Talking Joints Memo
In Massachusetts, state officials tend to ignore troubling developments unless individuals or groups they fear make a commotion.
With that understanding, per a media release sent out on Wednesday, “a coalition of social equity cannabis business leaders and advocates, including the Black Economic Council of Massachusetts (BECMA) and Equitable Opportunities Now (EON), is urging the Cannabis Control Commission (CCC) and the Massachusetts Legislature to take immediate action to protect equity in the state’s cannabis industry.”
According to the coalition, the “call for action follows claims by local cannabis blogger Grant Smith Ellis that Ascend Wellness Owner Abner Kurtin ‘owns/controls between 6-9 licenses in the state,’ which could violate the state’s ownership cap of three adult use and three medical dispensaries.”
Ascend did not immediately respond to a request for comment from Talking Joints Memo.
Mass EON continued …
More than a dozen cultivation, manufacturing, and dispensary owners, along with BECMA and EON, are raising concerns about repeated reports that owners of Ascend Wellness — a large, multistate operator founded and headquartered in Massachusetts — have violated the Commonwealth’s ownership limits.
According to the group, Ascend Wellness has been a leading force in the lobbying effort to weaken Massachusetts’ ownership caps and definitions. Ascend has paid The Novus Group at least $30,000 for lobbying so far this year, according to records from the Secretary of the Commonwealth.
In a letter to legislative leaders and the CCC, members of the Massachusetts Cannabis Equity Council write: “Considering that one of the leading voices in favor of lifting the license cap is allegedly in violation of these very limits, we urge the Cannabis Control Commission (CCC) to immediately initiate an investigation and full review of all license ownerships to ensure strict compliance with the CCC’s regulations and the Commonwealth’s anti-monopoly, pro-competition, and pro-equity policies – starting with Ascend Wellness. This review should prioritize practices for providing greater transparency in license ownership.”
The coalition also noted a “2021 civil complaint in St. Fleur, Marie et al vs. Kurtin, Abner et al” which “similarly alleged that ‘Kurtin and [Gregory] Thomaier hold equity positions in, manage, have authority over, or direct entities… that invested in, lent money to, or attempted to develop more than three (3) retail cannabis dispensaries or cannabis cultivation facilities in Massachusetts.’”
Among the group’s calls for specific reforms, the coalition is “urging the CCC to immediately establish an anonymous tip line and online form for reporting potential violations of ownership limits and efforts to evade them.” All while emphasizing that “the CCC, Legislature, and other state agencies should ensure that workers, investors, and anyone else with information about potential violations of ownership limits are aware of their rights and potential whistleblower protections.”
The media release added:
Advocates urge Senate President Karen Spilka, House Speaker Ron Mariano and Cannabis Policy Committee Chairs Rep. Dan Donahue and Sen. Adam Gomez to “ensure the Commission has the necessary resources and clear mandates to uphold compliance with your laws preventing market consolidation.”
EON, BECMA, and MCEC led successful efforts to block a House economic development amendment that would have loosened ownership limits, and praised leaders in both chambers for rejecting any similar efforts this session.
However, Ascend and other multistate, politically connected operators will have until January 2025 to find legislators willing to support this anti-competitive measure in the next two-year legislative session.
Source:
Black Economic Council, Social Equity Owners Call For License Cap Investigation
