In a blow to Alaska’s cannabis industry, newly inaugurated Gov. Mike Dunleavy has appointed former Fairbanks City Councilwoman Vivian Stiver and Wildlife Trooper Lt. Christopher Jaime to the state’s Marijuana Control Board, which could have serious implications for the state’s efforts to regulate on-site cannabis consumption at state-licensed dispensaries. The new members, who must be approved by the state legislature before Feb. 28, have opposed recent cannabis industry developments in Alaska.

Stiver replaces Chairman Brandon Emmett, who was removed by Gov. Dunleavy during the week of Jan. 14. Stiver previously chaired an anti-retail cannabis coalition called Safe Neighborhoods Fairbanks, and launched a Fairbanks ballot proposition in 2017 that would have banned any commercial cannabis activity within city limits, according to a Fairbanks Daily News-Miner report. She also lobbied to have on-site consumption banned in Fairbanks in May 2018, a local news outlet reported.

“[Safe Neighborhoods has] been categorically opposing every single license in every area that they can get somebody to oppose it, and they haven’t won one fight,” Leif Abel, co-owner of Greatland Ganja, told Cannabis Business Times. Abel founded the Kasilof-based medical-grade marijuana cultivation operation with his brother, Art, in 2016. “We have local protests here, and anybody from a local area can protest a license when it goes in, but unless they have good reason to, the protest doesn’t get upheld. So, they’ve been fighting a losing battle over the last three years in the state of Alaska, unable to ban any license like they wanted to.”

Emmett, on the other hand, has been supportive of cannabis businesses. He voted to allow on-site consumption in certain retail locations, and has called Stiver an “abject prohibitionist” who has fought the industry, according to The Associated Press.

“I don't think she represents the general public in Alaska and certainly not the majority of the public in Fairbanks,” Emmett, also a Fairbanks resident, told The Associated Press, adding, “This isn't just me throwing stones because I'm unhappy about losing my seat.”

Emmet worked with Abel closely to help pass Measure 2, which legalized cannabis in Alaska in 2014, and they both serve on the Alaska Marijuana Industry Association.

“I thought he was a reasonable law enforcement seat on the board,” Abel said. “He didn’t always vote like the industry would like, but that’s to be expected of a law enforcement seat. He had a lot of really articulate, well-reasoned things to say, and he oftentimes surprised us by coming up with good reasons to vote the same way we do.”

Jaime replaces Sitka Police Chief Jeff Ankerfelt, who was removed from his seat prior to reaching term, according to the Fairbanks Daily News-Miner report. He is an Alaska Wildlife Trooper from Soldotna, and told The Associated Press that he is concerned about the possibility of on-site consumption, specifically with regard to possible impairment.

Ankerfelt was a midterm appointment to the board who did not receive approval from the legislature, which allows Gov. Dunleavy to replace him. Ankerfelt and members of the board allege that he was removed for casting a deciding vote in favor of on-site consumption last month, but the governor’s office denies such allegations, according to the Fairbanks Daily News-Miner.

In late December, the Marijuana Control Board approved new regulations allowing on-site marijuana use at state-licensed dispensaries, but with two new board members against on-site consumption, the board could revisit the issue and reverse their decision.

The Marijuana Control Board is a five-member board that loosely mirrors the state’s Alcoholic Beverage Control Board. On the alcohol board, two of the five member seats are to be alcohol license holders—a rule that was supposed to translate to the marijuana board, Abel said. However, in the original formation of the board, cannabis licenses had not yet been awarded, so the state allowed the board to form without the two mandatory industry members. The loophole has not been closed, Abel said.

“As it stands, there is some confusion as to whether they are industry seats or industry/public because of how things rolled out,” he said. “It could be a legal issue that the state’s looking at because the board was initially on the record saying once there are license holders, two of the seats should be held by industry only.”

With Emmett’s removal, there is only one seat held by a cannabis industry member, who is Nicholas Miller.

Dunleavy, a Republican, has historically taken a conservative stance on cannabis issues, Abel said. “I think he’s forgetting that in one of the most conservative states in the country, we passed by historical margins Ballot Measure 2, which was to legalize cannabis and legalize cannabis businesses in the state of Alaska,” he said. “So, he’s directly attacking the majority of the voters in Alaska by doing this.”

“It’s … possible the new governor doesn’t understand the gravity of what he’s doing or he doesn’t understand all of the jobs that we create here in Alaska,” Abel added. “We’ve created more jobs here in Alaska in the last couple years than any other startup industry here in the state or any other industry in the state parallel to us right now. Other industries are losing jobs right now and we’re creating them. … He’s suddenly making a move to attack those businesses the day after he had his inaugural speech, where he was espousing the need for job creation and stability in Alaska.”

Now, businesses like Greatland Ganja have a lot of work ahead of them.

“I think [Dunleavy’s] going to have a rude wake-up call, but this will also cause us cannabis business folks and all the employees a bunch of work, contacting our legislators, writing letters, letting our leaders know how we feel about this, when we could be doing business and spending time with our families like most other people get to do,” Abel said. “I think it’ll be all right in the end, it’s just going to cause a lot of work, and it’s just an unfortunate sign of someone who I think may not be a great leader for Alaska. His opening volley of moves is somewhat troubling."