State inspector general urges lawmakers to appoint overseer for Cannabis Control Commission

The state's inspector general on Tuesday urged legislative leaders to appoint a receiver to manage the embattled Cannabis Control Commission.

In a letter to state Senate President Karen Spilka, House Speaker Ron Mariano and others, Inspector General Jeffrey Shapiro called the commission overseeing the $6 billion marijuana industry "a rudderless agency without a clear indication of who is responsible for running its day-to-day operations."

Shapiro in a press release said he was asking lawmakers to take "immediate action to appoint a receiver" so the agency can "function properly." He said the commission has spent considerable time and money over two years on a consultant to draft a governance charter clarifying roles and responsibilities, to no avail.

"They are no closer to resolving these issues as I write this, therefore, immediate action must be taken to prevent the further waste and uncertainty," he said.

In a statement, a spokesperson for the commission said officials are reviewing Shapiro's letter and will "continue to cooperate" with the office of the inspector general, "as we have done throughout their investigation."

The inspector general's move comes just days after the commission voted to strip its acting executive director of her day-to-day oversight role. After the 3-to-1 vote, Commissioner Kimberly Roy, who voted "No," called the vote illegal and an abuse of power. She said she planned to take the matter to oversight agencies in the state.

The inspector general declined to confirm whether he had heard from Roy. In an interview with WBUR, he said seeking a receiver for an agency in Massachusetts may be unprecedented. However, he felt it was urgent to act before the legislative session ends July 31.

"This is a significant agency both in terms of revenue and in social responsibility," he said in the interview, citing more than $300 million in annual revenue. "We have been reviewing and monitoring for some time the idea that they were going in the wrong direction," he said, and with the days in the session dwindling, "I needed to take action."

State Sen. Michael Moore called the commission “a black eye on the legal cannabis industry in Massachusetts.” In a statement he said, “Perpetual scandal, mismanagement, and staffing issues have plagued the Cannabis Control Commission since day one.”

A spokesperson for Mariano, the House speaker, said, “The House will review the Inspector General’s letter.” A spokesperson for Spilka, the Senate president, declined to comment.

The commission has at least 20 unfilled posts, according to comments at the public meeting last week, including the executive director, director of operations, director of investigations and members of its general counsel's office.

WBUR has reported allegations of a toxic work environment at the commission. Three women allege they left after being bullied by a now-suspended communications chief, Cedric Sinclair. He so far has declined to comment.

The commission's chair, Shannon O'Brien, also is suspended. She has been attending closed-door hearings held by state Treasurer Deborah Goldberg, who is weighing whether to fire O'Brien after allegations she made insensitive racial remarks and mistreated an employee.

O'Brien has denied any wrongdoing. In a statement Tuesday, her spokesman, Joe Baerlein, said O'Brien is "pleased the IG is alerting the public for the necessary reforms to the CCC." He said the letter "validates everything Shannon O’Brien saw as major challenges in fixing a dysfunctional agency and where she met resistance every step of the way.”

The inspector general's letter raised broad questions about the structure of the nearly seven-year-old agency. He said the statute is ambiguous when it comes to how the five-member commission — or board — operates, versus the staff of some 130 people that's meant to be overseen by a executive director.

Shapiro noted that last fall, after Goldberg suspended the chair, O'Brien, there was division on the five-member commission over who should be acting chair. Under the statute, the governor, treasurer and attorney general each appoint one of the five commissioners; the other two are supposed to be named by a majority vote of the appointing authorities.

"In sum, I believe the CCC needs immediate clear direction with an accountable hierarchy," Shapiro wrote. "In its present state, the CCC lacks such direction."

This is a developing story and will be updated.