BILL NUMBER: AB 1147	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Leno

                        FEBRUARY 22, 2005

   An act to add Division 26 (commencing with Section 81100) to the
Food and Agricultural Code, relating to industrial hemp.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1147, as introduced, Leno.   Industrial hemp: license for
commercial purposes.
   (1) Existing law contained in the Food and Agricultural Code does
not authorize the production or utilization 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 provide that any person desiring to grow
industrial hemp for commercial purposes or operate as a primary
processor of viable hemp seed into commercial, nonviable seed
derivatives shall apply to the Department of Food and Agriculture for
a license; the bill would require any licensee to meet specified
conditions. The bill would provide for the assessment of a fee on
license applicants and for research by the University of California
on industrial hemp, as specified. By creating new crimes, this bill
would impose a state-mandated local program upon local governments.
   (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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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


  SECTION 1.  Division 26 (commencing with Section 81100) is added to
the  Food and Agricultural Code , to read:

      DIVISION 26.  INDUSTRIAL HEMP

   81100.  Unless otherwise provided or the context otherwise
requires, the definitions in this section shall govern the
construction of this division:(a) "Secretary" means the Secretary of
Food and Agriculture, or the secretary's designee.
   (b) "Department" means the Department of Food and Agriculture.
   (c) "Industrial hemp" is generally an oilseed and fiber crop that
includes all parts and varieties of the plant Cannabis Sativa L,
having no more than three-tenths of one percent tetrahydrocannabinol
contained in its dried flowering tops; and that is grown wholly
within this state from indigenous instate seed stock exclusively for
the purpose of producing sterilized stalk, fiber, and seed elements
and products thereof.
   (d) "Tetrahydrocannabinol" or "THC" means the natural or synthetic
equivalents of the substances contained in the plant, or in the
resinous extractives of, cannabis, or any synthetic substances,
compounds, salts, or derivatives of the plant or chemicals and their
isomers with similar chemical structure and pharmacological activity.

   81102.  (a) Any person desiring to (1) grow industrial hemp for
commercial purposes; or (2) operate as a primary processor of viable
hemp seed into commercial nonviable seed derivatives shall apply to
the Department of Food and Agriculture for a license on a form
prescribed by the department.(b) The department shall adopt
regulations establishing criteria for the issuance of licenses, which
criteria shall include, but need not be limited to, the following:
   (1) Permitholders are not authorized to sell or trade viable hemp
seed outside of California.
   (2) Licenses shall be subject to renewal after two years.
   (3) Background and qualifications of the applicant must be
submitted, which shall include a complete state and federal summary
criminal history check, at the applicant's expense.
   (4) No person with a prior criminal conviction shall be eligible
for a license.
   81104.  Every licensee under this division shall be subject to the
following conditions:(a) (1) Each licensee shall file with the
Department of Food and Agriculture documentation indicating that the
seeds planted were of a type and variety certified to have no more
than three-tenths of one percent tetrahydrocannabinol and a copy of
any contract to grow industrial hemp.
   (2) The department shall adopt rules that provide for testing
industrial hemp during growth for tetrahydrocannabinol levels and for
supervision of the crop during growth and harvest.
   (b) No licensee may remove from its operation any item or element
other than mature stalks, fiber, or viable seed for sale,
distribution, or introduction into the commerce of this state.
   (c) A licensee may sell or distribute mature stalks, fiber, or
viable seed only to a primary processor licensed under this division.

   (d) Each person licensed to grow industrial hemp shall notify the
Department of Food and Agriculture of the sale or distribution of any
industrial hemp seed or stalk grown by the licensee, and of the
names of the licensed persons to whom any viable hemp seed was sold
or distributed.
   (e) Each person licensed as a primary processor shall render each
seed into a nonviable seed derivative, including, but not limited to,
oil, nut, or powder.
   (f) Each person licensed as a primary processor shall test the
tetrahydrocannabinol (THC) levels of any derivative product using a
laboratory registered with the federal Drug Enforcement
Administration and shall report the results of those tests to the
Department of Food and Agriculture, in a form and on a schedule set
forth in regulations adopted by the department.
   (1) In every case, for hemp oil products grown in this state, the
trace tetrahydrocannabinol content shall not exceed more than five
parts per million (ppm) of tetrahydrocannabinol.
   (2) In every case, for hemp nut products grown in this state, the
trace tetrahydrocannabinol content shall not exceed more than 1.5
parts per million (ppm) of tetrahydrocannabinol.
   81108.  To provide sufficient funds to pay all costs associated
with monitoring and testing in the state, the Department of Food and
Agriculture shall assess each applicant a fee in an amount determined
by the department to cover those costs.
   81110.  The University of California shall be authorized to
conduct research relating to the production and processing of
industrial hemp, as follows:(a) One of the purposes of the research
shall be the development and dissemination of technology important to
the production and utilization of commercial crop and livestock
enterprises.
   (b) The research shall provide for the enhancement of the quality
of life, sustainability of production, and protection of the
environment.
   (c) As a part of this research, the university may collect feral
hemp seed stock and develop appropriate adapted strains of industrial
hemp which contain less than three-tenths of one percent
tetrahydrocannabinol in the dried flowering tops.
   (d) The university shall report its findings to the Department of
Food and Agriculture.
  SEC. 2.
  No reimbursement is required by this act pursuant to Section 6 of
Article XIII B 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 XIII B of the California Constitution.