Minnesota cannabis consumers will have to wait even longer to easily access legal pot. An initial plan by the state’s Office of Cannabis Management (OCM) to give certain qualified license applicants a head start has gone up in smoke following a series of lawsuits.
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On Wednesday, the OCM announced it was abandoning an early pre-approval lottery set to take place in November. The idea was to allow people who had been disproportionately affected by prohibition (aka social equity applicants) a chance to kickstart their businesses. A small number of them would have also been able to begin cultivating cannabis so the state would have a robust supply when dispensaries opened.
The state’s denial of several applications led to a judge placing an injunction on the November lottery. The move to scrap the pre-approval process is seen as yet another roadblock in Minnesota’s slow-moving rollout.
“The OCM terminated the social equity license preapproval process altogether and decided to move forward with opening a standard licensing cycle for both social equity and general applicants beginning early in 2025,” explained Mitchel Chargo, a partner with Minneapolis-based Hinshaw & Culbertson law firm. “The decision was made to avoid further delay and risks to Minnesota’s social equity program.”
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Officials at the OCM released a new timeline, setting a tentative target of May or June 2025 for the licensure lottery. Social equity applicants and general applicants will still be placed into two groups, with available licenses split evenly between them.
In a press release, the OCM also clarified that applicants denied entry to the pre-approval lottery will be given a chance to correct their mistakes and potentially enter the general license lottery. The 648 applicants who qualified for the November lottery will automatically be entered in the next round; they may also choose to withdraw their applications and get a refund of any fees. Certain license types that do not meet the entry cap threshold will see applicants automatically move forward in the licensure process. This includes testing and distribution.
Jen Reise, an attorney with North Star Law, represents a number of plaintiffs who challenged the November lottery. She told GreenState the decision is bittersweet but will ultimately lead to a smoother path to licensure for qualified individuals.
“This is a painful pivot for many,” Reise said. “We’re glad that OCM heard us to some degree and established a process whereby denied social equity applicants can choose to get their application fee refunded or get information about how to fix their application in the next round.”
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Leah Kollross, a social equity applicant who qualified for the November lottery, was not dissuaded by the delay. She expressed disappointment over the challenges in obtaining real estate and funding she may have secured via pre-approval. However, she believes the decision will only give potential operators more time to get their proverbial ducks in a row.
“I’m glad there is a path forward for everyone, and I feel it was a good compromise for those who were denied,” Kollross told GreenState. “Assuming litigation doesn’t hold up the show for the June lottery, we will get this industry up and running. We need to take advantage of the extra time we have to firm up operations so we can be extra ready when it’s go time.”
The Minnesota cannabis community hopes this is the last delay in the market’s rollout. The state legislature legalized adult-use marijuana in the summer of 2023; so far, cannabis flower can only be purchased at tribal dispensaries, most of which are several hours away from the Twin Cities metro area.
The market for hemp-derived THC drinks and edibles is flourishing in the meantime, with products readily available in bars, restaurants, and grocery stores throughout the state. The thriving space will have to continue to tide people over until recreational dispensaries open, hopefully sometime in late 2025.
