>> CATHY: ON THURSDAY, THE LEGISLATIVE AUDITOR'S OFFICE RELEASED A REPORT ON GOVERNOR WALZ'S FAILED HIRING OF MINNESOTA'S FIRST STATE CANNABIS DIRECTOR LAST FALL.

ERIN DUPREE WAS AN INDUSTRY ENTREPRENEUR WHO HAD NEVER WORKED IN GOVERNMENT BEFORE.

SHE HELD THE TITLE FOR JUST ONE DAY, STEPPING DOWN AFTER MEDIA REPORTS REVEALED THAT HER BUSINESS SOLD PRODUCTS THAT ARE NOT LEGAL HERE IN MINNESOTA AND HAD FEDERAL TAX LIENS AND JUDGMENTS AGAINST HER.

JUDY RANDALL HEADS UP THE OFFICE OF THE LEGISLATIVE AUDITOR.

ALWAYS GOOD TO SEE YOU.

IF YOU LOOK THROUGH THE REPORT, IT SEEMS SEVERAL AGENCIES WERE NOT ON THE SAME PAGE WHEN IT CAME TO VETTING THIS PARTICULAR CANDIDATE.

WHAT HAPPENED HERE?

>> WELL, THE GOVERNOR'S OFFICE RUNS THE PROCESS FOR VETTING CANDIDATES.

AND THEY DIDN'T TOTALLY FOLLOW THEIR OWN STANDARD OPERATING PROCEDURES, SO THAT'S ULTIMATELY WHAT HAPPENED.

THEY USED B.C.A., BUREAU OF CRIMINAL APPREHENSION TO DO THE BACKGROUND CHECK RATHER THAN ALCOHOL, GAMBLING, ENFORCEMENT DIVISION, LOTS OF ACRONYMS.

IN PART THEY USED B.C.A.

BECAUSE A.G.A.D.

DIDN'T HAVE THE AUTHORITY AUTHORITY TO CONDUCT THE TO ONDUCT THE BACKGROUND CHECKS FOR OFFICE OF CANNABIS MANAGEMENT.

BUT THEN THEY MADE SOME ASSUMPTIONS, THE GOVERNOR'S OFFICE DID.

THEY ASSUMED THAT B.C.A.

WOULD COORDINATE WITH THE DEPARTMENT OF REVENUE TO DO SOME OF THE BACKGROUND CHECK STUFF AND IN FACT, THEY NEVER DID CHECK WITH THE DEPARTMENT OF REVENUE.

>> Eric: DO THEY HAVE AN OUT BECAUSE THIS IS A BRAND-NEW DEPARTMENT WITH A BRAND-NEW APPOINTMENT AND MAYBE THE PROCEDURES FOR THIS WOULD BE DIFFERENT OR MORE INTENSE THAN THE TYPICAL, WHAT DO THEY HAVE, 2,500 APPOINTEES A YEAR OR SOMETHING?

>> INTHOSK THEY HAVE AN OUT.

THEY HAVE STANDARD OPERATING PROCEDURES FOR DIFFERENT TYPES OF APPOINTMENTS AND THEY HAVE A GROUP OF PROCEDURES THAT THEY IS A USE FOR SO-CALLED SENSITIVE POSITIONS, SO THOSE PROCEDURES WOULD APPLY HERE.

AGAIN, THE ONE HING IS THAT ALCOHOL AND GAMBLING DISENFRANCHISE HAVE THE AUTHORITY TO DO THE BACKGROUND CHECK.

SO THEY USED B.C.A.

>> Cathy: DOES THE WALZ ADMINISTRATION HAVE A DIFFERENT SET OF PROTOCOLS THAN OTHER ADMINISTRATIONS HAVE HAD IN THE PAST?

>> I DON'T KNOW THE ANSWER TO THAT HONESTLY.

WE HAVE NOT LOOKED AT THIS PREVIOUSLY.

>> Cathy: IS THIS THE FIRST TIME YOU'VE INVESTIGATED THE APPOINTMENT PROCESS?

>> IT IS, AND IT'S A LITTLE UNUSUAL THAT WE WOULD DO SO.

THE GOVERNOR'S OFFICE HAS BROAD DISCRETION TO MAKE APPOINTMENTS.

IT'S ESTABLISHED IN THE CONSTITUTION.

AND STATE LAW DOESN'T ESTABLISH ANY REQUIREMENTS FOR THE PROCESS.

THEY SIMPLY KIND OF MAKE SOME SUGGESTIONS ABOUT WHAT COULD BE DONE.

BUT THERE'S NO REQUIREMENTS, SO THE GOVERNOR CAN MOSTLY DO WHAT THEY WANT TO DO.

>> Eric: REACTION FROM THE GOVERNOR, AND THE GOVERNOR'S OFFICE?

>> THEY WERE COOPERATIVE.

THEY DIDN'T DISAGREE WITH THE FINDINGS.

AND THEY'VE ALREADY IMPLEMENTED THE RECOMMENDATIONS WE'VE MADE.

>> Eric: HOW DID THIS COME TO YOU AS A SUBJECT FOR A REPORT?

>> A LEGISLATOR REQUESTED THAT WE DO A SPECIAL REVIEW ON THIS.

>> Eric: AND WHAT'S THE FLEXIBILITY YOU HAVE TO DO STUFF?

WITHOUT DIRECTION FROM THE LEGISLATURE?

OR -- >> YEP, IN LAW, WE CAN CONDUCT A SPECIAL REVIEW BASED ON A COUPLE OF DIFFERENT CRITERIA AND ONE IS IF A LEGISLATOR REQUESTS IT.

AND I'LL BE CLEAR.

THIS WAS NOT ACTUALLY A FULL SPECIAL REVIEW.

THIS WAS WHAT WE CALL A PRELIMINARY ASSESSMENT WHERE WE JUST GATHER SOME PRELIMINARY BACKGROUND INFORMATION.

WE DO ABOUT 50 TO 75 OF THESE A YEAR.

THEY DON'T USUALLY MAKE THE NEWS.

>> Eric: WHAT DO YOU GOT COMING UP THAT MIGHT PROMPT YOU TO COME BACK AND VISIT US AGAIN?

[ Laughter ] >> WELL, WE'RE WORKING ON A SPECIAL REVIEW RELATED TO THE DENT OF EDUCATION'S OVERSIGHT OF "FEEDING OUR FUTURE."

>> Eric: OOH.

>> SO I THINK THAT MIGHT BE OF INTEREST.

WE'RE ALSO DOING LOTS OF OTHER PROGRAM EVALUATIONS ON WORKER MISCLASSIFICATION, METRO MOBILITY.

DOWN PAYMENT RENTAL ASSISTANCE.

AND DHS INTERACTION WITH COUNTIES AS WELL AS A BUNCH OF OTHER STUFF.

>> Eric: FULL PLATE.