The same company that tracks and traces every cigarette pack sold in 46 U.S. states is now set to conduct a pilot test to see if it can track Humboldt County’s medical marijuana.
Humboldt-Trinity counties Agricultural Commissioner Jeff Dolf told Humboldt County Board of Supervisors today that the creation of a local program would identify whether the marijuana products have been properly tested and taxed while ensuring that outside products can’t be branded with the Humboldt County name.
“I feel very strongly that this puts us in a position to maintain the leadership that we’ve already shown in the medical marijuana land use ordinance that your board worked so diligently on and passed,” Dolf said. “... We don’t have any assurances that this is the program that the state will select, but we are showing leadership in trying to develop and work on an effective track and trace model for the industry in Humboldt County.”
Later in the meeting, the board approved a joint resolution with the Eureka City Council to adopt a “housing first” strategy to addressing homelessness. The board also introduced an ordinance that would give itself three raises by January 2017, which will be set for final approval next week.
TRACK AND TRACE
With local growers now able to apply for a commercial medical marijuana cultivation, manufacturing, or distribution permit through the county as of last Friday, the board now has its eyes on how to ensure the product — and possible tax revenues — are not falling back into the black market.
The board voted unanimously at its meeting today to authorize the Agricultural Commissioner’s Office to begin working with the Switzerland-based security company SICPA Security LLC to develop a pilot project that would track and trace medical cannabis before the August harvest season.
“We have to figure out a way to effectively on-ramp them into a regulatory regime,” SICPA Business Development Director Alexander Spelman said to the board.
Spelman said the pilot project would partner two global leaders — the county being a predominant cannabis producing area and his company being a worldwide security provider.
According to Spelman, SICPA performs track and trace services in about 160 countries, tracks 109 forms of currency, tracks over 77 billion products per year including soda, beer and tobacco, and has contracted with the California Board of Equalization since 2005 to track all cigarette sales in the state, as it does in 45 other states. With Humboldt County’s marijuana cultivation industry having been established since at least the 1960s, Spelman said the area differs from other marijuana-friendly states that adopted regulations that would shape their local marijuana industry.
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Spelman said a track and trace system is fairly simple to summarize: identify where something is and where it has been. But for the medical marijuana project, Spelman said the system becomes more complex as it must balance how much burden it places on marijuana producers with the needs of government agencies to effectively monitor the product. Spelman said the program would also need to ensure that outside areas would not be able to use the Humboldt County name as a commercial branding tool.
One method the company currently uses is a proof of origin stamp like those seen on cigarette cartons. Spelman said the stamp would include several unique identifiers to prevent counterfeiting while also allowing consumers to scan a QR code with their smart phone. The code would include information such as where the product came from and laboratory test results.
As the county works to create a medical marijuana excise tax initiative for the November ballot, 5th District Supervisor Ryan Sundberg said the tracking system would also give the county assurances that it has collected its fair due of tax revenue.
“It provides for checks and balances for any kind of excise tax that we have,” he said.
The pilot project will need local cannabis growers, distributors, manufacturers and dispensaries to participate, though Dolf said these participants would be limited to those that have been shown to be in “good standing” with the county and have already applied for a county permit. How the county defines “good standing” is still under discussion.
The pilot project is proposed to begin in July and end by November, according to Spelman.
Under California’s Medical Marijuana Regulatory and Safety Act that took effect on Jan. 1, the Board of Equalization is required to develop a statewide track and trace system. The California Grower’s Association’s Humboldt Regional Chairman Nathan Whittington said the county’s program will encourage more growers to seek compliance while also setting an example for the rest of the state.
“We see that the rest of the state is looking at us to lead the state,” he said.
HOMELESSNESS
The board voted unanimously today to sign on to a joint resolution with the Eureka City Council to support a “housing first” approach to addressing homelessness. The resolution was approved unanimously by the Eureka City Council tonight and is set to go back to the board again on March 8 for final approval.
The resolution comes after a joint meeting between the city council and board in January, which addressed homeless strategies. The consulting firm Focus Strategies that was hired last year by the county and city to develop possible solutions to homelessness issues recommended the two government bodies collaborate to begin housing the homeless.
However, 2nd District Supervisor Estelle Fennell said she was still unsure whether this approach would work on a countywide scale. Fennell said she was frustrated at the fast turnaround time and was hoping the board could consult with Focus Strategies once more before making a final decision. Fourth District Supervisor Virginia Bass said that she was in support of the resolution and stated that an in-person meeting with a Focus Strategies consultant would end up costing the county about $4,000.
Eureka Community Development Director Robert Holmlund attended the meeting and emphasized the report’s recommendation to “solve” homelessness rather than manage it.
“At some point we need to own this,” he said. “... The only way to end homelessness is with housing.”
SALARY HIKE
Later in the meeting, the board heard the first reading of an ordinance that would raise the supervisors’ salaries from about $81,600 per year to $87,400 by January 2017. The move comes after the board approved similar raises to county union employees in January following several months of wage disputes.
The ordinance is set to go before the board on March 8 for final approval, according to county Human Resources Director Dan Fulks.
Will Houston can be reached at 707-441-0504.