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US (MN): Social equity license denials "unlawful", alleges lawsuit

The nascent Office of Cannabis Management unlawfully denied two women from participating in the lottery for social equity licenses to operate cannabis businesses in Minnesota, a new lawsuit alleges.

Plaintiffs Cristina Aranguiz and Jodi Connolly in a lawsuit filed Thursday allege that the state, in an "arbitrary and capricious decision," denied their applications to participate in the lottery for social equity licenses without explanation and granted other applicants "secret reconsideration" and the opportunity to fix their applications. They are asking the court to halt social equity lottery proceedings, expected to take place on Tuesday, and reverse the OCM's decision denying Aranguiz and Connolly a chance to participate in the lottery.

Social equity licenses are intended to prioritize business applications from people who have been harmed by marijuana prohibition in the past, as well as veterans and people living in high-poverty areas.

The OCM earlier this week announced that it sent rejection notices to 1,169 of the 1,817 social equity applicants, according to the Star Tribune. Of the 648 remaining, 182 pre-approvals will be awarded on Tuesday. A lottery for additional pre-approvals will be held in the future, but the OCM hasn't set a date yet.

Read more at Minnesota Reformer

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