Legislature Leaves CCC to Its Own Devices

Foley Hoag LLP - Cannabis and the Law
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Foley Hoag LLP - Cannabis and the Law

With the end of the formal legislative session having come and gone, it appears that the Massachusetts legislature will not answer calls to step in to manage the affairs of the state’s Cannabis Control Commission (“CCC”), which, according to some officials on Beacon Hill, is an agency in disarray. As was widely reported in June, a letter from the Commonwealth’s Inspector General, Jeffrey Shapiro, addressed to Senate President Karen Spilka and other leaders of the House and Senate, underscored several critical concerns about the agency's management. In turn, it implored the legislature to act immediately. Highlighting recent “turmoil” in the upper reaches of the agency, most notably the suspension of former Chair Shannon O’Brien by the Treasurer of the Commonwealth and the CCC’s decision to relieve the acting executive director of her day-to-day responsibilities, the Inspector General called on the legislature to appoint a receiver with express powers “(1) to carry out the daily administrative functions of the CCC and (2) to carry out said functions notwithstanding any assertion of authority by the chair, acting chair, or commissioners….”

The Inspector General’s letter prompted a lengthy informal hearing on July 9, 2024, in which members of the legislature’s Joint Committee on Cannabis Policy heard testimony from and posed questions to the Inspector General regarding the current state of affairs within the CCC. During that hearing, the Inspector General again formally lobbied for the appointment of a receiver for the agency. Following that hearing and with the end of the legislative session close on the horizon, several legislators sought to address the reported leadership troubles within the organization, including Senator Michael Moore, who filed an amendment (#163) to the Senate's economic development bill, which would have allowed the governor to appoint a receiver. However, the proposed amendment was rejected, and the economic development bill ultimately failed to pass before the end of the session.

Despite the flurry of legislative activity into the wee hours of August 1, none of the other bills that passed before the end of the session authorized the appointment of a receiver for the CCC. In other words, the CCC is on its own for the foreseeable future. Notably, the agency is currently in the midst of selecting a new Executive Director. Interested candidates were directed to submit applications by June 15, 2024, and the CCC’s Executive Director Search Subcommittee is currently reviewing and vetting candidates. We will continue to monitor the activities of the subcommittee as it narrows the pool of candidates vying to lead the CCC out of these uncertain times.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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