Minnesota’s Cannabis Regulator Faces Backlash After Rejecting Over 1,000 Initial Applicants
The Office of Cannabis Management (OCM) in Minnesota is facing criticism after rejecting nearly two-thirds of the initial applicants vying for licenses to operate the state’s first legal marijuana businesses. The regulator has announced plans to hold a lottery to determine which applicants will move forward in the process, but many are expressing frustration and disappointment over the high rejection rate.
According to OCM, around 1,150 applicants were deemed ineligible due to various issues, including documentation problems, violations of ownership requirements, and attempts to game the system. The regulator has also identified multiple applications that were identical in nature, and some that appeared to be fraudulent.
Charlene Briner, the interim director of OCM, defended the agency’s decision-making process, stating that it was an objective review of specific criteria outlined in state statute. However, lawyers and consultants representing would-be pot proprietors are disputing the reasons for rejection, claiming that many of the rejections are based on “flimsy” grounds.
One attorney, Carol Moss, represents over a dozen clients who were rejected and believes that OCM’s handling of applications has been inconsistent. She is concerned that the agency’s decisions could lead to litigation and is advising her clients to explore their options.
The OCM has given applicants who received deficiency notices an opportunity to correct problems, particularly with payments. However, Briner stated that allowing everyone to fix every single error would take months and delay businesses from opening.
Despite the challenges, the OCM is expected to move forward with the license lottery in the coming weeks. Even after the lottery is complete, the agency still needs to finalize its operational rules, which could take several more months. This means that Minnesota’s first recreational marijuana businesses are unlikely to open to customers until later in 2025.
