Delay of Cannabis Licenses in Minnesota: Regulation Calls for Patience

In the surprising withdrawal from a planned lottery for the allocation of recreational cannabis licenses, Minnesota faces a delay in the start of the legal market. The decision followed a court order that stopped the planned lottery prioritizing socially disadvantaged applicants on November 26. A judge in Ramsey County ruled in favor of two rejected applicants who had initiated legal action against the procedure. The interim director of the Office of Cannabis Management, Charlene Briner, announced that the agency will instead proceed with a standardized licensing procedure starting early next year. The goals are to ensure a clearer and faster process, now expected to enable the start of legal cannabis sales in early 2025. Originally, the state planned to award these licenses in advance to provide certain groups, such as residents of economically disadvantaged areas and veterans, with earlier access to the new market. While the legal disputes over the socially equitable lottery are still pending before the Minnesota Court of Appeals, the over 1,800 applicants who submitted a preliminary application are now given the opportunity to have their application fee refunded by January 10, 2025. The general application process will start in February and continue until mid-March. Another general allocation process for licenses, considering both socially disadvantaged and standard applications, is planned for May or June.