An audit of the state's troubled Cannabis Control Commission has found widespread mismanagement, violations of state regulations, and procedural inequities at the agency charged with regulating the cannabis industry in Massachusetts, State Auditor Diana DiZoglio's office said Thursday.
The review, which examined operations at the commission over two years 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, raising concerns about transparency and fairness, and failed to properly administer prorated license extension fees, resulting in revenue loss, the auditor's office said in a statement.
The audit 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.
"CCC management failed to take appropriate steps and institute procedures to fully quantify and accurately administer license extensions," the statement said. "A lack of supervision and minimal accountability over licensing staff members contributed to a significant breakdown of the internal controls over requests for and approvals of extensions."
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