Minnesota’s first lottery for people seeking cannabis business licenses — a key step toward opening the state’s recreational marijuana market — was delayed Monday amid lawsuits filed by applicants who said they were unfairly denied entrance.
Minnesota’s first lottery for cannabis business licenses delayed amid litigation
A Ramsey County judge’s decision to delay the lottery could push back the timeline for launching Minnesota’s retail marijuana market.
The Minnesota Star Tribune
November 25, 2024 at 5:36PM
A Ramsey County judge ordered the state’s Office of Cannabis Management to delay its planned Tuesday lottery for social equity applicants seeking preapproval for cannabis business licenses. Judge Stephen Smith said the delay would give the Court of Appeals time to review the recently filed legal challenges.
The lottery for social equity applicants was intended to help people who were negatively impacted by cannabis prohibition get a head start in the new industry. It would have granted 282 aspiring cannabis entrepreneurs with preapproval for business licenses, giving them the certainty they need to secure investors, real estate and local zoning approval.
Aspiring cannabis growers would have been able to immediately start planting upon preapproval, helping establish a supply chain of cannabis before retailers open their doors.
Several lawsuits were filed in the past week after the Office of Cannabis Management sent rejection notices to 1,169 of the 1,817 applicants who had hoped to enter the preapproval lottery. Among many reasons, the office said it denied applicants for failing to meet qualifying standards or submit proper documentation.
But several attorneys representing rejected applicants told the judge on Monday that their clients were denied entry to the lottery for vague reasons, or for no reason at all. Attorney Courtney Ernston, with North Star Law Group, said one of her clients who applied to enter the preapproval lottery was given no reason for her rejection, aside from the word, “fail.”
“Simply saying the word ‘fail’ is not a reason,” Ernston said. “The basis for the denial needs to be communicated to these applicants.”
This is a developing story. Return to StarTribune.com for updates.
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