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File #: 18-1494    Version: 2 Name:
Type: Informational Report Status: Passed
File created: 11/8/2018 In control: Agricultural Commissioner
On agenda: 12/4/2018 Final action: 12/4/2018
Title: County Track and Trace Program Update and Supplemental Budget Request (4/5 Vote Required)
Attachments: 1. Staff Report, 2. SICPA Track and Trace Contract and Exhibits A-C, 3. Public Comment, 4. Agreement

To: Board of Supervisors

From: Agricultural Commissioner

Agenda Section: Departmental

County Track and Trace Program Update and Supplemental Budget Request (4/5 Vote Required)

That the Board of Supervisors receive an update from the Agricultural Commissioner on the local track and trace program; approve a 6-month extension of the county's track and trace program contract with SICPA Security LLC; and approve the following supplemental budget for track and trace fees for the remainder of FY 2018-19 (4/5 vote required).

Revenue: 1100261-608421 $1,045,000
Expenditure: 1100261-2118 $1,045,000

Fees charged to commercial cannabis permit holders for participation in the track and trace program.

Humboldt County's track and trace program, also known as CalOrgin, which tracks the movement of cannabis through the local distribution chain, is scheduled to end on Dec. 31, 2018. When your Board approved the contract with SICPA Security LLC (SICPA) to help administer this program, staff anticipated that the state's track and trace program would be fully implemented by Jan. 1, 2019, making a local program optional. However, based on recent communications with CalCannabis, one of the state agencies responsible for regulating cannabis in California, the CalCannabis Licensing Branch will focus on issuing state temporary licenses for the remainder of 2018 and through the first months of 2019. By law, temporary license holders are not required to use the state's track and trace system, and it is unlikely that there will be significant use of the state program until May or June of 2019. If the extension is approved, staff will return with a contract to modify the agreement term.

The lack of a viable system at the state level presents a potential 6-month gap in the county's ability to track cannabis at the local level. Therefore, the Agricultural Commis...

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