Minnesota Governor Walz last week appointed its first director of the Office of Cannabis Management, Erin DuPree, which lasted all but one day after reports made headlines, causing her to ask the governor to withdraw her appointment. This surprises many, as DuPree’s appointment was initially met with praise from Governor Walz and Lt. Gov. Peggy Flanagan.
However, recent reports have brought to light information about her past that was not thoroughly vetted during the hiring process. This has raised concerns about the lack of due diligence in selecting someone for such an important role and has called into question why DuPree was chosen in the first place.
Hiring Of Director
The Office of Cannabis Management in Minnesota was created to oversee the state’s medical cannabis program and develop regulations for the emerging recreational market. The Director of this office plays a crucial role in shaping the industry and ensuring compliance with state laws.
On September 21st, Governor Walz appointed Erin DuPree as the first director of the Minnesota Office of Cannabis Management (OCM). This news was met with enthusiasm from the governor and his team. In a press release about the appointment, he said, “With direct experience in Minnesota’s hemp and cannabis industry and over 20 years of success in launching, managing, and growing businesses and organizations, Erin DuPree is an outstanding choice to lead the Office of Cannabis Management,” said Governor Walz. “DuPree is a proven and effective leader, who will be successful in standing up Minnesota’s new adult-use cannabis market and helping Minnesotans succeed in the industry.”
Lieutenant Governor Flanagan even chimed in about the appointment of Erin Dupree as the Director, saying, “Erin DuPree is an experienced leader and successful entrepreneur with a passion for building and growing the adult-use cannabis industry in Minnesota,” “With outstanding business acumen, organizational management, and strategic vision, DuPree has what it takes to meet the needs of Minnesotans and build out a critical new industry in the state.”
Controversy
However, shortly after her appointment, reports surfaced about a website for the Loonacy Cannabis Co., owned by DuPree, which advertised products with THC content far above what was legally allowed starting in July of 2022. It also promoted vape products containing THC, which were prohibited under the law. Additionally, there were reports of her owing money to former associates per MPR.
DuPree responded to the allegations by saying, “I have never knowingly sold any noncompliant product, and when I became aware of them I removed the products from inventory,” “Conducting lawful business has been an objective of my business career. However, it has become clear that I have become a distraction that would stand in the way of the important work that needs to be done.”
DuPree subsequently asked Gov Walz to withdraw her appointment as Director of the OCM, which he obliged. Walz, speaking at the MinnPost Festival said, “Not the finest hour,” “In this case the process did not work, and we got this wrong.” and “I own this one, we’ll get the right person in there.” Walz has appointed Charlene Briner, a Minnesota Department of Agriculture senior official, as the interim Office of Cannabis Management director.
This brings into question why DuPree was chosen for the role in the first place, as she lacked experience in government or with complex legal and regulatory schemes. The job posting for the Director of OCM even listed requirements such as “experience managing a complex state or federal regulatory scheme” and “ability to create policies and procedures that ensure compliance.” These are skills that DuPree did not possess, raising concerns about the thoroughness of the hiring process.
It is crucial for a position as important as Director of the OCM to be filled by someone with a strong background in both the cannabis industry and government regulations. The lack of due diligence in choosing DuPree for this role reflects poorly on the Minnesota government and calls its priorities and decision-making process into question. With the controversy surrounding DuPree’s past business practices, it is clear that there were potentially more qualified candidates for this position.
Leili Fatehi, a lawyer and lobbyist who has been leading the effort to pass a recreational marijuana bill for four years, expressed disappointment in the appointment of DuPree.
“Appointing someone without the necessary qualifications, who is an active member of the very industry they are meant to regulate, and who has shown a past disregard for compliance, is a textbook example of regulatory capture,” she said. “Such a decision risks establishing a culture of noncompliance at the very top levels of our state’s oversight of this nascent industry. It’s crucial that we prioritize integrity, experience, and a commitment to the rule of law as we navigate the complexities of building a responsible and equitable cannabis landscape in Minnesota.”
“It’s imperative that the state reopens the job posting and conducts a comprehensive nationwide search to find a qualified regulator who can truly harness this potential and guide our industry with expertise and integrity. Minnesota deserves nothing less than the best as we embark on this important work.”
Missed Opportunities
Despite the controversy surrounding Erin DuPree’s appointment as Director of the Office of Cannabis Management in Minnesota, it is important to reflect on the potential missed opportunities for more qualified candidates. As a state with a rapidly growing cannabis industry, some Minnesotans believed they needed to choose a director with experience in the field and strong regulatory and compliance knowledge.
However, the appointment of DuPree, who lacked both experience in government and a strong background in regulations, raises questions about the thoroughness of the hiring process.
There are likely many qualified candidates with years of experience in the cannabis industry and government regulations who were overlooked for this position. By not conducting a comprehensive statewide search, Minnesota may have missed out on individuals who could have brought valuable expertise to the role of OCM director and avoided any unnecessary drama in the first place.
As Minnesota works to find a new permanent director for the Office of Cannabis Management, it is clear that the state must take great care in its selection process. It is crucial to find a candidate with not only experience in the cannabis industry but also a strong understanding of government regulations and compliance.
The controversy surrounding DuPree’s appointment serves as a reminder that thorough due diligence must be conducted before making such an important decision. The right Director for the OCM will play a key role in shaping the future of recreational cannabis in Minnesota, and they must possess the necessary qualifications and dedication to uphold integrity and compliance within the industry.
Only then can Minnesota pave the way for a responsible and equitable cannabis landscape. So, it is essential that the state reopens the job posting and conducts a comprehensive nationwide search to find the best candidate for this role. The success of Minnesota’s recreational cannabis program depends on it.
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