A Minnesota judge has ordered state marijuana regulators to carry out a previously approved lottery for social equity business applicants, declaring the cancellation of the process a violation of state law.
(Photo credit: GETTY Images).
The ruling, issued Friday by Ramsey County Judge Stephen Smith, states that the Minnesota Office of Cannabis Management (OCM) must conduct the preapproval lottery it scrapped late last year. The judge granted a writ of mandamus compelling OCM to move forward with the lottery, which was meant to give social equity applicants a head start in the legal marijuana market.
According to the order, the state Legislature gave OCM discretion to establish a preapproval process for marijuana business licenses, but made it mandatory to hold a lottery when there are more qualified applicants than licenses available. Smith emphasized that OCM’s failure to follow through with the lottery disregards legislative intent and harms applicants who were already approved.
“Canceling the lottery effectively casts aside the significant time and investment 648 qualified applicants put into shoring up their capacity to hit the ground running as a licensee,” wrote Judge Smith. He added that the advantage intended by lawmakers “is lost if there is no social equity lottery.”
The lottery was initially halted after legal challenges from applicants who said they were unfairly denied. While that case was pending, OCM decided to cancel the entire lottery. But the court found that decision deprived approved social equity applicants—including veterans and those impacted by past marijuana convictions—of a legally granted opportunity.
“There are no administrative or judicial remedies available to address this wrong in a timely fashion short of a writ of mandamus,” the court stated, noting the urgency of the situation.
Leili Fatehi, who organized the petitioners and works with Minneapolis-based firm Blunt Strategies, said the preapproval lottery could occur alongside other planned licensing lotteries in May or June. “They could do it the day before, they could do it concurrently,” she said.
Shaun Tetreault, one of the petitioners and a social equity applicant hoping to start a cultivation business in Chisago City, said he felt vindicated by the ruling.
OCM has received over 3,500 license applications so far. An agency spokesperson said the office is reviewing the order.
