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Cannabis transporters sue state over alleged illegal shipments

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* Chicago Tribune

A group of licensed cannabis transporters have filed suit against Illinois regulators, claiming the state is allowing unlicensed operators to transport marijuana. […]

Thirteen transport companies filed the suit Tuesday in Sangamon County against the Illinois Department of Agriculture and its director, Jerry Costello II. An spokeswoman for the agency said it does not comment on pending litigation, but is not aware of any illegal transporters.

A transportation license allows the holder to deliver cannabis from a grower to retail stores around the state. It was seen as the easiest way for minority owners to break into the legal cannabis business. Transporters have the lowest barriers to entry and are much less costly to start than a cultivation or retail facility.

But many weren’t able to get hired because state law allows growers to ship their own products. Only 31 transport companies have been licensed, plus the 21 big cultivation centers.

* From the lawsuit

Specifically, on January 5, 2023, Plaintiffs are aware of a Chicago cannabis transport delivery that was conducted in what appears to be a non-complaint Honda Odyssey minivan. […]

On February 24, 2023, Plaintiffs are aware that SB IL Grow conducted a cannabis transport and delivery to Green Rose Chicago, a licensed cannabis dispensary located at 612 N. Wells Street in Chicago, Illinois. That transport was memorialized via an “Illinois Adult Use Marijuana Transportation Manifest.” […] As of February 24, 2023, SB IL Grow had not yet been approved for transport operations by the IDOA. […]

On information and belief, the IDOA was aware of and approved SB IL Grow’s cannabis transport and delivery to Green Rose. […]

Following this email, Mr. Thompkins spoke to Ms. Davis-Franklin and Ms. Johnson via telephone. During that call, Ms. Davis-Franklin and Ms. Johnson indicated that the IDOA did not have the staff necessary to enforce the CRTA and/or the Transport Regulations. Ms. Davis-Franklin and Ms. Johnson further confirmed that the IDOA had not issued a single fine to a licensed transporter or other entity for violation of the CRTA’s transportation provisions or the Transport Regulations. […]

Despite having definitive evidence of unlawful transport operations, on information and belief, the IDOA has not taken any disciplinary action against any parties involved in these illegal transports because it does not have the staff to do so.

As a result, illegal cannabis transporters are acting with impunity, jeopardizing the safety of the Illinois public and essentially blocking licensed Illinois transporters, like Plaintiffs, from participating in the Illinois cannabis industry.

* CBS Chicago

Legally in Illinois, marijuana is supposed to be transported in a vehicle with cameras, GPS, and no rear windows or markings.

But illegal deliveries are allegedly happening by those without licenses in minivans and other noncompliant vehicles – with little consequence. […]

CBS 2’s Charlie De Mar spoke to legal cannabis transporters, who say they will be forced out of business if the state does not enforce its own standards.

Those transporters also say they have evidence of illegal drop-offs. They add that without regulation and enforcement from the state, there really is no incentive for growers and dispensaries to hire the transporters.

* Green Market Report

Specifically, the 13 transporters allege that the state doesn’t have the manpower to enforce rules that prohibit licensed marijuana farmers from transporting their own crops to retailers and manufacturers, and gave two instances in which the plaintiffs said just such a thing had happened – and that regulators knew about it and did nothing.

“Despite having definitive evidence of unlawful transport operations, on information and belief, the IDOA has not taken any disciplinary action against any parties involved in these illegal transports because it does not have the staff to do so,” the suit asserts. “Instead, the IDOA is knowingly and willfully allowing entities to illegally perform cannabis transports in Illinois.”

“As a result, illegal cannabis transporters are acting with impunity, jeopardizing the safety of the Illinois public and essentially blocking licensed Illinois transporters, like plaintiffs, from participating in the Illinois cannabis industry,” the suit states.

* Related…

posted by Isabel Miller
Friday, May 19, 23 @ 10:23 am

Comments

  1. I can’t imagine there is any private right of action for the other licensees to sue a regulator for failure to discipline someone else.

    Though as an aside, having lots of regulations but no staff to enforce the regulations is pretty much par for the course in Illinois these days, in pretty much every area of government it seems. Can anyone think of a single state regulatory agency that has adequate staffing for the mandates they’ve been given?

    Comment by Homebody Friday, May 19, 23 @ 10:45 am

  2. ===the IDOA did not have the staff necessary to enforce===

    I am looking forward to the Governor’s plan to address the state’s hiring crisis. The inability to hire and retain staff seems to be impacting the ability of every agency to be able to perform the work they’re supposed to be performing.

    It is getting pretty embarrassing.

    Comment by Candy Dogood Friday, May 19, 23 @ 12:05 pm

  3. “Legally in Illinois, marijuana is supposed to be transported in a vehicle with cameras, GPS, and no rear windows or markings.”

    A Honda Odyssey is definitely not creepy enough to be legally compliant.

    – MrJM

    Comment by MisterJayEm Friday, May 19, 23 @ 12:17 pm

  4. Cannabis causes hysteria.

    Comment by Dotnonymous Friday, May 19, 23 @ 12:25 pm

  5. If the state created a policy that says, ‘only certain licensed drivers can receive weed at the regulated sites, and delivered said weed to regulated sites,” then enforcement is easy. Fully operational cameras in docks and at sites should catch all legal deliveries and assure they are made by specially licensed personnel. Anything else is illegal and punishable.

    Comment by H-W Friday, May 19, 23 @ 1:56 pm

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