Massachusetts Cannabis Control Commission is being investigated for not collecting up to $1.7 Million in licensing fees over a period of two years from marijuana companies. The Massachusetts Cannabis Control Commission (CCC) is under investigation for failing to collect up to $1.7 million in licensing fees from marijuana businesses over a two-year period.
Report of the Inspector General
The office of the State Inspector General Jeffrey Shapiro discovered that CCC employees extended expiration dates for over 150 licenses to marijuana businesses without collecting around $550,000 in fees from August 2022 until August 2024. In the same period the CCC also granted 120 temporary licenses while not collecting fees of up to $1,2 million. Shapiro called these oversights “an egregious breakdown in operations” and stressed the need for legislation to reform the structure of the agency.
CCC’s Response and Recovery Activities
Travis Ahern, the Executive Director of the CCC, disputed the $1.2m figure. He clarified that companies with provisional licences only have to pay fees when they receive a license. The CCC Executive Director Travis Ahern noted that only a few provisionally-approved applicants had actually submitted their applications. He also claimed that the provisional fees for all of these were managed properly. Over $320,000 has been recovered by the commission and measures are being taken to prevent further lapses.
Implications and recommendations
Report of Inspector General highlights major management and control issues in the CCC. Shapiro recommends that the CCC perform an internal audit in order to ascertain the precise amount of uncollected charges and ensure compliance with licensing protocols. Shapiro no longer supports placing the CCC in receivership but continues to advocate for legislative reforms that clarify the leadership structure of the CCC and increase accountability.