Worcester Business Journal

10 Worcester Business Journal | November 11, 2024 | wbjournal.com OVERSIGHT FAILED A WBJ investigation into the Cannabis Control Commission reveals a toxic culture and power struggles are impeding business growth and slowing reforms BY ERIC CASEY AND DAN ADAMS I n June, Massachusetts Inspector General Jeffrey Shapiro issued a scathing assessment of the state's Cannabis Control Commission, saying legislators should place the agency in receivership because long- standing disagreements over who held power at the agency had caused turmoil and rendered it rudderless. In response, CCC leaders rushed to assure lawmakers oversight of the state's $1.7-billion marijuana industry was continuing normally, even amid a stream of scandals and the firing of the agency's top official: well-known politico Shannon O'Brien. ey argued a new governance charter would soon resolve questions about authority. "As the Legislature intended, we are operating effectively and regulating the industry of cannabis, the number one cash crop in the commonwealth," then- chair Ava Callender Concepcion wrote e "inaugural commissioners were policymakers, which is very, very differ- ent from some of the commissioners we have now," said CCC Chief of Research Julie Johnson. "ey want to be on the front page [of the newspaper] with a glowing article about how wonderful they are, but they don't really understand what staff are doing. It seems to only be about optics, and not about the reality the staff and industry are experiencing." e oen-rosy picture of the industry painted by CCC leaders frustrate busi- ness owners who know better, said Ryan Dominguez, executive director of the Massachusetts Cannabis Coalition. "e state revenue numbers are the ones that are used most and quoted most oen, but I think it's not telling the full picture," he said. "If you look at how much people are actually profiting versus their tax burden and things behind the scenes, I don't think those numbers are telling the true picture." In August, CCC began an investi- gation into a growing number of staff complaints against Debbie Hilton Creek, the agency's chief people officer who has been serving as acting executive director. CCC declined a request by WBJ to interview Hilton-Creek and the four commissioners, instead issuing a statement on behalf of the entire agency. When WBJ reached out to them indi- vidually, three of the commissioners did not respond. Callender Concepcion is on leave and could not be reached. e problems at CCC have been exac- erbated in the past year as Hilton-Creek has served as acting executive director, but CCC employees say the issues will persist once the role is filled, as the prob- lems are far more structural. On Oct. 28, the commissioners voted 3-0 to offer David Lakeman the role of executive director, with a salary up to $187,000. Meghan Dube, CCC business opera- tions manager, doesn't believe replacing or removing Hilton-Creek will lead to any meaningful improvement, given the commissioners above Hilton-Creek failed to respond adequately to the com- plaints against her. "ey knew the reporting structure was causing problems. None of the com- missioners had the integrity to stand up to her at any point. If she's fired tomor- row, okay, good. But the agency is still in the exact same spot," Dube said. ese revelations came in the wake of a drama-filled summer culminating in Treasurer Deborah Goldberg firing former commission chair O'Brien for alleged misconduct. O'Brien has fired back with legal action. Even more drama is playing out behind the scenes, according to current and former staffers, some of whom spoke to WBJ under the condition of anonymity because they fear retribution against their careers and livelihoods for speaking out. ey and other employees at the Worcester-headquartered state agency are party to intense internal conflicts, which in a public letter to legislators. "e com- mission is on the precipice of writing a new chapter." But the commission is hardly ready to turn the page. Interviews with current and former CCC staffers, along with over a hundred emails and documents provided to WBJ by these staffers and state financial records paint a picture of a toxic agency unable to effectively perform its functions, which is impeding businesses as they fight for survival in the tumultuous industry. "People in the industry are frustrated and disappointed, because [commis- sion leaders] are supposed to be professional, and this is affecting their livelihoods. People have in- vested their entire life savings into these businesses," said Laury Lucien, a Boston-based can- nabis attorney and entrepreneur. "All the energy that went into the bickering and the back and forth and arguing about who will be the interim chair could have been used to create a better industry." Employees and state records show how CCC has been hollowed out by turnover, bogged down by infighting, plagued by a fuzzy leadership structure, and unable to respond adequately to mounting personnel complaints. CCC leaders are more concerned about appearances and suppressing leaks than addressing systemic issues. Laury Lucien, can- nabis attorney and entrepreneur The Cannabis Control Commission, the state agency headquartered in Worcester's Union Station and tasked with regulating the cannabis industry, hired an outside investigator to probe numerous complaints against its leadership. PHOTOS | EDD COTE, NATHAN FISKE, CANNABIS CONTROL COMMISSION

• Cover