BILL NUMBER: AB 388	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 5, 2001
	AMENDED IN ASSEMBLY  MAY 31, 2001
	AMENDED IN ASSEMBLY  APRIL 30, 2001
	AMENDED IN ASSEMBLY  APRIL 16, 2001

INTRODUCED BY   Assembly Member Strom-Martin

                        FEBRUARY 20, 2001

    An act to amend Section 8670.40 of, and to add Section
8670.41 to, the Government Code, relating to oil spills, and making
an appropriation therefor.   An act to add and repeal
Division 27 (commencing with Section 81200) of the Food and
Agricultural Code, relating to industrial hemp. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 388, as amended, Strom-Martin.   Oil spill response
  Industrial hemp: regulation:  registration  .

   (1) Existing law contained in the Food and Agricultural Code does
not authorize the commercial use of industrial hemp in this state.
The Food and Agricultural Code provides that a violation of any of
its provisions is, in general, a misdemeanor.
   This bill would authorize the growing of experimental or
demonstration plots of industrial hemp for noninjurious commercial
uses by persons who apply for registration with the Secretary of Food
and Agriculture, as specified.  A person registered to grow
industrial hemp would be required to make an annual report to the
secretary, as specified.  A person who grows industrial hemp in
violation of the bill would be guilty of a misdemeanor.  By creating
a new crime, this bill would impose a state-mandated local program on
local governments.
   The bill would require the secretary to report to the Legislature
on the development of industrial hemp as an agricultural crop in the
state, as specified.  The bill would provide that its provisions
shall remain in effect only until July 1, 2005, and as of that date
is repealed.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.   
   The Oil Spill Prevention and Administration Fund is created by
existing law and is available for appropriation by the Legislature
for specified purposes, including to implement, install, and maintain
emergency programs, equipment, and facilities to respond to,
contain, and clean up oil spills and to ensure that those operations
will be carried out as intended.
   This bill would continuously appropriate $125,000 from the fund
annually for expenditure without regard to fiscal years to the Office
of Oil Spill Prevention and Response to develop and conduct training
of specified staff and other personnel to respond to toxic spills
requiring the rescue of wildlife. The bill also would appropriate to
the office, from the fund, which the office would be required to
allocate to a specified nonprofit entity, for research into the
effect of toxic substances on marine mammals, an amount that the
office determines equals 10% of the 2001 budget for that entity's
veterinary and research sciences, but  not more than $135,000 and
would provide that these funds supplant the funds budgeted by the
center.
   The bill would also include those uses in the authorized uses of
the fund. 
   Vote:  majority.  Appropriation:   yes   no
 .  Fiscal committee:  yes. State-mandated local program:
 no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  SECTION 1.  Section 8670.40 of the Government Code is 

  SECTION 1.  Division 27 (commencing with Section 81200) is added to
the Food and Agricultural Code, to read:

      DIVISION 27.  INDUSTRIAL HEMP

   81200.  (a) The Legislature hereby finds and declares the
following:
   (1) The development and use of industrial hemp would be in the
best interests of the state economy and agriculture.
   (2) The production of industrial hemp can be regulated so as not
to interfere with the strict control of controlled substances.
   (b) It is the intent of the Legislature in enacting this division
to promote the economy, agriculture, public safety, health, and
welfare of the State of California by permitting the development of
an industrial hemp industry while maintaining strict control over the
production and use of marijuana.
   81202.  For the purposes of this division, the following terms
have the following meanings:
   (a) "Commercial uses" means noninjurious adaptations of industrial
hemp to the manufacture of ethanol, rope, sacks, and other sisal
hemp products; batts, yarn, paper, composite materials, thread,
cordage, merchandise, cloth, and other noninjurious products made
from fiber; sterilized seed, inner hurds, or other plant material of
industrial hemp.
   (b) "Industrial hemp" means C. sativa L.
   (c) "Secretary" means the Secretary of Food and Agriculture.
   81204.  (a) The growing and maintenance of experimental and
demonstration plots of industrial hemp by persons registered under
Section 81206 is authorized in this state.
   (b) The experimental and demonstration plots shall be used to
develop optimal agricultural practices for growing industrial hemp in
California.
   (c) All plant materials from industrial hemp grown on experimental
and demonstration plots, except plant materials retained for
breeding and propagation, shall be used for noninjurious commercial
uses only.
   (d) Industrial hemp produced by a person registered under Section
81206 is not a noxious weed.
   81206.  (a) A person desiring to grow experimental or
demonstration plots of industrial hemp for noninjurious commercial
uses shall apply to the secretary for registration on a form
prescribed by the secretary.
   (b) The application shall describe the noninjurious commercial
uses for which the industrial hemp will be used and the specific
location of each experimental or demonstration plot where it will be
grown.
   (c) Priority shall be given to an applicant who demonstrates to
the secretary that the applicant has entered into a contract with the
University of California Agricultural Experiment Station to conduct
studies on the applicant's plot, including, but not limited to,
methods for breeding distinctive characteristics into industrial hemp
for field identification purposes.
   (d) The secretary may grant the applicant permission to grow
experimental or demonstration plots of industrial hemp for the
noninjurious commercial uses described in the registration form.
   (e) The growing of industrial hemp by the registrant pursuant to
the terms of the registration is a lawful agricultural activity.
   (f) Data related to the registration of experimental or
demonstration plots shall be a public record.
   81208.  (a) A person registered under Section 81206 shall notify
the secretary annually of the production and sale or distribution of
industrial hemp grown on experimental or demonstration plots under
the terms of the registration and shall provide the secretary with
the names of all persons to whom the industrial hemp plant material
is sold or distributed.
   (b) A person who grows industrial hemp in violation of this
division shall be guilty of a misdemeanor.
   81210.  (a)  On or before March 1 of each year, the secretary
shall report to the Senate and Assembly committees having
jurisdiction over agriculture policy issues on the development of
industrial hemp as an agricultural crop in the state.
   (b) The report shall include information on the number, size, and
general location of registered experimental and demonstration plots
and the noninjurious commercial uses of the industrial hemp grown on
the plots.
   (c) The secretary shall submit a final report by November 1, 2005,
reporting on the cumulative information gained over three growing
seasons on the results of breeding studies described in Section
81206.
   81212.  This division shall remain in effect only until July 1,
2005, and as of that date is repealed.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution. 
 amended to read:
   8670.40.  (a) The State Board of Equalization shall collect a fee
in an amount determined by the administrator to be sufficient to
carry out the purposes set forth in subdivision (e), and a reasonable
reserve for contingencies.  The amount of the annual assessment
shall not exceed four cents ($0.04) per barrel of crude oil or
petroleum products.
   (b) (1) The oil spill prevention and administration fee shall be
imposed upon every person owning crude oil at the time that the crude
oil is received at a marine terminal from within or outside the
state, and upon every person owning petroleum products at the time
that those petroleum products are received at a marine terminal from
outside this state.  The fee shall be collected by the marine
terminal operator from the owner of the crude oil or petroleum
products based on each barrel of crude oil or petroleum products so
received by means of a vessel operating in, through, or across the
marine waters of the state.  In addition, every operator of a
pipeline shall pay the oil spill prevention and administration fee
for each barrel of crude oil originating from a production facility
in marine waters and transported in the state by means of a pipeline
operating across, under, or through the marine waters of the state.
The fees shall be remitted to the board by the terminal or pipeline
operator on the 25th day of the month based upon the number of
barrels of crude oil or petroleum products received at a marine
terminal or transported by pipeline during the preceding month.  No
fee shall be imposed pursuant to this section with respect to any
crude oil or petroleum products if the person who would be liable for
that fee, or responsible for its collection, establishes that the
fee has been collected by a terminal operator registered under this
chapter or paid to the board with respect to the crude oil or
petroleum product.
   (2) Every owner of crude oil or petroleum products is liable for
the fee until it has been paid to the board, except that payment to a
marine terminal operator registered under this chapter is sufficient
to relieve the owner from further liability for the fee.
   (3) On or before January 15, the administrator shall annually
prepare a plan that projects revenues and expenses over three fiscal
years, including the current year.  Based on the plan, the
administrator shall set the fee so that projected revenues, including
any interest, are equivalent to expenses as reflected in the current
Budget Act and in the proposed budget submitted by the Governor.  In
setting the fee, the administrator may allow for a surplus if the
administrator finds that revenues will be exhausted during the period
covered by the plan or that the surplus is necessary to cover
possible contingencies.
   (c) The moneys collected pursuant to subdivision (a) shall be
deposited into the fund.
   (d) The board shall collect the fee and adopt regulations for
implementing the fee collection program.
   (e) The fee described in this section shall be collected solely
for all of the following purposes:
   (1) To implement oil spill prevention programs through rules,
regulations, leasing policies, guidelines, and inspections and to
implement research into prevention and control technology.
   (2) To carry out studies which may lead to improved oil spill
prevention and response.
   (3) To finance environmental and economic studies relating to the
effects of oil spills.
   (4) To reimburse the member agencies of the State Interagency Oil
Spill Committee for costs arising from implementation of this
chapter, Article 3.5 (commencing with Section 8574.1) of Chapter 7,
and Division 7.8 (commencing with Section 8750) of the Public
Resources Code.
   (5) To implement, install, and maintain emergency programs,
equipment, and facilities to respond to, contain, and clean up oil
spills and to ensure that those operations will be carried out as
intended, including the actions described in Section 8670.41.
   (6) To respond to an imminent threat of a spill in accordance with
the provisions of Section 8670.62 pertaining to threatened
discharges.  The cumulative amount of any expenditure for this
purpose shall not exceed the amount of one hundred thousand dollars
($100,000) in any fiscal year unless the administrator receives the
approval of the Director of Finance and notification is given to the
Joint Legislative Budget Committee.  Commencing with the 1993-94
fiscal year, and each fiscal year thereafter, it is the intent of the
Legislature that the annual Budget Act contain an appropriation of
one hundred thousand dollars ($100,000) from the fund for the purpose
of allowing the administrator to respond to threatened oil spills.
   (7) To reimburse the board for costs incurred to implement this
chapter and to carry out the provisions of Part 24 (commencing with
Section 46001) of Division 2 of the Revenue and Taxation Code.
   (f) The moneys deposited in the fund shall not be used for
responding to an oil spill.
  SEC. 2.  Section 8670.41 is added to the Government Code, to read:

   8670.41.  (a)  Notwithstanding subdivision (a) of Section 8670.38
and Section 13340 of the Government Code, the sum of one hundred
twenty-five thousand dollars ($125,000) is hereby continuously
appropriated annually for expenditure without regard to fiscal years
from the fund to the Office of Oil Spill Prevention and Response to
develop and conduct training of the office staff and appropriate
nonprofit entity personnel to respond to toxic spills requiring the
rescue of wildlife.
   (b) The Office of Oil Spill Prevention and Response is hereby
appropriated from the fund an amount that the office determines
equals 10 percent of the 2001 budget of the Marine Mammal Center for
veterinary and research sciences or one hundred thirty-five thousand
dollars ($135,000), whichever is less.  The office shall allocate the
amount appropriated to the Marine Mammal Center for research into
the effect of toxic substances on marine mammals.
   (c) The funds appropriated in subdivision (b) are in addition to,
and do not supplant, funds budgeted by the Marine Mammal Center that
represent 10 percent of the 2001 budget of the Marine Mammal Center.