Illinois marijuana social equity transporters file civil rights complaint

A group of seven independent marijuana social equity transporters in Illinois filed a civil rights complaint against the state’s Department of Agriculture alleging that the office discriminated against them when it issued licenses to medical cannabis cultivation centers.

In a complaint filed in the 7th Judicial Circuit Court of Sangamon County – independent transporter licensees who don’t old other cannabis business license types – say they were supposed to be prioritized when Illinois launched its adult-use marijuana program in 2020 with the goal of creating diversity, equity and inclusion in the industry, said Amber Lengacher, founder and CEO of Colorado-based Purple Circle and a consultant who has been working with the plaintiffs on a pro bono basis.

But the Illinois Department of Agriculture issued licenses to established MMJ businesses that controlled at least 95% of the state’s $1.5 billion adult-use market in fiscal year 2023, Lengacher said.

By issuing transporter licenses to the established businesses, the Illinois agriculture department eliminated any reason those companies had to use third-party transporters.

The seven transporter companies that filed the complaint are:

• ACC OF Illinois Transportation
• Runway Logistics Services
• Hands to Heart
• Reliavan
• Fade Express
• Piff Patch
• Moetta’s Transports

Transporters paid $826,799 in fees

The transporter companies collectively spent $826,799 in licensee fees, agent identification card fees and more, according to Illinois’ Cannabis Regulation Oversight Office’s fiscal 2024 Annual Cannabis Report, which was cited in the complaint.

A disparity study mandated by the Cannabis Regulation and Tax Act (CRTA) and published in July evaluated the effectiveness of Illinois’ marijuana program in combating past discriminatory practices and the diversity of the industry.

But when the study ended on Jan. 1, 2023, there were no active independent transporters despite the recommendation that other cannabis operators be required to use third-party transporters for at least some of their transportation needs.

Last year, the Illinois Independent Cannabis Transporters Association worked with state lawmakers to pass legislation that waived renewal fees for independent transporters for three years and placed a moratorium on additional transporter licensing.

‘They’ve lost everything’

But the law didn’t solve the problem for license holders unable to secure contracts that would make their businesses viable.

“These plaintiffs have invested their respective life savings into cannabis transportation businesses after being told it was their opportunity at generational wealth,” Lengacher said.

“The reality is they’ve lost everything.

“It’s time that lawmakers and regulators understand if they are propping up a brand-new industry supply chain like in cannabis, they have a duty to ensure that the supply chain works for everyone, including social equity operators.”