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California’s Humboldt County Blazes a Trail on Track and Trace

This time last year, while I was still learning the ropes as a member of the Board of Equalization, my colleague George Runner and I went to Humboldt County.

I wanted to learn about cannabis, and there isn’t a better place in the world to do that. I toured grow operations, I met with dispensary owners and patients. I had local officials walk me through the various ways their jobs have been shaped by cannabis. The most memorable image from the whole trip is still cash counters at the local 7/11.

Humboldt County, in the heart of the aptly named Emerald Triangle, is a community that has driven much of the advocacy and attitude shift on cannabis, and among California’s 58 counties, Humboldt has not only interwoven cannabis into the economy, but into the communities as well.

That trip set the stage for an incredibly productive year, as we engaged with the Legislature to pass a comprehensive set of regulations for cannabis. Now, ever since that trip to Humboldt County, and definitely throughout the debate over the medicinal cannabis regulations last year, I said that the most important part of this whole framework (other than ending the federal banking blackout) is setting up a comprehensive and effective track and trace program.

Well, Humboldt County is once again leading the way.

On March 1, 2016, the Humboldt County Board of Supervisors unanimously approved an innovative Track and Trace pilot program for cannabis products. The Humboldt County Agriculture Commissioner’s Office will work with SICPA Security LLC, which runs Track and Trace programs for cigarettes in 46 states (including California). This program will include proof-of-origin verification stamps.

One of the officials who has been a tremendous resource to me, and an amazing leader on these issues in general, is Humboldt County Supervisor Estelle Fennell. She said this about Track and Trace, and I couldn’t agree more:

We need to keep the black market cannabis out of the legal medical system. This program effectively blocks cartels and other illegal producers from passing off their product as being legal and from Humboldt. With a verification stamp, patients will know that environmental laws were followed. The County and State will know that all the taxes have been paid. Law enforcement will know that the production was legally permitted. It works with cigarettes, there is no need to re-invent the wheel.”

Another great feature of Humboldt County’s system is that it was the result of collaboration. Government officials worked directly with producers to come up with a program that worked for everyone.

The MMRSA (Medical Marijuana Regulatory Safety Act), which was signed by Governor Brown in October 2015, provided comprehensive statewide cannabis regulation. It also requires the state to implement a Track and Trace program for cannabis. However, that won’t happen until at least 2018. The Humboldt pilot program will span six months and cover the 2016 harvest season. Local participants come from all license types, from Cultivation to Dispensary.

One participant is Emerald Family Farms. Co-Founder Isaiah O’Donnell said, “We want to stand out, to go above and beyond. We’re proud to follow all the rules and be part of the pilot program. We want to pay our taxes. We want to lead the way.”

That is exactly the right attitude to have. Humboldt County is being incredibly proactive and forward thinking here, and we should all be paying close attention to what they are doing. Track and trace is great for consumer protection. Contaminated products (a danger with any ag product) can be quickly pulled from the shelves, and consumers can be quickly alerted. And black-market actors can be much more easily identified and shut down.

Beyond those public benefits, track and trace helps mature the industry. It helps drive development of brands, it helps consumers make more informed choices about freshness, quality and origin. And the fact that Humboldt County is jumping ahead of the state-imposed 2018 deadline, precisely because it is good for consumer and the industry shows why Humboldt is likely to be the epicenter of a potential post-legalization “green rush” in California.

Why am I particularly proud of the efforts that are about to launch in Humboldt County? “This amazing program never would have happened if it weren’t for Chairwoman Ma’s cannabis stakeholder meetings,” said Luke Bruner, a Humboldt cannabis community organizer who was incredibly helpful to me when I first set out to get a sense of the Cannabis Industry in Humboldt..

“Fiona invited Humboldt officials and cannabis farmers to these meetings. SICPA was at one of these meetings, and we invited them to come tour Humboldt. Their technology can help us separate the good actors from the bad actors. We’re so grateful that she brought everyone together.”

Fiona Ma, CPA is Chairwoman of the California State Board of Equalization. She served in the California State Assembly from 2006-2012 and on the San Francisco Board of Supervisors from 2002-2006.

Fiona Ma

Fiona Ma

About Fiona Ma, CPA, State Board of Equalization

Assembly Speaker pro Tempore Emeritus Fiona Ma was elected to the State Board of Equalization (SBOE) on November 5, 2014 and represents close to 10 million people in 23 counties from the Oregon border to Santa Barbara County. The 5,000 person tax agency affects every taxpayer in California and has broad regulatory and adjudicatory powers and is the only elected tax board in America.

Ms. Ma was elected to represent the 12th Assembly District from November 2006 to November 2012 (after serving the maximum three terms). She was the #112 woman to ever be elected to the California Legislature and the first Asian woman to ever serve as Speaker pro Tempore since 1850 (first Legislature). Ms. Ma first became interested in politics as a small business owner advocating on behalf of other small businesses. She was an elected delegate to the 1995 White House Conference on Small Business under President Bill Clinton and later was elected a member of the San Francisco Board of Supervisors from 2002-2006.

In the Assembly, Ms. Ma authored groundbreaking legislation to protect consumers, prevent the spread of Hepatitis B, and increase access to quality healthcare. As a joint author of Proposition 1-A (Nov 2008), she was the legislature’s leading advocate to bring high-speed trains to California. Additionally, Ms. Ma has been and continues to be a leader in promoting trade and fostering relationships between California and Asia.

Ms. Ma received her B.S. from the Rochester Institute of Technology (NY), her M.S. in Taxation from Golden Gate University (SF), and an MBA from Pepperdine University. She has been licensed in California as a Certified Public Accountant (CPA) since 1992. Fiona can be reached at [email protected].

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