CANNABIS IN THE COMMONWEALTH, INDUSTRY DEVELOPMENTS, STATE REGULATIONS AND EQUITY INITIATIVES THAT ARE SHAPING THE LANDSCAPE. GOOD MORNING TO YOU. I’M JESSICA BROWN. THE CANNABIS INDUSTRY IS CONSTANTLY EVOLVING HERE IN MASSACHUSETTS. THE CANNABIS CONTROL COMMISSION RECENTLY FINALIZED RULES THAT LEGALIZE SOCIAL CONSUMPTION. AND LAST MONTH, PRESIDENT TRUMP SIGNED AN EXECUTIVE ORDER RECLASSIFYING MARIJUANA AS A LESS DANGEROUS DRUG. BUT AS THE INDUSTRY MOVES FORWARD, NOT EVERYONE IS ON BOARD. THIS YEAR, THERE IS A POTENTIAL BALLOT MEASURE THAT COULD REPEAL RECREATIONAL CANNABIS LEGALIZATION IN MASSACHUSETTS. JOINING US NOW TO DISCUSS ALL OF THIS IS SHANNON O’BRIEN, CHAIR OF THE MASSACHUSETTS CANNABIS CONTROL COMMISSION. THANK YOU SO MUCH FOR JOINING US. HELLO. YOU KNOW, IT’S A NEW YEAR. LET’S START WITH WHAT’S NEW IN 2026. NEW SOCIAL CONSUMPTION LAWS PAVING THE WAY FOR CANNABIS CAFES, LOUNGES, BUSINESSES WILL EVENTUALLY BE ABLE TO APPLY FOR THREE KINDS OF LICENSES. WANT TO TALK ABOUT THOSE HERE? WE HAVE SUPPLEMENTAL FOR A CONSUMPTION SPACE ATTACHED TO AN EXISTING MARIJUANA ESTABLISHMENT. HOSPITALITY FOR PLACES LIKE A YOGA STUDIO, LOUNGE, COMEDY CLUB OR THEATER, AND EVENT ORGANIZER FOR HOSTING CONSUMPTION EVENTS, CITIES AND TOWNS MUST ALSO OPT IN TO ALLOW ANY SOCIAL CONSUMPTION. CURIOUS HOW YOU THINK THIS WILL CHANGE THE CANNABIS LANDSCAPE IN THE STATE? WELL, WE. THIS IS STILL UNTESTED TERRITORY. AND FIRST OF ALL, THANK YOU FOR HAVING ME AND HAPPY NEW YEAR TO EVERYBODY. IT’S STILL EARLY ENOUGH TO SAY THAT. SO ONE OF THE THINGS THIS IS GOING TO DO IS PROVIDE US AN OPPORTUNITY TO ONCE AGAIN GIVE OPPORTUNITY TO WHAT WE CALL SOCIAL EQUITY APPLICANTS. WHEN THE VOTERS IN MASSACHUSETTS INITIALLY MADE RECREATIONAL CANNABIS LEGAL BACK IN 2016, AND THEN THE LEGISLATURE MADE CHANGES TO THE LAW, AND THEN THE COMMISSION WAS ESTABLISHED IN 2018. ONE OF THE MAIN CHARGES WAS, WE NEED TO LOOK AT PEOPLE WHO ARE DISPROPORTIONATELY IMPACTED BY THE WAR ON DRUGS. AND SO THIS IS ONE MORE LICENSE TYPE OR GROUP OF LICENSES THAT WILL BE EXCLUSIVELY AVAILABLE TO THOSE PEOPLE WHO ARE HAVE BEEN DISPROPORTIONATELY IMPACTED BY THE WAR ON DRUGS, EITHER PERSONALLY, ONE OF THEIR FAMILY MEMBERS, OR THEY LIVE IN GEOGRAPHIC LOCATIONS THAT HAVE BEEN DISPROPORTIONATELY IMPACTED. OKAY, YOU TALKED ABOUT WHO CAN GET THESE PERMITS. I WANT TO TALK TO YOU ALSO ABOUT THE SAFETY REGULATIONS THAT ARE IN PLACE FOR THESE SO-CALLED CANNABIS CAFES, LOUNGES THAT COULD BE COMING OUR WAY SOON. WELL, YOU KNOW, WE CERTAINLY THE MOST IMPORTANT THING WE MADE SURE IS THAT THIS IS A LOCAL OPTION AND COMMUNITIES HAVE TO OPT IN. AND A LOT OF THE THINGS THAT WE PUT IN PLACE WERE MAKING SURE THAT WHEN PEOPLE DO COME IN, THEY ARE KEPT SAFE AND HEALTHY. WE HAD SIGNIFICANTLY STRINGENT REQUIREMENTS ABOUT VENTILATION. IF THERE’S INDOOR SMOKING, WE ALSO PUT IN PLACE REGULATIONS THAT SAY THERE IS A LOT OF WORK TO BE DONE WITH LOCAL OFFICIALS, WITH THE LOCAL PUBLIC HEALTH DEPARTMENTS, WITH THE LOCAL POLICE, TO MAKE SURE THAT WE MINIMIZE NEGATIVE IMPACTS ON THE LOCAL COMMUNITIES THAT DO ACCEPT THESE WITHIN THEIR BORDERS. OKAY. YOU KNOW, WE TALKED A LITTLE BIT BRIEFLY ABOUT EQUITY HERE. I KNOW THAT MASSACHUSETTS HAS SEVERAL EQUITY INITIATIVES TO GIVE PEOPLE THE OPPORTUNITY TO PARTICIPATE IN THIS INDUSTRY, WHICH, YOU KNOW, WAS PREVIOUSLY CRIMINALIZED. LET’S TALK ABOUT SOME OF THOSE EQUITY PROGRAMS. WHAT’S OUT THERE RIGHT NOW? I KNOW THERE’S A COUPLE. WELL, CERTAINLY, I MEAN, OBVIOUSLY WE RUN PROGRAMS. WE’VE HAD OVER A THOUSAND PEOPLE RUN THROUGH OUR PROGRAMS, AND THOSE ARE THE SOCIAL EQUITY APPLICANTS. AND IF YOU APPLY AND OUR JOB IS TO REDUCE BARRIERS TO ENTRY INTO THE CANNABIS INDUSTRY, BUT ALSO MAYBE SOME PEOPLE DON’T WANT TO ACTUALLY WORK DIRECTLY IN THE CANNABIS INDUSTRY. SO WE ACTUALLY HAVE A CANNABIS EMPLOYMENT BOARD WHERE YOU CAN ACTUALLY COME AND YOU CAN FIND JOBS EITHER WITHIN THE INDUSTRY OR ADJACENT TO THE INDUSTRY. IT’S ALSO WHEN YOU ARE A SOCIAL EQUITY APPLICANT, YOU HAVE REDUCED FEES. YOU ARE PUT TO THE FRONT OF THE LINE. SO WE TRY TO MAKE THAT AS SEAMLESS AS WE CAN TO REMOVE THOSE BARRIERS. FOR THOSE SOCIAL EQUITY APPLICANTS. I WAS JUST ABOUT TO ASK YOU ABOUT THOSE BARRIERS THAT WE’RE HEARING ABOUT. ARE YOU SEEING SUCCESS STORIES FROM THESE PROGRAMS? WELL, I DON’T I WOULDN’T SAY THAT OUR SOCIAL EQUITY PROGRAM HAS BEEN A SUCCESS. WE’VE CERTAINLY SERVED OVER A THOUSAND PEOPLE, AND THEY’VE HAD THE TRAINING. AND THAT TRAINING CERTAINLY CAN BE LIFE CHANGING. YOU KNOW, IF IT HELPS YOU EITHER IN CANNABIS OR OUTSIDE OF IT. BUT IN TERMS OF THE LICENSES, WE HAVEN’T REALLY LICENSED AS MANY PERSONS IN THE INDUSTRY AS WE’D LIKE. AND THAT’S ONE OF THE REASONS WHY, WHEN CHAPTER 180 WAS PASSED BACK IN THE SUMMER OF 2022, BEFORE I ARRIVED AS CHAIR OF THE COMMISSION, ONE OF THE THINGS THEY ESTABLISHED WAS A CANNABIS FUND THAT PROVIDES FUNDS FOR PERSONS WITHIN SOCIAL EQUITY. BECAUSE RAISING CAPITAL, YOU KNOW, THIS IS ILLEGAL ON THE FEDERAL LEVEL. YOU KNOW, IF YOU’RE A GREAT BAKER, YOU CAN GO TO A BANK AND START A BUSINESS, AND YOU GIVE THEM A BUSINESS PLAN AND YOU CAN GET MONEY FROM A BANK, IT IS VERY, VERY DIFFICULT TO GET CAPITAL. SO A LOT OF MONEY HAS TO COME FROM FRIENDS AND FAMILY OR FROM PRIVATE INVESTMENTS. AND SO ALLOWING THOSE SOCIAL EQUITY APPLICANTS TO HAVE ACCESS TO CAPITAL THAT IS EITHER CHEAP OR, YOU KNOW, NO INTEREST, THAT IS A WONDERFUL THING THAT ALLOWS THEM TO HAVE THE RESOURCES TO GET INTO BUSINESS. OKAY. AND YOU’RE HOPING THAT THAT WILL BE SOMETHING THAT WILL. WELL, THE FUND HAS BEEN IN EXISTENCE. IT’S BEEN GOING THEY’VE BEEN GIVING OUT GRANTS FOR APPROXIMATELY A LITTLE OVER A YEAR. BUT BUT I THINK AT THE COMMISSION, WHAT WE HAVE TO DO IS BETTER COORDINATE WITH THE FUND WHEN WE HAVE THE TRAINING AT THE COMMISSION, THEN THERE IS THE FUND THAT IS RUN UNDER THE GOVERNOR’S OFFICE. I’M LOOKING FOR WAYS THAT WE CAN BETTER COORDINATE, BUT ALSO WHAT ARE WAYS THAT WE CAN HELP PEOPLE WHO MAY NOT WANT TO ACTUALLY BE IN THE INDUSTRY BUT SHOULD BE BENEFITING. AND THAT’S THE WHOLE POINT. IT’S HOW DO WE BRING THE BENEFITS OF THIS? YOU KNOW, $1.5 BILLION A YEAR INDUSTRY TO PEOPLE WHO ARE DISPROPORTIONATELY IMPACTED BY THE WAR ON DRUGS? ABSOLUTELY. WANT TO WANT TO BRING UP THE AUDIT, RIGHT. A TWO YEAR AUDIT OF THE COMMISSION. IT WAS RELEASED LAST SUMMER. IT FOUND MISMANAGEMENT OF FEES FOR LICENSES, PROCEDURAL INEQUITY, NON COMPLIANCE WITH STATE REGULATIONS, MORE AS WELL. WERE ANY CHANGES IMPLEMENTED SINCE THEN? OH YES. THERE ARE A NUMBER AND THIS HAS BEEN FRONT AND CENTER. OBVIOUSLY YOU KNOW NO SECRET. YOU KNOW I WAS ILLEGALLY SUSPENDED AND FIRED FROM MY JOB. I CAME BACK AFTER A COURT CASE. AND SO I’VE HIT THE GROUND RUNNING. IT’S TRANSPARENCY. IT’S HOW DO WE HOLD OURSELVES ACCOUNTABLE? YOU KNOW, WE SAW THAT THERE’S DISPARATE TREATMENT AMONG LICENSEES. THE AUDITOR BASICALLY SAID THERE WAS FAVORITISM IN TERMS OF HOW SOME OF OUR FOLKS, YOU KNOW, DEALT WITH LICENSEES. I’M LOOKING AT THAT VERY CLEARLY. I’M ANALYZING THAT. I’M ACTUALLY DOING AN INTERNAL INVESTIGATION TO MAKE SURE THAT WE TREAT ALL LICENSEES FAIRLY. ONE OF THE OTHER THINGS IS COMMISSIONER ROY WAS THE ONE WHO HELPED TACKLE THIS. AS OUR TREASURER, WE’RE LOOKING TO MAKE SURE THAT WE TRACK IN UP TO BETWEEN ANYWHERE FROM HALF 1 MILLION TO $2 MILLION IN FEES. WE’RE NOT COLLECTED. WE’RE MAKING SURE THAT WE DO THAT BECAUSE THIS IS THESE ARE PUBLIC RESOURCES. AND SO TRANSPARENCY AND ACCOUNTABILITY AND MAKING SURE THAT WE FOLLOW THE LAW. THAT IS WHAT I HAVE REALLY BEEN FOCUSED ON. IT WAS WHAT I WAS TRYING TO DO BEFORE I WAS SUSPENDED. IT’S WHAT I’M DOING LIKE GANGBUSTERS NOW THAT I’M BACK. YOU’VE BEEN BACK FOR JUST A FEW FOUR MONTHS NOW? YES, YES. SINCE SEPTEMBER. OKAY. I KNOW THERE’S ALSO A POTENTIAL BALLOT MEASURE THIS YEAR THAT WOULD REPEAL RECREATIONAL MASSACHUSETTS. WHAT WOULD BE THE ECONOMIC IMPACT OF REPEALING THE LAW? WELL, I WANT TO BE A LITTLE BIT CAREFUL BECAUSE AS A REGULATOR, I’M NOT REALLY TAKING A POSITION ON THE LEGISLATION. I MEAN, OBVIOUSLY THAT’S GOING TO BE UP TO THE VOTERS OF MASSACHUSETTS. HOWEVER, FROM MY PERSPECTIVE, I BELIEVE THAT SAFE, REGULATED AND TESTED PRODUCTS IN A LEGALLY REGULATED INDUSTRY ARE BETTER THAN WHAT WE HAD BEFORE. AND THAT’S ALSO ANOTHER THING, IF I CAN SEGUE INTO THAT, ONE OF THE FOCUSES FOR THIS YEAR IS MAKING SURE THAT WE IMPROVE OUR TESTING. WE NEED TO SEE TO CONSUMERS WHAT YOU’RE BUYING. IF YOU’RE BUYING IT FROM THE LEGAL MARKET, IT’S TESTED. IT DOESN’T HAVE CONTAMINANTS, IT DOESN’T HAVE MOLD. THAT WHEN YOU’RE LOOKING AT WHAT THE THC POTENCY IS, THAT YOU KNOW THAT YOU’RE PAYING FOR WHAT YOU GET. YOU’RE GETTING WHAT YOU PAY FOR. SO WE’RE LOOKING AT ONE. WE’RE CREATING A SECRET SHOPPER PROGRAM TO TEST THINGS OFF THE SHELF, TO MAKE SURE THAT THINGS ARE BEING PROPERLY LABELED. BUT TWO, IT’S MAKING SURE THAT WHEN WE HAVE THIS REGULATED INDUSTRY, WE’RE DOING EVERYTHING WE CAN TO PROMOTE PUBLIC HEALTH AND SAFETY. SO I WON’T OPINE ON THE LEGISLATION, BUT MY JOB IS TO MAKE SURE THAT THE LEGAL INDUSTRY IS AS SAFE, HEALTHY AND CONSUMER FRIENDLY AS POSSIBLE. AND YOU MENTIONED THC POTENCY, BECAUSE WE HAVE TO MENTION THIS FIVE INVESTIGATES HAS REPORTED EXTENSIVELY ABOUT THE IMPACT OF HIGH THC CANNABIS ON THE DEVELOPING BRAINS OF YOUNG PEOPLE. RIGHT. SO SOME ARE EXPERIENCING SEVERE PROBLEMS. WE’VE REPORTED CANNABIS INDUCED PSYCHOSIS, BUT THE STATE HASN’T FUNDED THE COMMISSION’S PUBLIC AWARENESS CAMPAIGN SINCE 2020. ARE YOU OKAY WITH THAT? AND IF NOT, WHAT ARE YOU DOING TO ADDRESS IT? WELL, RIGHT NOW, I MEAN, OBVIOUSLY COMING BACK, ONE OF THE THINGS THAT WE’RE DOING IS WE NEED TO MAKE THE CASE TO THE LEGISLATURE. THE COMMISSION NEEDS TO TAKE A LOOK AND HONEST LOOK AT WHAT THE AUDITOR EXPOSED. WE NEED TO SAY TO THE COMMISSION WE’RE MAKING CONCRETE CHANGES. WE’RE MAKING IMPROVEMENTS INTERNALLY. BUT THIS WILL BE ALSO VERY IMPORTANT THAT WE HAVE THIS PUBLIC EDUCATION FUND, WHICH HASN’T BEEN FUNDED, ESPECIALLY AS WE ROLL OUT SOCIAL CONSUMPTION. SO THERE’S GOING TO BE A LOT OF WORK THAT WE HAVE TO DO. AND I THINK THAT WE CAN MAKE A COGENT ARGUMENT, BUT IT REALLY IS UP TO ME, AS CHAIR OF THE COMMISSION, WORKING WITH MY FELLOW COMMISSIONERS, WORKING WITH OUR EXECUTIVE DIRECTOR, TO SAY TO THE LEGISLATURE, ALL OF THESE THINGS THAT YOU SAW IN THE AUDIT, WE’RE ADDRESSING THEM. WE’RE TRYING TO MAKE OUR STAFF MORE OUR AGENCY MORE ACCOUNTABLE. WE’RE TRYING TO MAKE SURE THAT WE’RE PROTECTING CONSUMERS. AND SO BUT WE NEED YOUR HELP. AND THAT’S I’M HOPING THAT WE CAN DEVELOP A BETTER PARTNERSHIP WITH THE LEGISLATURE TO MAKE THESE ARGUMENTS ABOUT WHY THESE THINGS SHOULD BE FUNDED, BECAUSE IT WILL HELP US PROMOTE PUBLIC HEALTH AND SAFETY. SHANNON O’BRIEN, THANK YOU SO MUCH FOR JOINING US. THE MASSACHUSETTS, THE CHAIR OF THE MASSACHUSETTS CANNABIS CONTROL COMMISSION. WE APPRECIATE YOU BEING HERE. THANK YOU. YOU KNOW, GROWING A BUSINESS IN A CHANGING CLIMATE. WE ARE SITTING DOWN WITH THE CEO OF A BOSTON DISPENSARY TO LEARN ABOUT THE INDUSTRY FROM HIS