It’s nice to be back after a day trip to the Land of Lincoln.  I had a few things waiting for me upon my return so I figured I’d share them with you.

Early Retirement?

There is talk this morning that an Indiana Congressman is going to announce his retirement today.  There’s no word on exactly who it is, however 4th District Congressman Steve Buyer does have an announcement this morning at IU hospital in Indianapolis.

Bar Wars V

Legislation in the House that would have changed the way alcohol is sold and distributed in Indiana all but died on the vine yesterday.  House Speaker Pat Bauer did not call down a bill for second reading which would have forced alcohol wholesalers to reimburse another wholesaler who lost its supplier contract to that  wholesaler.  Supporters say the bill was necessary to protect Hoosier jobs and wholesalers from predatory practices.  Opponents said the bill was a bailout for National Wine and Spirits and would have created a virtual monopoly for National and resulted in higher prices.  Sources say the Speaker was annoyed how the issue had gotten out of control and wanted to make it go away.  However, the legislation could still come back in the form of an amendment to another bill.

Yes, Massa

My very reliable sources are telling me that Marion County Democrats are scared to death of  Mark Massa, the General Counsel for Governor Mitch Daniels, running for County Prosecutor.   Incumbent Carl Brizzi is not seeking a third term and Helen Marchal dropped out of the race.  What worries Democrats is that Massa would have access to the Daniels political operation.   In 2008 , Barack Obama got nearly 100,000 more votes than John McCain in Marion County, however Mitch Daniels received about 50,000 more voters than Jill Long Thompson.

It never fails, the day I have to go back to Illinois and practice law is the day anything and everything breaks lose.  Let’s do a quick run down…

Pence off the Fence

6th District Congressman Mike Pence has decided to make my political pundit life a lot less interesting by deciding not to run for the U.S. Senate against Evan Bayh.  He cited  making Republicans the majority in the House of Representatives as one of his priorities.  I also think it was the fact he would have had to gather thousands of signatures and have them certified in about three weeks also played a role.  Anyone who has ever had to gather signatures for a statewide race knows it is nowhere as easy as it sounds.

Marchal Marches On

Republican Helen Marchal is getting out of the race for Marion County Prosecutor.  In an e-mail to GOP supporters Marchal said  “I was faced with a major decision impacting myself and my family (including my three children, under the age of 7), with a deadline of less than 48 hours.  On further reflection and consideration of the sobering realities of a condensed, nine-month campaign, for personal reasons, I thought it best to withdraw my candidacy.”

I have no reason to doubt Marchal’s motives, however I’m also hearing Democrats were going to go after her husband who is active in Democratic politics had she stayed in the race.   GOP Chairman Tom John says a committee will be put together to seek a new candidate and it will be headed by former prosecutor Scott Newman.   I wonder if any of the conspiracy theorists will throw their hats in the ring and run for the job and finally put their money where their mouths frequently are.

Bar Wars IV

Indiana lawmakers meet today to discuss legislation that would change the way alcohol is sold and distributed in the state.  Part of the bill mandates any wholesaler who gets a contract from a supplier must reimburse the previous wholesaler for any lost business.   I spoke with some supporters of the bill and they say it is not about protectionism but equity.  They argue that large wholesalers can manipulate competition in Indiana and engage in predatory practices so the legislation is needed to level the playing field.  They also argue the plan will result in loss jobs and fewer taxes being collected.  The House will hear the bill at 8:30 this morning.  The Senate will hear a similar bill this afternoon.

I’m off the Land of Lincoln.  Talk to you tomorrow.

Supporters of a measure that would change the way alcohol is sold and distributed in Indiana admit changes will have to be made to the legislation amidst growing opposition from a number of places.

Currently, the bill requires an alcohol wholesaler to be reimbursed if they lose a contract with a supplier to another wholesaler.  The subsequent wholesaler would have to pay the previous entity the fair market value of any revenue loss to the previous distributor.

Bill sponsor, Scott Pelath says the bill was necessary to provide “stability” to Indiana’s alcohol market and that it is not uncommon for Indiana to provide some protection for franchises which it heavily regulates, like gambling.  However, critics say the measure would have been the equivalent of forcing one casino to pay another every time it lost a customer to another casino.

In Indiana National Wine and Spirits controls between 60-70 percent of the market; a virtual monopoly.  The Governor’s office has no official position on the measure, however sources tell me when the bill was first brought to his attention he reportedly said he did not want to see anything that would stifle economic development in the state.  In addition House Speaker Pat Bauer, I’m told, got an earful from a number of groups who oppose the legislation, including labor unions a key Democratic constituency.

Despite the growing uproar, the only amendment introduced to alter the legislation does not remove the monopoly language.  Similar measures were either held to be  unconstitutional in other states or lawmakers repealed the bills after alcohol prices soared and there was an outcry from the public.

Editor’s Note: If you haven’t read the post, Bar Wars, you may want to do that first before going through this one.

As I wrote Sunday, there is legislation pending in the Indiana General Assembly that could potentially give a virtual monopoly on alcohol distribution to one Indiana company, thus leading to potential higher prices and a serious court challenge on Constitutional grounds.

The company, National Wine and Spirits, sent an e-mail out to its customers asking them to support HB 1191, which would force an alcohol wholesaler who gets a contract from a supplier to reimburse the previous holder of that contract for any lost business.  I obtained a copy of the e-mail.  Here is it…

What YOU can do to help keep Southern Wine & Spirits out of Indiana

Friends,

Over the past 37 years, National Wine & Spirits has earned successes that I could never have imagined – all at the hands of a terrific and committed team.  Some of you have been with us from the very beginning, others have just recently joined.  All of you are important members of the National family.

As you are probably aware, Southern Wine & Spirits is actively trying to enter the Indiana market, steal our suppliers, and put us out of business.  We are doing everything possible to fight them off.   Currently, we are driving legislation (Senate Bill #244 & House Bill #1191) that will help level the playing field in wine & spirits wholesaling, making it much more difficult for Southern to lure our suppliers away.

To help in this effort, we are asking you to sign and provide some supporting comments that a Representative or Senator might be interested in knowing through an online petition http://www.PetitionOnline.com/244y1191/petition.html.

We hope everyone will “click” their support, and pass on the link to friends, family, and customers.  We will use this (the votes and the comments) with the legislature at different times during the session – starting as soon as next week, so please take a moment to rally for the cause, sign the petition and spread the word.  Names of those who sign on will not be made public.

Nothing is more important to us than the well-being of our people.  We must show the state legislature that Indiana citizens want to keep this business headquartered and continuing to serve Indiana like no other.

Please sign the petition by going to the following website: http://www.PetitionOnline.com/244y1191/petition.html.

Sincerely,

Jim LaCrosse

As I mentioned in my previous post, it’s one thing if an alcohol supplier and retalier put a provision in a contract that if it’s terminated, one party must reimburse the other.  It’s another thing to make that a government mandate by etching that provision into state law.

I’ve got some work to do today so I’ll just throw out a few issues for you to discuss amongst yourselves, hopefully in an intelligent manner.

1. Schools say it would cost millions of extra dollars to do remedial education for 3rd graders who don’t know how to read.  Correct me if I’m wrong, but isn’t it the schools job to teach children how to read, so why should it cost extra for them to do their jobs?
2. Every Indiana politico and his mother is hoping for an Evan Bayh/Mike Pence match up, but has anyone asked when is the last time either candidate had to face a real, serious, credible  challenger?
3. The U.S. Supreme Court has lifted restrictions on corporations and unions and their abilities to spend money on political campaigns.  Has everyone forgotten that while money helps win elections, it’s candidates who usually rise and fall on their own abilities?
4. Indiana lawmakers are moving forward with legislation that would allow employees to take guns to work as long the weapon remains locked in the vehicle.   Whatever happened to private property rights?
5. Got any questions of your own?

It’s amazing what you come across when you’re playing on the Internet and scanning through local campaign finance reports.  For the record, I do have a life, I was just killing time before meeting up with friends for cocktails.

You come across the usual things; Greg Ballard raised more than $1.3 million in 2009, with about half the donations being between $250 and $750.  John Layton, Democratic candidate for Sheriff had $108,000 in cash on hand, etc. etc.   But there were also some other interesting tidbits.  For example…

• Up until December 2008 it looked like  County Auditor Billie Breaux was raising money for a run for Treasurer.
• Former City-County Councilman Ike Randolph still has City-County Council political action committee.
• Up until he got out of the race for Sheriff Kerry Forestal raised $88,000.
• Frank Anderson’s “exploratory committee” for something raised about $13,000.
• The fund raising arm of the Marion County Republican Party pulled in about $33,000 last year.   The Marion County Democrats fund raising arm didn’t do anything in 2009.
• And believe it or not, former Indy Mayoral candidate Jocelyn Adande still has a Mayor political action committee.  It’s empty, but still there.  Insert your own joke here.

Two big items from Tuesday, the Massachusetts Senate Race and Governor Mitch Daniels State of the State Address.  We’ll knock out Massachusetts first.

Massachusetts Miracle

Although it “sent shock waves” through political world, anyone who was paying attention to the dynamics of the race between Republican State Senator Steve Brown and Democrat Attorney General Martha Coakley saw brown’s victory coming.  Although Coakley originally had a 30-point lead, she lost by 5 points.

Frankly, I’m surprised she didn’t lose by more.  She ran a campaign that made Jill Long Thompson look like Karl Rove.  Between going on vacation after the primary, calling Boston Red Sox pitcher Curt Schilling a Yankee fan, saying their are no terrorists in Afghanistan, taking the voters for granted and just being plain annoying were all factors.  Throw in an anxious electorate that’s concerned about their jobs.  And most importantly, a state that already has universal health coverage and its citizens don’t want to pay for another plan and this is what you get.

Who’s surpised?

State of the State

Times are tough, but they’ll get better and things are a lot worse next door.  That was the underlying message of Governor Mitch Daniels’ State of the State address.  Daniels spelled out the challenges the state has gone through, but also talked about how Indiana’s moves today were laying the foundation for a stronger recovery tomorrow.

The Governor did touch on jobs, saying he was working to create a climate that is attracting jobs as companies look to downsize and consolidate their operations.   He also praised lawmakers for passing tax caps, pushed for them to pass more government reform, and urged them to end social promotion for third graders who can’t read.

Overall, the Governor struck a tone of optimism, but he did not deny the serious of the state’s situation.  It will be interesting to watch how the year pans out for his agenda.