CROO launches cannabis disparity and availability study
The Cannabis Regulation Oversight Office (CROO) recently announced the official commissioning of the Disparity and Availability Study for adult use cannabis licenses in Illinois as required by the Cannabis Regulation and Tax Act(CRTA). The disparity and availability study begins 12 months of research that will measure accessibility, whether any discrimination exists, whether it impacts entry and participation, and suggest potential remedies for Illinois cannabis regulation. The finished results of the report will be given to the Illinois General Assembly and Governor.
The Disparity and Availability Study’s purpose is to collect and analyze data and will report on whether discrimination exists in the Illinois cannabis industry. If there is a finding that discrimination exists, the Disparity Study will evaluate the impact of the discrimination on the State and its residents regarding entering and participating in the State’s cannabis industry. The Disparity Study will include recommendations for reducing or eliminating any identified barriers to entry.
Now that the Disparity Study for adult use dispensary, cultivation, craft grow, infuser, and transporter licenses has been initiated, the final report is due to the General Assembly and Governor in 12 months. Additional information on the status of the Disparity Study will be posted on the CROO webpage as soon as available.
The U.S. Supreme Court has found that governments must conduct Disparity Studies to uncover facts and concrete evidence of a compelling interest before instituting any policies that use race or gender as a program condition. Without a compelling interest based on a strong factual basis, courts have found that race- or gender-based policies violate the U.S. Constitution. Illinois’ current cannabis licensing program does not consider race and gender for licensing.
On February 14, 2022, the State published a formal request for proposals (RFP) to find a vendor to conduct a Disparity Study of the cannabis licensing system. The process resulted in a contract with the Nerevu Group, a 100% minority- and women-owned group of contractors and subcontractors from Peoria, Decatur, Springfield, Chicago, and additional locations across the country.
Questions and comments may be directed to FPR.CROO@Illinois.gov. Below is the full text of the Disparity Study mandate from the CRTA, section 410 ILCS 705/5-45(e):
The Illinois Cannabis Regulation Oversight Officer shall commission and publish one or more disparity and availability studies that:
(1) evaluates whether there exists discrimination in the State’s cannabis industry; and
(2) if so, evaluates the impact of such discrimination on the State and includes recommendations to the Department of Financial and Professional Regulation and the Department of Agriculture for reducing or eliminating any identified barriers to entry in the cannabis market.
Such disparity and availability studies shall examine each license type issued pursuant to Sections 15-25, 15-30.1, or 15-35.20, subsection (a) of Section 30-5, or subsection (a) of Section 35-5, and shall be initiated within 180 days from the issuance of the first of each license authorized by those Sections. The results of each disparity and availability study shall be reported to the General Assembly and the Governor no later than 12 months after the commission of each study.
The Illinois Cannabis Regulation Oversight Officer shall forward a copy of its findings and recommendations to the Department of Financial and Professional Regulation, the Department of Agriculture, the Department of Commerce and Economic Opportunity, the General Assembly, and the Governor.
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