BILL ANALYSIS                                                                                                                                                                                                    



                                                                           
           AB 1147
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1147 (Leno)
          As Amended August 7, 2006
          Majority vote
           
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          |ASSEMBLY:  |44-32|(January 26,    |SENATE: |26-13|(August 16,    |
          |           |     |2006)           |        |     |2006)          |
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           Original Committee Reference:    PUB. S.  

           SUMMARY  :  Clarifies the definition of "marijuana" contained in  
          the Uniformed Controlled Substance Act (CSA) to exclude  
          industrial hemp.  

           The Senate amendments  : 

          1)Include in the definition of "industrial hemp" the seeds  
            produced from non-psychoactive varieties of the plant Cannabis  
            sativa L.  

          2)Delete the requirement that the industrial hemp be cultivated  
            from seeds originating in the State of California.

          3)Require the industrial hemp be cultivated only from seeds  
            imported in accordance with the laws of the United States  
            (U.S.) or from seeds grown in California from feral plants,  
            cultivated plants, or plants grown in a research setting.   

          4)Mandate a person who grows industrial hemp prior to the  
            harvest of each crop to obtain a laboratory test report  
            indicating the tetrahydrocannabinol (THC) levels of a random  
            sampling of the dried flowering tops of the industrial hemp  
            grown.  

          5)Require a laboratory test report be issued by a laboratory  
            registered with the federal Drug Enforcement Administration to  
            state the percentage content of THC, and indicate the date and  
            location of samples taken.  

          6)Specify that if the laboratory test report indicates a  
            percentage content of THC that is equal to or less than  
            three-tenths of 1%, the words "PASSED AS CALIFORNIA INDUSTRIAL  








                                                                           
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            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%, the  
            words "FAILED AS CALIFORNIA INDUSTRIAL HEMP" shall appear at  
            or near the top of the laboratory test report.  

          7)Provide that 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 the oil, cake, or seed of  
            the plant.  

          8)Clarify that notwithstanding the provisions of this bill, a  
            person may not engage in 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 unless it  
            is necessary for a grower, agent of a grower, employee or  
            agent of an employee of a laboratory registered with the  
            federal Drug Enforcement Administration to perform the  
            laboratory testing provided by this bill.

          9)Except conduct in accordance with the laws of the U.S. from  
            the prohibition against transportation or sale across state  
            borders of seed of any variety of Cannabis sativa L. that is  
            capable of germination. 

          10)Provide that all industrial hemp seed sold for planting in  
            California shall be from a crop having no more than  
            three-tenths of 1% THC contained in a random sampling of the  
            dried flowering tops and tested, as specified. 

          11)State sampling shall occur as practicable when the THC  
            content of the leaves surrounding the seeds is at its peal and  
            shall commence as the seeds being to mature, when the first  
            seeds of approximately 50% of the plants are resistant to  
            compression. 

          12)Provide that 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. 








                                                                           
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          13)Specify if the required laboratory test report indicated a  
            percentage content of the THC that is greater than  
            three-tenths of 1% and does not exceed 1%, the person who  
            grows industrial hemp shall submit additional samples for  
            testing.

          14)Require a person to destroy industrial hemp grown upon  
            receipt of a first laboratory test report indicating a  
            percentage content of THC that exceeds 1% or a second  
            laboratory test report, as specified, indicating a percentage  
            content of THC that exceeds three-tenth of 1%.  The  
            destruction shall take place as soon as practicable but no  
            later than 45 days after the receipt of a laboratory test  
            report that requires crop destruction. 

          15)State crop destruction, as defined, shall 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% THC limit, as specified. 

          16)Make clarifying, technical amendments. 

           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 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.  








                                                                           
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           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Defined "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% 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)Stated 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)Prohibited 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)Found and declared the following:

             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 U.S. 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  








                                                                           
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               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. 

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state 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)  
          319-3744










                                                                           
           AB 1147
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