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Minnesota’s cannabis director withdraws over sale of disallowed THC products

The first director of Minnesota’s first recreational marijuana legalization program lasted less than two days.

Erin DuPree has asked that Gov. Tim Walz withdraw her appointment to be the director of the Office of Cannabis Management after two news stories revealed that she had sold disallowed products in her Apple Valley hemp store and has a series of tax liens and unpaid debts from previous businesses. 

The articles were in the Star Tribune and on MPR.

“This evening I sent a letter to the Governor that I will not be going forward as the Director of the Office of Cannabis Management,” DuPree wrote in a statement released Friday evening. “This is an industry I am passionate about, and care deeply for; my skills, experience and expertise made me the right person for this job at this moment. 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.”

Walz issued his own statement: “We have a responsibility to assure Minnesotans that this emerging market will be safe, lawful, and well-regulated. We’re making progress toward implementing this work, including beginning the hiring process for 9 key leadership positions and we will launch the rulemaking process in October. I am grateful to Charlene Briner for stepping up to continue to lead in the interim.”

DuPree’s appointment was announced Thursday to praise from Walz and Lt. Gov. Peggy Flanagan. The choice, however, was greeted with some puzzlement — though little public criticism — because of her lack of experience in government or with complex legal and regulatory schemes. 

Her hemp business and consultancy for business startups were cited by the administration. But several of those businesses failed, something she acknowledged on a LinkedIn page.

“I have been an entrepreneur since 1999, when I made my first step to being a business owner. That endeavor failed (and a few others along the way) but that sparked a curiosity I have yet to satisfy. A dozen or so businesses later I am still at it,” the page stated. It also described her use of cannabis for a medical condition. On Thursday DuPree said she didn’t have a medical card “in this state” but refused to talk about her use of medical cannabis.

DuPree lacked experience that was said to be required on the official job posting by the state. 

“The job posting preferred applicants with “knowledge of the cannabis and/or hemp regulatory environment,” but was primarily aimed at those with experience running a government or private agency. It asked for “eight years of professional experience in regulatory oversight, public administration, business or law enforcement. A bachelor’s degree or higher in public administration, business administration or a related field can substitute for two years of experience.”

In addition, the job posting asked for candidates with “two years of managerial experience over one or more functional areas that includes overseeing professional and high-level management staff.”

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 and urged Walz to reopen the process.

“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.”

The prime sponsors of House File 100 — Sen. Lindsay Port, DFL-Burnsville, and Rep. Zack Stephenson, DFL-Coon Rapids — did not return calls to comment on the appointment and the withdrawal.

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