BILL ANALYSIS AB 1147 Page 1 Date of Hearing: January 18, 2006 ASSEMBLY COMMITTEE ON APPROPRIATIONS Judy Chu, Chair AB 1147 (Leno) - As Amended: January 5, 2006 Policy Committee: Public SafetyVote: 4-2 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill revises the definition of marijuana in the California Health and Safety Code to exclude industrial hemp. Specifically, this bill: 1)Defines industrial hemp as an agricultural field crop limited to nonpsychoactive varieties of the Cannabis plant, with no more than three-tenths of 1% tetrahydrocannabinol (THC) contained in the dry flowering tops and cultivated from seeds originating in California, and processed exclusively for the stalks of the plant and by-products of the stalk and seed. 2)States that this bill does not authorize cultivation, production, or possession of resin, flowering tops, or leaves that have been removed from the field of cultivation and separated from the other parts of the industrial hemp plant. 3)Prohibits transportation or sale across state lines of Cannabis seed capable of germination and prohibits cultivation of industrial hemp not grown in a research setting or as an agricultural field crop. FISCAL EFFECT No direct state costs. To the extent this bill results in additional law enforcement efforts - such as increased investigation and court time to determine whether plants or materials are industrial hemp or marijuana - there could be indeterminable state and nonreimbursable local costs. AB 1147 Page 2 To the extent this bill results in litigation to challenge federal preemption issues, there could be indeterminable state trial court costs. COMMENTS 1)Rationale . According to the author, "In 1937, the U.S. Government mistakenly categorized hemp with marijuana due to their physical similarities and the fact that hemp contains THC (although hemp contains only a negligible amount of the chemical). Hemp has so little THC that it physically cannot be used as an intoxicant and is 100% safe for the consumer. Because hemp has no psychoactive properties, the Federal Government has allowed hemp products of every kind to be manufactured and sold in the United States. Californians can buy hemp clothing and food products in stores throughout the state, but state law is silent on the legality of growing hemp in California for in-state commerce." a) According to Vote Hemp, a non-profit organization dedicated to free market industrial hemp, while hemp is grown and processed throughout the world for paper, clothing, canvas, rope, food products and many other commercial uses, only non-viable seeds are legal in the U.S. without a DEA permit, meaning farmers cannot realistically grow hemp. 2)Current state law defines marijuana as all parts of the Cannabis plant, 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 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 there from), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. 3)Other States' Efforts Regarding Industrial Hemp . According to Vote Hemp, six states (Hawaii, Kentucky, Maine, Montana, North Dakota and Virginia) have removed barriers to the growth of hemp for research purposes. Hawaii is the only state that has permission from the Drug Enforcement Administration to grow AB 1147 Page 3 industrial hemp - on a one-quarter acre of government land under 24-hour security. 4)Prior hemp related legislation in California . a) HR 32 (Strom-Martin, 1999) stated "the Assembly finds and declares that industrial hemp is a vital, sustainable, renewable resource for building materials, cloth, cordage, fiber, food, fuel, industrial chemicals, oil, paint, paper, plastics, seed, yarn, and many other useful products?and declares the domestic production of industrial hemp can help protect California's 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? and declares the Legislature should consider action to revise the legal status of industrial hemp to allow for its growth in California as an agricultural and industrial crop?" b) AB 448 (Strom-Martin, 2001) directed the California Department of Food and Agriculture, in consultation with the Attorney General, to establish rules and regulations for the licensure and growing of industrial hemp. AB 448 failed passage in the Assembly Agriculture Committee. c) AB 388 (Strom-Martin, 2002), requested UC to assess the economic opportunities of specialty or alternative fiber crops, including industrial hemp, using information from other states and countries. Gov. Davis vetoed AB 388, stating, "There are a number of significant concerns regarding the legality of producing industrial hemp in the U.S. The U.S. Department of Agriculture concluded that 'legal issues currently preclude research into the viability of industrial hemp fiber production in the U.S.' " 5)Is Removing Industrial Hemp from the Definition of Marijuana Preempted by Federal Law ? The federal Controlled Substance Act of 1970 defined five schedules of narcotics based on medical uses and the likelihood of addiction. The Act defines marijuana as "all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin. Such term does not include the mature stalks AB 1147 Page 4 of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted there from), fiber, oil, or cake, or the sterilized seed of such plant which is incapable of germination." California has also adopted this definition. At issue is whether California can redefine marijuana differently than federal statute. The U.S. Supreme Court has stated that Congress is within its right to supersede state drug laws because intrastate manufacturing and sales affects a national and international drug trade that poses a risk to the United States as a whole. [21 USCS 801, Gonzales vs. Raich (2004) 125 S.Ct. 3195.] In 2005, Ron Paul (R-TX) and George Miller (D-CA) attempted to amend the Federal Controlled Substances Act by excluding industrial hemp from the definition of marijuana. H.R. 3037 is pending in the House Energy and Commerce Committee. 6)Author's amendments add findings and add Assemblymember DeVore as a joint author. Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081