BILL ANALYSIS AB 1147 Page 1 ASSEMBLY THIRD READING AB 1147 (Leno) As Amended January 23, 2006 Majority vote PUBLIC SAFETY 4-2 APPROPRIATIONS 13-3 ----------------------------------------------------------------- |Ayes:|Leno, Cohn, Goldberg, |Ayes:|Chu, Bass, Berg, | | |Hancock | |Calderon, | | | | |De La Torre, Karnette, | | | | |Klehs, Leno, Nation, | | | | |Oropeza, Ridley-Thomas, | | | | |Saldana, Yee | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|La Suer, Spitzer |Nays:|Runner, Emmerson, | | | | |Nakanishi | | | | | | ----------------------------------------------------------------- SUMMARY : Clarifies the definition of "marijuana" contained in the Uniformed Controlled Substance Act (CSA) to exclude industrial hemp. Specifically, this bill : 1)Defines "industrial hemp" as an agricultural field crop limited to the non-psychoactive varieties of the of the plant Cannabis sativa L., having 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 purpose of producing the mature stalks of the plant and by-products of the stalk and seed. 2)States that nothing in this section shall 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. 3)Prohibits the transportation and/or sale of a seed capable of germination across state lines of any variety of Cannabis sativa L. and any cultivation of the industrial hemp plant that is not grown in a research setting or as an agricultural field crop. 4)Finds and declares the following: AB 1147 Page 2 a) Industrial hemp is produced in at least 30 nations including Canada, 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 Ninth Circuit has ruled in Hemp Industries v. Drug Enforcement Administration that the Controlled Substances Act of 1970 explicitly excludes non-psychoactive hemp from the definition of marijuana, and the federal government has declined to appeal that decision.; c) The Controlled Substances Act of 1970 (21 U.S.C. Section 812(b)) 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 have grown steadily since 1990 to more than $250 million in 2005, increasing at a rate of approximately $26 million per year; and, 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. EXISTING LAW : 1)Provides that "marijuana" is 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 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 AB 1147 Page 3 germination. 2)States that 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, by a fine of not more than $500, by both such fine and imprisonment, or shall be punished by imprisonment in the state prison. FISCAL EFFECT : According to the Assembly Appropriations Committee analysis: 1)No direct state costs. 2)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 non-reimbursable local costs. 3)To the extent this bill results in litigation to challenge federal preemption issues, there could be indeterminable state trial court costs. COMMENTS : According to the author, "While hemp fiber, oil and non-viable seed are used by many sectors of the economy for a variety of purposes, the Federal Government restricts the growing of hemp and the sale of viable hemp seed." "In 1937, the United States 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." Please see the policy committee analysis for full discussion of this bill. Analysis Prepared by : Kimberly Horiuchi / PUB. S. / (916) AB 1147 Page 4 319-3744 FN: 0013629