Bill would give legislators final approval over head of Maine’s cannabis office

A Maine lawmaker wants the Legislature to have the final say on who heads the office that regulates the state’s lucrative cannabis industry.

Sen. Craig Hickman, D-Winthrop, on Monday introduced a bill that would require the director of the Office of Cannabis Policy be confirmed by the Legislature rather than simply appointed by the commissioner of the Department of Administrative and Financial Services, which oversees the office.

The move comes as the current director, John Hudak, is under investigation by the Government Oversight Committee for a possible conflict of interest.

The bill’s supporters say it provides necessary checks and balances for a growing and highly regulated industry, while opponents argue it could create instability and politicize the position.

As written, the bill would require that the governor appoint the director, but Hickman told the Committee on Veterans and Legal Affairs that it would make more sense for the commissioner of DAFS to make the appointment. The bill mandates that the commissioner or governor appoint the director of the Office of Cannabis Policy within 60 days of the legislation going into effect.

It was not immediately clear if Hudak, who has been in his role for more than two years, would need to face a public hearing or confirmation vote if the bill is passed.

Hickman said the bill could be expanded to require a similar process for leaders of the other so-called sin tax agencies: the Bureau of Alcoholic Beverages and Lottery Operations, and the Gambling Control Unit.

“The confirmation hearing allows for members of the general public to say whether or not they approve of the person that has been appointed,” he said.

CHECKS AND BALANCES 

Last month, the Legislature’s Government Oversight Committee launched an investigation into a possible conflict of interest between Hudak and the software company used to track sales in the state’s recreational market.

Hudak was a co-founder of Freedman and Kolski Inc., a firm specializing in cannabis policy, the Sun Journal reported. One of the partners, Lewis Koski, later became the chief strategy officer for Metrc.

The state entered into a six-year, $630,000 contract with Metrc in 2020, nearly three years before Hudak was appointed director. Hudak helped negotiate a contract amendment in 2023 that gave the Florida company another $350,000.

The contract ends in February 2026 and is currently out for competitive bid.

Hickman, who co-chairs the oversight committee, called the conflict of interest “stunning.”

Meanwhile, Kirsten Figueroa, commissioner of the Department of Administrative and Financial Services, said Hudak has been transparent about his prior working relationships and that he has no direct or indirect financial stake in Metrc. 

Ben Barry, a spokesperson for the Senate Democratic Office, said Hickman’s bill was submitted by Jan. 10, meaning it was proposed before the oversight committee launched its investigation. Nevertheless, Hudak’s alleged conflict of interest was mentioned by many supporters of the bill Monday.

Matthew Bayliss, a medical cannabis operator — known in the industry as a caregiver — suggested the issue would have been prevented had the committee been able to vet his appointment.

But others focused on the position more broadly and a lack of trust that has been brewing between regulators and industry participants.

Lizzie Hayes, a medical caregiver, told the committee Monday that legislative approval serves as a fundamental check and balance for an industry that brought in over $500 million last year while operating outside of federal law.

“A confirmation hearing provides an opportunity to assert public expectations,” she said. “It is an opportunity for the appointee to understand the will of the people of Maine and the will of the Legislature before beginning their role as director of a valuable state industry that touches many different sectors of our economy and our society.”

Jennifer Belcher, president of the Maine Cannabis Union, told lawmakers that legislative oversight would provide much-needed accountability and transparency in the industry.

“The legislative process provides an essential safeguard, preventing unilateral decisions that may not reflect the economic realities or best interest of the industry,” Belcher said, adding that the union also supports an annual review of the program’s success.

A RISK FOR THE INDUSTRY

Both the governor’s office and the Department of Administrative and Financial Services oppose Hickman’s bill.

Figueroa said in written testimony that the bill singles out just one of the eight bureau chiefs in the department to be subject to legislative review in confirmation, likening it to a governor’s Cabinet appointment.

Currently, the only position under DAFS that is confirmed by the Legislature is the commissioner, a department spokesperson said Monday.

“It is unclear why this bureau director-level position, among the many in DAFS and the dozens of those designated as major policy-influencing in state government, should be singled out this way, and the department is concerned about what it would mean for the long-term stability of OCP,” Figueroa wrote.

DAFS also oversees bureaus including the Bureau of Alcoholic Beverages and Lottery Operations, Maine Revenue Services, the state economist and the Office of Information Technology, among others.

The cannabis director position is challenging to fill, and adding a legislative confirmation to the process could discourage qualified candidates from applying, risking an empty leadership seat as the state continues to combat a robust illegal cannabis market.

“An extended vacancy at the leadership level would undermine the state’s cannabis policy direction, as well as impact the long-term stability of OCP, a relatively young state agency that has performed admirably with navigating a unique, ever-changing policy space,” she said.

The governor’s office said the bill represents “an unjustified intrusion into executive branch operations” and could subject the director to political influence.

“Making this position confirmable may seem innocuous given the committee’s present membership, but that membership will change, with unpredictable results,” Gerald Reid, chief council for the office, said in written testimony. “The only certainty is that the director of OCP would be more susceptible to political pressure, whatever the politics of the day may be, as well as potential pressure from commercial interests.”