Minnesota Social Equity Licensing Lottery Delayed by Lawsuits

A Minnesota judge has delayed the Office of Cannabis Management’s (OCM) licensing lottery for social equity cannabis licenses due to lawsuits filed by applicants whose applications were denied, CBS News reports.

OCM officials denied about two-thirds of the state’s cannabis social equity applications last week, citing a glut of paperwork issues and cases of some individuals trying to “flood” the pool with multiple applications. Several rejected applicants filed lawsuits last week saying they had been denied unfairly.

The lottery was supposed to be held Tuesday but Ramsey County Judge Stephen Smith ordered the delay to give time for the court to consider the plaintiffs’ complaints, writing Monday that “Given the extraordinary circumstances presented by the timing of OCM’s application decisions and filing of these cases, a fair and reasoned decision by the Court of Appeals is not possible without a stay of the lottery.”

One of the plaintiffs, Cristina Aranguiz, said in the report that her application “meets the criteria set by the state” but it was denied because she had assisted others who were also going through the process.

“Today’s ruling to pause the lottery is a victory for fairness, transparency, and accountability in Minnesota’s new cannabis industry. It also shows that the court recognizes the importance of ensuring every qualified social equity applicant has an equal chance to succeed.” – Aranguiz, via CBS News

OCM officials said they were disappointed by the judge’s ruling, and that the agency “always aimed to protect the integrity of a social equity license, and the rigorous review also allowed us to identify and prevent bad actors from entering the system.”

“We remain committed to launching an equitable, sustainable, and responsible adult-use cannabis marketplace in Minnesota,” regulators said in a statement.