Massachusetts Lawmakers Consider 'Nuclear Option' To Fix Cannabis Control Commission Crisis

Author: Rolando García | July 10, 2024 01:59pm

Beacon Hill lawmakers are contemplating placing the Cannabis Control Commission (CCC) into receivership following months of internal drama and governance issues. This step was proposed by Inspector General Jeffrey Shapiro, who addressed the agency's dysfunction.

Shapiro recently testified at an informational hearing.

Turmoil At The Cannabis Control Commission

The Cannabis Control Commission of Massachusetts has been operating without a permanent chair or executive director since last year. Treasurer Deb Goldberg is deliberating whether to terminate Chair Shannon O'Brien, suspended last September amid misconduct allegations. Shapiro cited this leadership crisis, along with other governance issues, in his recommendation to appoint a receiver to manage the CCC's operations.

Acting Chair Ava Callender Concepcion said the CCC "is already in the process of addressing the Inspector General's chief concern relative to producing a charter that would help us clarify governance questions in statute”, reported GBH.

“For two years, the Commission has spent considerable time and money with a consultant drafting a governance charter to clarify roles and responsibilities,” Shapiro’s letter reads. “They are no closer to resolving these issues as I write this, therefore, immediate action must be taken to prevent further waste and uncertainty.”

Shapiro’s Recommendations

Shapiro emphasized the urgency of appointing a receiver to stabilize the agency. “The time to act is now,” Shapiro stated. He called for legislative action to place the CCC under receivership before the formal sessions end on July 31. Shapiro’s call for intervention was sparked by the CCC's decision to reduce Acting Executive Director Debbie Hilton-Creek's responsibilities, which he deemed a misstep.

“In my opinion, based on our work, they were going in absolutely the wrong direction,” Shapiro said. He stressed his responsibility under Massachusetts General Laws Chapter 12A to prevent and detect fraud, waste, and abuse, emphasizing that his recommendation to the Legislature is essential for the process.

Rep. Dan Donahue, co-chair of the Cannabis Policy Committee, invited Shapiro to present his case. Despite considering the receivership proposal somewhat badly timed, Donahue recognized that the concerns raised were consistent with those heard from other sources. Rep. Rob Consalvo said receivership is the “nuclear option” but acknowledged the need for significant changes within the agency. Sen. Michael Moore announced plans to file an amendment to the Senate's economic development bill to authorize the appointment of a receiver.

Government And Cannabis Control Commission Responses

Gov. Maura Healey expressed the need for the Cannabis Control Commission to move in a “different direction,” although she has not yet taken a position on receivership. “There needs to be a different direction here,” Healey said, noting the operational issues within the CCC. Treasurer Goldberg also acknowledged “many areas of concern” at the CCC and expressed readiness to assist in resolving these issues.

As a response, Chair Ava Callender Concepcion defended the CCC's actions in another letter. She wrote: “What’s missing from the public narrative and ignored by the (Office of the Inspector General) OIG’s directive is the Commission’s remarkable success.”. In the letter she highlighted having fined Trulieve (OTC:TCNNF) and emphasized the need to fill 22 vacancies, including the Executive Director’s position, to address the agency’s challenges.

Since its creation, the Cannabis Control Commission has faced internal conflicts and regulatory challenges. Established after Massachusetts legalized adult-use marijuana in 2016, the agency has struggled with unclear statutory language and governance issues. Pending the results of this request, its history might now take another shift.

Posted In: TCNNF