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I'm sorry to hear about your situation. This is not illegal under state law. Basically this is a matter of "anticompetitive behavior" (aka antitrust) whereby the state is one of the parties engaging in the anticompetitive behavior. The only problem is that the Federal antritrust law (the Sherman act) doesn't include governmental entities in the regulated parties.
15 U.S. Code § 1 - Trusts, etc., in restraint of trade illegal; penalty
Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court.
15 U.S. Code § 2 - Monopolizing trade a felony; penalty
Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court.
15 U.S. Code § 7 - “Person” or “persons” defined
The word “person”, or “persons”, wherever used in sections 1 to 7 of this title shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country.
The barrier to applying the antitrust laws to state and local government conduct is the state-action immunity doctrine which basically means that federalism concerns have led the courts to exempt conduct by the state as a sovereign from antitrust scrutiny.
So in short, while this behavior might violate antitrust laws if it was done by a private company, as it's the state that is doing it it's not illegal. Unethical, immoral, and wrong, but not illegal.
I know this is probably not what you wanted to hear, but it is the law. I hope that clears things up anyway. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for the time and effort that I spent on this answer unless and until you rate it positively (3 or more stars). Look for the stars on your screen (★★★★★). Thank you, ***** ***** luck to you!