BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 676|
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VETO
Bill No: SB 676
Author: Leno (D)
Amended: 8/30/11
Vote: 21
SENATE AGRICULTURE COMMITTEE : 5-1, 4/5/11
AYES: Rubio, Berryhill, Evans, Vargas, Wolk
NOES: Cannella
NO VOTE RECORDED: La Malfa
SENATE PUBLIC SAFETY COMMITTEE : 5-2, 4/26/11
AYES: Hancock, Calderon, Liu, Price, Steinberg
NOES: Anderson, Harman
SENATE APPROPRIATIONS COMMITTEE : 6-3, 5/16/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Emmerson, Runner
SENATE FLOOR : 22-14, 5/31/11
AYES: Alquist, Corbett, De Le�n, DeSaulnier, Evans,
Hancock, Hernandez, Kehoe, Leno, Lieu, Liu, Lowenthal,
Negrete McLeod, Pavley, Price, Rubio, Simitian,
Steinberg, Vargas, Wolk, Wright, Yee
NOES: Anderson, Blakeslee, Calderon, Cannella, Correa,
Dutton, Emmerson, Fuller, Gaines, Harman, Huff,
Strickland, Walters, Wyland
NO VOTE RECORDED: Berryhill, La Malfa, Padilla, Runner
ASSEMBLY FLOOR : 49-22, 9/7/11 - See last page for vote
SENATE FLOOR : 26-13, 9/8/11
AYES: Alquist, Berryhill, Calderon, Corbett, De Le�n,
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DeSaulnier, Emmerson, Evans, Hancock, Hernandez, Kehoe,
Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla,
Pavley, Price, Rubio, Simitian, Steinberg, Vargas, Wolk,
Wright, Yee
NOES: Anderson, Blakeslee, Cannella, Correa, Dutton,
Fuller, Gaines, Harman, Huff, Runner, Strickland,
Walters, Wyland
NO VOTE RECORDED: La Malfa
SUBJECT : Industrial hemp
SOURCE : Hemp Industries Association
Vote Hemp
DIGEST : This bill creates an eight-year, four-county
pilot project with respect to the cultivation and
processing of industrial hemp. This bill (1) defines
industrial hemp, as specified, (2) redefines marijuana to
exclude industrial hemp, (3) allows the closely-regulated
cultivation and processing of industrial hemp during the
pilot period to conclude on January 1, 2020, (4) imposes a
testing regimen to ensure program hemp has no psychoactive
properties, (5) implements the pilot project in Imperial,
Kern, Kings, and San Joaquin Counties, except as specified,
and (6) requires the Attorney General and the Hemp
Industries Association to submit reports to the Legislature
by January 1, 2018, regarding the economic and law
enforcement impacts of industrial hemp cultivation.
Assembly Amendments remove Yolo County from the pilot
project and makes changes to the laboratory testing and
cultivation of industrial hemp.
ANALYSIS : Existing law makes it a crime to engage in any
of various transactions relating to "marijuana", as
defined, except as otherwise authorized by law, such as the
Medical Marijuana Program.
Existing federal Drug Enforcement Administration (DEA)
regulations provide that any product intended for human
consumption containing any measurable quantity of
tetrahydrocannabinol (THC) is illegal. In contrast, the
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Hemp Industries decision explicitly excludes
nonpsychoactive hemp from the definition of marijuana. The
federal government has declined to appeal that decision.
This bill permits the cultivation of industrial hemp in
California. Specifically, this bill:
1. Defines "industrial hemp" as an agricultural field crop
of Cannabis sativa L. with no more than three-tenths of
one percent THC (tetrahydrocannabinol) grown exclusively
to produce the mature plant stalks and stalk products,
oil or cake made from the seeds, and other by-products
except the resin or flowering tops.
2. Clarifies that "industrial hemp" shall include the
defined hemp products in the 2007 Harmonized Tariff
Schedule of the United States.
3. Requires, except as specified, that before harvest,
industrial hemp growers obtain a laboratory test report
of randomly sampled dried flowering tops from a DEA
registered laboratory identifying if the crop meets the
California industrial hemp limit of no more than
three-tenths of one percent and includes the Global
Positioning System coordinates and total acreage of the
crop. This report shall be retained by the grower for
two years, and be made available to law enforcement
officials or their designees upon request.
4. Provides for the destruction of the crop, as specified.
5. Prohibits the cultivation, production, or possession of
resin, flowering tops, or leaves removed from the field
and separate from the rest of the plant. The only
exception to this prohibition is for the purposes of
sampling for the required laboratory test of the
flowering tops. Samples to perform the test shall be
taken in the presence of, and shall be collected and
transported only by, an employee or agent of a
laboratory registered with the DEA.
6. Prohibits transportation or sale of any Cannabis sativa
L. seed capable of germination across state borders
except as permitted by federal law.
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7. Specifies that industrial hemp may only be grown for
research or as an agricultural field crop.
8. Requires industrial hemp farmers to post signs
identifying the crop, as specified.
9. Requires the destruction of hemp within 48 hours if the
first laboratory test results indicate a THC content
over 1%, and the destruction of the hemp within 45 days
if a second laboratory test report indicates a THC
content over 0.3%.
10.Requires the Attorney General and the Hemp Industries
Association to submit economic and law enforcement
impact reports to the Legislature by January 1, 2018.
11.Makes legislative declarations and findings on
industrial hemp.
12.Provides that the pilot program applies only in
Imperial, Kings, Kern, and San Joaquin, except when
grown by an established agricultural institution.
13.Requires industrial hemp to be cultivated only from
seeds imported in accordance with laws of the United
States or from seeds grown in California from industrial
hemp plants or grown from industrial hemp plants grown
by an established agricultural research institution.
14.Sunsets on January 1, 2020.
Background
"Industrial hemp" or "hemp" refers to low-level
psychoactive chemical THC varieties of Cannabis sativa L.
For centuries, countless consumer and industrial products
have been produced from hemp around the world. Despite its
many uses, hemp is commonly lost in the shadow of its
famous Cannabis relative "marijuana" most commonly used as
a narcotic due to its high THC content.
The government began to exercise control of the production
of Cannabis plants beginning in 1937, with the federal
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Marijuana Tax Act. After World War II, competition from
synthetic fibers and a growing anti-drug public resulted in
the decline of hemp production. In 1970, the federal
Controlled Substances Act tightly restricted all Cannabis
plants regardless of THC content. This resulted in all
hemp and hemp products being imported or manufactured from
imported hemp.
In 1998, Canada, a growing exporter of hemp to California,
lifted their 50-year ban on industrial hemp cultivation.
Farmers could grow hemp only after meeting specific
registration requirements such as registering the location
of each hemp field and certifying that the THC levels of
the plant are not more than .3% of the weight of leaves and
flowering parts.
The DEA is the federal agency that determines if any
industrial hemp production authorized by state statute is
permitted, and enforces standards for the security
conditions under which industrial hemp must be grown if
permitted.
In 2004, the United States Ninth Circuit Court ruled that
hemp products could be sold legally in the U.S.,
overturning a DEA regulation attempting to ban all products
from sale that contain any amount of THC. Since this
ruling, the federal government has decided not to appeal
this decision allowing hemp seed and oil products to be
sold and consumed in the United States.
Prior and Related Legislation
AB 1017 (Ammiano), 2011-12 Session, would have made the
penalty for the cultivation of marijuana an alternate
felony/misdemeanor. The bill failed passage on the
Assembly Floor.
AB 684 (Leno, 2007), substantially similar to this bill,
would have permitted the cultivation of industrial hemp in
California under a pilot program in five counties - Butte,
Imperial, Kings, Mendocino, and Yolo. The bill was vetoed
by Governor Schwarzenegger. In his veto message, the
Governor stated that hemp is still considered a cannabis
plant regardless of its THC content and, therefore, illegal
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under federal law. Additionally, the Governor stated:
"California law enforcement has expressed concerns that
implementation of this measure could place a drain on their
resources and cause significant problems with drug
enforcement activities."
AB 1147 (Leno, 2006), vetoed by Governor Schwarzenegger,
would have permitted the cultivation of industrial hemp in
California. In his veto message, the Governor stated that
hemp is still considered a cannabis plant regardless of its
THC content and, therefore, illegal under federal law.
AB 388 (Strom-Martin, 2002 ), vetoed by Governor Davis,
would have requested that the University of California
assess the economic opportunities of specialty or
alternative fiber crops, including industrial hemp, and
report to the Legislature by January 1, 2004.
HR 32 (Strom-Martin), 1999-2000 Session, would have
resolved that "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."
Federal legislation introduced in 2005, 2007, and 2009, by
Representative Ron Paul, excluded industrial hemp from the
definition of marijuana.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Assembly Appropriations Committee, there
would be a minor increase in revenues, likely less than
$30,000 per year, for the Seed Services Program. The cost
of the report would be minor and absorbable within existing
DOJ resources.
The DOJ indicates that there would not be a significant
fiscal impact to them as a result of this bill.
SUPPORT : (Verified 9/7/11)
Hemp Industries Association (co-source)
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Vote Hemp (co-source)
American Hemp Inc.
Asher Hemp Gelato
Azida, Inc.
Business Alliance for Commerce in Hemp
California Conference of Machinists
California Certified Organic Farmers
California State Grange
California Teamsters Public Affairs Council
Calyx Clothing
Colorganics Inc.
Community Alliance with Family Farmers
Dash Hemp Santa Cruz
Dr. Bronner's Magic Soaps
Drug Policy Alliance
Green Field Paper Company
Hemp.com
Hemp House
Hemp Shield
Hemp Technologies
Hemp Traders
High Grade Distribution
Imperial County Farm Bureau
Instituto Laboral De La Raza
Jungmaven Ltd.
Kern County Sheriff
Kings County Sheriff
Kings County Board of Supervisors
Living Harvest Foods
Nutiva
Santa Barbara Hemp
Santori Movement, Inc.
Skin & Coat Supplement
UFCW- Local 5
UFCW - Western States Conference
OPPOSITION : (Verified 9/7/11)
Association for Los Angeles Deputy Sheriffs
California Narcotic Officers' Association
California Peace Officers' Association
California Police Chiefs Association
Imperial County District Attorneys
League of California Cities
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Riverside Sheriffs' Association
ARGUMENTS IN SUPPORT : According to the author, "SB 676
is about job creation and allowing farmers to choose crops
that suit their business needs and prospects. Preventing
American farmers from cultivating industrial hemp has
created a growing market for other countries to supply the
state's food and personal care product manufacturers. The
U.S. imports millions of pounds of hemp fiber, seed and
oil. The current U.S. market for industrial hemp products
is $400 million and growing at a rate of $26 million per
year. Of the U.S.-based hemp product companies, more than
55 percent are based in California, many of which would
expand their business if a local and more economical source
of industrial hemp was available. These are our companies
and our farmers should be able to supply them.
"In addition to the economic opportunities, hemp is an
environmentally-friendly and sustainable crop that reduces
the use of chemicals and saves farmers money. Hemp
requires little or no pesticides and herbicides, puts
nutrients back into the soil and leaves the field virtually
free of weeds making it an excellent rotational crop. As a
source for paper, hemp produces more fiber per acre than
timber and hemp matures in 90 days as opposed to the
decades required for timber. Hemp can also be used for
plywood-type building materials. Over time, hemp
cultivation could allow us to meet an ever growing demand
for paper products as well as the demand for building
materials traditionally met by timber.
"Industrial hemp, by definition, has no psychoactive
properties and is distinct from marijuana; however, the
bill has been carefully crafted to address concerns of law
enforcement. The bill establishes a limited pilot program
and hemp cultivation is permitted only as an agricultural
field crop or in an established research setting. Upon
request of law enforcement, farmers must show the lab
report verifying that THC level of the crop meets the
three-tenths of one percent THC standards. All crops that
fail THC requirement or failure to meet other requirements
outlined in the bill be considered marijuana under the law.
Although they contain no psychoactive properties and have
no legal commercial application, all industrial hemp
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flowering tops and leaves that are removed from the field
of cultivation are still defined as marijuana in the bill.
This ensures that in the event of a drug bust, law
enforcement does not need to question if cannabis leaves
are hemp or marijuana."
ARGUMENTS IN OPPOSITION : According to the Association
for Los Angeles Deputy Sheriffs, "Hemp is virtually
indistinguishable from marijuana, and thus cultivation will
seriously undermine the ability of law enforcement to
enforce marijuana laws. Further SB 676 contravenes federal
law (21 USC 802) and passage will create confusion to
growers who may not understand they would be subject to
federal prosecution even if growing hemp were permitted by
state law. Creating physical or legal ambiguity is not
good criminal justice policy?"
GOVERNOR'S VETO MESSAGE:
"I am returning Senate Bill 676 without my signature.
This measure would establish a pilot program for the
cultivation of industrial hemp in four counties in
California.
Federal law clearly establishes that all cannabis plants,
including industrial hemp, are marijuana, which is a
federally regulated controlled substance. Failure to
obtain a permit from the U.S. Drug Enforcement
Administration prior to growing such plants will subject
a California farmer to federal prosecution.
Although I am not signing this measure, I do support a
change in federal law. Products made from hemp -
clothes, food, and bath products - are legally sold in
California every day. It is absurd that hemp is being
imported into the state, but our farmers cannot grow it."
ASSEMBLY FLOOR : 49-22, 9/7/11
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Butler, Charles Calderon, Campos, Carter,
Chesbro, Dickinson, Eng, Feuer, Fong, Fuentes, Galgiani,
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Gatto, Gordon, Hall, Hayashi, Roger Hern�ndez, Hill,
Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma,
Mansoor, Mendoza, Mitchell, Monning, Norby, Portantino,
Skinner, Smyth, Solorio, Swanson, Valadao, Wieckowski,
Williams, Yamada, John A. P�rez
NOES: Achadjian, Buchanan, Conway, Cook, Donnelly,
Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman,
Harkey, Jeffries, Jones, Knight, Logue, Miller, Morrell,
Nestande, Nielsen, Silva, Wagner
NO VOTE RECORDED: Cedillo, Davis, Furutani, Gorell, Olsen,
Pan, Perea, V. Manuel P�rez, Torres
MEL:mw 1/4/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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