MINNEAPOLIS – Two lawsuits filed against the Office of Cannabis Management seek to stop a lottery for cannabis licenses in Minnesota.
The lawsuits were filed by applicants seeking one of the initially “pre-approved” licenses ahead of Tuesday’s scheduled lottery.
One lawsuit, filed Friday by six applicants, claims the office improperly denied their license applications and seeks a temporary injunction barring the office from holding Tuesday’s lottery.
In response, the office released a statement saying:
“The Office of Cannabis Management supports the process used to review applications for pre-approval of a license. We look forward to holding the lottery on Tuesday.”
Another lawsuit, filed Thursday by two other applicants who were denied, claims the agency “failed to adequately disclose the basis for the agency’s decision.”
According to court documents, one applicant said he did not receive a denial email from the office. Another applicant said her application was rejected but she was not given an explanation document or additional instructions.
In response, Charlene Briner, interim director of the office, said:
“We remain committed to rooting out bad actors who seek to overwhelm the system at the expense of legitimate, would-be entrepreneurs.”
State regulators have rejected 1,169 of 1,800 social equity applicants According to an agency spokesperson, they are looking for approximately 280 initial permits. Failure to meet regulatory requirements, inconsistencies in documentation and lack of required information were among the reasons denied by the agency.
According to the OCMMinnesotans must meet the criteria of a “social equity applicant.” This includes veterans, farmers just starting their careers in agriculture, residents of high-poverty neighborhoods and people convicted of certain possession or sale of cannabis before lawmakers legalized it last year.
On Thursday, an OCM spokesperson said that individuals who have not received a denial notice should not be assumed to be in the lottery, and that the office is still making final reviews.