Minnesota auditor found flaws in hiring process of cannabis leader, but says special review not needed

Gov. Tim Walz says he was "wrong" to choose Erin DuPree to run cannabis office

ST. PAUL, Minn. — A key state government watchdog said the Minnesota governor's office "departed from standard operating procedure" in the hiring process for the leader of the new cannabis office who abruptly resigned over scrutiny of her company, but there is no need for further review.

In September, Erin Dupree was named the director of the new Office of Cannabis Management, but withdrew a day later amid allegations her company had sold cannabis products that were not yet legal.

A week later, Gov. Tim Walz admitted "we got this one wrong" and said his office would be evaluating what they missed in the hiring and vetting process. 

Some legislators also requested that the Office of the Legislative Auditor conduct an assessment to see if a special review was warranted.

Judy Randall, the legislative auditor, on Thursday released the preliminary assessment of the appointment of Dupree as the director of the Office of Cannabis Management. In its conclusion, the OLA said the governor's office departed from the standard operating procedure in "three important ways" all related to the background check.

RELATED: Following cannabis director controversy, Walz vows to pick a new leader with "regulator" experience

According to the OLA, the Minnesota Bureau of Criminal Apprehension conducted the background check mostly without the involvement of the Alcohol and Gambling Enforcement Division, which is typically involved in this particular process.

The OLA says the governor's office also sent Dupree's signed release forms to the BCA, assuming the BCA would work directly with the Department of Revenue. However, the governor's office standard operating procedure is to send the forms directly to the revenue department.

Lastly, the OLA says the BCA used financial background checks of the candidates "using information and systems separate from the Department of Revenue," which resulted in the BCA not reviewing info maintained by the revenue department.

Therefore, the OLA says, the governor's office appointed Dupree "without having full and complete information."

The OLA says it will not conduct a special review of the governor's office, but did provide recommendations for the governor's office to improve its background check process. Those recommendations include the governor's office independently confirming the background check has individual and business tax information from the revenue department, criminal history records and outstanding court judgments.

For more on the auditor's assessment and recommendations, read the full report by clicking here.

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