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. This lapse has prompted calls for statutory reforms to address operational deficiencies within the agency.
Findings from the Inspector General’s Report
State Inspector General Jeffrey Shapiro’s office uncovered that CCC staff extended the expiration dates of over 150 marijuana business licenses without collecting approximately $550,000 in fees between August 2022 and August 2024. Additionally, during the same period, the commission granted more than 120 provisional licenses without collecting up to $1.2 million in associated fees. Shapiro described these oversights as “an egregious operational breakdown” and emphasized the need for legislative intervention to reform the agency’s structure.
CCC’s Response and Recovery Efforts
In response to the findings, CCC Executive Director Travis Ahern contested the $1.2 million figure, clarifying that businesses with provisional licenses are only required to pay fees upon receiving a final license. He noted that a small number of provisionally approved applicants proceeded with their applications and asserted that all provisional fees were properly managed. The commission has reportedly recovered over $320,000 of the outstanding fees and is implementing measures to prevent future lapses.
Implications and Recommendations
The Inspector General’s report highlights significant management and oversight issues within the CCC. Shapiro has recommended that the commission conduct an internal audit to determine the exact amount of uncollected fees and to ensure compliance with licensing protocols. While he no longer advocates for placing the CCC under receivership, Shapiro continues to call for statutory reforms to clarify the commission’s leadership structure and enhance accountability.
