MN health official to lead medical marijuana company

The state health official who set up the new medical cannabis program is going to work for one of the companies his department picked to grow marijuana for Minnesotans. Cottage Grove-based LeafLine Labs named Manny Munson-Regala its new CEO Thursday.

Currently assistant commissioner of the Minnesota Department of Health and overseer of the state Office of Medical Cannabis, Munson-Regala's move from regulating marijuana to helping sell it raised questions at the Capitol and elsewhere.

"Some DFLers and Republicans at the Capitol that voted on legalizing medical marijuana — both for and against it — said they didn't like the appearance of this," Minnesota Public Radio reporter Tim Nelson told MPR News host Cathy Wurzer. "One Republican senator, Bill Ingebrigtsen, said it was an example of what he called 'cronyism' in St. Paul."

Gov. Mark Dayton is among those questioning the move.

"I don't know all the circumstances, but I don't like the appearance of it," he said. "But again, it's not to my knowledge breaking any law that he found another appointment, but ... it looks to me very unseemly."

Nelson said the move doesn't appear to violate any laws and it's not unprecedented.

"Munson-Regala actually kind of crossed over the other way before. He's a former insurance and UnitedHealthcare executive who actually helped set up the state's insurance exchange," Nelson said. "He also said this will be his fourth private sector startup, and it's work that he really enjoys."

LeafLine Labs and Munson-Regala said that they only started to consider one another last week. The company made an offer on Monday, Munson-Regala said he accepted on Tuesday and told the Health Department he was leaving on Wednesday. He starts his new job July 6.

So what does the move mean for patients?

Both the state and Munson-Regala have emphasized the importance of having a duopoly in Minnesota — two companies that can offer a redundant supply of marijuana — so patients won't be left without if a crop or a business failed.

"These two companies, LeafLine and Minnesota Medical Solutions, will compete, and this could theoretically give one a leg up," Nelson said.

But Munson-Regala said he sees an opportunity to make the industry more sound and to allow cooperation without violating anti-trust law.

Munson-Regala has said he played no direct role in selecting LeafLine as one of the state's two cannabis providers last fall, and hasn't had a direct role in regulating the medical cannabis industry since then.

The Health Department said he's been relieved of his responsibilities related to the medical cannabis program until he formally leaves the department next Thursday.