevent breast cancer and ensure that women have access to the screenings and life-saving care they need.

  24 Comments      


It’s just a bill

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Center Square

After California did so, Illinois lawmakers are now racing each other to get legislation to Gov. J.B. Pritzker to allow college athletes to be paid for their name, image, and likeness, something the NCAA has long prohibited. […]

In just five days, two bills have been filed in the Illinois House of Representatives that would do the same in Illinois.

Wow. Two bills. Quite the race.

* Capitol News Illinois

Rep. Daniel Didech, from Buffalo Grove, proposed legislation Thursday that would prohibit the state from requiring staff to travel to states with laws effectively banning abortion or requiring investigations into the cause of a miscarriage. It would also bar the government from reimbursing an employee for travel to one of those states.

In the first six months of 2019, 12 states passed some form of a law restricting access to abortion. Those states surround Illinois to the east and southwest, and cut a swath south to the Gulf of Mexico. They include neighboring Indiana, Missouri and Kentucky.

“What these other states are doing is, to me, very dangerous. To a large extent, yes, abortion is a big part of it, but it’s not entirely about abortion,” Didech said. “As a member of the Legislature, I have the responsibility to protect our state employees.”

State government staffers travel for a number of reasons, including conferences, litigation and training as required by a grant or license. The bill includes exclusions to allow for some of those trips to continue in extenuating circumstances.

The bill is here.

  7 Comments      


For all its many faults, Illinois did do something right

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Kaiser Health News

Patricia Powers went a few years without health insurance and was unable to afford regular doctor visits. So the Missouri resident, who lives near St. Louis, had no idea that cancerous tumors were silently growing in both of her breasts.

If Powers lived just across the Mississippi River in neighboring Illinois, she would have qualified for Medicaid, the federal-state health insurance program for low-income residents that 36 states and the District of Columbia decided to expand under the Affordable Care Act. But Missouri politicians chose not to expand it — a decision some groups are trying to reverse by getting signatures to put the option on the 2020 ballot.

Powers’ predicament reflects an odd twist in the way the health care law has played out: State borders have become arbitrary dividing lines between Medicaid’s haves and have-nots, with Americans in similar financial straits facing vastly different health care fortunes. This affects everything from whether diseases are caught early to whether people can stay well enough to work. […]

A recent University of Michigan study found Medicaid expansion substantially reduced mortality rates from 2014 to 2017. The researchers said Illinois averted 345 deaths annually while Missouri had 194 additional deaths each year. The same trends held for other side-by-side states such as Kentucky (did expand) and Tennessee (did not), New Mexico (did) and Texas (did not).

And it’s not just the averted deaths. It’s also the averted debilitating impacts of untreated or partially treated illnesses and injuries and the crushing debts which often lead to bankruptcies and the inability to work or be productive citizens

In neighboring Illinois, getting Medicaid through the expansion helped Matt Bednarowicz avoid debilitating medical debt after a motorcycle crash.

The wreck crushed his left foot, requiring doctors to insert pins. Without Medicaid, he would have faced thousands of dollars in medical bills.

“The debt would have been greater than I could comprehend overcoming,” says Bednarowicz, who is now 29.

His Medicaid kicked in “just in the nick of time” to cover the surgery, Bednarowicz says. It also allowed him to get psychiatric help for depression. More than a year later, he’s able to get around well — even jog — and works as a caregiver for an elderly man.

Having insurance helps people like Bednarowicz stay productive, says Riopedre.

  21 Comments      


Anecdotes vs. data

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Chicago Tribune editorial

Homebuilder Jerry James, president of Glenview-based Edward R. James Partners, doesn’t need to study statistics to grasp the sluggishness of the local housing market. He lives it. “This is the toughest I’ve seen it, and I’ve been in the business since 1985,” James says.

Catering to empty nesters, James sees the investment losses homeowners are experiencing when they downsize. Why is it happening? “Increasing taxes on property as a result of the pension situation is it in a nutshell. People’s homes aren’t appreciating, and tax bills are going up. It’s a bad combination that doesn’t feel good to anybody.”

Stagnant and depreciating home values throughout Illinois have become an offshoot of what we’ve been calling the “Illinois Exodus.” Last year’s estimated net reduction of residents hit 45,116, the worst of five straight years of population decline.

* Chicago Civic Federation

The full market value of real estate in Cook County was approximately $585.8 billion in tax assessment year 2017. Tax year 2017 is the most recent year for which data are available. The 2017 total value estimate represents an increase of $26.1 billion, or 4.7%, from the 2016 estimated full value. … The 2017 estimates represent the fifth year in a row in which real estate values in Cook County increased after six straight years of decline. […]

Readers should note that the trends identified in this report do not necessarily apply to individual properties. This is because: 1) they are estimates; and 2) they reflect medians, which by their nature do not represent the individual experience of every property.

  56 Comments      


Flash Index rises partly on annualized 10 percent growth in state income tax receipts

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* From the U of I’s Institute of Government and Public Affairs

The University of Illinois Flash Index registered an unexpected gain to 105.5 in September from its 105.1 level in August.

“Despite numerous reports of slowing U. S. and global economies, Illinois appears to be doing well,” said University of Illinois economist J. Fred Giertz, who compiles the monthly index for the Institute of Government and Public Affairs.

However, Giertz said a word of caution is in order. “A large one-month change in the index can be the result of unusual variations in tax receipts patterns rather than true economic impacts,” he said.

The jump in the index comes after it had hit its lowest level so far for the year in August. See the full Flash Index archive.

Two of the three components of the Flash Index, individual income and corporate tax receipts, were up around 10 percent from the same month last year after adjusting for inflation and rate changes. Sales tax receipts were down slightly.

The unemployment rate in Illinois fell slightly to 4.0 percent, the lowest in many decades. In addition, the Illinois rate was only three-tenths of a percentage point above the national rate.

The Flash Index is a weighted average of Illinois growth rates in corporate earnings, consumer spending and personal income as estimated from receipts for corporate income, personal income and retail sales taxes. These are adjusted for inflation before growth rates are calculated. The growth rate for each component is then calculated for the 12-month period using data through September 30, 2019. An index reading above 100 denotes growth.

  19 Comments      


Some hiring progress at DCFS

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Hannah Meisel at the Daily Line

In recent years, the volume of calls coming into DCFS’ hotline — 800-25-ABUSE — has risen precipitously, and hotline staffers have not been able to keep up with the increase in calls. A May audit from Auditor General Frank Mautino’s office found that timeliness for completing investigations declined significantly between 2015 and 2017, both the focus of the biennial audit and the timeframe in which the state went without an operating budget for two years. […]

In the wake of media attention and increased legislative scrutiny on the troubled agency throughout 2019, DCFS last month told lawmakers it plans to hire 20 more workers for the hotline as part of an overall plan to add dozens more people to DCFS’ payroll, including 71 more child protection investigators.

In order to hire the 20 additional hotline workers as fast as possible, a unit within AFSCME Council 31, the umbrella union that represents most state employees, has waived a provision in its contract that requires internal candidates — who are also covered by AFSCME’s contract — to get the first chance at those jobs.

The overarching AFSCME contract for state workers normally requires job vacancies to be first posted internally bidding for at least 10 working days to give internal candidates the first shot at openings.

AFSCME Council 31 spokesperson Anders Lindall said it’s not unusual for individual units within AFSCME Council 31, including the unit that covers DCFS workers in Springfield, where the hotline is located, to negotiate certain waivers in a supplemental agreement in order to achieve a goal — in this case, reducing call volumes for overwhelmed workers.

But there’s another potential contract-related issue, so go read the rest.

* More progress reported by Justin Carter at WICS TV

A few weeks ago, we told you DCFS is struggling to hire bilingual employees.

It’s state law to have at least 194 on board.

As of July, there are 189 bilingual employees on DCFS staff. […]

In June 2018, under the Rauner administration, DCFS only had 158 bilingual employees on staff.

  6 Comments      


Leader Brady: “We’re looking to find common ground”

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Steve Stein

Illinois Senate Minority Leader Bill Brady knows his back is to the wall in the Senate.

There are 40 Democratic senators. Brady is one of only 19 Republican senators.

“But that doesn’t mean we can’t get things done,” Brady said Monday during a stop at Morton Industries.

“This state has liberal financial tendencies,” he said. “We (Republican lawmakers) can be the voice of fiscal responsibility. Government has to spend money, but it needs to be efficient, effective spending, and spending that people can afford.

“We can either be disruptive or find common ground with the Democrats. We’re looking to find common ground.”

Brady did talk about areas of sharp disagreement, including the minimum wage law. But when you’re that outnumbered you basically have two choices: 1) Scream your opposition and likely change nothing; or 2) Sit at the table and try to change bills a little more to your liking. The Republicans (particularly in the House) got more accomplished in the General Assembly this year than they did in four years partnering with a brick-throwing GOP governor.

  23 Comments      


Um, no

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Um

Another pressure point is CTU’s demand to increase the number of social workers to a recommended one-per-220 students over three years. The cost would be an unfeasible $800 million, according to the city

* No…



* Um

* No

Martin Sandoval, C.P.A., will serve as a Business Administration Expert on the Abraham Lincoln Presidential Library and Museum Board of Trustees. With over 25 years of experience in business, strategic planning and financial management, Sandoval is the founding partner of Compass Associates. He previously was a Director of Corporate Development of Sara Lee Corporation and did similar work for organizations such as the McDonald’s Corporation and Arthur Andersen.

We discussed this yesterday. It’s a different Martin Sandoval.

Also, that hiring story is odd. RTA Chairman Kirk Dillard called Pace on the plaintiff’s behalf to recommend him for a job and Sen. Sandoval’s son got it instead. According to claims made in the story, no hard evidence has yet surfaced to directly establish that Sen. Sandoval actively helped his kid get the gig.

…Adding… Um

Citing ‘unpredictable legislative and regulatory landscape,’ Sterigenics won’t reopen

Sterigenics, the company that owns a shuttered medical sterilization facility that’s been in the crosshairs of lawmakers and activists for its history of releasing a cancer-causing chemical into the Willowbrook area, will not reopen that facility.

Citing what the company called an “unpredictable legislative and regulatory landscape in Illinois,” it announced Monday that it would exit its sterilization operations in Willowbrook.

Nowhere is this highly important fact mentioned

Sterigenics also said it was unable to reach an agreement to renew the lease on the building it uses on Quincy Street in Willowbrook.

Forget about the regulatory environment. No lease, no business.

  19 Comments      


Reefer madness is definitely still a thing

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Last night’s Decatur City Council meeting was quite something. Aldermen voted to ban the sale of cannabis and even voted not to allow the construction of growing and processing centers

“What I heard unequivocally from law enforcement was, ‘You will never get enough money to cover the problems this will bring,’” [Decatur Mayor Julie Moore Wolfe] said, speaking before the vote. “I went to health officials, ER doctors, those that work with overdose patients every day, and they said, ‘Don’t do this.’”

1) Lots of people in Decatur are already consuming cannabis. They’re just doing it illegally. The city has now sided with the black market. And every “study” that purports to show unusually large increases in police costs has been thoroughly debunked.

2) Maybe those ER doctors thought the mayor was asking about opioid overdoses, because nobody has ever died after ingesting too much weed.

The council even rejected an opportunity to see what their constituents really believe

[Ald. Bill Faber] unsuccessfully attempted to amend the ordinance to attach a referendum, effectively asking the question of the public on the next election’s ballot. “My aim is to get the issue decided by the community,” he said.

You get the distinct feeling from reading the article that the city council doesn’t want to know what the public actually thinks.

* Meanwhile, leave it to the folks at Center Square to come up with a negative Illinois-related spin

A federal measure that would allow marijuana business access to banks could mean a boom in investment, but it could put a dent in Illinois’ budding cannabis revenue projections.

For years, the business of medical and recreational cannabis has been “cash-only” due to federal banking laws forbidding access to banks. The SAFE Act, passed the U.S. House of Representatives last Wednesday using a parliamentary procedure but with bipartisan support nonetheless. It would remove the federal prohibition on FDIC-insured banking institutions doing business with a company that sells medical or recreational cannabis.

The nonprofit Tax Foundation said the purveyors of pot are likely jumping for joy over the prospect, but states who charge an excise tax on the monetary value of the product could see tax revenues fall short.

“With the access to financial services, greater competition could occur because a lot more startups who can then get access to startup loans to finance can get into the market to make it more competitive and drive down prices,” said Ulrik Boesen, senior policy analyst.

Illinois will become the 12th state to legalize recreational cannabis in 2020.

This theoretical business boom, Boesen said, would increase the availability of choices for consumers, making competition for Illinois’ cannabis connoisseurs intensify.

That could result in lower sale prices, Boesen predicted, meaning less money for Illinois and the local governments.

“If prices go down and your tax system is tied to these prices, your revenue goes down,” Boesen said, adding that predicting revenue on a high-volatility market like cannabis is difficult.

More entrepreneurship, more innovation and more competition would all be good things, regardless of the possibly nominal impact on tax revenues.

…Adding… Not to mention that this state limits the number of license-holders, which the out of state dude probably didn’t comprehend. That article is so awful on so many levels.

  37 Comments      


Open thread

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* I’m having trouble deciding what to post at the moment. It could just be that I’ve spread myself too thin…

Anyway, keep it Illinois-centric and be nice to each other, please. Thanks.

  22 Comments      


*** LIVE COVERAGE ***

Tuesday, Oct 1, 2019 - Posted by Rich Miller

* Follow along with ScribbleLive


  Comments Off      


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