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Chicago Sun-Times
Chicago Sun-Times
National
Tom Schuba

Pritzker’s plan to offer second chance to losing pot shop applicants held up by court ruling

Anthony Vazquez/Sun-Times

A downstate judge ruled that state officials must wait at least a week to re-score applications for the next round of recreational cannabis licenses, further complicating a process that’s been mired in controversy.

The temporary restraining order approved Wednesday by Sangamon County Judge Adam Giganti stems from a lawsuit filed by three of the 21 companies that were initially included in a lottery to determine the winners of the 75 sought after pot shop permits. The suit was filed there after the Illinois Supreme Court declined to take on the case last week.

As part of Giganti’s order, state officials agreed to hold off on sending deficiency notices to the over 900 losing applicants and issuing new scores until the next court date on Nov. 5. The plan to give the vast majority of pot shop hopefuls a second chance was announced last month as Gov. J.B. Pritzker faced mounting pressure from so-called social equity applicants calling for a do-over.

The plaintiffs — GRI Holdings LLC, SB IL LLC and Vertical Management LLC — argue that Pritzker and other state officials are “[b]owing to political pressure from applicants who received lower scores” and instituting new rules that aren’t outlined in the law. They hold that the lottery should be held as it was originally announced.

A spokeswoman for Pritzker didn’t immediately respond to a request for comment on the lawsuit or the underlying claims.

The state’s Sept. 3 announcement that just 21 groups would be included in the lottery almost immediately prompted outrage from the firms that didn’t make the cut.

While Pritzker’s office said the finalists all earned perfect scores and qualified as social equity applicants, a designation intended to help create diversity in the overwhelmingly white weed industry, other hopefuls questioned whether the state was meeting that lofty goal.

Jilted applicants have since filed a series of lawsuits over the scoring process and raised concerns about the groups that were initially included in the lottery — some of which include individuals with political connections, deep pockets and existing ties to the pot industry. The Sun-Times has found that GRI Holdings has deep ties to state politics and SB IL is linked to Star Buds, an international cannabis firm with operations across multiple states.

All three firms that filed suit could earn up to 10 licenses in the lottery, the maximum allowed under state law.

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