BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 388|
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THIRD READING
Bill No: AB 388
Author: Strom-Martin (D)
Amended: 6/12/02 in Senate
Vote: 21
SENATE AG. & WATER RESOURCES COMMITTEE : 6-2, 6/4/02
AYES: Costa, Alpert, Bowen, Kuehl, Machado, Torlakson
NOES: Monteith, Poochigian
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : Not relevant
SUBJECT : Specialty fiber crops
SOURCE : Author
DIGEST : This bill requests that the University of
California conduct an assessment of economic opportunities
available through the production of specialty or
alternative fiber crops, and report its findings to the
Legislature by January 1, 2004.
ANALYSIS : Since its founding, America has been a leading
producer of fiber crops. Industrial hemp, now considered a
specialty fiber crop, was grown domestically for hundreds
of years prior to its prohibition. Other specialty fiber
crops produced in the United States include kenaf and flax.
Flax, from the Linaceae family, is a dicotyledonous
shrubby plant whose stem can be spun into linen thread.
The stalk of Hibiscus cannabinus, or the kenaf plant, is
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also harvested to produce fiber. In 1970, the United
States placed a prohibition on the harvest industrial hemp.
Although industrial hemp could not be harvested, the
national prohibition still allowed industrial hemp to be
processed and sold. On October 9, 2001, the Drug
Enforcement Administration (DEA) published an interpretive
rule banning hemp seed and oil food products that contain
any amount of trace tetrahydroconnabinol (THC). THC is the
psychoactive organic compound found in the Cannabis Sativa
L. species. Although industrial hemp contains less than
0.3 percent THC, it was still subject to the DEA's ban.
The courts eventually ruled to stay DEA's ban on hemp seed
and oil food products. On March 7, 2002, a 9th Circuit
Court Order ruled to extend the stay. In recent years,
Hawaii, North Dakota, Minnesota, Arkansas, Kentucky,
Illinois, Maryland, New Mexico, and Montana have passed
legislation legalizing the cultivation of industrial hemp.
Today, imported industrial hemp products are being sold
legally in the United States, creating an estimated $50
million market. Industrial hemp has a multitude of
commercial applications, and demand for those products has
resulted in the U.S. becoming the largest importer of
foreign-grown hemp-based materials in the world. Federal
and state laws have prevented American farmers from
producing for this market. Although the industrial hemp
processing industry has prospered in recent years, domestic
industrial hemp production is still in its infancy.
Economic uncertainties still surround the country's
industrial hemp producing potential.
This bill:
1.Requests that the University of California study the
economic potential for growing specialty or alternative
fiber crops including industrial hemp, kenaf, and flax.
2.Requests the University of California to assess issues
pertaining to production, legal, processing, marketing,
and potential barriers to profitability.
3.Requests the findings of the report be delivered to the
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Assembly Committee on Agriculture and the Senate
Committee on Agriculture and Water Resources.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/25/02)
California State Grain Association
San Francisco County
50 individuals
TSM:kb 6/25/02 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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