The Cole Memo

In this episode, I sit down with Jim Blissitt III to talk about cannabis delivery and transportation in the state of Illinois.

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Links mentioned in show

Question/answer regarding home delivery

Quote that I was referencing from Toi Hutchinson: “4,518 applications for what was originally going to be 75 licenses. 99% of people weren’t going to get them.”

Document mentioned in show

The auto-generated transcript is available below.

[Music] this is the Cole memo I’m your host Cole Preston every episode is released in audio video and transcript format to find the transcript audio or or video version of any episode please refer to the description of the episode that you’re listening to now within that description you can find a link that will take you to our website which will display the transcript for this episode and the platforms where you can find this episode in audio or video formats if you’re unable to locate the episode description on whichever platform you’re listening from Simply note the episode number and visit theol memo.com from there you can find the corresponding episode and then you’ll be able to access the audio video and transcript version of that episode while you’re there you might also find any links that we reference during the episode so that you might be able to do your own research if you’re not listening to this episode of the co memo on patreon then you’re listening to this episode later than our patrons to become a patron go to the memo.com patreon it’s a great way to support our show it only costs $3 a month and it’s one of the best ways to directly support this show uh folks this show is funded by listeners like you one of the best ways uh to support our show if you’re not able to contribute is absolutely free subscribe to or follow our show leave us a positive review from wherever you’re listening to us from favorite this episode give it a thumbs up leave a comment or post a review as always your engagement and support is appreciated today is January 23rd 2024 I’m sitting down with Jim Jim why don’t you go ahead and introduce yourself and uh after that the floor is yours you know let’s talk yeah thank you Cole my name is Jim blissett III I’m nearly a lifelong resident of Chicago the Southside to be specific and um you know as soon as 2020 hit the laws shifted in the Cannabis Arena you know I saw an opportunity to take my life experiences the experiences of my father almost what 15 year military policeman as well as just incorporate my friends into an industry we have known you know almost our entire almost teenage and adulthood you know through consuming cannabis and we went after the Cannabis transport license you know from the beginning we had the intent of pursuing this opportunity as a third party uh transporter Focus specifically on transport you know we saw an opportunity to really enter this space so you know thank you Cole for having me and allowing me to share my story and some of my thoughts around the industry thanks yeah absolutely and I I have an idea uh that I know what you want to get into because I’ve asked uh the Cannabis regulation oversight officer in the past um and we don’t have to get into this but I just you know we uh we recently made it so that curbside was permanent and that did not happen through a legislative effort that was codified and curbside in and of itself was created from what I understand it was a variance that was issued uh during the covid pandemic it was not written into law and they made it so that you get you know curbside delivery and they kept having to extend it and I kept asking the question why don’t they just make it permanent and then they did and so my question was if they can just do that can they make delivery legal like home delivery and their answer was no and I’m curious um if that’s what you want I’m going to give you the floor uh what would you like to talk about that’s yeah awesome so I definitely want to touch on home delivery you know I know as it stands the Cannabis regulation and Tax Act um limits transport you know to B to be you know and it’s very explicitly stated within the law you know it it’s it will likely take some shifts in Spring Field to make um home delivery uh more viable and an option you know for me I’m most focused on you know we know home delivery will at some point Enter Illinois I want to make sure those of us who are already pre-existing and operating as cannabis Transporters especially those of us with social Equity status we have some privilege you know when it comes to this new market and Industry taking off so I’m appealing to our legislator to you know put us at the front of that line once it happens you know those of us operating as third party Transporters we are not attached to a grow we’re not attached to a dispensary we are strictly third- party Transporters and as it stands the industry within the industry we’re seeing what amounts to a monopolization of Transport by your Growers your large scale multi-state operators are really dominating that B2B space so as we move towards incorporating home delivery you know I’m just hoping we get some priority as third party Transporters within this process so I know for my company uh McKenzie secur Transportation you know when we started to draft our standard operating procedures we had some foresight in hoping that home delivery would or will come in the future and we wanted to position ourselves to be a viable player in that space so you know that that’s a major push for us legislatively how can we now evolve the law you know when we started out we did you know we went to every incubator you can think of you know every opportunity to sit down and hear toy Hutchinson at the um beginning of this speak you know toy Hutchinson the original cannabis are she made it clear like hey guys we’re only rolling out about her prediction 10% of the IND industry this is a very small fraction of what’s to come so we’re going to need your help to really evolve and make sure the state is operating in the most efficient way so here is one opportunity to push the state forward with evolving policy related to home delivery aside from that you know we we’re still pushing for docking you know as it stands you know third party Transporters we cannot hold product overnight so there’s been some uh policies and legislation that’s gone to Springfield and essentially died where we’ve requested a 48 hour hold where we can actually store cannabis product this would allow for the creation of what amounts to a distribution model and then it will also help our clients you know when we sit down with the msos trying to get Contracting they’re asking us well can you all make the drive from hey say Chicago all the way down to Southern Illinois in a way that’s efficient as it stands you know this is looking like a 15-hour day and with the ability to store products whether that be through cross docking or traditional docking would be able to reach the entire State not only will this benefit the msos it will benefit your small craft Growers who are now struggling to come online with this uh pending February deadline you know it’s it’s difficult we’re sitting down with one client they’re trying to move product from um Tinley Park throughout the state but their ability to do this is limited by their capacity funding staff so on and so forth so a company like ours operating in this Niche space you know with the ability to store product overnight we can really really tackle a bunch of these bottlenecks already hampering the industry here in Illinois and um throughout the country really so yeah that that’s where we can start Co yeah absolutely well I just wrote down that when is that February deadline do you know is it February I think it’s February 4th I think it’s the fourth of February or it’s the first week of February uh craft Growers uh by by law are to become operational they they received an extension from last year’s March date um but come February uh they should be up and running and am I wrong in saying that I mean I don’t mean to get too far into this but did they like make it clear that they’re not going to extend it again I haven’t seen anything about an extension you know I’m I’m really focused on transport much love to The Growers and the uh dispensaries but um you know as it stands and I’m seeing a lot of movement now there’s a lot of energy around some of these smaller craft Growers trying to get off off the ground we’ve received some really great um Communications and emails from a number of them looking for transport support and it that emergency for February is there I can feel it so uh to take it take it back to Transportation um you kind of touched a few different bases the distribution issue and um all the different issues that come up one of the issues that that I kind of wanted to take a step back on was like that I don’t know that maybe enough people understand is that the like the position you are in as a a person with a Transportation license um am I wrong in saying that like most of the msos or lenses that were already established use their own transportation so they don’t use you right right well yeah they do have internal Transportation we’ve had really great um you know essentially Partnerships with some of the larger infusers um and need support extra support so without saying one company they’re one of the largest infuser processors in the country operating as a multi-state operator they’ve called on us to again Provide support some of these Long Haul runs are really um burdensome not only for the company but also their staff I mean we come in in a specialized way and provide that support um we see a tremendous opportunity with the craft Growers you know if if and when they can come on board you know they’re operating with limited resources so that Transportation um you know model becomes like I say really burdensome for those smaller companies looking to really move product throughout the entirety of the state you know when we started this out you know I mentioned you know during our planning phase we went to every incubator one of those incubators included um Industries and they all out let us know like hey you know we know how to grow but we struggle at some points with transport although we have not gotten to an actual contract with them you know we operated early on knowing that some of these major companies are looking for support now you know the next step is making this manifest you know it’s one thing to speak on it but you know extending contracts and offering opportunity to those of us that’s just like the Home Run for us but um yeah we we’re looking to support and not necessarily to uh dismantle right well to your point um I’ve heard from like a new era they’re a company that were originally licensed and they have a part they don’t have a cultivation Center anymore or at least from what I understood they are in a partnership with ISO which is another original liy and they were talking about how yeah it it can be hard they have to really plan their day if they’re going all the way to like Chicago since they’re coming from like Southern Illinois and they got to make it back in time so I mean at least to your point on that on on that point you’re not alone and you could probably get support like you say you’re not trying to tear people down you could probably get support from all of them at least on a provision like a the Depot or at least some holding type of protocol so that you’re not limited like you know what I mean to to one day because Illinois is a big state um I’m curious what are some other issues though that that you face is a uh if you’d like to add to that point at all you can but I ALS also would like to hear um you know what are other issues that you face as a trans transporter yeah you know I think um you know when the dceo social Equity lending went out you know I think we were really uh pushed to the back of the line with the funding you know we’re we’re looking for an increase in dcoo Social Equity lending you know uh opportunities for those of us operating at Social Equity companies we were one of the few Transporters who did pursue the initial pot of dceo funds and we were success ful in securing funding that allowed us to uh you know get our rental property acquire three vehicles you know uh bring on some limited Staffing but you know that 125,000 we would love to see an increase in in lending opportunities you know whether or not that becomes forgivable you know we’ll allow you know the powers that be to determine that but you know we would definitely call on the state to open up those streams of lending to support these Transporters and not just the Transporters with the craft grow as well as the dispensaries who are looking for Capital you know it’s um it’s pretty much known now that Capital has been really hard to come by in the space um and that you know cannabis regulation and tax act really push for the funding of these social Equity businesses so we want to make sure the state is standing true to what the law is calling for um you know aside from that I know there’s a big push for more uniformity between all of the entities really regulating the space there’s been a there’s been a lack of Regulation when it comes to transport you know I know a cluster of Transporters early on put forth a lawsuit you know whether or not it was um you know symbolic or ceremonial I don’t know it it did bring forth the issue of individuals operating outside of what the law is requiring right so are your vehicles in compliance are we treating staff um appropriately are we operating in accordance with the the actual laws and as it stands there’s just not enough oversight uh from the regulation of the state to really make sure folks are playing um in accordance with the rules so we definitely want to see that uh regulation is really um looked at properly but I would say those areas so that funding piece the uh ability to store and Dock and then that home delivery piece I mean it’s critical that will allow us to really become truly viable and have a a space of Our Own in this industry right aside from you know trying to partner with the grower and so forth this uh business to Consumer peas is critical as a next step for delivery and transport as a whole um so you know we’ve been appealing to the the Illinois working group the Cannabis working group you I’ve had conversations pretty much across the board um I know the independent Illinois Illinois Transporters Association is a new organization but we’ve uh been pretty successful last year and securing a moratorium on new licenses and then we’ve had the ability now now to abolish licensing fees for the next two years so that gives us a little assistance but a lot more still needed and and again we’re approaching this from the position of partnership um as opposed to totally dismantling the industry at least from my perspective and our company sorry I almost muted myself there um I wanted to ask you about I’m reading your press release that you sent me um you’re advocating for the implementation of a third-party mandate in cannabis transportation did we already talk about that and what that means no we haven’t so you know we’ve seen a mandate in certain States like Michigan and some others where um you know if uh msos are not willing to uh deconstruct the monopolies we’re going to ask the state to create a mechanisms uh where we can be considered for transport opportunities first you know and if this is inviable we’re asking for percent so we’ve seen um you know some individuals look at a 75% Outsource of all transport to third party Transporters and again I see this as a bargaining chip you know if other um options aren’t suitable and viable perhaps we can seriously look at a third party mandate where the msos are in essence now forced to do work with us if they’re not willing to break up and bust up some of these monopolies um because that’s what we’re looking at if this continues to go on as it stands why did the the state or why did the Cannabis regulation Tax Act create a transport license and the ability to stand up a third party license if indeed the intent is for msos or Growers to you know keep the work in house that would contradict um the essence and the spirit of the law you know and definitely stand in opposition to social Equity so we’re definitely um you know in support of a third party mandate as a last resort if we cannot secure viable work for social Equity Transporters and um those of us of social Equity stat is in the third party space yep gotcha gotcha yeah and as you were saying earlier I was I feel like I just caught up with you I’ve been smoking a few joints this afternoon um you were saying that I I’m looking in your press release now which folks I’ll have this attached in the podcast description if you want to check it out yourself um you’re proposing to restate what you said earlier you’re proposing an exclusive privilege for third party cannabis trans supporters uh especially those of social Equity status to engage in home delivery if it were to become a thing precis yes sir precisely again you know this will allow the license to become viable and have a true purpose you know rather than recreating the wheel and um you know at some point we can open this up but as you know at the at the beginning of this you know I’m definitely pushing for an exclusive privilege um as it relates to third party Transporters this will allow us to become viable and have our market share within the uh Illinois cannabis industry you of course you know I’m not saying this should be something that should last forever but you know as we create policy around this you know I would ask the state legislator to really consider us in creating an erecting laws around home delivery we’re in a position as it stands with um you know standard operating procedures in place we currently have the license um some of us we have the funding and capital to really U make this a reality Why not start with us yeah yeah and back to the point you said though before because it’s interesting you brought up market share that what you are proposing if you’re saying that that what was it again the third party the implementation of a third party mandate in cannabis Transportation it’s not written in the law and I agree with your logic that it seems that if they are exclusively used in other words let’s just put it shortly if they’re vertically integrated yeah right that would seem to be at odds with the spirit of the law is that a good recap of what you were saying exactly exactly what I’m saying is I agree with your logic and everything but it seems like this like this law was framed around the idea that you just talked about market share and like I think it’s important to people that you know before as we were leading up to legalization these big companies were lobbying uh to keep like kind of the market exclusive on the on the logic that they built it so they should have like primary access to it for I think at least a year they were asking for and coincidentally that happened and some I mean Still You could argue they have a choke hold on it and because of the fact that it seems that social Equity is paired with the idea of market share like I feel like I don’t know we’re just going to keep getting caught in this Loop of uh you know um yeah if if we’re if that’s the goal of social Equity is to preserve market share I feel like we’re just going to keep get getting caught in this like David and Goliath fight of like hey why can’t I get in it’s not fair you know what I mean so that’s kind of me just thinking loud but go ahead yeah I get that I respect that you when it comes to home delivery you know uh as it stands there’s no policies around there this there’s nothing around this right you know in the same way the msos or the you know previous medical operators ask for that one year you know we would ask as Transporters at least for a time frame where we can you know really uh spearhead uh policy and growth in this home delivery space uh so I I would humbly ask for the same thing the msos and medical operators ask for you know at the uh onset of this new adult youth recreational uh you know industry as uh there’s no policies related to home delivery currently yeah and I get that we actually had um I totally get where you’re coming from we had J.R Fleming on and he basically described it again as I said it seems like people are all pairing the idea with social equity and market share so as he described it just like those companies had first dibs on the market he expects that or or that I don’t mean he and they though I’m kind of speaking on my experience with him and everybody else that pairs those ideas and just to be clear you know for me I think um you know social Equity is critical but I’m an advocate for third party Transporters you know so right right you know I want to make sure third party Transporters really have some priority in this space you know I think we’ve gotten the short end of the stick across the board you know whether it be uh you know news outlets not covering us you know us not being considered debates in Springfield so on and so forth I feel like we’ve kind of been a stepchild so third party um transport across the board you know of course you know I’m an advocate for social Equity operators you know I come from that space right you knowy much been to the southide of my whole life almost you know from Englewood to Park Manor where I chose to buy my home you know and stay in the community um but definitely I support third party entities looking to really carve out this Niche space providing secure and Professional Services you know across the board with social Equity being a bonus you know right I totally get where you’re coming from and I guess just to get to my point that I was like working up to it’s like it is interesting that the it seems like the idea of social Equity is ex almost exactly the business plan of all these companies that currently have a strangle hold on the market explain explain go go go further go further sure like uh the idea it seems like when so for example in the and I know that this is does not have to do with Transportation so let me preface it with that but I’m just saying that like the idea of preventing dilution of the market and even like the moratorium that was just proposed which I guess is related to Transportation it’s the idea that it’s like you know we got to stop issuing licenses because people can’t even make money or whatever and it’s just like it’s to me I just don’t understand that because in other Industries we don’t do that like with restaurants for example I always use that example like nobody is advocating for license limitations or moratorium on restaurant licenses yet 80% of restaurants go out of business within the first five years yeah and I see your point I would say the difference would be the level of control the state has really maintained on this industry and really influencing it right here at the foundation of the industry this new space you know I get it like let capitalism play out but what we’re seeing is something totally different than pure capitalism you know with so many hands um in the pot at the state level really controlling this and I I always want to go back to what toy Hudson said you know what became her Mantra at the beginning hey this is limited roll out you know in effect this is only an experiment you know with what she considered to be only 10% of the industry standing up you know um this isn’t pure capitalism Cole not yet right I you know what I used to have a quote by her that is basically exactly what you’re talking about uh to your point and I I’m butchering it now but or I would butcher it now so I’m just going to say the short version of it she said we knew 95% of people that applied for licenses weren’t going to get them yeah it was something I think it was something like 3,500 applications for what was going to be 75 licenses we knew that 95 % of people aren going to get them or some number like that I don’t know don’t quote me the number but can I can try to put that link in the podcast description if folks want to see that clip so yeah yeah certainly certainly but you know with that said I’m curious to see what steps will you know occur to roll out the next 90% of this industry you know uh whether it be you know new cultivators coming on board you know what will that process look like uh that’s still to be uh determined at the state level in Springfield you know even with the con consumption lounges Statewide you know we’re seeing um like you know Cook County having a very limited roll out um you know whereas the uh state law you know does provide a privilege for the establishment of these consumption lounges but we haven’t seen that come into manifestation yet right so we’re at this infancy you know I get it you know those of us you know who are you know operating from a truly capitalistic perspective like hey I get it like hey right you guys can’t cut it fold your businesses go yeah yeah yeah what whatever but you know I think the intent of the law is still on the table and I think the uh Control Springfield has had over this industry creates a different Dynamic that must be considered you know when comparing us to like restaurants or yeah you know other industry spaces so I get the push back but at the same time like if that’s the case call for Springfield to step back yeah hands off yeah well said well um thank you for addressing those points because uh it’s something that’s been rattling around in my brain and probably will continue to but uh I totally get where you’re coming from so um well did we are is there any other ground with regard to what you would have specifically liked to have spoken about today I know that I took us on different tangents and stuff no no no no I appreciate the opportunity just to have the conversation bring transport you know to the table you know I recall a um an article I think in the in the suntime or the trip some time ago where they stated that there’s only 10 true third- party operators in the state you know from with from the transport uh space you know a lot of folks pursue this Transportation license in hopes of tying it to a grow or to an infuser and when they fail to get the uh grow or infuser license their trans license became null and void or moo so there’s a lot of people um you know with the transport license who are not using it but there’s a few of us who entered this space um looking to work you know and provide that third- party support from the beginning right we have a vision here and um you know we’re going to stick to this you know and see it through we’ve been able to really cut some incredible um Corners with um cost savings through um you know aligning with a really great landlord you know pretty much our overhead is relatively low um but you know we still would love to infuse some more Capital into our business to give us just some more um shity but you know I want to again you know bring forth the reality that we’ve had some incredible opportunities from the msos from the new uh infusers coming on board as well as the new craft Growers who are now standing up so you know I reject the uh the misconception that hey there’s no work for thir party Transporters that’s just not true you know unfortunately early on we were not in the position to handle some of the work early on but now we’re ready to go and we appreciate everyone who has you know reached out to us you know looking to solidify Partnerships those who have actually signed the contracts and actually given us work you know um another area I think folks should really look at you know with that dceo lending you know the rle of that roll out of that lending um program was a hot mess you know this the state partnered with a number of entities and um the program just didn’t roll out in accordance with what was envisioned early on right so um you know us for example we were able to establish a relationship with uh you know a great Credit Union uh but you know we we look for some uh more more funding opportunities and maybe even some changes in how uh cannabis banking is occurring at the credit union level here the state you of course you know we’re hopeful that movement happens at the federal level but I wouldn’t want anything that happens at the federal level to Trump the strides we’ve made here locally in Illinois right um so you know I look forward to uh you know legalization Nationwide but I want to make sure Illinois is firm and solid and we have a really good grasp on what’s Happening Here In the state right and if anything you know let the state really uh regulate what that looks like uh but you know there’s a lot of work to do I’m truly optimistic about this Cole I never thought it would be an easy walk in a park and um you know I’m here for the struggle and the fight you know we we’re taking uh you know my father’s military experience he left the military and went into Trucking you know went into Trucking and went and worked for the post office as a truck driver you know for me that afforded me opportunities as a kid in Englewood to go on to you know undergrad College get my masters now I’m working on my doctorate but throughout all of that I assisted my father with his trucking business not only my father but like all of my cousins and Trucking in my community has been a life source for men you know who have looked for Upward mobility and I ask that we consider you know those communities who have been most affected by the War on Drugs you know as we create policies around transport because transport at large like I say has been Lifeline for my community and the men within my community so you know I’ll leave you out with that well um if you do you have uh time just to talk about a few unrelated topics as well yeah sure sweet um I we don’t have to get like I I’m sure it’s not a crazy interesting topic but I am just curious I know people several people that have worked in the Canabis industry and like you said you have to bank at Credit Unions I think that’s just interesting is the difference like that you just can’t do like a FDIC or like a federally insured bank is that is that why because it’s like Federal cash or something all you know exactly you know essentially what we’re doing is illegal at the federal level right so that FDIC banking on really you know obstructs great movement but you know the credit union we’re working with they’re awesome you know they’re awesome we just wish there was a bit more coordination between the state and that credit union you know there’s some um really strict guidelines on some things to get them maybe your dcoo loan is that what you’re saying or yeah that dceo loan roll out was a mess you know early on Cole it was a mess you know was it just because they couldn’t understand how to get it to your credit union no no no no uh you know they the The Lending partner looked at assets and you know pre-existing work in the industry and we just didn’t have that early on and from my understanding no one of social Equity status you know met the requirements you know that were on the table early on with the uh banking process but I’m happy the state decided to go ahead and afford you know the The Lending opportunities through the state directly right which should have been at play from the beginning you know I you know it’s what I think but um there’s still a lack of coordination between the the state and our banking partner you know you talking about what happened with the Omnibus Bill where they like transferred money is that what you’re saying well I mean no no no I don’t it didn’t take a bill so what happened early on when this when dceo realized no one was receiving lending through the credit union Partners dceo decided to lend directly okay third party third party out of the equation got um so that afforded us the opportunity to get some banking yeah well actually some funding we still opted to work with that banking partner but we were kind of locked into that banking partnership as a product of us pursuing the original lending through the third party and at that point we were already locked into a relationship with them so it’s like let’s just continue banking with them um you know I can’t speak too much on it there are certain ndas in place about how much we’re paying monthly you know to the credit union we’re working with but we would love to see a reality where some of those fees are reduced and you know I tell everyone that we’re signing contracts with whether it be Growers or infusers hey we’re paying the same monthly fee as you all to our credit union so we’re not going to relax our prices as if this is just some run-ofthe-mill Uber pickup you know order or something like that give Transporters um you know our respect because our bills are the same as yours you know at the end of the day um but you know again dcoo opted to you know afford lending directly to lenses and removing that burden from the third party you know Credit Union partners and the credit union spelled back as just traditional you know Bankers as opposed to lenders um you know of course we’re now in a position to you know appeal to our you know banking institution once more for some lending you know perhaps we’ll do that but we’re looking to see what happens at the dceo level as you know they promised another round of funding will soon open up the question is when and what will that look like so I know um you know some of the individuals within dceo has put us on standby hey funding is pending hurry up and wait so we’re waiting to see what that looks like you know we’re not gonna you know jump off into the deep end and go after you know private Equity at this point as we’re waiting to see what happens with dceo if we can indeed secure some additional lending through the state at a really great interest rate we’re going to opt to go in that direction as opposed to you know looking into the private Equity route but um it’s to be determined there’s so much in the air you know with dceo you know I know some opportunities you know have opened up you know for other businesses established during covid unfortunately those um options do not apply to us as we are operating at what’s considered federally illegal Waters so we can’t pursue many of those um opportunities within dceo so we’re now just patiently awaiting the state and some movement related to that social Equity lending and the next round of that it’s to be determined gotcha well um I wanted to wrap up the uh show with just a the clip that you referenced a small clip that you referenced about the transportation thing just like for context for people and then I actually wanted to play a clip that’s an older clip that I’m just curious if you have have any thoughts on it has to do with all the regulations you have to face as a transporter um which they sound like crazy um so uh but first I just wanted to play this short clip just so that people knew if they were wondering what we were talking about earlier so well now to a story you’ll only see on CBS 2 this is how you’re legally supposed to transport marijuana in Illinois in a vehicle with cameras GPS and no rear windows or markings but illegal deliveries are reportedly Happening by those who are not following the rules in fact more than a dozen licensed cannabis Transporters are now suing the state of Illinois CBS 2’s Charlie dear is live in the control room with the story Charlie and Joe and Erica those LIC Transporters say those images that you just saw are evidence of illegal transports and without regulation and enforcement from the state they say there really is no incentive from dispensaries and Growers to use those licensed Transporters this cameras mounted in inside here noberto Brown has poured thousands of dollars into his truck this is to accommodate all the products that will require refrigeration he intended to legally transport marijuana throughout the state so we have to do all these STS and then for us to come up zero you haven’t made a delivery with this haven’t made one delivery at all brown was one of the first to get a cannabis transporter license he custom fit his truck to follow State guidelines there’s no back windows it’s equipped with cameras GPS and other safety features wow like we were just blown because we doing all this stuff to become compliant transporter Berwin Tomkins blown away over these pictures that he says prove marijuana Transportation laws are being skirted with no consequence like this minivan apparently delivering cannabis and another drop off allegedly by a company without an operational license in a vehicle with rear windows we do think it is a resource issue attorney Ryan holes filed a lawsuit against the Illinois Department of Agriculture on behalf of 13 licensed Transporters accusing the state of failing to enforce its own rules surrounding cannabis Transportation you basically get the market undercut and the Transporters who are compliant just really don’t have any chance we’re bleeding money trying to stay afloat I can’t keep paying the license of fee every year to to make zero zero sales are you optimistic that things will change that you know that you can stand business I’m not optimistic at all and those pictures you saw were entered as evidence in that lawsuit that was filed and we asked the Department of Agriculture if they have issued any Cit ations to Transporters or for illegal transport transportation in the state at all a spokesperson declined to comment citing that pending litigation we are live in the control room I’m Charlie dear so um to back to your point I try to give the space for transport Transporters on this show and uh just wanted to put it out there that if you’re if you’re a transporter or if you know any other Transporters JY that want to come on and have anything they want to talk about you know um I know I have people from all over the industry on this show and I you know would love to have more perspectives from Transporters uh before we move on to the the show that I think will open up some more thoughts did you have any thoughts on that if not we can just Breeze yeah you know uh noberto and bwin you know they’ve been really solid and advocating for uh you know inclusion and growth within this transport space not even just inclusion and growth but respect you know within the space and you know this is just another example you know those of us who are trying to abide by the law those of us who are trying to be compliant compliant right and operate you know efficiently as the law requires we’re cut out as a product of us trying to do right whereas those who have the money the legal power to skirt the law they’re able to you know do whatever the hell they want without much um repercussion as a product of the state not having the capacity to enforce and regulate law right so um again we just call for the state to really take Transportation seriously and not just some you know letter that’s written into the law but like an actual you know industry that will you know influence the market like product comes to the market as a product of Transport we are the circulatory system here and if regulation isn’t upheld what is the point of seed to sale tracking what is the point of the law period right so um again just thank you and I I definitely want to just give kudos to noberto as well as b b as well as others who have been fighting in this space since the beginning since before this was even a space and um you know there’s a lot of advocacy here there’s a lot of work happening on the ground and um I thank you Cole for giving me an opportunity just to put my my voice forward oh absolutely dude anytime anytime and I actually met uh Mr Brown one one time uh just like randomly I think it was at a I think it was at the Cannabis Town Hall that I was telling you about where I asked about the y thing he was there and I like I like walked past him and I was like wait a minute man who why do I know you why and he was like man it’s probably because I’m on TV a lot or whatever because and I was like yes that’s exactly it I watch videos that have you in it so any anyways uh about to play this uh next clip here and I’m curious if it spins up any other thoughts um for you because I feel like this is like it kind of the undertone of what uh Norberto was play saying in that clip and uh it’s interesting to even hear it from the big operators too in this context uh complaint sorry complaints about Transportation investigates Illinois has very tight rules for how cannabis can be transported and delivered in fact those rules are stricter than the federal guidelines for opioids the most abused drug in America here’s the story from Phil Rogers we have more to grab yeah we’re at a distribution center for Cresco labs in suburban Chicago and what these workers are loading 3365 is one of the most tightly controlled cargos in America the cargo is legal cannabis at least legal in the eyes of the state of Illinois but the rules for how it’s transported are spelled out in pages of state regulations security is aware of every shipment that goes out where it’s heading what time they should arrive that security actually starts all the way back when the cannabis plants are grown each plant receives its own barcoded number and those numbers follow the plants and their products through processing here at Cresco Suburban facilities all the way through packaging transport and delivery to dispensaries Statewide correct and we refer to as seed the sale Illinois Law requires cannabis Transporters to move their wees in vehicles where the products are locked tight in a separate compartment then there’s a second set of locked doors outside the trucks can’t be marked and at least one crew member has to stay in the vehicle at all times what is this this is our um tracking software platform cesco’s Fleet is monitored in real time onboard cameras provide a view inside and outside the trucks and GPS will alert the company if the truck tries to cross state lines we know exactly where they’re at at all times but there’s a bit of irony here remember in in the eyes of the federal government cannabis is still illegal but the Illinois guidelines for transporting pot are much stricter than the federal rules for moving much more dangerous drugs it was very casual um all the product would go into my personal vehicle and just have standard Coleman cooler cesco’s Logistics manager Joseph Franks told us he used to work for a major Hospital transporting everything from chemotherapy drugs to prescription painkillers where would it be in the car it would be in my back seat the dea’s position on moving even the most abused drugs in America opioids like Oxycontin is that lenses are simply responsible for getting them where they are supposed to go the federal regs say all applicants and registrants shall provide effective controls and procedures to guard against theft and diversion of Controlled Substances we do have uh millions and millions of controlled substances that are moved through the system through the mail through UPS through FedEx former deaa agent Jack tielman now works as a consultant on compliance with drug regulations if you decide that you know your your method of distribution is on the back of a bicycle and a and a on a backpack because that fits into that neighborhood and you’ve never had an issue then that might be the correct way of of making that delivery into that neighborhood 281 that is not the case with marijuana in Illinois Illinois is the most heavily regulated state that we operate in heavily regulated and lucrative was nearly $1.8 billion in sales since it was legalized in Illinois just 2 years ago Phil Rogers nbc5 investor so that video was a little bit older but um another Testament to how strict the regulations are that you all have to comply with I’m curious what you got any thoughts based off of that clip yeah you know um you have state regulation then you have industry standards you know when when we created our standard operating procedures we looked at the industry standards and you know much of these regulations are just the standards you know across the industry so we’re willing to comply um we did not see this as burdensome you know personally um would be nice if you could just put it in your front seat and just I mean it would be nice but our insurance company they are not going for that you know frankly um you know state state aside our insurance company also had some major requirements um but of course it would be nice it would be nice to uh what would oxycotton people do because that’s like it’s it’s crazy because it’s like the same I don’t know if it’s the same schedule drugs cannabis is schedule one so it really depends on what you’re moving but he was saying that he was moving like pretty highly scheduled drugs just throwing in the front seat of his car so like and that was for a pharmaceutical company and I know that might be a different thing because they’re like licensed at a pharmaceutical level and maybe that’s what it is but I wonder like uh what insurance they use yeah yeah I’m curious to see I’m curious but you know if we could relax the laws I’m all for it for us you know I’m I’m not too worried about just frankly personally what was required of our vehicle compliance I’m you know I’m not too worried about you know I’m seeing some states are even looking at allowing transport with only one driver I question that you know because I would never want to leave a vehicle unattended like personally just from our business model I would always want someone with the vehicle while there’s likely up to $250,000 worth of cannabis product on board um but I get it I get the push back you know at the at the uh you know towards the state when it comes to this but for us and our company it’s just it’s just not something it’s not the heel we’re willing to die on you know about comp you know I don’t mind mind um not having the back window I don’t mind having uh you know a great welder install the appropriate cages I don’t mind installing the cameras around board you know I don’t mind using the GPS tracker or samsara you know for our uh route management so on and so forth for me it just provides another level of security for my team and making sure everyone’s safe like I get it you know um I get it I get the push back but um do you think do you think that what stuff is is would be cost prohibitive for certain social Equity licenses like yeah um it could because I know nto has talked about like how much money he’s put into his van it wasn’t in that video but in other videos yeah it could be but you know there is ways to save money in doing this you know I think what’s happening with a lot of these security um uh what’s the word customizations happening there’s a lot of price gouging you know with like the installation of a security cage on board there’s companies charging like 75 $80,000 to install security features like a cage at your back door you know we were able to cut that price tremendously you know have a family welder you know license who was able to do that for us um you know we have to be creative like I get it you know this can be burdensome crazy Toto was still able to do it Berto is still in compliance it’s funny that we’re seeing the msos you know crying about their vehicle security compliance because that’s what we looked at we just looked at a video of Multistate operators complaining about the security requirements which are industry standards across the country you know so I get it like if you compare it to you know oxy or other I get it I get it but this is the point about the bicycle that was pretty crazy that you come on now like come on like you know I I’m not gonna put any of my staff in a position to deliver on a bicycle yeah now we can look at drone delivery you know if folks want to have the conversation about what what drones could look like in this space as it stands Illinois bands you know kind of non vehicle um transport but um no we’re we’re not I’m not gonna advocate for bike delivery of cannabis you know personally but again this just isn’t something that I’m willing to die on I think the more important issues are that home delivery piece you know the funding piece and then the ability to Dock and store cannabis overnight I think these are the critical um issues that deserve like the that really um Keen Eye from the media right I get it the security compliance piece I get it but for us I think the thought of it created more anxiety than actually coming into compliance you know once we were able to really step back and look at it aside from those who are really price gouging right and think creatively about it we were able to make it happen you know and of course you know the state could come in and find something wrong and maybe my tune would change at that point but as it stands you know the security compliance is not the burden that’s not the the barrier for us what do you think Transportation looks like is it like a pizza delivery where like you’re waiting for the guy to go back and like pick up the van and you got a guy like and and by the way with pizza delivery some times they don’t start delivering until 400 p.m. you know to until like 900 p.m. or whatever um but like do you envision it like pizza delivery or do you envision it like ice cream truck or do you you know like what what is transportation going to look like the home delivery transport yeah yeah sorry home delivery yeah yeah you know I I think there’s some incredible incredible incredible vehicle options on the market um whether it be the uh you know the promas SE City the metes the uh the other smaller Ford Transit well I guess what I’m ask I guess what I’m asking is like uh like I’ve seen in Massachusetts we had somebody on that actually received the first delivery in Massachusetts and it was interesting like somebody they they placed the order and then somebody came and they had like a body cam on but they gave them the bag and like uh do you but it was like they called and it dispatched from the dispensary like do you do you envision it being on you’re sitting there on call at the dispensary or you just like rolling around with like I’m kind of thinking like what does this look like yeah so there’s a few approaches right so I mentioned the storage piece I think when it comes to home delivery and creating a more dist model would be amazing right where we could store product at a warehouse and then um create some digital apping where folks can order directly from us and or we create Partnerships with the actual dispensaries and let’s not forget the infuser processors as well uh what we can take product to market now that’s going to require some shifts and laws but the entire erection of a home delivery uh processing protocol will require laws to change but I think if we can get that that overnight storage piece and create a distribution model for Transporters that would be ideal where we could Warehouse products uh and really get it to the homes from our warehouses you know of course those warehouses will have to have the proper security so on and so forth but I think that would would be like the ideal approach but you know in the meantime we’re definitely willing to partner with uh dispensaries you know and creating Tech and creating apps where we can provide just another outlet for deliveries to introduce their products to a broader Market you know that would would imply us becoming you know marketing agents agents of sorts and really informing the public about products available at a various U number of dispensaries um but that distribution model for me is like ideal where we can would be able to Warehouse product and then move from our warehouse directly to the consumer at home makes sense um and that sounds cool as hell um so sweet well I feel like I covered all the bases that that I can think of right now um again though always an open invite from my from my end yeah um but if I ever have anything that comes up where I’m like I wonder what a transporter thinks about this I’ll reach out to yeah certainly and um you know I mentioned noberto earlier and I I want to again shout out the uh Illinois independent kport on hold on let me say it right the Illinois independent cannabis transporter Association and for the work that’s happening at that level um as we continue to advocate for growth within the illo industry uh with respect to transport so thanks Co absolutely well folks I hope you found as much value in this conversation as I did J I just want to thank you again for reaching out and uh keep in touch looking forward to the next time we talk and folks we’ll see you in the next episode take [Music] care