BILL NUMBER: AB 1147	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2005
	AMENDED IN ASSEMBLY  MARCH 30, 2005

INTRODUCED BY   Assembly Member Leno

                        FEBRUARY 22, 2005

   An act to add Division 26 (commencing with Section 81100) to the
Food and Agricultural Code,  and to amend Section 6276.26 of the
Government Code, relating to industrial hemp.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1147, as amended, Leno.  Industrial hemp:  license for
commercial purposes   growers and processors  .
   (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, as defined, for commercial purposes  or
  shall comply with specified requirements, including a
requirement to file a signed document relating to any contract to
grow industrial hemp containing specified information; the document
would be available for review by law enforcement but not by the
public. The bill would also provide that any person desiring  to
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   and comply with  specified
 conditions   requirements  . The bill
would provide for the assessment of a fee on license
applicants and for   an applicant for a primary
processor   license. The bill would also provide 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 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)   shall comply with the following
requirements:  
   (a) (1) A person who grows industrial hemp shall file with the
Department of Food and Agriculture documentation indicating that any
seeds planted are of a type and variety that have no more than
three-tenths of one percent tetrahydrocannabinol, as reported by a
testing facility approved by the federal Drug Enforcement
Administration, and shall file a signed document stating that a
contract to grow industrial hemp has been entered into. This document
shall specify the number of acres and the location of the crop,
shall be made available for review by law enforcement upon request,
and shall not be required to be disclosed under subdivision (k) of
Section 6254 of the Government Code pursuant to Section 6276.26 of
the Government Code.  
   (2) The department shall adopt rules that provide for the testing
of industrial hemp during its growth for tetrahydrocannabinol levels
and for the supervision of the crop during its growth and harvest.
 
   (b) A person who grows industrial hemp shall be prohibited from
removing 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 person who grows industrial hemp shall be prohibited from
selling or distributing the mature stalks, fiber, or viable seed to
anyone other than a primary processor licensed under this division.
 
   (d) A person who grows industrial hemp shall notify the Department
of Food and Agriculture regarding the sale or distribution of any
industrial hemp seed or stalk grown by the person, and shall disclose
the name of any licensed primary processor to whom viable hemp seed
has been sold or distributed.  
   (e) The Department of Food and Agriculture may contract with
county agricultural commissioners for their services.  
    81104. 
    (a)     Any person desiring to 
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  the State  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) 
    (3)  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) 
    81106.  
   Each person licensed as a primary processor shall  render
  comply with the following requirements: 
    (a)     The licensee 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

    (b)     The licensee 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.    Section 6276.26 of the  
Government Code   is amended to read: 
   6276.26.
   Improper obtaining or distributing of information from Department
of Motor Vehicles, Sections 1808.46 and 1808.47, Vehicle Code.
   Improper governmental activities reporting, confidentiality of
identity of person providing information, Section 8547.5, Government
Code.
   Improper governmental activities reporting, disclosure of
information, Section 8547.6, Government Code.
   Industrial accident reports, confidentiality of information,
Section 129, Labor Code.  
   Industrial hemp, confidentiality of proprietary information in
signed documents, Section 81102, Food and Agricultural Code. 
   Industrial loan companies, confidentiality of financial
information, Section 18496, Financial Code.
   Industrial loan companies, confidentiality of investigation and
examination reports, Section 18394, Financial Code.
   In forma pauperis litigant, rules governing confidentiality of
financial information, Section 68511.3, Government Code.
   Initiative, referendum, recall, and other petitions,
confidentiality of names of signers, Section 6253.5, Government Code.

   Inspector General, Youth and Adult Correctional Agency,
confidentiality of records of employee interviews, Section 6127,
Penal Code.
   Insurance claims analysis, confidentiality of information, Section
1875.16, Insurance Code.
   Insurance Commissioner, confidential information, Sections 735.5,
1077.3, and 12919, Insurance Code.
   Insurance Commissioner, informal conciliation of complaints,
confidential communications, Section 1858.02, Insurance Code.
   Insurance Commissioner, information from examination or
investigation, confidentiality of, Sections 1215.7, 1433, and 1759.3,
Insurance Code.
   Insurance Commissioner, report to Legislature, confidential
information, Section 12961, Insurance Code.
   Insurance Commissioner, writings filed with nondisclosure, Section
855, Insurance Code.
   Insurance fraud reporting, information acquired not part of public
record, Section 1873.1, Insurance Code.
   Insurance Holding Company System Regulatory Act, examinations,
Section 1215.7, Insurance Code.
   Insurance licensee, confidential information, Section 1666.5,
Insurance Code.
   Insurer application information, confidentiality of, Section
925.3, Insurance Code.
   Insurer financial analysis ratios and examination synopses,
confidentiality of, Section 933, Insurance Code.
   Insurer, request for examination of, confidentiality of, Section
1067.11, Insurance Code.
   Integrated Waste Management Board information, prohibition against
disclosure, Section 45982, Revenue and Taxation Code.
   Intervention in regulatory and ratemaking proceedings, audit of
customer seeking and award, Section 1804, Public Utilities Code.
   Investigative consumer reporting agency, limitations on furnishing
an investigative consumer report, Section 1786.12, Civil Code.
   SEC. 2.     SEC. 3. 
   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.