♪ >> CATHY: LAST THURSDAY, GOVERNOR WALZ NAMED MINNESOTA'S FIRST STATE CANNABIS DIRECTOR, ERIN DUPREE, AN INDUSTRY ENTREPRENUER WHO HAD NEVER WORKED IN GOVERNMENT BEFORE.

IT WAS A TITLE SHE HELD FOR JUST ONE DAY.

DUPREE STEPPED DOWN AFTER REPORTS BY BOTH THE "STAR TRIBUNE" AND MINNESOTA PUBLIC RADIO NEWS REVEALED THAT HER BUSINESS SOLD PRODUCTS THAT ARE NOT LEGAL HERE IN MINNESOTA.

WITH US TONIGHT, A DUO OF "STAR TRIBUNE" REPORTERS WHO BROKE THE NEWS LAST FRIDAY.

BROOKS JOHNSON IS A BUSINESS REPORTER WHO'S BEEN PARTNERING WITH POLITICAL REPORTER RYAN FAIRCLOTH FOR MUCH OF THE PAPER'S CANNABIS COVERAGE.

WELCOME BACK TO BOTH OF YOU.

RYAN, THE VETTING WAS LACKING HERE IN THE ADMINISTRATION.

HOW HARD DID YOU GUYS HAVE TO DIG TO FIND THE ISSUES WITH ERIN DUPREE?

>> NOT VERY HARD AT ALL.

WELL, PRIMARILY BECAUSE WE GOT A TIP IN OUR INBOX ON FRIDAY MORNING FROM FOLKS IN THE CANNABIS INDUSTRY WHO HAD BEEN BACK-GROUNDING HER THEMSELVES AND THEY HAD SCREEN SHOTS OF HER OBJECTLINE LISTINGS WHICH WERE ALL DELETED BY THE TIME I CHECKED, IT WAS COMPLETELY SCRUBBED AND THEY HAD SOCIAL MEDIA VIDEOS FROM HER TIKTOK AND OTHERS WHERE SHE WAS ADVERTISING ILLEGAL PRODUCTS WITH TWICE THE HC LIMIT, SOME WITH FAR MORE THAN THAT WHICH ALSO WERE DELETED, ALL THE SOCIAL MEDIA PAGES WERE TAKEN DOWN BUT WE HAD THESE IN A NILE SENT TO US, SO WE HAD COPIES OF THEM BACKED UP AND THEN WE CROSS-CHECKED THAT WITH THE LAB TEST RESULTS FOR HER PRODUCTS, PROVIDED ON HER OWN WEBSITE.

BECAUSE THESE HEMP SHOTS ARE REQUIRED TO INCLUDE THE LAB TEST RESULTS TO SHOW THAT THE PRODUCTS CONTAIN WHAT THEY ACTUALLY CONTAIN.

SO WE LOOKED AT THE LAB TEST RESULTS THAT SHE VOLUNTARILY PROVIDED, AGAIN, THC FAR BOTCH THE LEGAL LIMIT.

>> Eric: WHAT'S HER SIDE OF THE STORY?

>> WELL, I'VE BEEN COVERING THERE FOR A WHILE NOW, BACK IN WASHINGTON STATE, ALMOST TEN YEARS AGO, I WAS STANDING IN LINE WHEN THE INDUSTRY FIRST CAME ON LINE SO I TRY TO SEE MYSELF AS A CANNABIS INDUSTRY EXPERT.

SO WHEN I SEE THESE PRODUCTS AND THIS TIP COME THROUGH, YOU KNOW, IT'S IMMEDIATE, YOU KNOW, THE SIRENS GO OFFER.

IT'S LIKE THE LAW IN MINNESOTA IS CLEAR, AND HAS BEEN SINCE SUMMER 2022.

YOU EED TO HAVE EDIBILITIES WITH MAXIMUM FIVE MILLIGRAMS OF THC AND 50 MILLIGRAMS A PACKAGE.

THAT'S IT.

DRINKS CAN HAVE 10 MILLIGRAMS PER CAN BUT ON THE BUSINESS SIDES OF THINGS, IT'S BEEN KIND OF HARD TO REGULATE.

THE BOARD OF PHARMACY WAS INITIALLY NOT GIVEN RESOURCE TOSS CRACK DOWN ON, YOU KNOW, PRODUCTS THAT DID NOT COMPLY WITH THE LAW, AND NOW THAT THE DEPARTMENT OF HEALTH HAS JUST TAKEN IT OVER, JUST STARTING TO DO COMPLIANCE CHECKS SO IT'S BEEN A ROCKY ROAD.

>> Cathy: DID SHE FLOW SHE WAS NOT IN COMPLIANCE?

>> YEAH, SHE LET OUT A STATEMENT THE DAY OF OUR SORRY SAYING THAT SHE WAS STEPPING DOWN BUT SAYING SHE NEVER KNOWINGLY SOLD NON-COMPLIANT PRODUCTS.

SHE'S SINCE DONE AN INTERVIEW WITH QCCO, I BELIEVE, AND THEN AN INTERVIEW WITH A LOCAL PODCAST ON WHERE I SHE SAID SHE DIDN'T KNOWINGLY SELL IT AND SHE'S NOT SURE WHO TOLD THESE PEOPLE, US, THAT THEY WERE NOT COMPLIANT.

BUILT A SIMPLE READING OF THE LAW AND A LOOK AT HER PRODUCTS SHOWS THEY WERE NOT COMPLIANT WITH THE LAW.

SO THERE'S THE QUESTION, REALLY, HERE, IS DID SHE KNOW THIS OR NOT KNOW THIS?

EITHER OF THOSE THINGS IS TROUBLING FOR SOMEONE WHO WAS GOING TO DIRECT THE ENTIRE INDUSTRY.

>> Cathy: SHE ALSO HAS TAX PROBLEMS, AS WELL, WHICH ALSO SHOWED UMM WHEN YOU DUG AROUND.

>> >> YEAH, SO WE LOOKED INTO HER FINANCIAL HISTORY, AS WELL.

THERE WERE TAX LIENS AGAINST HER, SOME PAST FINANCIAL JUDGMENTS THAT PEOPLE HAD WON AGAINST HER, AS MPR REPORTED SOME, TOO, THEY INTERVIEWED A COUPLE OF THE PEOPLE WHO RUN THESE JUDGMENTS AGAINST HER.

ONE OF THEM WAS, YOU KNOW, SUING HER FOR WORK THAT WAS UNDONE, WORK SHE AS SUPPOSED TO BE DOING AND THEN ANOTHER PERSON WITH A FORMER EMPLOYEE OF DUPREE'S WHO DIDN'T GET PAID BY HER FOR THE WORK THAT SHE WAS DOING.

SO SHE TOOK HER TO COURT OVER IT.

>> Eric: DOES THIS COME AT A CRITICAL TIME FOR THIS WHOLE APPARATUS TO BE SET UP?

>> YES, MA'AM, I MEAN, AT THIS POINT, THEY'RE RACING THE CLOCK TO GET THE OFFICE OF CANNABIS MANAGEMENT SET UP SO THE FOLKS CAN GET LICENSED AND START GROWING AND PROCESSING AND SELLING THE MARIJUANA, AS WE'VE BEEN PROMISED THROUGH THE STATE LAW.

RIGHT NOW, THAT'S SET TO HAPPEN IN EARLY 2025, POSSIBLY EARLIER, BUT UNLESS THEY CAN, YOU KNOW, KEEP IT IS SHIP RUNNING AND MAKE SOME GOOD HIRES HERE SOON, THAT'S NOT GOING TO HAPPEN.

IT IS BEING OVERSEEN RIGHT NOW BY STATE GOVERNMENT VETERAN.

>> Eric: IS THERE RULE-MAKING AND OTHER STUFF THEY HAVE TO DO IN PREPARATION?

>> YEAH, THAT'S SUPPOSED TO KICK OFF IN OCTOBER SO VERY SOON.

AND CHAIR MAIN BRYNAERT IS A VERY CAPABLE PERSON, WORKED AS AN ASSISTANT COMMISSIONER ALL THE I THINK A FEW DIFFERENT AGENCIES SO SHE KNOWS HAT SHE'S DOING AND SHE'S IN THIS ROLE FOR THE FORESEEABLE FUTURE UNTIL THEY FIND A PERMANENT DIRECTOR.

>> Cathy: DUPREE WAS AN INSIDER BEING AN ENTREPRENEUR SO NOW IS THE GROVE LOOKING FOR A REGULATOR, SOMEONE TO CRACK THE WHIP?

>> THAT'S EXACTLY WHAT HE SAID.

HE CAME OUT THIS PAST WEEK AND SAID I WANT A REGULATOR, SOMEONE WITH REGULATORY EXPERIENCE BECAUSE DUPREE HAD NO GOVERNMENT EXPERIENCE AT ALL.

SHE OWNED A ONE-YEARS OLD HEMP SHOP, SHE WAS AN ENTREPRENEUR AND A CONSULTANT FOR THE PAST 20 YEARS.

SOME OF THAT CONSULTING SHE SAID WAS FOR CANNABIS BUT SOMETHING I HOULD ALSO NOTE IS, MYSELF, OTHER REPORTERS, PEOPLE IN THE CANNING ABYSS INDUSTRY WHO HAVE BEEN AROUND AND WATCHED, A LOT OF US HADN'T HEARD OF HER BEFORE SO IT WAS INTERESTING.

>> Eric: OTHER HAN THIS, HOW'S THE PROCESS GOING?

>> WELL, THEY ARE MAKING SOME BIG HIRES, THEY POSTED SOME JOBS AND THEY SAY THAT THEY'RE ON TRACK, YOU KNOW, STILL ON TRACK, AS THEY WERE TO KIND OF GET THIS UP AND RUNNING WITHIN THE NEXT YEAR AND A HALF OR SO.

>> Eric: DID SHE KNOW SOMEBODY IN GOVERNMENT ANY MEAN, IN OTHER STATES, YOU WOULD THINK THIS WAS A POLITICAL DEAL.

MAYBE NOT IN MINNESOTA OR -- >> YEAH, I DON'T KNOW.

THAT'S SOMETHING THAT WE'LL PROBABLY NEVER KNOW.

BUT AS FAR AS WRECK TELL, NO, BUT... >> I THINK GOVERNOR WALZ WAS TRYING TO SEND A PRO-BUSINESS MESSAGE, HE'S TRYING TO SAY, LOOK, SOMEONE FROM THE INDUSTRY WHO WILL REGULATE IT WHO KNOWS IT, RIGHT?

BUT WE QUICKLY FOUND OUT SHE DIDN'T, SHE DIDN'T KNOW IT.

>> Cathy: CURIOUS ABOUT THE -- ERIC MENTIONED ABOUT HOW'S IT GOING SO FAR?

THE ONLY PLACES SELLING ARE ON TRIBAL HANDS.

WHAT O WE KNOW ABOUT THAT?

HOW IS THAT GOING SO FAR, DO WE KNOW?

>> I THINK WE HAVE SOMEONE CHECKING IN WHERE THEM OON, ACTUALLY.

I DON'T KNOW THE FINANCIALS OF IT AND HOW MUCH OF A BOON IT'S BEEN FOR THEM BUT WE DO KNOW ON DAY ONE, THEY HAD LINES OUT THE DOOR AND THEY ARE THE TWO ONLY -- I BELIEVE IT'S WHITE EARTHS AND RED LAKE THAT ARE RUNNING THE TWO ONLY ONLY DISSUSPENSIONRIES IN THE STATE SO I WOULD IMAGINE THEY'RE DOING PRETTY WELL BUT ALSO A LOT OF HEMP SHOPS THAT ARE SELLING HEMP-DERIVED EDIBILITIES WITH THC THAT ACT THE EXACT SAME.

>> Eric: ANY INDICATION THE STREET MARKET IS DECLINING?

>> >> YET, THAT COULD TAKE YEARS BASED ON WHAT WE'VE SEEN IN OTHER STATES.

LAST TIME WE WERE HERE, WHERE HE TALKED ABOUT THE EXPERIENCE OF MICHIGAN AND