Massachusetts’ Inspector General, Jeffrey Shapiro, has reported a significant operational failure at the Cannabis Control Commission (CCC). His findings indicate that the CCC failed to collect over $550,000 in prorated licensing fees and potentially up to $1.2 million in provisional license fees from August 2022 to August 2024.
In a letter addressed to acting commission Chair Bruce Stebbins and Executive Director Travis Ahern, Shapiro emphasized the need for action. He acknowledged that neither Stebbins nor Ahern were in leadership roles during the two-year period in question. However, he stressed that as the current leaders, they must take decisive steps based on his recommendations.
Shapiro’s investigation was initiated after receiving a complaint in July 2024 regarding the CCC’s failure to collect licensing fees as mandated by state law. His findings revealed that CCC staff did not act on a vote from August 11, 2022, which directed them to collect prorated fees on license extensions, leading to a significant loss of revenue.
The report also highlighted that for nearly two years, the CCC neglected to collect fees from over 120 provisional license applicants, which could have amounted to as much as $1.2 million. While no fraud was identified, Shapiro criticized the commission for poor business practices and oversight.
Shapiro expressed additional concerns regarding the authority of CCC staff, noting that they granted license extensions without proper authorization. When the authority was finally granted, the staff still failed to collect the associated prorated fees.
He pointed out structural issues within the CCC, stating that the existing state law creates ambiguity regarding leadership responsibilities, specifically between the commission’s chair and its executive director. He expressed optimism that the new executive director would work towards improved operational practices but warned that the lack of clarity in authority could hinder progress.
In response, Ahern stated that while the CCC is relieved to hear that Shapiro found no evidence of fraud, they do not fully agree with his legal interpretations regarding the fees owed. He emphasized the importance of providing the public with a clear explanation regarding the alleged $1.2 million in uncollected provisional license fees.
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