BILL ANALYSIS                                                                                                                                                                                                    

                                                                 AB 1147
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         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:


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            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;  

            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  


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         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  

          FISCAL EFFECT  :  According to the Assembly Appropriations Committee  

         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  

          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  

         Analysis Prepared by :    Kimberly Horiuchi / PUB. S. / (916)  


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         319-3744                                                    FN: