ST PAUL, Minn. — A new report from Minnesota's Legislative Auditor finds Gov. Tim Walz's office and the Minnesota Bureau of Criminal Apprehension (BCA) "departed from its Standard Operating Procedure" in the background check process that led to the failed one-day hiring of Erin DuPree as director of the Office of Cannabis Management last fall.
DuPree was named to the job on Sept. 21, but announced she was stepping down one day later after published reports suggested her Apple Valley hemp business sold products that exceeded THC limits, and had tens of thousands of dollars in tax liens. DuPree denied knowingly selling illegal products and said such items were removed from the business when she became aware of them.
According to the auditor's report published online Thursday, "three differences from the Standard Operating Procedure, in particular—all related to the background check—contributed to Governor Walz appointing Ms. Dupree as Director of the Office of Cannabis Management without having full and complete information."
The report said during the background check process, the governor's office failed to send signed release forms to the Minnesota Department of Revenue, instead sending them directly to the BCA under the assumption that agency would work with the Department of Revenue on the background check. According to the report, the BCA instead conducted its financial background checks of DuPree using a different system than the Department of Revenue, and as a result, "did not identify any unpaid tax liens."
In addition, the report states the BCA failed to involve the Alcohol and Gambling Enforcement Division (AGED) in its process, "which was typically involved in these types of background checks on behalf of the Governor’s Office."
The audit states the governor's office also relied on the BCA's summary report, rather than a full background report, but noted that was "similar to past practice" for the office. The legislative auditor also noted a "small number of appointments" by the governor's office "are especially sensitive and subject to additional scrutiny; this was the case for the OCM Director position."
The auditor recommended that the governor's office independently confirm background checks for sensitive positions in the future, and wait to make appointments for such positions until receiving a complete background check report.
In a letter to the legislative auditor in response, General Counsel Mary Fee claimed Gov. Walz's office was attempting a "more rigorous process than the standard background checks" by deferring to the BCA as a "much higher bar" similar to the reviews conducted for the BCA's own agents. However, Fee noted "there were several issues identified subsequently that were not included in the BCA review, and the Office was unaware that it lacked full information."
The letter states the governor's office has already made changes to its background check process, including those suggested in the audit.
The botched hiring led Republicans to criticize the Walz administration for failing to do its due diligence.
The administration has yet to hire a permanent replacement as director of the Office of Cannabis Management; however, on Wednesday, Gov. Walz announced an expanded application process and a "dedicated professional recruiter from Minnesota Management and Budget (MMB)" to assist with the national search.
Charlene Briner has been appointed as interim director of the Office of Cannabis Management.
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