BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 1147
          Author:   Leno (D), et al
          Amended:  8/7/06 in Senate
          Vote:     21

           
           SENATE PUBLIC SAFETY COMMITTEE  :  4-2, 6/20/06
          AYES:  Migden, Cedillo, Perata, Romero
          NOES:  Poochigian, Margett

           SENATE AGRICULTURE COMMITTEE  :  3-0, 6/29/06
          AYES:  Ducheny, Kuehl, Vincent
          NO VOTE RECORDED:  Denham, Maldonado
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  44-32, 1/26/06 - See last page for vote


           SUBJECT  :    Industrial hemp

           SOURCE  :     Hemp Industries Association
                      Vote Hemp


           DIGEST  :    This bill defines industrial hemp as a  
          legitimate, valuable and non-psychoactive agricultural  
          product.

           ANALYSIS  :    Existing federal law places controlled  
          substances in five schedules.  Schedule I controlled  
          substances are deemed to have no acceptable medical  
          benefits and a high potential for abuse.  Schedule I  
                                                           CONTINUED





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          substances generally are subject to the most stringent  
          restrictions in law.  [21 U.S.C. Section 812]

          Existing law includes marijuana in the list of Schedule I  
          controlled substances.  [Section 11054 of the Health and  
          Safety Code (HSC)]
           
           Existing law 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 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 therefrom), fiber, oil, or cake, or the  
          sterilized seed of the plant which is incapable of  
          germination.  [HSC Section 11018]

          Existing federal law also defines marijuana as a Schedule I  
          controlled substance.  The federal definition of marijuana  
          in Schedule I is the following:  "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 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 therefrom), fiber, oil, or  
          cake, or the sterilized seed of such plant which is  
          incapable of germination.  [21 U.S.C. Sections 802(16) and  
          812(10)]

          Existing federal law separately defines  
          "tetrahydrocannabinols" (THC) as a Schedule I substance.   
          [21 U.S.C. Section 812 (17)]  Decisions of the Ninth  
          Circuit Court of Appeals have found that the reference to  
          THC in Schedule I applies only to synthetic THC, because  
          "if naturally-occurring THC were covered under THC, there  
          would be no need to have a separate category for marijuana,  
          which obviously contains naturally-occurring THC.  (  Hemp  







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          Industries v. DEA  (2004) 357 F.3d 1012, 1015, quoting an  
          earlier decision in a related case.)
           
           Existing federal Drug Enforcement Administration (DEA)  
          regulations, in contrast to the  Hemp Industries  decisions,  
          provide that any product intended for human consumption  
          that contains any measurable quantity of THC is illegal  
          because THC is included as a Schedule I substance.  [21 CFR  
          part 1308]
           
           Existing law 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.  [HSC Section 11357,  
          subd. (a)]

          Existing law states that except as authorized by law, every  
          person who possesses not more than 28.5 grams (an ounce) of  
          marijuana, other than concentrated cannabis, is guilty of a  
          misdemeanor and shall be punished by a fine of not more  
          than $100.  Following a specified number of repeat  
          convictions, a defendant convicted of simply possession of  
          under an ounce of marijuana shall be diverted and referred  
          for treatment.  [HSC Section 11357, subd. (b)]

          Existing law states that except as authorized by law, every  
          person who possesses more than 28.5 grams of marijuana,  
          other than concentrated cannabis, shall be punished by  
          imprisonment in the county jail for a period of not more  
          than six months, by a fine of not more than $500, or by  
          both such fine and imprisonment.  [HSC Section 11357, subd.  
          (c)]

          Existing law states that except as authorized by law, every  
          person 18 years of age or over who possesses not more than  
          28.5 grams of marijuana, other than concentrated cannabis,  
          upon the grounds of, or within, any school providing  
          instruction in kindergarten or any of grades 1 through 12  
          during hours the school is open for classes or  
          school-related programs is guilty of a misdemeanor and  
          shall be punished by a fine of not more than $500, by  
          imprisonment in the county jail for a period of not more  







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          than 10 days, or both.  [HSC Section 11357, subd. (d)]

          Existing law provides that every person who possesses for  
          sale any marijuana, except as otherwise provided by law,  
          shall be punished by imprisonment in the state prison.   
          [HSC Section 11359]

          This bill defines "industrial hemp" as follows:

          1. An agricultural field crop limited to the  
             non-psychoactive types of the plant Cannabis sativa L.,  
             and the seeds produced therefrom.

          2. Industrial hemp shall have no more than three-tenths of  
             one percent (0.3 percent) THC contained in the dry  
             flowering tops.

          3. Industrial hemp shall be cultivated and processed  
             exclusively for the purpose of producing the mature  
             stalks of the plant and  by-products of the stalk and  
             seed, including oil or cake made from seeds, and other  
             preparations.

          This bill states that industrial hemp shall be cultivated  
          only from seeds imported in accordance with laws of the  
          United States or from seeds grown in California from feral  
          plants, cultivated plants, cultivated plants or plants  
          grown in a research setting.  All industrial hemp seed sold  
          for planting in California must be from a crop having no  
          more than three-tenths of one percent THC contained in a  
          random sampling of the dried flowering tops.

          This bill provides that industrial hemp growers shall,  
          prior to harvest, obtain a laboratory test report  
          indicating the THC levels of a random sampling of the dried  
          flowering tops of the crop, as follows:

          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  







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             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 shall be issued by a lab registered  
             with the DEA.

          4. The report shall state the percentage of THC in the  
             sample and the time, date and location of the samples  
             were taken.

          5. The person obtaining the report shall retain it for two  
             years.

          6. The report shall be made available to law enforcement  
             upon request.

          7. A copy of the report shall be given to each person  
             purchasing, transporting, et cetera, the oil, cake or  
             seed of the plant.

          8. The report shall be stamped to reflect whether it meets  
             the standard for industrial hemp or not.  (The sample  
             can have a THC content of no more than 0.3 percent.)

          9. If the laboratory test report indicates a percentage  
             content of THC that is greater than three-tenths of one  
             percent and does not exceed one percent, the person who  
             grows industrial hemp shall submit additional samples  
             for testing of the industrial hemp grown.

          10.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 one percent or a second laboratory test report  
             pursuant to #9 above indicating a percentage content of  
             THC that exceeds three-tenths of one 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.

          11.Number 10 above does not apply to industrial hemp grown  
             in a research setting if the destruction of the  







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             industrial hemp grown will impede the development of  
             types of industrial hemp that will comply with the  
             three-tenths of one percent THC limit established in  
             this section.

          This bill 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.
           
           This bill includes an exception from this requirement for  
          the mandatory testing of the plant for THC levels.
           
           This bill prohibits, except in accordance with the laws of  
          the United States, the transportation 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.
           
           This bill includes the following legislative findings and  
          declarations:

          1. 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.

          2. 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.

          3. 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  







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             for use, none of which apply to industrial hemp.

          4. 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.

          5. 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/9/06)

          Hemp Industries Association (co-source)
          Vote Hemp (co-source)
          Alice's Mountain Market
          Alta Vista Growers
          Alterna Professional Haircare
          Atlas Corporation
          Burcaw Chiropractic
          California Certified Organic Farmers
          California State Grange
          CDM Corporation
          Center for Healing
          Chico Enterprise-Record (editorial)
          City and County of San Francisco
          Community Alliance with Family Farmers
          Creative Research Management
          Dr. Bronner's Magic Soaps
          Eagle Trust Union
          Eco Goods
          Elk Creek Ranch
          EnvironGentle
          Environmental Wholesale Products
          Fiddler's Green Farm, Inc.
          French Meadow Bakery







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          Global Exchange
          Green Party of California
          Guaranteed Organic Certification Agency
          Heartsong Herbal Brewing Company
          Heavenly Low Carb
          Hemp Industries Association
          Hemp Sisters
          Hemp Traders
          Hempy's
          Hirai Farms, Inc.
          Human Exchange Musical Programs
          Institute for Cultural Ecology
          J. Ginsberg & Associates
          Knoll Farms
          Living Foods.Com
          Luvland Farms Lavender
          Malu Healthcare
          Marysville Appeal-Democrat (editorial)
          New Hope Natural Media
          North American Hemp Company
          North American Industrial Hemp Council, Inc.
          Nutiva
          Orange County Register (editorial)
          Organic Ag Advisors
          Organic Consumers Association
          PAD
          Peace of Mind Consulting
          Planning and Conservation League
          Rainforest Action Network
          Raw 4 Real
          Robinson's Health Products
          Salon Charisma
          Sensuous Beauty, Inc.
          Sierra Club California
          Strictly Hemp.com
          Sunset Ranch
          Sweetgrass Natural Fibers
          The Living Temple
          Threshold Enterprises
          Ultra Oil for Pets
          Whole Balance

           OPPOSITION  :    (Verified  8/9/06)








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          Californians for Drug-Free Schools
          Save Our Society from Drugs
          California Narcotic Officers' Association

           ARGUMENTS IN SUPPORT  :    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."

           ARGUMENTS IN OPPOSITION  :    Opponents of this bill state  
          that since marijuana and hemp are so closely related,  
          legalizing the cultivation of hemp would hinder law  
          enforcement efforts to suppress marijuana.  They also see  
          this as a possible stepping stone to further relax  
          regulations on all Cannabis plants.  The federal government  
          continues to consider the cultivation of hemp illegal.   
          California would then conflict with federal law.   
          California also faces challenges with the hemp industry  
          competing against subsidized hemp growers in Chinese and  
          European countries.  
           

           ASSEMBLY FLOOR  :
          AYES:  Baca, Berg, Bermudez, Calderon, Canciamilla, Chan,  
            Chavez, Chu, Cohn, Coto, De La Torre, DeVore, Dymally,  
            Evans, Frommer, Goldberg, Hancock, Jerome Horton, Jones,  
            Karnette, Klehs, Koretz, Laird, Leno, Levine, Lieber,  
            Lieu, Liu, Matthews, Montanez, Mullin, Nation, Nava,  







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            Oropeza, Pavley, Ridley-Thomas, Ruskin, Saldana, Salinas,  
            Torrico, Vargas, Wolk, Yee, Nunez
          NOES:  Aghazarian, Benoit, Blakeslee, Bogh, Cogdill,  
            Daucher, Emmerson, Garcia, Harman, Shirley Horton,  
            Houston, Huff, Keene, La Malfa, La Suer, Leslie, Maze,  
            McCarthy, Mountjoy, Nakanishi, Niello, Parra, Plescia,  
            Richman, Sharon Runner, Spitzer, Strickland, Tran,  
            Umberg, Villines, Walters, Wyland
          NO VOTE RECORDED:  Arambula, Bass, Haynes, Negrete McLeod


          RJG:mel  8/9/06   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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