Massachusetts Audit Finds Cannabis Control Commission Mismanaged Licenses, Lost Revenue

The audit, conducted by State Auditor Diana DiZoglio’s office, examined the CCC’s operations from July 1, 2022, through June 30, 2024. It found that the agency’s handling of prorated license extension fees led to revenue losses, procedural inequities, violations of state regulations, and “the appearance of potential favoritism.” In some cases, businesses were required to pay fees while others were not, with verbal agreements replacing documented procedures. The report says CCC leadership failed to create systems to track and fairly process license extensions, did not adequately supervise licensing staff, and failed to keep proper records when fees were waived or left uncollected. It also found that the CCC neglected to assess fines and collect them within reasonable timeframes, in violation of state rules, and failed to appoint a hearing officer to oversee related cases—allowing unresolved compliance issues to persist or worsen.

According to the auditor’s office, these enforcement delays could put consumers at risk of purchasing contaminated or expired marijuana products and create disadvantages for smaller businesses unable to navigate drawn-out regulatory processes. The absence of a hearing officer also jeopardized due process rights for licensees facing penalties.

The audit further found that the CCC failed to review host community agreements (HCAs) containing “unenforceable” or noncompliant provisions, which can place undue financial burdens on small businesses. It also noted that the agency lacked a documented process for employee settlement agreements with non-disclosure or non-disparagement clauses, failed to detect double payments for license fees, and did not properly code or classify revenues.

“We encourage the Cannabis Control Commission to adopt our office’s recommendations for improvement and will be revisiting the Commission’s progress in roughly six months as part of our post-audit review,” DiZoglio said.