Ramsey County judge halts marijuana license lottery, precursor to retail launch of Minnesota marijuana – Twin Cities

A lottery planned to give some marijuana business owners a head start on licensing will not happen earlier this week after a judge halted the process on Monday.

Ramsey County District Court Judge Stephen Smith also sided with him a group of applicants A person who is denied access to the social equity pre-approval lottery. They filed a lawsuit against a process They argued that there were no clear criteria, leaving no room for appeal.

“There is no lottery tomorrow,” Smith ruled near the end of the hour-long online hearing. He said the state was free to appeal.

Ahead of the hearing, Office of Cannabis Management officials warned that the lottery may not happen at all if it is delayed, given the cost and logistics of holding it.

Competition disqualification

Attorney David Asp, who represented some of the applicants, told Smith that the lottery was rushed and that people denied entry deserved a chance to appeal their disqualifications.

“The state has no objection that our client will suffer irreparable damage if this order is not fulfilled. This is often one of the main issues in an injunction, but there is no dispute here. Our customers will suffer. “As I said, more than $1,000,” Asp said. “The damage on the OCM side is entirely due to them.”

The Office of Marijuana Management defended its process, saying they were trying to eliminate applicants looking to make a quick profit rather than building legitimate businesses. Regulatory officials said some applications have been filed on behalf of other entrepreneurs trying to gain a foothold in Minnesota’s nascent market.

“The Legislature has chosen for this pre-approval process to be an effective and appropriate process, and while part of that is evidenced by the lack of objections to the pre-approval process, in the final license approval process, “there is availability for reconsideration,” said Ryan Petty, the agency’s attorney. “So a key factor in this is the Legislature’s decision to make this process effective and convenient so that social equity applicants can get a head start on this.”

The agency said there were more than 1,500 applications for this phase of the licensing process. The lottery would narrow it down to 282.

When the judge asked Petty about the timeline, including scheduling the lottery shortly after rejection letters went out, Petty said the selection process involved many moving parts.

“There was nothing to hide the ball here. “There has been no attempt to restrict applicants’ ability to appeal rejection decisions,” he said.

Retail market has been slow to establish

State lawmakers legalize marijuana It’s for adult recreational use in 2023, but the build-out of the retail marketplace has been slow. No licenses have been issued to commercial growers or sellers ahead of the launch, which is expected to begin in early 2025.

People can grow their own marijuana and distribute it in small quantities. Native American tribes have also opened their own stores, but these sales are limited to reservation areas.

The social equality lottery aims to support people living in high-poverty areas, those harmed by the war on drugs and veterans.