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MA auditor calls out CCC leadership deficiencies šŸ“¢

NY operators sue over proximity rule mix-up šŸ§‘ā€āš–ļø

Happy Monday!

While Jeremy is away, we have some news from the Bay State, where the Massachusetts Cannabis Control Commission continues to have a leadership problem. 

Just as a reminder, we are taking the rest of the week off, starting tomorrow.

We’ll be back on the 25th. 

Jeremy is still on his honeymoon, so wish him well (but don’t bother his inbox!)

Let’s get to it. 

-JR, ZH and NM

This newsletter is 1,213 words or about an 8-minute read. 

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šŸ’”What’s the big deal?

MA REGULATORS IN THE CROSSHAIRS
State auditor’s report critiques leadership and internal struggles

Driving the news: Turmoil continues to plague the Massachusetts Cannabis Control Commission (CCC).

The state auditor’s office just released a report on August 14 detailing the commission’s struggles with leadership over the last few years.

The Massachusetts State Auditor's office alleges that the CCC played fast and loose with licensing, fees, employee disputes, and host community agreement (HCA) oversight. 

The Commission says that it has been working with the auditor’s office and is already on its way toward an administrative course correction.

What they're saying: ā€œOur audit identified a number of issues that undermine and negatively impact the Cannabis Control Commission’s mission to equitably and effectively oversee the cannabis industry in Massachusetts,ā€ said State Auditor Diana DiZoglio in a statement.

And also: ā€œOver the next six months, the Commission looks forward to its continued work with the Auditor’s team to address any outstanding recommendations and provide any updates,ā€ the CCC said in a statement the day after the release of the auditor’s report.

The audit, which covered July 1, 2022 through June 30, 2024, comes at a time when the commission has already endured three years of chaos and turnover, starting with the May 2022 resignation of Commission Chair Steve Hoffman.

The CCC mismanaged fees related to license extensions, and in some cases failed to bill licensees, according to the report. The agency failed to properly assess and collect fines. In some instances, licensees were double billed.

The commission also failed to properly review all proposed host community agreements, allowing non-compliant agreements to take effect, and the agency failed to establish a documented and transparent process for employee settlement agreements. A breakdown in leadership led to staffing turnover hindering the overall operation of the commission.

"These procedural inequities contribute to an appearance of potential impropriety, which could erode the public’s trust in the CCC,ā€ said the report.

A work in progress: The auditor recommended a series of procedural improvements for the commission, including establishing clear processes for collecting fees and fines, reviewing HCAs and settling internal disputes. The Commission has six months to implement these changes before the auditor checks back in with the agency.

At the same time, the Commission needs leadership. The CCC is going on two years without a permanent chair, while the former chair, Shannon O’Brien, remains in court challenging her firing. Last spring, Commissioner Nurys Camargo stepped down, leaving three commissioners on the five-seat panel.

Our take: Massachusetts has had a functioning cannabis market for seven years now. As that market continues to evolve and serve as an economic beacon for the region, the Bay State needs to have strong leadership at the helm. 

The agency has done a lot to replace executive leadership, but there is clearly more work that needs to be done.

-ZH

šŸ“£ Quotable

"The consequences are staggering. Petitioners’ investments, often more than a million dollars, are now at risk. Their livelihoods are being threatened. Businesses that are open and operating will be denied renewal. Those nearing completion of construction are told their locations are no longer viable. All of this stems from no fault or misconduct by Petitioners, but from the State’s failure to adhere to lawful, transparent, and consistent regulatory processes," said the 25-page lawsuit filed by New York operators impacted by the state's unexpected reinterpretation of distance rules. 

New York regulators face yet another lawsuit. This time the legal action comes from operators who found out last month that they were too close to a school, yet were approved due to the state measuring their distance from a school's front door, rather than its property line. 

The plaintiffs argue that the change reflects an illegal policy reversal, leaving almost 100 operational dispensaries unable to legally renew their license.

REVOLUTIONIZING CANNABIS OPERATIONS
UZIO launches first-of-its-kind integrated payroll, HR, and POS solution for the industry *

Today, UZIO, a leading AI-powered Payroll and HR platform, announced the first, fully integrated workforce and retail operations platform built specifically for the cannabis industry

This strategic collaboration between UZIO and TREEZ delivers a seamless, end-to-end solution that bridges front-of-house retail transactions with back-office payroll, compliance, and workforce management — helping cannabis operators scale with speed, intelligence, and simplicity. 

ā€œThis is more than just a tech partnership — it’s a new operating model for cannabis businesses,ā€ said Sanjay Singh, CEO of UZIO. ā€œBy embedding AI into payroll and HR and linking that directly with real-time POS data, we’re removing friction, reducing compliance risk, and giving operators actionable insight across their entire operation.ā€ 

Key Benefits of the Integration: 

  • Automated Payroll & Time Tracking linked directly with POS logins and shift data 

  • Real-Time Compliance Monitoring tailored to cannabis regulations 

  • Smarter Scheduling & Labor Optimization powered by AI-driven insights 

  • Streamlined Onboarding & HR Tools designed for high-turnover environments 

  • One Unified Experience for operators, managers, and employees across systems 

The integrated solution is already being piloted with select multi-location dispensaries, with general availability expected in September 2025. 

*SPONSORED

ā© Quick hits

Texas Governor calls for second special legislative session 🌿

Governor Greg Abbott announced a second special session on August 15, after the first one expired with Democratic lawmakers preventing a quorum by skipping town over plans to redistrict the state map in favor of Republicans. Among the governor's many legislative priorities, is a call to regulate hemp products without banning them. 

New Jersey to probe alleged testing lab shenanigans 🤮

The Cannabis Regulatory Commission said that it plans to investigate independent cannabis testing labs in the state after noticing that the average level of THC in New Jersey flower jumped from 24.21% in 2023 to 27.21% this year. During that same time, the total number of samples that failed for total yeast & mold has dropped from 3.7% to 1%.

🧳 People moves

Montana has a new weed czar

The state's Department of Revenue announced last week that it had selected Kristan Barbour to be the first administrator of the newly-created Cannabis and Alcohol Regulation Division of the DOR. She previously worked for the department.

šŸ”¬ Science & research

Cannabis can help reduce opiate use šŸ’Š

A study out of Australia found that patients who had been using opioids for non-cancer pain management reported a decrease in opiate use one year after they began supplementing their treatment with THC oil. Aside from a decrease in opioid consumption, the study also saw a decrease in insomnia and debilitating conditions

šŸ“° What we’re reading

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