California will issue paper licenses to cannabis distributors and dispensaries if its licensing software system is not ready by Jan. 1, 2018, the state’s pot czar told lawmakers Wednesday.
The state is currently working to deploy a new software product that will allow it to accept license applications through a Web portal beginning on Jan 1. But that deadline is fast approaching, and senators questioning Lori Ajax at her confirmation hearing sought reassurances the state has contingency plans.
“I want to walk through this and dig a little deeper so we can learn about the potential unintended consequences,” said Senate President Pro Tem Kevin de Leon, D-Los Angeles, who chaired the Senate Rules Committee hearing.
Asked what could go wrong as the go-live deadline approaches, Ajax, who heads the Bureau of Medical Cannabis Regulation, said “first and foremost” the state could face a situation where its IT system is not up and running.
“If that’s the case, we will be prepared to take paper applications,” Ajax said. “Colorado still takes paper applications. We can do that.”
“We’re working to make sure that doesn’t happen,” she added.
State CIO Amy Tong last month told a legislative panel the state had chosen a software product from Accela for its ease of use and flexibility. Both Tong and Ajax have said they expect the system to be ready.
The bureau is developing regulations that will govern the sale and distribution of recreational marijuana after voters in November legalized its use with the passage of Proposition 64. The bureau is also drafting similar regulations for medical marijuana.
Meanwhile, the Department of Food and Agriculture is drafting regulations to license the cultivation of cannabis, while the Department of Health will oversee manufacturing licenses.
In addition to issuing electronic licenses, the state is also working to set up a track-and-trace system so that regulators and law enforcement can follow a marijuana plant from a seed to the dispensary.
The Senate Rules Committee unanimously voted 4-0 to approve Ajax’s appointment to head the Bureau of Medical Cannabis Regulation, which she has led on an interim basis since Gov. Jerry Brown appointed her a year ago.
She previously served as chief deputy director of the California Department of Alcoholic Beverage Control. Her nomination has drawn the support of the cannabis industry and law enforcement, and no one spoke in opposition of her appointment.
Her confirmation now goes to the Senate for a final vote.
