About two-thirds of the 1,817 adult-use marijuana social equity license applicants in Minnesota were denied access to the state’s license lottery, which is expected to be held the week of Dec. 2.
Those who will be permitted in the lottery for one of 280 preapproval licenses will get official notification within two weeks, the MinnPost news outlet reported.
The applicants who are barred from the lottery failed to complete the application process or acted improperly by submitting multiple applications or disguising the true investors in their companies, according to Minnesota’s Office of Cannabis Management (OCM).
“While the disappointment is understandable, the basic proxy for readiness is your ability to submit a successful application,” Charlene Briner, the OCM’s interim director, told the MinnPost.
Minnesota law does not allow appeals from applicants who were denied access to the preapproval lottery, but rejected applicants can request a review of their records within seven days.
Sales of recreational cannabis in Minnesota are not expected to begin until sometime in 2025.
Michael Mayes, CEO of Chicago-based cannabis consulting firm Quantum 9, said the OCM has failed the industry by rejecting social equity applications without issuing deficiency notices.
“I’ve heard from clients, friends and associates who have poured their time, money and energy into this process only to be blindsided,” Mayes said in a post on LinkedIn.
“Many were disqualified from the social equity lottery due to minor deficiencies or a submitted document never reviewed.
“Minnesota law doesn’t even allow these applicants to appeal or request a hearing, effectively shutting the door on their opportunities.”
Mayes said he expects rejected applicants to file lawsuits, which could put the adult-use program in limbo for months or even years.
“What should have been an opportunity to elevate social equity participants has turned into a bureaucratic nightmare,” he added.
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