Governor Rauner directed our legal team to conduct a comprehensive review of the evaluation and selection process that the Quinn administration used to recommend applicants for licensure in the State’s Medical Cannabis Pilot Program.
His request was threefold. First, determine whether the process used by the Quinn administration followed the law. Second, share our findings with the Attorney General and determine what, if any, corrective actions need to be taken for any failures to fully comply with the law. Finally, recommend a plan of action that corrects any deficiencies and fully adheres to the spirit and letter of the law.
Our recently completed legal review identified four potential problem areas:
1) The review teams imposed certain arbitrary scoring “cut-offs” that were not expressly contemplated or provided by law that effectively eliminated certain applicants from consideration;
2) The agencies conducted a character and fitness review of the applicants after the blind scoring process had been completed;
3) As part of the character and fitness review, several applicants were disqualified without clear procedures and standards for disqualification and without offering the prospective applicants an opportunity to respond to the information that was relied upon to make the disqualification decisions; and
4) Despite seemingly contradictory language in the rules promulgated by the Illinois Department of Agriculture, the prior administration decided to award no more than one cultivation center license to applicants who were the high point scorers in more than one district.
We concluded that these problem areas create a risk of substantial and costly litigation to the State. We shared our findings and this conclusion with the Attorney General. Her staff conducted a prompt review and for that we thank them.
As a result of our consultation with the Attorney General, we have further concluded that there is a significant likelihood that the Quinn Administration’s decisions will not be upheld in court. We have also relied upon the Attorney General’s legal guidance and must now take all necessary corrective action to make sure that these licenses and permits are properly issued in compliance with the law.
As a result of these conclusions, we are therefore recommending the following actions:
1) Licenses and permits will be issued to the highest scorers in each district where the top scorer was not disqualified;
2) Cultivation center applicants that were high scorers in more than one district will be awarded permits up to the three permit limit that was expressly provided by 8 Illinois Administrative Code (the “IL Department of Agriculture Rules”) Section 1000.40(d);
3) The artificial and subjective scoring “cut-offs” that were imposed by the agencies will be eliminated and licenses and permits will be awarded to the high scorers in those districts regardless of their final point total; and
4) Any applicant that was recommended for disqualification will be fully informed of the basis for that decision, given an opportunity to respond in writing and/or in-person to the respective licensing agency’s director and general counsel to contest the recommendation, and a final written character and fitness decision will be made consistent with the relevant pre-established formal standards established by the IL Department of Agriculture Rules Section 1000.110(j) or 68 Illinois Administrative Code (the “IL Department of Financial and Professional Regulation Rules”) Section 1290.70(e) – (f).
These actions may result in some additional minimal delay in a limited number of districts and for that we apologize to the patient community. The Governor has requested that this process must be deliberate, fair, and fully comply with the law. In order to accomplish those important objectives, these additional steps are essential to correct the deficiencies of the previous administration’s selection process. Only then can the public have the fullest confidence that the law was followed and these licenses and permits were awarded for the right reasons.
- Precinct Captain - Monday, Feb 2, 15 @ 4:46 pm:
The list
http://chicago.suntimes.com/politics/7/71/339015/rauner-announces-can-grow-sell-medical-marijuana-illinois
- Wordslinger - Monday, Feb 2, 15 @ 4:58 pm:
Not a big fan of the Illinois med-mar system, but points to the Rauner administration for getting to work and acting quickly on the issue.
- Been There - Monday, Feb 2, 15 @ 5:01 pm:
Really surprised they are going ahead using the old scores. I thought they would trash the whole thing and start over. Glad I was wrong.
- A guy - Monday, Feb 2, 15 @ 5:04 pm:
Sounds fair.
- Cassidy - Monday, Feb 2, 15 @ 5:19 pm:
Wow. A very logical decision. Hats off to you governor.
- OldIllini - Monday, Feb 2, 15 @ 5:24 pm:
Sounds like transparency to me.
- walker - Monday, Feb 2, 15 @ 5:26 pm:
Very good and quick decisions.
Avoided the easy political trash routine, and accepted the valuable work that had already been done.
Kudos to Rauner legal team.
- Itsmyopinion - Monday, Feb 2, 15 @ 5:30 pm:
That whole team of lawyers he hired, looking like a good decision.
- in keeping with - Monday, Feb 2, 15 @ 5:44 pm:
How much of the dialogue between the disqualified applicants and the departments can be made public? Does a disqualified applicant get to revise their application based on a disqualification?
- 46 and 2 - Monday, Feb 2, 15 @ 5:59 pm:
When can I get a prescription? My fibromyalgia is acting up from the reasonableness of this decision.
- Rivertrance - Monday, Feb 2, 15 @ 6:16 pm:
Any idea when the list of locations for the dispensaries and cultivation centers is going to be published?
Were specific locations part of application process?
- Elin Flint - Monday, Feb 2, 15 @ 6:20 pm:
Seems like Rauner punted on awarding licenses to increase the chances for this to succeed. As he granted a few companies numerous cultivation licenses. I have heard that these companies are not capable on building out more than one location, nor did they intend or want to win more than one. They just applied the shotgun method and applied in numerous districts. This will be a real setback when they fail.
The other issue i have see get any writeup is the clear violation of rules as the Denver Relief Consulting was associated with winning 5 licenses, which is a CLEAR rules violation!
Kayvan Khalatbari who is the CEO of Cresco Labs (which won 3 licenses) and owner of Denver Relief Consulting also is a consultant to Progressive Treatment Solutions, LLC which was awarded 2 licenses.
HOW DID THE STATE MISS THIS???
- Paul - Monday, Feb 2, 15 @ 6:57 pm:
For those of you who have never seen it before from a Governor of the State of Illinois, this is what competence looks like.
- Anon - Monday, Feb 2, 15 @ 7:53 pm:
Why was Jack Lavin so bad to have as part of an applicants team, but insider of insiders - Mike McClain and GTI, the firm he represents won several licenses?
- okgo - Monday, Feb 2, 15 @ 9:29 pm:
“Why was Jack Lavin so bad to have as part of an applicants team, but insider of insiders - Mike McClain and GTI, the firm he represents won several licenses?”
Because Chicago Media knows Jack Lavin and doesn’t know Mike McClain?
- senior citizen of goverment - Monday, Feb 2, 15 @ 10:45 pm:
With all the mistakes and under hand behavior by Quinns people this for sure will be in court by months end.
Watch for one of the plaintiffs to seek a TRO..
- Georg Sande - Tuesday, Feb 3, 15 @ 6:42 am:
Careful, thoughtful and logical. Rauner’s sound process here stands in stark contrast to his predecessor … and the typically snarky criticism of this echo chamber. Maybe that’s why there’s a death of comments on this important matter?
- Georgeatt - Tuesday, Feb 3, 15 @ 7:07 am:
All will be moot points soon: legal recreational cannabis is the unstoppable locomotive coming our way.
- Illini97 - Tuesday, Feb 3, 15 @ 8:33 am:
Elin Flint
== I have heard that these companies are not capable on building out more than one location, nor did they intend or want to win more than one. They just applied the shotgun method and applied in numerous districts. This will be a real setback when they fail. ==
They certainly had to have the $400k in surety bond for each proposed cultivation site when they applied. If they cannot now afford to build out multiple locations, they can pass on the license and let the second choice in that district try it.
Rauner’s action were about the most level-headed and above board possible given the mess he was handed. Sounds like the AG found the evaluation process to have been flawed and made some common sense recommendations to move forward where possible and seek clarification or correction where appropriate.
- slow down - Tuesday, Feb 3, 15 @ 9:35 am:
Good one Paul. It’s always easy from the outside to scream incompetence — so don’t kid yourself, it will happen plenty over the next 4 years to Rauner’s administration. Rauner’s lawyers are no more competent than Quinn’s were.
- Winston - Tuesday, Feb 3, 15 @ 9:39 am:
Governor Rauner has acted appropriately. There will be prodigious lawsuits. However a plaintiff alleging irreparable injury in hopes of winning a temporary restraining order will be hard pressed to win. No court will halt this process for one alleging improprieties and therefore the build out will proceed.
As a practicing lawyer for thirty years and a self proclaimed expert in cannabis law in Illinois, we need only look at Massachusetts or Connecticut to observe fallout. But those states continue to forge ahead.
Congratulations to the designees. Now….let’s produce some medicine.
- Anon - Tuesday, Feb 3, 15 @ 12:02 pm:
The problem with the whole process is that it was designed to be as complex, bureaucratic, and expensive as possible. The application process ensured that only the most well-funded and connected could truly compete; the State has assisted applicants like GTI (Terry Gainer, Mike McClain) and Ieso LLC (former Department of Agriculture director Tom Jennings) to win permits.
Now it will be interesting to see how companies that are investing tens of millions of dollars are going to turn a profit off of the fewer than 1,000 patients that IDPH has managed to register so far.