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Social equity cannabis lottery canceled
After lawsuits held up the cannabis social equity license preapproval process last month, the Minnesota Office of Cannabis Management says it will scrap the plans and do a standard license lottery in late-spring.
(FOX 9) - Those looking to purchase recreational marijuana at a dispensary in Minnesota will have to wait well into 2025 to do so, as the Office of Cannabis Management (OCM) has provided a new timeline for its ongoing licensing roll-out to businesses looking to sell.
Minnesota's marijuana market
The backstory:
Since legalizing recreational use on Aug. 1, 2023, it hasn’t been smooth sailing for entrepreneurs to get a business up and running.
After months of reviewing social equity license applications – designed to give those previously adversely affected by marijuana laws a leg up – the OCM scrapped the lottery it had planned altogether after lawsuits contended it was unfair and inequitable.
Minnesota followed 21 other states to legalization, but tried something new at the same time, and it seemingly backfired.
Lawsuits allege that some who applied and were excluded from the lottery said the OCM should’ve let them correct perceived application errors.
Social equity applicants who were denied lottery admission can now make corrections and join the 648 already approved for a social equity lottery, or join a lottery with general applicants.
By the time the first legal sales happen — likely in mid-2025 — the state will be the third slowest to spark a market.
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Fraud allegations cloud MN cannabis licensing
Licensed and legal marijuana sales got pushed back by months on Wednesday, leaving a lot of people looking for someone to blame.
Timeline to toking
Big picture view:
In an update provided on Thursday, the OCM says Jan. 10 will be the deadline for previously license preapproval applicants to request a refund of their application fee.
The following week, on Jan. 15, a new social equity applicant verification window will open, with it closing at the end of the month on Jan. 30.
On Feb. 18, a license application window will open for general applicants that will then close on March 14.
If all goes as planned – and up to this point it rarely has – a tentative date to hold a lottery for capped license types will be held in May or June.
New OCM director
What's next:
Gov. Tim Walz and Lt. Gov. Peggy Flanagan announced on Jan. 6 that OCM interim Director Charlene Briner will step down, and General Counsel Eric Taubel will serve as the new interim director.
Taubel has served as general counsel for OCM for the past year and has overseen the drafting of regulations that will serve as the framework for the cannabis market.
Taubel will begin his role as interim director after Briner's last day on Jan. 17. Taubel will be the third person to serve as the head or interim head of the OCM since the office was created in August 2023.
The first, Erin Dupree, was appointed as the director in the fall of 2023 but resigned due to allegations of illegal product sales. Dupree was the only director without the interim title.
The Source: Information provided by the Minnesota Office of Cannabis Management.