BILL NUMBER: AB 1147	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 4, 2006
	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   amend Sections 11018, 11054, 11357,
  11358, 11359, 11360, 11361, and 11362.7 of, and to add
Section 11018.5 to, the Health and Safety  Code, relating to
industrial hemp.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1147, as amended, Leno  Industrial hemp  : 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
  makes it a crime to engage in any of various
transactions relating to marijuana, except as otherwise authorized by
law, such as the medical marijuana program. For the purposes of
these provisions, marijuana is defined as not including the mature
stalks of the plant, fiber produced from the stalks, oil or cake made
from the seeds of the plant, any other compound, manufacture, salt,
derivative, mixture, or preparation of the mature stalks (except the
resin extracted therefrom), fiber, oil, or cake, or the sterilized
seed of the plant which   is incapable of germination 
.
   This bill would  provide that any person desiring to grow
  revise the definition of marijuana so that the term
would also not include  industrial hemp,  as defined,
for commercial purposes 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 and comply with specified
requirements. The bill would provide for the assessment of a fee on
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  
which the bill would define as an agricultural crop that is limited
to   the  non   psychoactive varieties of
the Cannabis plant having no more than 3/10 of 1%
tetrahydrocannabinol contained in the dried flowering tops and that
is cultivated and processed exclusively for the purpose of producing
fiber   from the stalks, oil or cake from the seeds of the
plant, or any other compound, manufacture, salt, derivative, mixture,
or preparation produced from the mature stalks (except the resin
extracted therefrom), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination. The bill would make
conforming changes to related provisions  .  
  (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   no  .


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


   SECTION 1.    Section 11018 of the   Health
and Safety Code   is amended to read: 
   11018.  "Marijuana" means all parts of the plant Cannabis sativa
L., whether growing or not; the seeds thereof; the resin extracted
from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds or resin.
It does not include  industrial hemp, as defined in Section
11018.5, or  the mature stalks of the plant, fiber produced from
the stalks, oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture, or preparation of
the mature stalks (except the resin extracted therefrom), fiber, oil,
or cake, or the sterilized seed of the plant which is incapable of
germination.
   SEC. 2.    Section 11018.5 is added to the  
Health and Safety Code  , to read:  
   11018.5.  "Industrial hemp" refers to an agricultural crop that is
limited to nonpsychoactive varieties of the Cannabis plant having no
more than three-tenths of one percent tetrahydrocannabinol contained
in the dried flowering tops and that is cultivated and processed
exclusively for the purpose of producing fiber from the stalks, oil
or cake from the seeds of the plant, or any other compound,
manufacture, salt, derivative, mixture, or preparation produced from
the mature stalks (except the resin extracted therefrom), fiber, oil,
or cake, or the sterilized seed of the plant which is incapable of
germination. 
   SEC. 3.    Section 11054 of the   Health and
Safety Code  is amended to read: 
   11054.  (a) The controlled substances listed in this section are
included in Schedule I.
   (b) Opiates. Unless specifically excepted or unless listed in
another schedule, any of the following opiates, including their
isomers, esters, ethers, salts, and salts of isomers, esters, and
ethers whenever the existence of those isomers, esters, ethers, and
salts is possible within the specific chemical designation:
   (1) Acetylmethadol.
   (2) Allylprodine.
   (3) Alphacetylmethadol (except levoalphacetylmethadol, also known
as levo-alpha- acetylmethadol, levomethadyl acetate, or LAAM).
   (4) Alphameprodine.
   (5) Alphamethadol.
   (6) Benzethidine.
   (7) Betacetylmethadol.
   (8) Betameprodine.
   (9) Betamethadol.
   (10) Betaprodine.
   (11) Clonitazene.
   (12) Dextromoramide.
   (13) Diampromide.
   (14) Diethylthiambutene.
   (15) Difenoxin.
   (16) Dimenoxadol.
   (17) Dimepheptanol.
   (18) Dimethylthiambutene.
   (19) Dioxaphetyl butyrate.
   (20) Dipipanone.
   (21) Ethylmethylthiambutene.
   (22) Etonitazene.
   (23) Etoxeridine.
   (24) Furethidine.
   (25) Hydroxypethidine.
   (26) Ketobemidone.
   (27) Levomoramide.
   (28) Levophenacylmorphan.
   (29) Morpheridine.
   (30) Noracymethadol.
   (31) Norlevorphanol.
   (32) Normethadone.
   (33) Norpipanone.
   (34) Phenadoxone.
   (35) Phenampromide.
   (36) Phenomorphan.
   (37) Phenoperidine.
   (38) Piritramide.
   (39) Proheptazine.
   (40) Properidine.
   (41) Propiram.
   (42) Racemoramide.
   (43) Tilidine.
   (44) Trimeperidine.
   (45) Any substance which contains any quantity of acetylfentanyl
(N-(1-phenethyl-4-piperidinyl) acetanilide) or a derivative thereof.

   (46) Any substance which contains any quantity of the thiophene
analog of acetylfentanyl (N-(1-(2-(2-thienyl)ethyl)-4-piperidinyl)
acetanilide) or a derivative thereof.
   (47) 1-Methyl-4-Phenyl-4-Propionoxypiperidine (MPPP).
   (48) 1-(2-Phenethyl)-4-Phenyl-4-Acetyloxypiperidine (PEPAP).
   (c) Opium derivatives. Unless specifically excepted or unless
listed in another schedule, any of the following opium derivatives,
its salts, isomers, and salts of isomers whenever the existence of
those salts, isomers, and salts of isomers is possible within the
specific chemical designation:
   (1) Acetorphine.
   (2) Acetyldihydrocodeine.
   (3) Benzylmorphine.
   (4) Codeine methylbromide.
   (5) Codeine-N-Oxide.
   (6) Cyprenorphine.
   (7) Desomorphine.
   (8) Dihydromorphine.
   (9) Drotebanol.
   (10) Etorphine (except hydrochloride salt).
   (11) Heroin.
   (12) Hydromorphinol.
   (13) Methyldesorphine.
   (14) Methyldihydromorphine.
   (15) Morphine methylbromide.
   (16) Morphine methylsulfonate.
   (17) Morphine-N-Oxide.
   (18) Myrophine.
   (19) Nicocodeine.
   (20) Nicomorphine.
   (21) Normorphine.
   (22) Pholcodine.
   (23) Thebacon.
   (d) Hallucinogenic substances. Unless specifically excepted or
unless listed in another schedule, any material, compound, mixture,
or preparation, which contains any quantity of the following
hallucinogenic substances, or which contains any of its salts,
isomers, and salts of isomers whenever the existence of those salts,
isomers, and salts of isomers is possible within the specific
chemical designation (for purposes of this subdivision only, the term
"isomer" includes the optical, position, and geometric isomers):
   (1) 4-bromo-2,5-dimethoxy-amphetamine--Some trade or other names:
4-bromo-2,5-dimethoxy-alpha-methylphenethylamine; 4-bromo-2,5-DMA.
   (2) 2,5-dimethoxyamphetamine--Some trade or other names:
2,5-dimethoxy-alpha-methylphenethylamine; 2,5-DMA.
   (3) 4-methoxyamphetamine--Some trade or other names:
4-methoxy-alpha-methylphenethylamine, paramethoxyamphetamine, PMA.
   (4) 5-methoxy-3,4-methylenedioxy-amphetamine.
   (5) 4-methyl-2,5-dimethoxy-amphetamine--Some trade or other names:
  4-methyl-2,5-dimethoxy-alpha-methylphenethylamine; "DOM"; and "STP."

   (6) 3,4-methylenedioxy amphetamine.
   (7) 3,4,5-trimethoxy amphetamine.
   (8) Bufotenine--Some trade or other names: 3-
(beta-dimethylaminoethyl)-5-hydroxyindole; 3-(2-dimethylaminoethyl)-5
indolol; N,N-dimethylserolonin, 5-hydroxy-N,N-dimethyltryptamine;
mappine.
   (9)  Diethyltryptamine--Some trade or other names:
N,N-Diethyltryptamine; DET.
   (10)  Dimethyltryptamine--Some trade or other names: DMT.
   (11)  Ibogaine--Some trade or other names: 7-Ethyl-6,6beta,
7,8,9,10,12,13-octahydro-2-methoxy-6,9-methano-5H-pyrido (1',2':1,2)
azepino (5,4-b) indole; Tabernantheiboga.
   (12) Lysergic acid diethylamide.
   (13) Marijuana  , not including "industrial hemp" as defined
in Section 11018.5  .
   (14) Mescaline.
   (15) Peyote--Meaning all parts of the plant presently classified
botanically as Lophophora williamsii Lemaire, whether growing or not,
the seeds thereof, any extract from any part of the plant, and every
compound, manufacture, salts, derivative, mixture, or preparation of
the plant, its seeds or extracts (interprets 21 U.S.C. Sec. 812(c),
Schedule 1(c)(12)).
   (16) N-ethyl-3-piperidyl benzilate.
   (17) N-methyl-3-piperidyl benzilate.
   (18) Psilocybin.
   (19) Psilocyn.
   (20) Tetrahydrocannabinols. Synthetic equivalents of the
substances contained in the plant, or in the resinous extractives of
Cannabis, sp. and/or synthetic substances, derivatives, and their
isomers with similar chemical structure and pharmacological activity
such as the following: delta 1 cis or trans tetrahydrocannabinol, and
their optical isomers; delta 6 cis or trans tetrahydrocannabinol,
and their optical isomers; delta 3,4 cis or trans
tetrahydrocannabinol, and its optical isomers.
   (Since nomenclature of these substances is not internationally
standardized, compounds of these structures, regardless of numerical
designation of atomic positions covered).
   (21) Ethylamine analog of phencyclidine--Some trade or other
names: N-ethyl-1-phenylcyclohexylamine, (1-phenylcyclohexyl)
ethylamine, N-(1-phenylcyclohexyl) ethylamine, cyclohexamine, PCE.
   (22) Pyrrolidine analog of phencyclidine--Some trade or other
names: 1-(1-phenylcyclohexyl)-pyrrolidine, PCP, PHP.
   (23) Thiophene analog of phencyclidine--Some trade or other names:
1-(1-(2 thienyl)-cyclohexyl)-piperidine, 2-thienyl analog of
phencyclidine, TPCP, TCP.
   (e) Depressants. Unless specifically excepted or unless listed in
another schedule, any material, compound, mixture, or preparation
which contains any quantity of the following substances having a
depressant effect on the central nervous system, including its salts,
isomers, and salts of isomers whenever the existence of those salts,
isomers, and salts of isomers is possible within the specific
chemical designation:
   (1) Mecloqualone.
   (2) Methaqualone.
   (3) Gamma hydroxybutyric acid (also known by other names such as
GHB; gamma hydroxy butyrate; 4-hydroxybutyrate; 4-hydroxybutanoic
acid; sodium oxybate; sodium oxybutyrate), including its immediate
precursors, isomers, esters, ethers, salts, and salts of isomers,
esters, and ethers, including, but not limited to,
gammabutyrolactone, for which an application has not been approved
under Section 505 of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. Sec. 355).
   (f) Unless specifically excepted or unless listed in another
schedule, any material, compound, mixture, or preparation which
contains any quantity of the following substances having a stimulant
effect on the central nervous system, including its isomers:
   (1) Cocaine base.
   (2) Fenethylline, including its salts.
   (3) N-Ethylamphetamine, including its salts.
   SEC. 4.    Section 11357 of the   Health and
Safety Code   is amended to read: 
   11357.  (a) Except as authorized by law, every person who
possesses any concentrated cannabis shall be punished by imprisonment
in the county jail for a period of not more than one year or by a
fine of not more than five hundred dollars ($500), or by both such
fine and imprisonment, or shall be punished by imprisonment in the
state prison.
   (b) Except as authorized by law, every person who possesses not
more than 28.5 grams of marijuana, other than concentrated cannabis
 and not including industrial hemp as defined in Section 11018.5
 , is guilty of a misdemeanor and shall be punished by a fine of
not more than one hundred dollars ($100). Notwithstanding other
provisions of law, if such person has been previously convicted three
or more times of an offense described in this subdivision during the
two-year period immediately preceding the date of commission of the
violation to be charged, the previous convictions shall also be
charged in the accusatory pleading and, if found to be true by the
jury upon a jury trial or by the court upon a court trial or if
admitted by the person, the provisions of Sections 1000.1 and 1000.2
of the Penal Code shall be applicable to him, and the court shall
divert and refer him for education, treatment, or rehabilitation,
without a court hearing or determination or the concurrence of the
district attorney, to an appropriate community program which will
accept him. If the person is so diverted and referred he shall not be
subject to the fine specified in this subdivision. If no community
program will accept him, the person shall be subject to the fine
specified in this subdivision. In any case in which a person is
arrested for a violation of this subdivision and does not demand to
be taken before a magistrate, such person shall be released by the
arresting officer upon presentation of satisfactory evidence of
identity and giving his written promise to appear in court, as
provided in Section 853.6 of the Penal Code, and shall not be
subjected to booking.
   (c) Except as authorized by law, every person who possesses more
than 28.5 grams of marijuana, other than concentrated cannabis 
and not including industrial hemp as defined in Section 11018.5 
, shall be punished by imprisonment in the county jail for a period
of not more than six months or by a fine of not more than five
hundred dollars ($500), or by both such fine and imprisonment.
   (d) Except as authorized by law, every person 18 years of age or
over who possesses not more than 28.5 grams of marijuana, other than
concentrated cannabis  and not including industrial hemp as
defined in Section 11018.5  , upon the grounds of, or within,
any school providing instruction in kindergarten or any of grades 1
through 12 during hours the school is open for classes or
school-related programs is guilty of a misdemeanor and shall be
punished by a fine of not more than five hundred dollars ($500), or
by imprisonment in the county jail for a period of not more than 10
days, or both.
   (e) Except as authorized by law, every person under the age of 18
who possesses not more than 28.5 grams of marijuana, other than
concentrated cannabis  and not including industrial hemp as
defined in Section 11018.5  , upon the grounds of, or within,
any school providing instruction in kindergarten or any of grades 1
through 12 during hours the school is open for classes or
school-related programs is guilty of a misdemeanor and shall be
subject to the following dispositions:
   (1) A fine of not more than two hundred fifty dollars ($250), upon
a finding that a first offense has been committed.
   (2) A fine of not more than five hundred dollars ($500), or
commitment to a juvenile hall, ranch, camp, forestry camp, or secure
juvenile home for a period of not more than 10 days, or both, upon a
finding that a second or subsequent offense has been committed.
   SEC. 5.    Section 11358 of the   Health and
Safety Code   is amended to read: 
   11358.  Every person who plants, cultivates, harvests, dries, or
processes any marijuana or any part thereof,  not including
industrial hemp as defined in Section 11018.5 and  except as
otherwise provided by law, shall be punished by imprisonment in the
state prison.
   SEC. 6.    Section 11359 of the   Health and
Safety Code   is amended to read: 
   11359.  Every person who possesses for sale any marijuana, 
not including industrial hemp as defined in Section 11018.5 and 
except as otherwise provided by law, shall be punished by
imprisonment in the state prison.
   SEC. 7.   Section 11360 of the   Health and
Safety Code   is amended to read: 
   11360.  (a) Except as otherwise provided by this section or as
authorized by law, every person who transports, imports into this
state, sells, furnishes, administers, or gives away, or offers to
transport, import into this state, sell, furnish, administer, or give
away, or attempts to import into this state or transport any
marijuana  , not including industrial hemp as defined in Section
11018.5,  shall be punished by imprisonment in the state prison
for a period of two, three or four years.
   (b) Except as authorized by law, every person who gives away,
offers to give away, transports, offers to transport, or attempts to
transport not more than 28.5 grams of marijuana, other than
concentrated cannabis  and not including industrial hemp as
defined in Section 11018.5  , is guilty of a misdemeanor and
shall be punished by a fine of not more than one hundred dollars
($100). In any case in which a person is arrested for a violation of
this subdivision and does not demand to be taken before a magistrate,
such person shall be released by the arresting officer upon
presentation of satisfactory evidence of identity and giving his
written promise to appear in court, as provided in Section 853.6 of
the Penal Code, and shall not be subjected to booking.
   SEC. 8.    Section 11361 of the   Health and
Safety Code   is amended to read: 
   11361.  (a) Every person 18 years of age or over who hires,
employs, or uses a minor in unlawfully transporting, carrying,
selling, giving away, preparing for sale, or peddling any marijuana
 , not including industrial hemp as defined in Section 11018.5
 , who unlawfully sells, or offers to sell, any marijuana  ,
not including industrial hemp as defined in Section 11018.5, 
to a minor, or who furnishes, administers, or gives, or offers to
furnish, administer, or give any marijuana  , not including
industrial hemp as defined in Section 11018.5,  to a minor under
14 years of age, or who induces a minor to use marijuana  , not
including industrial hemp as defined in Section 11018.5,  in
violation of law shall be punished by imprisonment in the state
prison for a period of three, five, or seven years.
   (b) Every person 18 years of age or over who furnishes,
administers, or gives, or offers to furnish, administer, or give, any
marijuana  , not including industrial hemp as defined in Section
11018.5,  to a minor 14 years of age or older shall be punished
by imprisonment in the state prison for a period of three, four, or
five years.
   SEC. 9.    Section 11362.7 of the   Health
and Safety Code   is amended to read: 
   11362.7.  For purposes of this article, the following definitions
shall apply:
   (a) "Attending physician" means an individual who possesses a
license in good standing to practice medicine or osteopathy issued by
the Medical Board of California or the Osteopathic Medical Board of
California and who has taken responsibility for an aspect of the
medical care, treatment, diagnosis, counseling, or referral of a
patient and who has conducted a medical examination of that patient
before recording in the patient's medical record the physician's
assessment of whether the patient has a serious medical condition and
whether the medical use of marijuana is appropriate.
   (b) "Department" means the State Department of Health Services.
   (c) "Person with an identification card" means an individual who
is a qualified patient who has applied for and received a valid
identification card pursuant to this article.
   (d) "Primary caregiver" means the individual, designated by a
qualified patient or by a person with an identification card, who has
consistently assumed responsibility for the housing, health, or
safety of that patient or person, and may include any of the
following:
   (1) In any case in which a qualified patient or person with an
identification card receives medical care or supportive services, or
both, from a clinic licensed pursuant to Chapter 1 (commencing with
Section 1200) of Division 2, a health care facility licensed pursuant
to Chapter 2 (commencing with Section 1250) of Division 2, a
residential care facility for persons with chronic life-threatening
illness licensed pursuant to Chapter 3.01 (commencing with Section
1568.01) of Division 2, a residential care facility for the elderly
licensed pursuant to Chapter 3.2 (commencing with Section 1569) of
Division 2, a hospice, or a home health agency licensed pursuant to
Chapter 8 (commencing with Section 1725) of Division 2, the owner or
operator, or no more than three employees who are designated by the
owner or operator, of the clinic, facility, hospice, or home health
agency, if designated as a primary caregiver by that qualified
patient or person with an identification card.
   (2) An individual who has been designated as a primary caregiver
by more than one qualified patient or person with an identification
card, if every qualified patient or person with an identification
card who has designated that individual as a primary caregiver
resides in the same city or county as the primary caregiver.
   (3) An individual who has been designated as a primary caregiver
by a qualified patient or person with an identification card who
resides in a city or county other than that of the primary caregiver,
if the individual has not been designated as a primary caregiver by
any other qualified patient or person with an identification card.
   (e) A primary caregiver shall be at least 18 years of age, unless
the primary caregiver is the parent of a minor child who is a
qualified patient or a person with an identification card or the
primary caregiver is a person otherwise entitled to make medical
decisions under state law pursuant to Sections 6922, 7002, 7050, or
7120 of the Family Code.
   (f) "Qualified patient" means a person who is entitled to the
protections of Section 11362.5, but who does not have an
identification card issued pursuant to this article.
   (g) "Identification card" means a document issued by the State
Department of Health Services that document identifies a person
authorized to engage in the medical use of marijuana and the person's
designated primary caregiver, if any.
   (h) "Serious medical condition" means all of the following medical
conditions:
   (1) Acquired immune deficiency syndrome (AIDS).
   (2) Anorexia.
   (3) Arthritis.
   (4) Cachexia.
   (5) Cancer.
   (6) Chronic pain.
   (7) Glaucoma.
   (8) Migraine.
   (9) Persistent muscle spasms, including, but not limited to,
spasms associated with multiple sclerosis.
   (10) Seizures, including, but not limited to, seizures associated
with epilepsy.
   (11) Severe nausea.
   (12) Any other chronic or persistent medical symptom that either:

   (A) Substantially limits the ability of the person to conduct one
or more major life activities as defined in the Americans with
Disabilities Act of 1990 (Public Law 101-336).
   (B) If not alleviated, may cause serious harm to the patient's
safety or physical or mental health.
   (i)  "Marijuana" does not include industrial hemp as defined
in Section 11018.5. 
    (j)    "Written documentation" means accurate
reproductions of those portions of a patient's medical records that
have been created by the attending physician, that contain the
information required by paragraph (2) of subdivision (a) of Section
11362.715, and that the patient may submit to a county health
department or the county's designee as part of an application for an
identification card.   
  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.  Any person desiring to grow industrial hemp for commercial
purposes 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) No person with a prior criminal conviction shall be eligible
for a license.
   81106.  Each person licensed as a primary processor shall 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.
   (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. 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.