Bailey Stuart to take on the role of Marijuana Control Board Industry Seat
The Marijuana Control Board meets once a year in each judicial district. January always means holding the meeting at Alaska’s capital in Juneau.This particular meeting room holds a special place in my heart. While it was just conference room A on the 9th floor of the state building to everyone else, it was the conference room I was delegated my first license in. That moment changed my life forever, and this last trip did the same thing. I gave my last public comment as a member of the public.
At this next meeting I, Bailey Stuart be sitting in the industry seat as a marijuana control board member. Giving my last public comment was bittersweet. I’m excited to serve our industry and represent its interest and help facilitate in making regulation that makes sense. I’m supportive of a full title 3 rewriting and I look forward to facilitating in that project.
Staffing Changes within AMCO
At this meeting we were informed of some staffing changes in the AMCO office. Carrie Craig and James Holscher are no longer with the office. Both have moved on to other avenues of government and were thanked for all the hard work and time they have put into our industry. While the office is still looking to replace Licensing Specialist Carrie Craig, they did however find leadership within enforcement. Steve Johnson and Joe Bankowski will be fulfilling the role of acting supervisors and passing the torch of leadership back and forth. Director Wilson mentioned that her goal is to be dig through the budget to create two separate supervisors. One for alcohol and one for marijuana. Director Wilson also stated that she would like to see conversations before NOV’s (Notices of Violation) are issues and both Investigators where aligned with this ideal.
The Complications of Transporting Marijuana in Alaska
Acting Enforcement Officer Johnson on the record stated “He would rather answer questions than issue paperwork”. This statement came from giving an example of a transportation of cannabis gone wrong. Imagine, you’re on your flight to Ketchikan, on the milk run. Whether it be
weather or mechanical issues, the plane is not able to land in Ketchikan and has been diverted to Seattle. What do you do? You had no intention of breaking any laws or regulations but here you are in a position where you’re not only going to break state laws and regulations your also about to break federal law. Investigator Johnson fielded this call from a panicked transporter. Instead of issuing a NOV for something that was completely out of the control of the transporter. Just like he said he would rather answer questions than issue paperwork for something were there was no ill intent.
Alaska is not like any other recreational cannabis state, we have complicated transportation issues. With that all in mind, Investigator Johnson informed the transporter to stay in the terminal. To uphold Alaska transportation regs, keep the contents close and get back on that airplane back to Alaska as soon as possible. Upon arrival back into Alaska to include the diverted flight information on the transport manifests. Which is exactly what this transporter did, no NOV in sight.
Notices of Violation Report
Naturally, following enforcements report came Notices of Violation report. Enforcement reported that currently there is 61 cultivators owning a total of $3,336,518. However, something that needed to be take into consideration is the fee’s collected on the late taxes. Attorney Kevin Higgins reported that often times fees are 2 to 5 times more than the tax that is owed. Something the board should be taking into consideration while deliberating on these licensees.
Marijuana Control Board Adopted New Regulations & Proposals for Regulatory Change
At this meeting the Marijuana Control Board adopted new regulations and moved them into law. Additionally, multiple proposals for regulatory change got sent out for public comment. Security Interest Transfers were motioned to adopt and to send out to law. The location of exterior window regulatory project was sent out for public comment. This regulation would expand a 3 AAC 306.380 (g). It will require the window to be located within the primary licensed premises of the retail store. It also aims to clarify that the window may not be in a separate building or in a moveable structure. It also prohibits a window from being located so as to access it by going through the licensed premises of another license type (overlapping).
METRC Tagging Plant Height Regulations Project
Plant height regulations were sent out for public comment. This regulation project would increase the height at which a marijuana cultivation facility shall assign a tracking number in METRC (the current state tracking system) to a marijuana plant. It would increase the height from eight inches tall to eighteen inches tall. The thoughts behind this regulation were to facilitate change in removing regulatory requirements. Cultivators found it created unnecessary industry waste and needless cost. Many plants are culled between eight and eighteen inches and never make it to a batch harvest. It was found to not affect public health or safety in implementing this change.
A Push for Alaska Marijuana Licensing Applications to be a Certification
One of the bigger regulatory changes coming in the future are changes to licensing applications. In the early days the board wanted to verify throughout the application process that the licensee knew what was being required of them. Marijuana licensee applications provided detailed descriptions of operational procedures to the board for their review. The current board feels that the industry has matured enough to only require a certification. Essentially allowing a potential licensee to sign their initials indicating that they understand what is required in operational plans. At this point, many of the applications have the same lanuage over and over. By moving Alaska marijuana licensing applications to be a certification it will simplify and reduce wasted hours on completing applications. Not only with the licensee but AMCO staff as well.
Upon some staff review they do feel there are parts of the application that can be a certification, however, there are parts of the application process that will still need to be discussed at a future meeting, that are a little more complicated than just an acknowledgement. This was sent out for public comment.
If getting through the application process seems like a daunting task, then reach out to us we can help you get from seed to sale!
Overlapping Premises Regulation Project Reopened
Lastly, when it comes to regulation projects, there was clean up on overlapping premises. The language that was in the initial proposal did not reflect the conversation that was held by the board. Which was to allow for shared use of spaces across two different licenses such as ‘packaging space’. This new proposed regulation change will remove ‘marijuana product storage area’ and adds ‘a restricted access area’ in order to open up the possibility of other uses.
Delegated Status in Licensing
Over the 9 years of licensing there has been an ever-growing list of active pending inspection licenses and delegated status licenses. The questions about whether this creates any hardship for the AMCO office. Director Wilson also suggested coming back to the board with a reason as to why they are still in delegated status. And that potentially an annual fee may need to be implemented to maintain status depending on the fiscal note this list creates, if at all.
Marijuana Control Board Sunset Review
Something few licensees know of is that the Marijuana Control Board has a sunset, meaning a termination date. That date was set for June 30, 2024, the States Division of Legislative Audit recommended that the board’s termination date be extended by three years to June 27th, 2027. Which is significantly less than the eight-year maximum allowed in statue but will align itself with the Alcohol Control Board sunset. This extension was made in recognition of a report issued by the Governor’s Advisory Task Force on Recreational Marijuana may lead to significant changes to MCB and AMCO duties. And a new information system, which is expected to be implemented by the end of 2023. This would significantly change MCB’s licensing and enforcement processes.
Wills World Extracts License and others Revoked
At the end of this two day board meeting the board went into executive session and came out making the following motion. “Moved under AS 44.64.060(e)(1) the board adopted the proposed decision as its final decision in the matter revoking: Marijuana Concentrate Manufacturing DBA Wills World Extracts License No. 12536, Limited Marijuana Cultivation Facility DBA Frontier Farmers License No. 12550, Limited Marijuana Cultivation Facility DBA Alaskan Originals License No. 26876, Retail Marijuana Store License No. 25442 Alaskan Originals LLC, and imposing a civil fine of $170,000.00.
Following this motion as a unanimous agreement with some comments from the board. Board Member Ely Cyrus mentioned he thought given the product brought in was valued at over $3,000,000.00 he felt the civil fine imposed was too low. This is a great example that the industrial hemp regulations and the Farm Bill of 2018 will not protect you in the recreational market. We all know what we are regulating.
Nick Miller and Eliza Muse No Longer Serving on the Marijuana Control Board
This meeting wrapped up diffidently than most, considering we are losing two board members. 
Nick Miller and Eliza Muse will no longer be serving the Marijuana Control Board. There were many acknowledgments of the hard work both of these individuals had contributed to the marijuana control board and many will be sad to see them leave. This board has been one of the most constructive boards we have had the pleasure of working with. They leave behind large shoes to be filled, they both have gone above and beyond in their roles as regulators. With that said, Bruce Shulte was elected as the new Chair of the Marijuana Control Board and the next meeting is set for April 17th and 18th in Anchorage, Alaska.