OCM waives social equity pre-approval for cannabis licenses; lottery penciled for mid 2025

Minnesota’s Office of Cannabis Management to cancel planned social equity preapproval process after a series of lawsuits led to a judge stopped the agency’s social equity lottery which was scheduled for November 26.

While the state deals with lawsuits brought by a number of claimants who were rejected at the pre-approval stageThe OCM now says it will proceed with licensing for both social equity and general applicants, with a lottery for each category planned for May or June 2025.

OCM officials previously said the recreational cannabis market would be operational by the first quarter of next year.

OCM Acting Director Charlene Briner said the decision to end the pre-approval process is intended to prevent any further delays to market launch.

“We remain committed to launching a fair, sustainable and responsible cannabis market in Minnesota,” Briner said in a statement. “Our path forward ensures that we stay on track to launch Minnesota’s new cannabis market while also preserving some of the social equity benefits that were at the heart of the preapproval process and that are fundamental to the law as it was originally conceived.”

Of the 1,820 applicants who applied during the social equity pre-approval process, 648 were selected to move forward. These 648 applicants will now automatically continue with the licensure process and, if they applied for a license that is not limited by state law, will be able to continue to obtain a license. All others will be entered into the lottery.

Applicants who were denied in the first stage will now have the chance to enter the general licensing cycle or have until January 10 to apply for a refund of the application fee.

Social equity applicants will have between January 15-30 to check their status. A license application window will open on February 18 for social equity and general applicants and close on March 14.

Two state lawmakers who drafted Minnesota’s recreational cannabis law — Sen. Lindsey Port, DFL-Burnsville, and Rep. Zach Stephenson, DFL-Coon Rapids — issued a statement Wednesday expressing dismay that OCM will not hold an early equity lottery social. the applicants.

They blamed “bad actors” for changing what was a pre-approval process should give an advance to the people who were injured by prohibitionsuch as veterans, people of color, and people convicted of low-level marijuana offenses.

“It was fundamental to the intent of this law that those most affected by prohibition have a first shot at building Minnesota’s legal cannabis industry. It is frustrating that non-compliance has disrupted this commitment,” Port and Stephenson said in a statement.