Lawmakers weigh in on CCC ‘train wreck’ and consider possible action – Sentinel and Enterprise

The Massachusetts State House, Boston. (Chris Christo/Boston Herald)

Lawmakers from both parties indicated Tuesday that they share the state regulator’s concerns about a turmoil at the Cannabis Control Commission, but Democrats with the power to decide the matter were tight-lipped about what kind of response they might mount.

Weeks after Inspector General Jeffrey Shapiro issued a dire warning to House leaders about the “rudderless” CCC, members of the House Cannabis Policy Committee dug into his findings and some lawmakers used the hearing to launch their own jabs at the regulator.

“I don’t know what the case law or legislative process says, but it’s a disaster,” said Rep. Aaron Saunders, a Democrat from Belchertown. “What’s happening right now is not fair to the public, it’s not fair to members of the industry, it’s not fair to the employees of the commission.”

Republican Rep. Michael Soter of Bellingham expressed his frustration in similarly colorful terms.

“We’ve worked very diligently to get legislation and things done, wanted to get things done in a timely manner, done our due diligence, held multiple hearings, long hearings, read testimony. It just seems to me that your report, the CCC, is absolutely correct when you take it all to that level,” Soter told Shapiro during the hearing. “I don’t want to say ‘spit in the face of the legislature,’ but it almost seems to me like they don’t care what we say.”

Lawmakers created the CCC when they re-wrote the recreational marijuana law that voters originally passed on the ballot in 2016. The agency has long been mired in discord. The current chair is suspended, the longtime executive director resigned while on maternity leave, and the search for a new non-interim top official appears to be months behind schedule.

Shapiro outlined a long list of concerns at Tuesday’s hearing, telling lawmakers about sudden resignations and staff turnover at the CCC, the inadvertent release of sensitive data, a delay in changing a two-driver rule months after commissioners voted to change it and more.

The “root of the problems,” Shapiro said, is the law that created the CCC. Shapiro said the law is “inconsistent and lacks clear guidance on who is responsible for running the agency,” particularly because it grants similar powers to the commission chair and its executive director.

“While the timing was surprising, this letter is not a surprise. It reflects concerns we have already heard from others,” said Representative Daniel Donahue, co-chair of the Cannabis Policy Committee, at the start of the hearing on Shapiro’s letter.

The inspector general urged lawmakers to place the CCC under receivership before the end of official sessions on July 31 and then return to revising the governing charter in the next legislative session.

While several lawmakers have expressed concerns about the status quo, Democrats on the committee have neither accepted nor openly rejected Shapiro’s proposals, leaving the question of what the next steps will be, just three weeks before the Beacon Hill retreat scheduled for the rest of the year.

Senator Michael Moore of Millbury filed an amendment (#163) to the Economic Development Act, which is up for consideration Thursday, that directs the governor to appoint within 30 days someone “with a proven track record of improving the operational and administrative functions of public or private entities” as receiver for the CCC. The term would be one year. That person would be tasked with developing and implementing a recovery plan and reporting monthly to the governor, legislators and the inspector general.

Donahue said putting the CCC in receivership would be a “unique” step that lawmakers have never taken for a state agency before. (Shapiro noted that the state placed the Chelsea Housing Authority in receivership in 2011.)

“As someone who has been in government for a long time, receivership is a really big deal. I would say it’s the nuclear option, which is why we heard today that this has never happened with a state agency,” said Rep. Rob Consalvo of Hyde Park, the House committee’s vice chairman. “I have been involved in the discussions in the city of Boston that are addressing receivership of Boston Public Schools, and I say for the record that as a BPS parent and a Boston legislator, I am absolutely opposed to it.”

“I know this is apples to apples and chainsaws, but I want to emphasize what a big deal it is to put an agency into bankruptcy,” he added.

Several lawmakers asked Shapiro why he came up with the idea of ​​bankruptcy proceedings rather than other reforms, such as asking the executive branch to increase oversight of the CCC, putting an auditor on the agency or putting pressure on the governor, attorney general and treasurer to replace commissioners.

Shapiro has repeatedly stated that he believes the main problem lies with the law itself, not with individuals on the CCC, arguing that similar problems have arisen repeatedly during the tenures of various commissioners and staff.

“I don’t want to take this personally, but I didn’t feel like the agency was doing better when another chair had been in office for a long time,” he said. “If it was clear that someone else was going to be the chair, I don’t think that would be the solution that was needed.”

Ava Callender Concepcion, the CCC’s acting chair, responded to Shapiro’s warnings in a June 20 letter to lawmakers criticizing his team’s actions and its call for the appointment of a receiver.

“The challenges at the Commission are anything but secret. We are committed to solving them. In fact, we have a draft governance structure that is in the final stages of legal review and will be considered in open session,” Callender Concepcion wrote. “Starting the OIG’s proposal for bankruptcy administration (an undefined concept with no legal basis) from scratch is not wise. And increasing the Commission’s secrecy by taking it outside the scope of the Open Meetings Act is hardly a solution.”

She referred to the private mediation that the CCC had sought to help draft a new governance charter, which agency officials apparently plan to present and discuss on Thursday.

The agency released the agenda for that meeting on Tuesday morning, about 90 minutes before Shaprio’s testimony before the Cannabis Policy Committee, and it also allows time for the acting chair to “introduce the governance charter.”

Saunders said the Massachusetts Gaming Commission has a “virtually identical” charter to the CCC and that agency has “been able to operate successfully within that structure.”

When asked by Shapiro whether the CCC had cooperated with the Inspector General’s investigation to the extent expected of a government agency, Shapiro replied, “I would say no.”

“Any of the appointing authorities can remove a commissioner for significant dereliction of duty. When I hear that there is not clear, unambiguous and unhindered cooperation, that is a dereliction of duty as a commissioner,” Saunders said. “I know we are not here to speak to personalities, but to me that is strong evidence that we need the right team, because we know that this structure works in other forums.”

CCC spokeswoman Tara Smith said Tuesday that the agency is “grateful to the Joint Committee on Cannabis Policy for holding today’s hearing and is proud of its track record of creating and regulating a safe, effective and equitable medical and recreational cannabis industry that has generated over $7 billion in revenue for the Commonwealth.”

“To further this effort, the agency is scheduled to discuss several timely topics at its public meeting on Thursday, including updates on various regulatory issues, federal rescheduling, and the hiring process for a permanent executive director,” Smith said. “In addition, the commissioners intend to unveil their draft governance charter as an important tool that will be used by other state agencies and will help clarify many of the questions that have been raised about staff roles and responsibilities. The commission takes the concerns identified seriously and will continue to work with the inspector general and legislators to provide additional information on our operations and structures as needed.”