A judge on Monday halted the lottery to award adult-use marijuana licenses to prospective business owners after some applicants denied access filed a lawsuit claiming the process lacked clear criteria and didn’t allow for appeals.
After an hourlong online hearing, Ramsey County District Court Judge Stephen Smith sided with the applicants and called off the lottery scheduled for Tuesday, according to MPR News.
The state can file an appeal, the judge said.
Minnesota’s Office of Cannabis Management (OCM) said in advance of Monday’s hearing that a postponement of the lottery might mean it won’t happen at all because of the expense and logistics involved, MPR News reported.
In a lawsuit filed Nov. 21, Cristina Aranguiz and Jodi Connolly alleged that the OCM made an “arbitrary and capricious decision” in denying their applications to participate in the lottery and offered no explanation.
“Today’s ruling to pause the lottery is a victory for fairness, transparency and accountability in Minnesota’s new cannabis industry,” Aranguiz said in a statement issued after the judge’s ruling.
“It also shows that the court recognizes the importance of ensuring every qualified social equity applicant has an equal chance to succeed.”
Aranguiz, a first-generation American Latina entrepreneur, said her application met the state’s criteria and that it would be her first opportunity to own an adult-use store.
“This is a new industry in Minnesota, and it is a tough business in which to get started,” she said.
“My interest is in making sure that social equity entrepreneurs can be successful, and their doors stay open for as long as they wish.”
Last week, the OCM announced that about two-thirds of the 1,817 social equity license applicants had been disqualified because they failed to complete the application process, turned in multiple applications or disguised the true investors in the company.
The lottery was being held to cut the number of applicants to 282.
