FOR IMMEDIATE RELEASE
September 4, 2024
Contact: Kevin Gilnack, Policy Co-Chair, Equitable Opportunities Now
kevin@masseon.com | 860.918.6197
Black Economic Council of Mass., Equitable Opportunities Now, cannabis social equity business owners urge investigation into alleged license cap violations
BOSTON — 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.
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 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.
A 2021 civil complaint in St. Fleur, Marie et al vs. Kurtin, Abner et al (21-84CV02475) 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.”
To support the CCC’s review and ongoing enforcement, cannabis equity leaders are 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.” The group also emphasizes 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.”
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.
[See the full letter below for additional information.]
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Equitable Opportunities Now (EON)’s mission is to ensure equitable ownership and employment opportunities for Black and Brown communities who have been targeted by the War on Drugs. We are seeking general support funding for our constituent-led statewide legislative and regulatory advocacy campaigns to create equitable economic opportunities in MA’s cannabis industry. Learn more at www.masseon.com
Massachusetts Cannabis Equity Council Letter Requesting Investigation into Alleged Ownership Cap Violations
———- Forwarded message ———
From: Kevin Gilnack
Date: Wed, Sep 4, 2024 at 2:16 PM
Subject: BECMA, EON, & social equity business leaders request urgent review for potential ownership cap violations, anonymous tip line
To: Speaker Ron Mariano, Senate President Karen Spilka, Rep. Dan Donahue, Sen. Adam Gomez, Acting Chair Kim Roy, Commissioner Nurys Z. Camargo, Commissioner Bruce Stebbins
Cc: Rep. Rob Consalvo, Sen. Robyn Kennedy, Rep. Aaron Saunders, Rep. Colleen Garry, Rep. Priscila Sousa, Rep. Dawne Shand, Rep. Peter Capano, Rep. Vanna Howard, Rep. Manny Cruz, Rep. Donald Bertiaume, Rep. Michael Soter, Sen. Jamie Eldridge, Sen. Susan Moran, Sen. Peter Durant, Sen. Jason Lewis, Acting Executive Director Debbie Dilton Creek, Director of Government Affairs Matt Giancola, Acting Chair Ava Concepcion, Chair Shannon O’Brien, Devin Alexander, Sean Berte, Ross Bradshaw, Kobie Evans, Christopher Fevry, Kevin Hart, Nike John, Brian Keith, Drudys Ledbetter, Shanel Lindsay, Kim Napoli, Leslie Pascual-Esposito, Jeff Similien, Tristan Thomas, Armani White
Dear Senate President Spilka, Speaker Mariano, Chair Gomez, Chair Donahue, Acting Chair Roy, and Commissioners Camargo and Stebbins:
Thank you for your ongoing commitment to advancing and safeguarding the Legislature’s mandate that the Cannabis Control Commission “promote and encourage full participation in the regulated marijuana industry by people from communities that have previously been disproportionately harmed by marijuana prohibition and enforcement and to positively impact those communities” (M.G.L. c.94G, § 4(iv)).
We deeply appreciate the House’s rejection of Amendment 10 to the Economic Development bill (H.4789), which would have compromised that mandate by enabling the largest, most profitable companies to dominate more of the market at the expense of cannabis social equity businesses. We also commend every Senator for not filing a similar amendment.
As you may be aware, the Massachusetts Cannabis Equity Council is an advisory committee to Equitable Opportunities Now of Economic Empowerment and Social Equity Program business leaders that came together to oppose changes to the Commonwealth’s license caps and changes to “ownership definitions, and more than 40 cannabis community leaders have signed a petition urging this misguided proposal be rejected.
Ascend Wellness and other large operators and influential figures are leading the effort to change the license cap. Given the considerable lobbying efforts by Ascend and other multistate and politically connected operators, we are deeply troubled by reports from local cannabis blogger Grant Smith Ellis. He alleges that “Abner Kurtin, an owner of Ascend Wellness, allegedly owns/controls between 6-9 licenses in the state of Massachusetts,” a potential violation of the Commonwealth’s license cap.
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.
Furthermore, given that allegations of Ascend violating the state’s license cap date back to at least 2021, it is very concerning that the CCC has not already investigated and publicly reported the results. According to the Oct. 29, 2021 complaint filed in St. Fleur, Marie et al vs. Kurtin, Abner et al (21-84CV02475) “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.” If an investigation into the reported 2021 allegations was conducted, we urge staff and Commissioners to address the results of the investigation at a public meeting.
We further urge the Legislature to ensure the Commission has the necessary resources and clear mandates to uphold compliance with your laws preventing market consolidation.
While the allegations against Mr. Kurtin are the most high-profile and publicly reported potential violations of the license cap, it is widely known within the industry that some owners are using family members and others as straw purchasers, exercising control not reflected in CCC documents, and otherwise violating ownership limits to exercise excessive influence over this fragile emerging market.
The CCC must demonstrate its commitment to market integrity by strictly enforcing the Commonwealth’s ownership limits. This should begin with a thorough investigation into the ownership structure of Ascend Wellness and its affiliations with other operators. Additionally, we urge the CCC to conduct a comprehensive review of all license holders to ensure no violations of ownership limits by using relatives or associates.
The CCC should also immediately establish an anonymous tip line and online form for reporting potential violations of ownership limits and efforts to evade them, and 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.
Should the CCC need additional staff or external expertise to complete this investigation and review, we strongly urge the Legislature to allocate the necessary resources for the Cannabis Control Commission to ensure compliance with the Commonwealth’s laws – beginning with Ascend Wellness.
Thank you again for all of your work to advance a more equitable cannabis industry in Massachusetts and for your attention to this matter. The Legislature has set – and the CCC is working hard to support – an ambitious vision for equitable economic opportunity, and we look forward to working together toward that vision.
Should you have any questions or wish to discuss this matter further, please contact Equitable Opportunities Now Policy Co-Chairs Armani White (armani@masseon.com) and Kevin Gilnack (kevin@masseon.com).
Thank you,
- Devin Alexander, Rolling Releaf
- Sean Berte, Firehouse (Boston)
- Ross Bradshaw, New Dia (Boston)
- Kobie Evans, Pure Oasis (Boston)
- Christopher Fevry, Dris Brands (Boston)
- Kevin Gilnack, Equitable Opportunities Now (Lowell)
- Kevin Hart, Pure Oasis (Boston)
- Nike John, The Heritage Club (Boston)
- Brian Keith, Rooted In, Newbury St (Boston)
- Drudys Ledbetter, Zèb Boutique (Boston)
- Shanel Lindsay, Equitable Opportunities Now
- Kim Napoli, Underground Legacy Club (Boston)
- Leslie Pascual-Esposito, Zèb Boutique (Boston)
- Jeff Similien, LowKey (Boston)
- Tristan Thomas, Black Economic Council of Massachusetts (Boston)
- Armani White, Firehouse (Boston)