Minnesota’s Office of Cannabis Management (OCM) canceled its planned lottery for early cannabis licenses designed to aid disadvantaged entrepreneurs. This decision follows lawsuits alleging unlawful denials, resulting in a Ramsey County judge’s stay on the lottery scheduled for late last month. The OCM argues that the court order negates the intended benefit of early licensing – a head start for businesses – rendering the preapproval process pointless. This cancellation may impact Minnesota’s cannabis supply, as those with preapproval licenses would have begun cultivation earlier than those with standard licenses.
Interim OCM director Charlene Briner acknowledged the disappointing outcome during a Wednesday press conference, stating that while the new path isn’t ideal, it offers a clear way forward. Social equity licenses prioritize applicants negatively impacted by marijuana prohibition, veterans, and residents of high-poverty areas. 648 applicants were received for the initial lottery; a new lottery is scheduled for May or June, followed by a lottery for conventional licenses.
Briner clarified that while state law allows for a preapproval lottery, it’s not mandatory. The OCM cited the discretionary nature of the lottery in its decision to cancel it, particularly in light of allegations of a “straw applicant scheme” revealed in court filings.
Senators Lindsey Port and Zack Stephenson, the primary authors of the adult-use cannabis legalization bill, expressed disappointment, noting that the actions of a few bad actors who submitted duplicate or misleading applications delayed the process and undermined the law’s intent to provide a head start to those most harmed by marijuana prohibition. They emphasized the importance of this head start for social equity applicants in building Minnesota’s legal cannabis industry.
By Michelle Griffith, Minnesota Reformer, December 11, 2024