This is part of a regular series of MJBizDaily interviews with major THC industry players. To be considered for an interview, contact editorial@mjbizdaily.com.
Shannon O’Brien wants Massachusetts to be the cannabis industry’s research hub.
To do that, the chair of the Massachusetts Cannabis Control Commission (CCC) needs to convince an operator to obtain a research license – possibly by changing the rules.
“We have a research license that you can apply for in Massachusetts, except no one has it,” O’Brien told MJBizDaily.
Under current regulations, a research lab must strike an agreement with a local government. And researchers must disclose the specifics of their research.
“It’s almost like we want you to do the research, we want you to pay for it, but under our license scheme, you can’t keep the IP,” she said.
For now, Julie Johnson, the CCC’s chief of research, is working with Massachusetts General Hospital on studies on the impact of high-potency THC on developing brains, O’Brien said.
Johnson could be eligible for up to $500,000 in grants from the National Institutes of Health, O’Brien said.
The research conundrum is just one of the wrinkles in Massachusetts cannabis regulations that O’Brien wants to solve.
Cutting the red tape in cannabis regulation
O’Brien, a former state treasurer, returned to lead the CCC as chairperson in September after a judge found no evidence to support her firing by Treasurer Deborah Goldberg a year earlier.
She’s working on cutting the red tape that’s been plaguing an industry that has been over-regulated from the beginning.
State law requires cannabis licensees to take a responsible vendor training course, a certification program that covers local regulations, how to check identification and prevention of sales to minors.
While that makes sense for retailers, cultivators have little use for the training.
“How many times in four hours can you tell a cultivator, ‘Don’t sell weed to minors?’” O’Brien said. “It’s a significant expense. It’s a significant amount of time. So, we’re looking at how do we amend that requirement, so we promote responsible compliance with the law, but we’re not wasting time and money.”
The CCC is also looking into switching annual license renewals to biennially. Licensees still would pay the annual license fee, but they would only have to complete the paperwork, saving them the cost of hiring an attorney to help.
“We’re trying to figure out how we can streamline the costs and overhead for businesses,” O’Brien said.
Cracking down on THC potency inflation
O’Brien also addressed concerns about THC potency inflation, an issue that has sparked lawsuits and accusations in Massachusetts.
It’s a problem that the CCC is working to address through stricter testing protocols and increased transparency for consumers, including putting certificates of analysis on cannabis packaging, she said.
The key is to hold the testing labs accountable. To do that, the testing protocols must be evaluated.
“You have different ways that you test for THC … different equipment these labs have purchased to do their business,” O’Brien said.
“We may have to say this should be standardized.”
The consequences of losing a regulated cannabis market
While O’Brien isn’t taking a position on the proposed ballot initiative that would end Massachusetts’ $1.65 billion adult-use cannabis market, she’s keeping a close eye on the campaign as supporters continue to gather signatures to get the measure before voters in November.
“We’re not getting rid of cannabis,” she said. “We’re getting rid of regulated cannabis and the $300 million that comes with it.”
“It’s up to the voters. Polling shows people support” the regulated industry,” she added. “They haven’t seen the doom and gloom predicted when it first passed in 2016.”
Subscribe to the MJBiz Factbook
Exclusive industry data and analysis to help you make informed business decisions and avoid costly missteps. All the facts, none of the hype.
What you will get:
- Monthly and quarterly updates, with new data & insights
- Financial forecasts + capital investment trends
- State-by-state guide to regulations, taxes & market opportunities
- Annual survey of cannabis businesses
- Consumer insights
- And more!
If Petition 1E passes, it could have a significant impact on public health programs across the country, O’Brien said.
“The people opposed to cannabis have some valid concerns about how the product is being used,” she said. “That’s why we need to do better research so we can look at the best cannabis has to offer.”
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
