The Minnesota Office of Cannabis Management (OCM) has agreed to a settlement with a group of social equity marijuana business license applicants who had been granted entry into a canceled license preapproval lottery.
The agreement, which an attorney for the OCM announced Friday in a Ramsey County District Court hearing, likely ends litigation that threatened to disrupt the agency’s plans to award hundreds of licenses in lotteries Thursday.
The group had asked the court to force the OCM to reinstate the drawing, which was abandoned in November after a handful of applicants sued, alleging they were unfairly denied entry.
In April, Ramsey County Judge Stephen L. Smith ordered the OCM to stage the lottery, saying the office had a legal obligation to do so. Smith is expected to dismiss that order in the coming days.
The pre-license lottery was designed to give social equity applicants, who include veterans, residents of high-poverty areas and people negatively affected by cannabis prohibition, a head start in the new industry.
Under the agreement, the OCM will prioritize throughout the licensing process applicants who were approved for the canceled lottery, said the Minneapolis-based cannabis consulting firm Blunt Strategies, which organized the group of successful applicants that filed the litigation.
Applicants selected in a license lottery must secure “labor peace agreements” with unions, undergo background checks, ensure they’re in compliance with local zoning ordinances and pass a pre-opening inspection by the OCM before they can open for business.
“This is an important win for equity, fairness, and the integrity of Minnesota’s cannabis licensing system,” Leili Fatehi, Blunt Strategies partner and president of the group of successful applicants, said in a statement.
Under the agreement, the office will prioritize applicants who were approved for the canceled lottery throughout the licensing process. Read More
