A group of Illinois social equity cannabis transporters has filed a lawsuit against the state and Governor J.B. Pritzker’s administration, alleging that “discretionary policies” implemented by the Department of Agriculture (IDOA) and Pritzker have undermined their businesses.
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These companies claim that a 2020 policy shift, which allowed licensed medical cannabis operators to transport their own products, effectively eliminated market opportunities for social equity transporters, making their licenses "virtually worthless."
The lawsuit, filed on November 1 in Sangamon County Circuit Court, argues that the original 2019 cannabis law promised independent transportation as a pathway for entrepreneurs impacted by the war on drugs. However, the emergency change during COVID-19 gave medical operators, including large multistate companies, a significant head start by granting them licenses to handle their own logistics. This shift, the plaintiffs argue, rendered the independent transport licenses impractical, with most medical cannabis companies continuing to transport their own products.
According to the plaintiffs, despite the state’s continued issuance of over 200 independent transport licenses—including 55 social equity licenses—only two independent transporters have active cannabis contracts. The suit asserts that excessive regulatory delays, including prolonged wait times for agent cards and restrictions on using storage facilities, further hindered their operations.
The plaintiffs seek policy reform that would mandate Illinois cannabis companies to use third-party transport services, aligning with a report from the Pritzker administration that recommended such a structure. However, state officials, including Governor Pritzker, have praised Illinois as one of the most equitable cannabis markets, despite ongoing challenges for social equity businesses.
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