With Marijuana Control Board seat open, concern arises about who might fill it

Interviews are underway in the search for the Alaskan who will fill a newly vacant seat on the Marijuana Control Board, a decision that could shift the dynamics of the body that regulates the state's cannabis industry.

With Bruce Schulte's abrupt removal from his industry seat last month, many in the marijuana industry are waiting to see how Gov. Bill Walker handles the replacement. But some are already considering a lawsuit if the governor fills the seat with a public, and not an industry, position.

Around 20 to 30 qualified applicants have already been identified, and the office continues to get one or two applications trickling in on most days, wrote John Hozey, deputy chief of staff at the governor's office and director of the Office of Alaska Boards and Commissions.

The volunteer board comprises five seats: Rural, public health, public safety, industry, and a final seat that can be either industry or public. During the first year, state law required two industry seats be chosen, but now that time-frame has passed and a public seat can be put on the board, according to the governor's office.

Whoever is chosen for the seat will fill a key role in crafting regulations. Formerly, the two industry seats, Bruce Schulte and Brandon Emmett, often took the same position on regulation votes, while the public health and public safety seats, Loren Jones and Peter Mlynarik, respectively, tend to vote along the same lines. Mark Springer, who fills the rural seat, often acted as a swing vote when crafting rules around the industry.

For license applications, approvals have so far been unanimous, and no business has been outright denied, with nearly 50 approved so far.

"The dynamic that we have on the board is very dichotomous," said Emmett. Should a public seat be appointed, "my fear is that much of the work that has been done to ensure a vibrant industry has been undone."

There is contention in the industry over the nature of the board seat recently occupied by Schulte, which some argue should go only to an industry person. Emmett's seat is designated as the public or industry position at the boards and commissions website, so Schulte's removal should result in the appointment of an industry seat, they figure. The current vacancy is listed as "industry."

"(Schulte) was appointed the industry seat, therefore … that indicates that's the seat that's being filled," said Kim Kole, secretary of the Alaska Marijuana Industry Association, who plans to open her own marijuana business.

The governor's office disagrees, saying it can pick either a public or industry seat, as Emmett still qualifies for the industry role.

"It's a little confusing because of the way we had it on our website and we'll take responsibility for that," Hozey said, referring to Emmett's seat being listed as "industry/public" online.

"The statute defines the makeup of the board by member, not by seat … So as long as there are the right types of members appointed to the board, the specific seats they occupy are less important," Hozey said.

There's already talk of legal action. "There could be a lawsuit certainly, I know that the industry will have kind of a little uproar," Kole said. "It'll depend on which lawyers are available and willing to stick their necks out."

The control board falls under the auspices of the Alcohol and Marijuana Control Office, sharing the staff of the Alcoholic Beverage Control Board. With changes put in place this year, the ABC board's makeup will soon largely mirror that of the marijuana board.

The alcohol board, currently made up of two industry seats and three people from the general public, will in future years be comprised of public health, public safety, rural and two industry seats. The changes will be enacted as current board member's terms expire, Hozey said.

For the marijuana board, Schulte was removed from his position July 29, and the governor has 30 days from that time to choose a new appointee.