BILL NUMBER: AB 1147	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 7, 2006
	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   types  of the plant Cannabis
sativa L. and the  seeds   seed  produced
therefrom, having no more than 3/10  of 1% tetrahydrocannabinol 
(THC)  contained in the dried flowering tops, 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  to
be  made available to law enforcement officials and provided to
purchasers, as specified. The bill  would require all industrial
hemp seed sold for planting in California to be from a crop having
no more than     3/10   of 1% THC
contained in a random sampling of the dried flowering tops and tested
under these provisions, and would require the destruction of crops
exceeding that content, 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  any living plant of Cannabis sativa L. or any 
seed  or   of  any  variety
  type  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  the  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  
types  of the plant Cannabis sativa L.  ,  and
the seed produced therefrom  ,  having no more than
three-tenths of  one   1  percent
tetrahydrocannabinol (THC) contained in the dried flowering tops, 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.  All industrial hemp seed sold for
planting in California shall be from a crop having no more than
three-tenths of 1 percent THC contained in a random sampling of the
  dried flowering tops and tested under the provisions of
subdivision (c). 
   (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
  THC  levels of a random sampling of the dried
flowering tops of the industrial hemp grown.
   (1)  Sampling shall occur as practicable when the THC 
 content of the leaves surrounding the seeds is at its peak and
shall commence as the seeds begin to mature, when the first seeds of
approximately 50 percent of the plants are resistant to  
compression.  
   (2) The entire fruit-bearing part of the plant including the seeds
shall be used as a sample. The sample cut shall be made directly
underneath the inflorescence found in the top one-third of the plant.

    (3)    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   1 
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   1 
percent, the words "FAILED AS CALIFORNIA INDUSTRIAL HEMP" shall
appear at or near the top of the laboratory test report.  
   (2)  
   (4) If the laboratory test report indicates a percentage content
of THC that is greater than three-tenths of 1 percent and does not
exceed one percent, the person who grows industrial hemp shall submit
additional samples for testing of the industrial hemp grown. 

   (5) A person who grows industrial hemp shall destroy the
industrial hemp grown upon receipt of a first laboratory test report
indicating a percentage content of THC that exceeds 1 percent or a
second laboratory test report pursuant to paragraph (4) indicating a
percentage content of THC that exceeds three-tenths of 1 percent. The
destruction shall take place as soon as practicable but no later
than 45 days after receipt of a laboratory test report that requires
crop destruction pursuant to this section.  
   (6) Paragraph (5) does not apply to industrial hemp grown in a
research setting if the destruction of the industrial hemp grown will
impede the development of types of industrial hemp that will comply
with the three-tenths of 1 percent THC limit established in this
section. 
    (7)  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   from the person who
grows industrial hemp the fiber,  oil, cake, or seed of the
plant.
   (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  any
living plant of Cannabis sativa L. or any  seed of any 
variety   type  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.