Tarasek writes on Linked In
BREAKING: The Minnesota Office of Cannabis Management announced that it has cancelled the lottery to award cannabis business licensing “preapprovals.”
Citing a recent decision from a Ramsey County district court judge that imposed a “stay” upon the lottery that had been planned for late November, OCM indicated it was cancelling the lottery in the interest of those applicants who had been left “in limbo.”
Applicants who were denied entry into the preapproval lottery now have two options: (1) no later than January 10, 2025, they can withdraw their application and request a refund of their application and licensing fees; or (2) enter their previously denied application into the “standard licensing process.” No affirmative action is required from denied applicants who wish to enter the next licensing round. Rather, if an applicant does not request a refund, they will be automatically entered into the next round.
For those previously denied applicants who choose to enter the next licensing round, OCM will formally request additional information to provide the applicant with an opportunity to correct any deficiencies. OCM indicated that it expected to make these requests for supplemental information in February 2025.
Those applicants who choose to withdraw and request a refund would not be precluded from resubmitting applications in future licensing rounds, OCM said.
For the 648 applicants who had been approved for entry into the preapproval lottery, OCM said they would be automatically entered into the next licensing round.
Additionally, OCM announced it would open another social-equity applicant verification round on January 15, 2025, that would close on January 30, 2025.
Between February 18, 2025, and March 14, 2025, moreover, OCM will open a new license-application window for all applicants, including social-equity applicants and applicants into the general round.
The lottery for “capped” license types for social-equity applicants would occur in May or June of 2025, followed closely by a lottery for “capped” license types for all applicants.
Pursuant to the relevant statute, OCM will issue at least the following number of licenses to social-equity applicants (it is currently unclear whether the cancellation of the preapproval round will change these numbers):
· Cultivator: 25
· Manufacturer: 12
· Retailer: 75
· Mezzobusiness: 50
Limits on licenses available to all applicants are:
· Cultivator: 25
· Manufacturer: 12
· Retailer: 75
· Mezzobusiness: 50
In other words, 50 percent of the capped license types are reserved for social-equity applicants.
Other license types, such as microbusinesses, are unlimited. OCM indicated that those applicants who gained entry into the “preapproval” lottery and sought an uncapped license would automatically become a “qualified applicant” during the next licensing cycle in 2025.
