Massachusetts Cannabis Control Commission audit results released

An audit of the Massachusetts cannabis industry recently revealed that the Massachusetts Cannabis Control Commission (CCC) has allowed millions of dollars in potentially unsafe cannabis products to be sold to consumers.

The audit report was released Sept. 26 by state auditor Diana DiZoglio to determine whether the CCC is following state regulations on recreational cannabis products. The results included data from January 1, 2019 to December 31, 2020. According to the report, $10,192,986 worth of cannabis products were sold to consumers. Many of the products were sold over a year after laboratory testing, long after the products were considered expired and had to be retested for safety reasons.

The audit summary noted three main findings: First, that the CCC “did not identify all products considered expired and prevent their sale to consumers before retesting them.” Second, that it “failed to ensure that marijuana- Establishments (MEs) and Independent Testing Laboratories (ITLs) properly report marijuana products that test positive for pesticides.” Finally, the audit found that employees had not received cybersecurity training.

State law requires labs to report positive pesticide results within 72 hours. However, the report stated that the CCC did not follow this rule. In one individual case, an independent testing facility did not inform the CCC of a positive test result at all.

In a press release, the state auditor’s office recommended that the CCC “improve its processes and procedures, and based on their response to our audit, the CCC is taking appropriate action to address the concerns identified in this area.”

A statement from DiZoglio said the CCC is already making plans for improvement. “According to the commission’s responses based on our audit findings, they are taking steps to implement changes and improve policies and procedures to address most of our recommendations,” DiZoglio said. “I appreciate our audit team’s willingness to comply and will take further steps in the near future.”

Most recently, CCC Chairwoman Shannon O’Brien announced in July that Executive Director Shawn Collins would be stepping down to take maternity leave. O’Brien described the move as “leading to a crisis” for the CCC. She later apologized for any “fear” or “confusion” in her original statement.

Collins is the only CCC executive director appointed to date. However, in September he confirmed that he had no “definitive plans” to leave the country. “As of today, I remain the CEO,” he told 22 News in early September. “It’s definitely a job that I really enjoy. It’s a very stimulating job, there are lots of new topics and the topics evolve quite regularly. So something that still gives me a lot of energy.”

For now, he plans to continue in his role. “So while I don’t know what the future holds for me, I look forward to helping out every day and continuing to work alongside the people here at the agency,” Collins said. “So this status has not changed. I remain managing director and have not resigned.”

When asked about leaving the CCC by the end of 2023, he explained that a succession plan for the CCC was necessary. “That would be something I would like to talk to the entire commission about. Again, I think it’s important to make sure there is a succession plan in place. This is something commissioners have brought up in public meetings over the last year,” Collins added. “At this point there is no concrete plan for the end of the year.”

Massachusetts voters approved recreational cannabis in November 2016 with Question 4, and legal cultivation and possession began in December 2016. Sales took a little longer to develop and finally began in November 2018. Since then, overall cumulative cannabis sales have increased, as in you can see the most current sales data. As of September 6, the CCC reported that Massachusetts had generated more than $5 million in gross cannabis sales. “Massachusetts continues to see record sales even as other states have moved online. In fact, our neighboring states of Maine, Rhode Island and Connecticut also saw record sales this summer,” Collins said. “Demand for tested, high-quality cannabis products remains strong in the region, and consumer purchases in other states have not impacted Massachusetts’ success.”

According to Metrc, Massachusetts has “317 retailers, nine couriers, eight delivery drivers, [and] a micro-enterprise.” Since January this year, the CCC has approved licenses for 53 retail stores and four delivery service providers.

In the last five years, 16 cannabis companies either surrendered, allowed their licenses to expire or had them revoked. “I would say from a competitive standpoint I would expect that to happen. “This happens in all industries,” Collins said. “Is there a saturation point in certain areas of Massachusetts compared to the entire commonwealth? Product competition and competition for shelf space. You know, at first it was like, ‘What can I get my hands on?’ And now some brands are popping up.”

On September 14, O’Brien was suddenly suspended from her role as CCC chair, after holding the position for just over a year. The decision was made by Massachusetts State Treasurer Deborah Goldberg, but no reason has been given to news sources.