Cannabis News of Note:
PBS News: Will Trump change federal marijuana policy? Here’s what to know
Boston Globe: State auditor finds widespread mismanagement at Cannabis Control Commission (paywalled, full text below)
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Boston Globe: State auditor finds widespread mismanagement at Cannabis Control Commission
By Nick Stoico, Stella Tannenbaum and Yogev Toby
Updated August 14, 2025, 8:25 p.m.
An audit of the state’s troubled Cannabis Control Commission found widespread mismanagement, violations of state regulations, and potential improprieties at the agency charged with regulating the marijuana industry in Massachusetts, Auditor Diana DiZoglio’s office said Thursday.
The review, which examined operations at the commission from 2022 to 2024, cited a host of regulatory lapses. It determined that the agency failed to enforce regulations in a timely manner or maintain adequate internal controls.
The audit also raised concerns about transparency and fairness. It revealed “the appearance of potential favoritism and/or impropriety” as some cannabis businesses were required to pay fees “while others inexplicably did not need to do so,” the office said.
The agency did not keep records of instances when fees were waived.
The audit also found that the commission failed to review host community agreements between cannabis businesses and local municipalities, which also resulted in unequal treatment. In Brookline, for example, one business was required under its host agreement to make a $975,000 charitable donation, while the other faced no such requirement.
The audit called for an overhaul of the commission’s operations, recommending stricter financial oversight, better supervision of staff, and more transparency.
Bruce Stebbins, the commission’s acting chair, said the CCC would review the audit, noting that it has been working to improve operations. In a statement, the commission said it is making progress on addressing weaknesses identified by the audit.
“Over the course of the audit period and since, the Commission has hired key leaders . . . and begun to move forward in a constructive way,” the commission statement said. “In the coming months, we will continue to work . . . to ensure Massachusetts remains home to a safe, equitable, and effective cannabis marketplace.”
The commission was formed to oversee what is now an $8 billion marijuana industry in Massachusetts, but it has spent much of its short history in dysfunction, failing to adopt regulations in a timely fashion, experiencing rapid staff turnover, and becoming mired in infighting among its leaders.
Last year, the commission’s chair, Shannon O’Brien, was fired by Treasurer Deborah Goldberg amid complaints of a toxic and hostile workplace. O’Brien is contesting her firing in court.
Cannabis entrepreneurs have lamented the state of the commission, which they say has been unable to deal with the demands of a fast-changing and fragile market. That has left businesses adrift and consumers restless, they say.
Dennis Kunian, a cannabis consultant and investor, said he was “not one bit surprised” by the auditor’s report, but added that the audit was not enough to turn around the commission. He said he is not optimistic that anything will change barring outside intervention by the Legislature or the governor.
“There needs to be more control on this thing,” he said. “You can’t leave it up to the commission. It’s just not working.”
Adding to the commission’s troubles has been weak financial oversight, the audit found. The agency failed to identify double payments for license fees and did not properly classify revenue, leading to “financial misstatements and reporting inaccuracies” and the potential “for financial loss or fraud,” DiZoglio’s office said.
The commission did not keep records of instances when fees were not collected or waived, the report said. It cited “a lack of supervision and minimal accountability” over licensing staff.
The state inspector general flagged the $1.75 million in uncollected license fees in March and described the lapse as “an egregious operational breakdown.”
The audit also identified a lack of transparency at the commission. The commission did not have a documented process for at least three employee settlement agreements between 2019 and 2024, one of which was for nearly $93,000.
The report did not mention the employee’s name, but said the allegations were associated with defamation, invasion of privacy, and rights under family medical leave.
In statement, DiZoglio said her office would return to the commission to do a post-audit review.
“Our audit identified a number of issues that significantly undermine and negatively impact the Cannabis Control Commission’s mission to equitably and effectively oversee the cannabis industry in the Commonwealth,” she said. “We encourage the Cannabis Control Commission to adopt our office’s recommendations for improvement.”