Massachusetts Inspector General Jeffrey Shapiro has urged the Cannabis Control Commission (CCC) to conduct an audit due to its failure to collect around $550,000 in licensing fees since August 2022. In a letter addressed to Travis Ahern, the new executive director, and Bruce Stebbins, the acting commission chair, Shapiro described the failure as an “egregious operational breakdown” that reflects “poor business practices and oversight.”
In August 2024, the CCC publicly acknowledged the oversight, admitting to not collecting $555,671 in license renewal extension fees. The commission had allowed extensions of up to 120 days starting in August 2022 and directed staff to collect prorated fees for those extensions, but they failed to do so. Shapiro also noted that CCC staff granted extensions before the commission’s vote in August 2022 without proper authority.
Shapiro stated that the inability of CCC staff to implement a crucial commission initiative should have been evident to supervisors and commissioners. Following the recognition of this issue, the commission has taken steps to recover the previously uncollected fees and has updated its payment systems. Ahern indicated in an email that only $170,000 of the original $550,000 remains uncollected as of this week.
Shapiro emphasized the need for an audit to ensure that all current licensees have paid the necessary fees and to clarify the revenue that went uncollected as some businesses ceased operations. Ahern mentioned that the commission is actively engaging with the Inspector General’s office regarding these issues and plans to provide a more detailed response within the required 30 days.
Following the revelation of the uncollected fees, commissioner Kimberly Roy called for a “forensic audit” of the agency to examine its financial records for any signs of fraud or misconduct. Such audits are typically used to modernize an organization and improve its operations.
In addition to the uncollected fees, Shapiro pointed out that the commission failed to collect up to $1.2 million in potential provisional licensing fees. Although provisional licensees cannot proceed in the licensing process without paying these fees, the commission’s policy dictates that they be paid within 90 days of initial approval. Ahern clarified that the uncollected provisional application fees mentioned in the Inspector General’s letter could be misunderstood, explaining that these fees are only due if the applicants decide to move forward to final licensure.
Kevin Gilnack, president of the cannabis advocacy group Equitable Opportunities Now, described the $1.2 million figure as “pretty sensational,” but he also noted that it does not appear to have caused any harm due to the enforcement issues. He added that since no one can advance without paying the provisional fee, it seems the CCC was not actually missing out on any fees.
Last summer, Shapiro called for the Massachusetts Legislature to appoint a receiver and restructure the CCC to clarify the roles of the executive director and commission chair. This came after Treasurer Deb Goldberg suspended and eventually fired the commission’s previous chair, Shannon O’Brien.
