The Massachusetts Cannabis Control Commission (CCC) is under scrutiny for failing to collect significant fees, amounting to approximately $550,000 in prorated license fees and up to $1.2 million in potential provisional licensing fees from August 2022 to August 2024. This revelation follows an investigation by the State Inspector General, Jeffrey S. Shapiro, who advised CCC’s leadership to conduct an audit to ensure all licensees have paid their dues.
Inspector General Shapiro acknowledged that the current leaders did not hold their positions during the period in question. However, he emphasized that they must address the recommendations in his letter. He noted that while the investigation did not uncover any signs of fraud, it highlighted serious operational failures that necessitate statutory reform. The CCC has reportedly begun updating its payment systems and is working to recover the uncollected fees, but an audit is still essential to verify the payment status of current licensees.
The Inspector General’s investigation began in July 2024, prompted by a hotline complaint about the CCC’s fee collection practices. The investigation revealed that the CCC’s staff not only failed to collect prorated fees but also granted license extensions without proper authority. This mismanagement led to a loss of around $550,000 over two years. Current leadership has indicated that they are now taking steps to collect these fees.
Additionally, the OIG found that the CCC did not collect up to $1.2 million in fees from over 120 provisional license applicants during this same period. Once a provisional license application is approved, applicants are required to pay the related fee within 90 days. If they fail to do so, their application expires, forcing them to restart the process. However, calculating the exact amount of uncollected fees is complicated, as some applicants choose not to continue and let their applications lapse.
Inspector General Shapiro expressed concern over the CCC staff’s actions, stating that it was particularly troubling that they granted license extensions without authority and then failed to collect the prorated fees when they were given that authority. He pointed out that the lack of proper implementation of key initiatives should have been evident to supervisors and commissioners.
Shapiro previously urged the Legislature to appoint a receiver for the CCC, a suggestion he now believes is no longer necessary but still calls for reform. He expressed optimism regarding the new executive director’s commitment to implementing sound operational practices and management within the agency. However, he acknowledged that this effort would not erase the existing issues facing the Commission.
