BILL NUMBER: AB 1147	ENROLLED
	BILL TEXT

	PASSED THE ASSEMBLY  AUGUST 21, 2006
	PASSED THE SENATE  AUGUST 16, 2006
	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, 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 types
of the plant Cannabis sativa L. and the 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 of any 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.


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 types of the plant Cannabis sativa
L. and the seed produced therefrom, having no more than three-tenths
of 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 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 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 1 percent, the words "FAILED AS
CALIFORNIA INDUSTRIAL HEMP" shall appear at or near the top of the
laboratory test report.
   (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 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 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.