Minnesota Governor Withdraws Cannabis Director Appointment: ‘We Got This Wrong’

Abracadabra!

Minnesota Gov. Tim Walz wasn’t trying to play the part of a magician, but just as soon as he made his appointment for the state’s first director of the Office of Cannabis Management (OCM) appear, he made it disappear too.

Walz announced Sept. 21 that Erin DuPree “is an outstanding choice” to lead the OCM, an appointment he made nearly four months after signing legislation making Minnesota the 23rd state in the nation to legalize adult-use cannabis. The intent of the legislation was to establish the OCM by July 1, 2023, for regulatory oversight of a forthcoming program.

DuPree’s experience in Minnesota’s hemp industry paired with more than “20 years of success” in launching, managing and growing businesses and organizations made her candidacy for OCM director stand out, Walz said in a Sept. 21 press release. She was to start Oct. 2 with a six-figure salary, according to the governor’s office.

“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,” the governor said.

But the very next day (on Friday), DuPree told Walz she would “not be going forward” as director of the OCM after media outlets reported earlier that day that her hemp shop, Loonacy Cannabis Co., sold multiple cannabis products that are illegal under state law, according to the Star Tribune. Specifically, Loonacy advertised and sold vape and edible products containing noncompliant amounts of THC, according to the company’s social media accounts as well as lab results for the products as shown on the company’s website, the Star Tribune reported.

MPR News also reported that noncompliant products were advertised by DuPree’s company. DuPree said she planned to sell Loonacy to avoid a conflict of interest upon taking the regulatory reins with the OCM, according MPR.

“I have never knowingly sold any noncompliant product, and when I became aware of them, I removed the products from inventory,” DuPree said Friday in a public statement announcing she would not be taking the OCM director role. “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.”

Amid this hiccup, OCM interim director, Charlene Briner, an implementation consultant and veteran official in the state’s Department of Agriculture, will remain in her role leading the office, a post she assumed in June 2023. The OCM is expected to launch a rulemaking process next month but still has nine leadership positions to fill, the MinnPost reported.

Walz said in a statement Friday, following the Loonacy news, that his administration remains dedicated to ensuring Minnesotans have access to a safe and well-regulated adult-use cannabis marketplace.

The next day (Sept. 23), the governor also admitted that “we got this wrong” during the MinnPost Festival in Minneapolis.

“Not the finest hour,” Walz said. “In this case the process did not work, and we got this wrong.”

He added, “I own this one; we’ll get the right person in there.”