Investigation Points To Troubling Oversights In Naming Minnesota Cannabis Czar

The Minnesota governor’s office didn't apply its standard operating procedure when it opted to name Erin DuPree the first executive director of the Office of Cannabis Management in September.

That's according to Judy Randall, the state legislative auditor, who initiated an investigation into the appointment process with the governor’s office a month following DuPree’s resigning from the role just one day following the appointment by Gov. Tim Walz' (D), due to allegations that she sold illegal cannabis products through her company.

On Thursday, Randall released the preliminary assessment of Dupree's appointment as OCM's director.

The Office of the Legislative Auditor named “three important ways” in which the governor’s office deviated from its standard procedure related to the background check, including:

• The Minnesota Bureau of Criminal Apprehension's background check was done mostly without the Alcohol and Gambling Enforcement Division's participation;
• The governor’s office sent Dupree’s signed release forms to the BCA instead to the Department of Revenue, directly; and
• BCA ran financial background checks on the candidates by using independent information and systems, instead of relying on the Department of Revenue, which led to BCA overlooking certain information from the revenue department.

OLA said it doesn't plan to conduct a special review.

The Background

DuPree had advertised certain products on the Loonacy Cannabis Co. website that were later flagged and removed due to their non-compliance with state regulations. DuPree founded Loonacy in Apple Valley in July 2022.

DuPree said she took swift action to remove the products from the inventory.

“I have never knowingly sold any non-compliant product, and when I became aware of them, I removed the products from inventory,” she said. “Conducting lawful business has been an objective of my business career.”

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