Two prospective marijuana business owners who were barred from participating in a license lottery are suing Minnesota cannabis regulators.

The Office of Cannabis Management announced Friday, Nov. 22, that it will hold a drawing on Tuesday, Nov. 26, to determine who will operate the state’s first legal marijuana businesses.

The OCM turned to a lottery because more than 1,800 applicants had sought 282 licenses. The first to apply are those considered social equity applicants under the law. They include people who live in high-poverty areas, those harmed by the war on drugs, and military veterans.

This week, regulators disqualified two-thirds of the applicants for a variety of reasons.

In a lawsuit, Jodi Connolly alleges that OCM gave no reason for denying her application. Connolly’s co-plaintiff, Cristina Aranguiz, said she received only a cursory explanation.

The two call the rejections “arbitrary and capricious,” and they want a judge to stop the lottery while their lawsuit is pending.

In an email to MPR News on Friday, a spokesperson for the Office of Cannabis Management said he cannot comment on the litigation, but OCM and still plans to move ahead with the scheduled lottery.

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