BILL NUMBER: AB 1147	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2006
	AMENDED IN ASSEMBLY  JANUARY 23, 2006
	AMENDED IN ASSEMBLY  JANUARY 5, 2006
	AMENDED IN ASSEMBLY  JANUARY 4, 2006
	AMENDED IN ASSEMBLY  APRIL 25, 2005
	AMENDED IN ASSEMBLY  MARCH 30, 2005

INTRODUCED BY   Assembly Members Leno and DeVore
   (Coauthors: Assembly Members Berg and Saldana)

                        FEBRUARY 22, 2005

   An act to amend Section 11018 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.
   (1) Existing law 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 revise the definition of marijuana so that the
term would instead not include industrial hemp, as defined, except
where the plant is cultivated or processed for purposes not expressly
allowed for. The bill would define industrial hemp as an
agricultural field crop that is limited to the nonpsychoactive
varieties of the plant Cannabis sativa L.  and the seeds produced
therefrom,  having no more than 3/10 of 1% tetrahydrocannabinol
contained in the dried flowering tops,  that is cultivated
from seed originating in California,  and that is cultivated
and processed exclusively for the purpose of producing 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 or flowering tops extracted therefrom), fiber, oil, or cake, or
the sterilized seed of the plant which is incapable of germination.
 The bill would require industrial hemp   to be
cultivated only from seeds imported in accordance with federal law or
from seeds grown in California, as specified.  The bill would also
require the person growing the industrial hemp to obtain, prior to
the harvest of each crop, a laboratory test of a random sample of the
crop to determine the amount of THC in the crop. The bill would
require the test report to contain specified language. The report
would be required to be retained for 2 years and made available to
law enforcement officials and provided to purchasers, as specified.
 The bill would provide that this definition of industrial hemp
shall not be construed to authorize the cultivation, production, or
possession of resin, flowering tops, or leaves that have been removed
from the field of cultivation and separated from the other
constituent parts of the industrial hemp plant  except to perform
required testing  ; the transportation or sale across state
borders of seed or any variety of Cannabis sativa L. that is capable
of germination; or any cultivation of the industrial hemp plant that
is not grown in a research setting or as an agricultural field crop
 would be prohibited unless it is in accordance with federal law
 . By revising the scope of application of existing crimes
relating to marijuana, 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.  The Legislature finds and declares all of the
following:
   (a) Industrial hemp is produced in at least 30 nations, including
Canada, Great Britain, France, Germany, Romania, Australia, and
China, and is used by industry to produce thousands of products,
including paper, textiles, food, oils, automotive parts, and personal
care products.
   (b) The United States Court of Appeals for the Ninth Circuit has
ruled in Hemp Industries v. Drug Enforcement Administration (9th Cir.
2003) 333 F.3d 1082 that the federal Controlled Substances Act of
1970 (21 U.S.C. Sec. 812(b)) explicitly excludes nonpsychoactive hemp
from the definition of marijuana, and the federal government has
declined to appeal that decision.
   (c) The Controlled Substances Act of 1970 specifies the findings
to which the government must attest in order to classify a substance
as a Schedule I drug and those findings include that the substance
has a high potential for abuse, has no accepted medical use, and has
a lack of accepted safety for use, none of which apply to industrial
hemp.
   (d) According to a study commissioned by the Hemp Industries
Association, sales of industrial hemp products in the United States
have grown steadily since 1990 to more than two hundred fifty million
dollars ($250,000,000) in 2005, increasing at a rate of
approximately twenty-six million dollars ($26,000,000) per year.
   (e) California manufacturers of hemp products currently import
from around the world tens of thousands of acres' worth of hemp seed,
oil, and fiber products that could be produced by California farmers
at a more competitive price, and intermediate processing of hemp
seed, oil, and fiber could create jobs in close proximity to the
fields of cultivation.
   (f) In 1999, the Assembly passed House Resolution 32, which
resolved that "the domestic production of industrial hemp can help
protect California environment, contribute to the growth of the state
economy, and be regulated in a manner that will not interfere with
the enforcement of marijuana laws."
  SEC. 2.  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,
except where the plant is cultivated or processed for purposes not
expressly allowed for by Section 11018.5.
  SEC. 3.  Section 11018.5 is added to the Health and Safety Code, to
read:
   11018.5.  (a) "Industrial hemp" means an agricultural field crop
that is limited to nonpsychoactive varieties of the plant Cannabis
sativa L.,  and the seed produced therefrom  having no more
than three-tenths of one percent tetrahydrocannabinol  (THC)
 contained in the dried flowering tops,  that is
cultivated from seed originating in California,  and that is
cultivated and processed exclusively for the purpose of producing
the mature stalks of the plant, fiber produced from the stalks, oil
or cake made from the seeds of the plant, or any other compound,
manufacture, salt, derivative, mixture, or preparation of the mature
stalks (except the resin or flowering tops extracted therefrom),
fiber, oil, or cake, or the sterilized seed of the plant which is
incapable of germination.  
   (b) Industrial hemp shall be cultivated only from seeds imported
in accordance with the laws of the United States or from seeds grown
in California from feral plants, cultivated plants, or plants grown
in a research setting.   
   (c) A person who grows industrial hemp under this section shall
prior to the harvest of each crop and as provided below obtain a
laboratory test report indicating the tetrahydrocannabinol levels of
a random sampling of the dried flowering tops of the industrial hemp
grown.  
   (1) The laboratory test report shall be issued by a laboratory
registered with the federal Drug Enforcement Administration, shall
state the percentage content of THC, and shall indicate the date and
location of samples taken.  If the laboratory test report indicates a
percentage content of THC that is equal to or less than three-tenths
of one percent, the words "PASSED AS CALIFORNIA INDUSTRIAL HEMP"
shall appear at or near the top of the laboratory test report. If the
laboratory test report indicates a percentage content of THC that is
greater than three-tenths of one percent, the words "FAILED AS
CALIFORNIA INDUSTRIAL HEMP" shall appear at or near the top of the
laboratory test report.  
   (2)  The person who grows industrial hemp shall retain a copy of
the laboratory test report for two years from its date of sampling,
make the laboratory test report available to law enforcement
officials upon request, and shall provide a copy of the laboratory
test report to each person purchasing, transporting, or otherwise
obtaining the oil, cake, or seed of the plant.  
   (b) This 
    (d)     Notwithstanding subdivision (a),
this  section shall not be construed to authorize  and
thereby prohibits  the following:
   (1) The cultivation, production, or possession of resin, flowering
tops, or leaves that have been removed from the field of cultivation
and separated from the other constituent parts of the industrial
hemp plant  , except as is necessary for a person who grows
industrial hemp, an agent of a person who grows industrial hemp, or
an employee or agent of a laboratory registered with the federal Drug
Enforcement Administration to perform the testing pursuant to
subdivision (c)  .
   (2) The transportation or sale across state borders of seed of any
variety of Cannabis sativa L. that is capable of germination  ,
except in accordance with the laws of the United States  .
   (3) Any cultivation of the industrial hemp plant that is not grown
in a research setting or as an agricultural field crop.
  SEC. 4.  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.