Minnesota cannabis regulators announced Wednesday they will no longer hold an early lottery for social equity applicants seeking business licenses in the new marijuana market, a move that could affect the rollout of the industry.
Minnesota cannabis office abandons early license lottery, in move that could affect market rollout
“We remain committed to launching an equitable, sustainable and responsible cannabis marketplace in Minnesota,” interim OCM director Charlene Briner said in a statement.
The Minnesota Star Tribune
December 11, 2024 at 4:31PM
The decision comes after a Ramsey County judge blocked the Office of Cannabis Management (OCM) from holding a license preapproval lottery after several applicants filed lawsuits claiming they were unfairly denied entrance to the pool. A lawyer representing the OCM had warned the judge that a delay could force the office to abandon the preapproval lottery entirely.
The license preapproval lottery for social equity applicants was meant to give veterans, residents of high-poverty areas and people negatively affected by cannabis prohibition a head start in the new industry. It would have given aspiring cannabis business owners the certainty needed to secure investment, commercial real estate and local zoning approval. Preapproved cultivators would have been allowed to start growing, helping establish the state’s cannabis supply chain.
Aspiring cannabis entrepreneurs will now have to wait until next year to vie for business licenses. Canceling the preapproval lottery will also delay cannabis cultivation for several months, likely leading to less supply for retailers when the marijuana market opens next year.
The office shared a new timeline Wednesday showing it hopes to open the license application process to the general public in mid-February, with a new lottery to be held in “May-June.” It’ll take weeks to months after the lottery for cannabis businesses to become operational.
“We remain committed to launching an equitable, sustainable and responsible cannabis marketplace in Minnesota,” interim OCM director Charlene Briner said in a statement. “Our path forward ensures we remain on track to launch Minnesota’s new cannabis market and also preserves some of the social equity benefits that were at the heart of the preapproval process and that are foundational to the law as it was originally conceived.”
Briner said the 648 applicants who were accepted into the early preapproval lottery will automatically be admitted into the broader one without an additional application fee.
This is a developing story. Return to StarTribune.com for updates.
“We remain committed to launching an equitable, sustainable and responsible cannabis marketplace in Minnesota,” interim OCM director Charlene Briner said in a statement.
