Amended in Assembly June 19, 2013

Amended in Senate May 24, 2013

Amended in Senate April 11, 2013

Amended in Senate April 1, 2013

Senate BillNo. 566


Introduced by Senator Leno

(Principal coauthor: Assembly Member Mansoor)

February 22, 2013


An act to add Division 24 (commencing with Section 81000) to, and to repeal Sectionbegin delete 81003end deletebegin insert 81009end insert of, the Food and Agricultural Code, and to amend Section 11018 of, and to add Section 11018.5 to, the Health and Safety Code, relating to industrial hemp.

LEGISLATIVE COUNSEL’S DIGEST

SB 566, as amended, Leno. Industrial hemp.

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. For purposes of these provisions, marijuana is defined as not including 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, and fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

This bill would revise the definition of “marijuana” so that the term would exclude industrial hemp, as defined, except where the plant is cultivated or processed for purposes not expressly allowed. The bill would define industrial hemp as a fiber or oilseed crop, or both, that is limited to the nonpsychoactive types of the plant Cannabis sativa L. and the seed produced therefrom, having no more than 310 of 1% tetrahydrocannabinol (THC) contained in the dried flowering tops, and that is cultivated and processed exclusively for the purpose of producing 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 or flowering tops extracted therefrom, fiber, oil, or cake, or the sterilized seed of the plant that is incapable of germination.

The bill would enact provisions relating to growing industrial hemp that would impose specified procedures and requirements on a person who grows industrial hemp, exceptbegin delete when grown by an established agricultural research institution or seed breeder, as definedend deletebegin insert as specifiedend insert, that would become operative when authorized under federal law.begin insert The bill would require a grower of industrial hemp, as specified, and a seed breeder, as defined, to register, and renew every 2 years, with the county agricultural commissioner and to pay a fee, determined by the commissioner, as specified, to cover the reasonable costs of the registration and renewal process. The bill would also require the Department of Food and Agriculture to establish an assessment rate, to be paid by growers of industrial hemp and seed breeders, to defray the reasonable costs of the county agricultural commissioner in implementing and enforcing these provisions.end insert The bill would require abegin delete personend deletebegin insert registrantend insert growing the industrial hemp to obtain, before the harvest of each crop, a laboratory test of a random sample of the crop to determine the amount of THC in the crop. The bill would require the laboratory test report to be issued by a laboratory registered by the federal Drug Enforcement Administration and would require thebegin delete personend deletebegin insert registrantend insert growing industrial hemp to make the report available to law enforcement officials and specified other persons. The bill would require all industrial hemp seed sold for planting in California to be from a crop having no more than 310 of 1% THC contained in a random sampling of the dried flowering tops and tested under these provisions, and would require the destruction of crops exceeding that content, as specified.

The bill would provide that growing industrial hemp shall not be construed to authorize, among other things, the possession, outside of a field of lawful cultivation, of resin, flowering tops, or leaves that have been removed from the hemp plant, except as necessary to perform the required laboratory testing.begin delete Thisend deletebegin insert Theend insert bill would require the Attorney General and thebegin delete Hemp Industries Associationend deletebegin insert Industrial Hemp Advisory Boardend insert to submit reports to the Legislature by January 1, 2019, or 5 years after the provisions of the measure are authorized under federal law, whichever is later, regarding the economic and law enforcement impacts of industrial hemp cultivation.

begin insert

The bill would establish the Industrial Hemp Advisory Board, with a prescribed membership, and would authorize the board to advise the Secretary of Food and Agriculture on matters pertaining to these provisions.

end insert

The bill would state the findings and declarations of the Legislature relating to industrial hemp.

By revising the scope of application of existing crimes relating to marijuana, this bill would impose a state-mandated local program.

By specifying the conditions of cultivation, the violation of which would be a misdemeanor pursuant to other provisions of existing law, this bill would impose a state-mandated local program.

begin insert

By increasing the duties of local officials, this bill would impose a state-mandated local program.

end insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would provide that the provisions of this act would not become operative unless authorized under federal law, and,begin delete whenend deletebegin insert ifend insert the provisions become operative, would require the Attorney General tobegin insert issue an opinion, as specified, and toend insert post thebegin delete fact that this act has become operativeend deletebegin insert opinionend insert onbegin delete itsend deletebegin insert the Office of the Attorney General’send insert Internet Web site.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

This act shall be known, and may be cited, as the
2California Industrial Hemp Farming Act.

3

SEC. 2.  

The Legislature finds and declares all of the following:

4(a) Industrial hemp is an agricultural crop produced in at least
530 nations, including Canada, Great Britain, France, Germany,
6Romania, Australia, and China, and is used by industry to produce
P4    1thousands of products, including paper, textiles, food, oils,
2automotive parts, and personal care products.

3(b) The United States Court of Appeals for the Ninth Circuit
4has ruled in Hemp Industries Association v. Drug Enforcement
5Administration, (9th Cir. 2004) 357 F.3d 1012, that the federal
6Controlled Substances Act of 1970 (21 U.S.C. Sec. 812(b))
7explicitly excludes nonpsychoactive hemp from the definition of
8marijuana, and the federal government has declined to appeal that
9decision.

10(c) The federal Controlled Substances Act of 1970 specifies the
11findings to which the government must attest in order to classify
12a substance as a schedule I drug and those findings include that
13the substance has a high potential for abuse, has no accepted
14 medical use, and has a lack of accepted safety for use, none of
15which apply to industrial hemp.

16(d) According to estimates by the Hemp Industries Association,
17sales of industrial hemp products in the United States have grown
18steadily since 1990 to more than $500 million annually in 2012.

19(e) California manufacturers of hemp products currently import
20from around the world tens of thousands of acres’ worth of hemp
21seed, oil, and fiber products that could be produced by California
22farmers at a more competitive price, and the intermediate
23processing of hemp seed, oil, and fiber could create jobs in close
24proximity to the fields of cultivation.

25(f) In 1999, the Assembly passed House Resolution 32, which
26resolved that “the domestic production of industrial hemp can help
27protect California’s environment, contribute to the growth of the
28state economy, and be regulated in a manner that will not interfere
29with the enforcement of marijuana laws.”

30(g) Assessment of the economic benefits of industrial hemp
31cultivation and determination of possible impacts on the
32enforcement of laws prohibiting illicit marijuana cultivation are
33important concerns.

34(h) It is the intent of the Legislature that law enforcement not
35be burdened with tetrahydrocannabinol (THC) testing of industrial
36hemp crops when cultivation is in compliance with Section 11018.5
37of the Health and Safety Code; therefore, the cultivation of
38industrial hempbegin delete willend deletebegin insert shouldend insert be tightly controlled consistent with
39the following:

P5    1(1) Farmersbegin delete shallend deletebegin insert are requiredend insert notbegin insert toend insert cultivate industrial hemp
2in acreages smaller than five acres, andbegin delete noend delete acreage of industrial
3hempbegin delete shallend deletebegin insert should notend insert be comprised of plots smaller than one acre.
4The tending of individual plants, as well as ornamental and
5clandestine cultivation,begin delete isend deletebegin insert should be end insert expressly prohibited.

6(2) Farmers are required, before harvest, to obtain a laboratory
7test report from a federally registered laboratory documenting that
8the THC content of their crop is within the legal limit and farmers
9begin deletemustend deletebegin insert shouldend insert destroy crops that fail the THC test.

10(3) Farmersbegin delete mustend deletebegin insert shouldend insert retain an original copy of the THC test
11report for the planting seed and the harvested crop for two years,
12make original copies available to law enforcement officials upon
13request, and are required to provide an original copy to each person
14purchasing, transporting, or otherwise obtaining the fiber, oil, cake,
15or seed of the plant from the farmer.

16(4) Although they have no psychoactive effect, any resin,
17flowering tops, or leaves of the industrial hemp plant that are
18removed from the lawful field of cultivation shall be, by definition,
19marijuana and subject to prosecution. Farmers should take care to
20ensure that all flowering tops and leaves remain in the lawful field
21of cultivation after the harvest of seed or fiber. There is no lawful
22reason to harvest, collect, or process the flowering tops of industrial
23hemp.

24(5) In addition to plant structure, height, and method of planting,
25the horticultural tending of cannabis plants indicates to law
26enforcement that it is marijuana and not industrial hemp. Signs of
27horticultural tending include, but are not limited to, pathways or
28rows within the fieldbegin delete toend deletebegin insert thatend insert provide access to each plant, the
29pruning of individual plants, or the culling of male plants from the
30field.

31

SEC. 3.  

Division 24 (commencing with Section 81000) is added
32to the Food and Agricultural Code, to read:

33 

34Division 24.  Industrial Hemp

35

 

36

81000.  

For purposes of this division,begin delete “industrial hemp” has the
37same meaning as that term is defined in Section 11018.5 of the
38Health and Safety Code.end delete
begin insert the following terms have the following
39meanings:end insert

begin insert

40(a) “Board” means the Industrial Hemp Advisory Board.

end insert
begin insert

P6    1(b) “Commissioner” means the county agricultural
2commissioner.

end insert
begin insert

3(c) “Established agricultural research institution” means a
4public or private institution or organization that maintains land
5for agricultural research, including colleges, universities,
6agricultural research centers, and conservation research centers.

end insert
begin insert

7(d) “Industrial hemp” has the same meaning as that term is
8defined in Section 11018.5 of the Health and Safety Code.

end insert
begin insert

9(e) “Secretary” means the Secretary of Food and Agriculture.

end insert
begin insert

10(f) “Seed breeder” means an individual or public or private
11institution or organization that is registered with the commissioner
12to develop seed cultivars intended for sale or research.

end insert
begin insert

13(g) “Seed cultivar” means a variety of industrial hemp.

end insert
begin insert
14

begin insert81001.end insert  

(a) There is in the department an Industrial Hemp
15Advisory Board. The board shall consist of 11 members, appointed
16by the secretary as follows:

17(1) Three of the board members shall be growers of industrial
18hemp that are registered pursuant to the provisions of this division.
19A member of the board who is a grower of industrial hemp shall
20be a representative of at least one of the following functions:

21(A) Seed production.

22(B) Seed condition.

23(C) Marketing.

24(D) Seed utilization.

25(2) Two of the board members shall be members of an
26established agricultural research institution.

27(3) One member of the board shall be a law enforcement
28representative who has experience or a background in agricultural
29issues.

30(4) One member of the board shall be a county agricultural
31commissioner.

32(5) One member of the board shall be a representative of the
33Hemp Industries Association or its successor industry association.

34(6) One member of the board shall be a representative of
35industrial hemp product manufacturers.

36(7) One member of the board shall be a representative of
37businesses that sell industrial hemp products.

38(8) One member of the board shall be a member of the public.

39(b) It is hereby declared, as a matter of legislative determination,
40that growers and representatives of industrial hemp product
P7    1manufacturers and businesses appointed to the board pursuant to
2this division are intended to represent and further the interest of
3a particular agricultural industry, and that the representation and
4furtherance is intended to serve the public interest. Accordingly,
5the Legislature finds that persons who are appointed to the board
6shall be subject to the conflict-of-interest provisions described in
7Section 87103 of the Government Code.

8(c) The term of office for a member of the board is three years.
9If a vacancy exists, the secretary shall, consistent with the
10membership requirements described in subdivision (a), appoint a
11 replacement member to the board for the duration of the term.

12(d) A member of the board shall not receive a salary but may
13be reimbursed by the department for attendance at meetings and
14other board activities authorized by the board and approved by
15the secretary.

16(e) The board shall advise the secretary and may make
17recommendations on all matters pertaining to this division,
18including, but not limited to, industrial hemp seed law and
19regulations, enforcement, annual budgets required to accomplish
20the purposes of this division, and the setting of an appropriate
21assessment rate necessary for the administration of this division.

22(f) The board shall annually elect a chair from its membership
23and, from time to time, other officers as it deems necessary.

24(g) The board shall meet at the call of its chair or the secretary,
25or at the request of any four members of the board. The board
26shall meet at least once a year to review budget proposals and
27fiscal matters related to the proposals.

end insert
begin insert
28

begin insert81002.end insert  

(a) The secretary shall establish and maintain a list
29of approved seed cultivars for industrial hemp and shall determine
30whether the seed cultivar is viable for grain cultivar, fiber cultivar,
31or as a dual purpose crop. The list of approved seed cultivars shall
32include, but is not limited to, the following:

33(1) All types of Kompolti, a variety from Hungary.

34(2) Anka, a variety from Canada.

35(3) Canma, a variety from Canada.

36(4) Carmagnola, a variety from Italy.

37(5) Delores, a variety from Canada.

38(6) Epsilon 68, a variety from France.

39(7) Jutta, a variety from Canada.

40(8) Petera, a variety from Canada.

P8    1(9) USO-31, a variety from the Netherlands.

2(b) Except when grown by an established agricultural research
3institution, industrial hemp shall only be grown if it is on the list
4of approved seed cultivars.

5(c) Upon recommendation by the board or the department, the
6secretary may update the list provided in subdivision (a) by adding
7or removing seed cultivars.

end insert
begin insert
8

begin insert81003.end insert  

(a) Except for an established agricultural research
9institution, and before cultivation, a grower of industrial hemp for
10commercial purposes shall register with the commissioner of the
11county in which the grower intends to engage in industrial hemp
12cultivation.

13(1) The application shall include all of the following:

14(A) The name and address of the applicant.

15(B) The legal description, Global Positioning System
16coordinates, and map of the land area on which the applicant
17plans to engage in industrial hemp cultivation.

18(C) The approved seed cultivar to be grown and whether the
19seed cultivar will be grown for its grain or fiber, or as a dual
20purpose crop.

21(2) (A) The application shall be accompanied by a registration
22fee, as determined pursuant to Section 81006.

23(B) A registration issued pursuant to this section shall be valid
24for two years, after which the registrant shall renew his or her
25registration and pay an accompanying renewal fee, as determined
26pursuant to Section 81006.

27(b) If the commissioner determines that the requirements for
28registration pursuant to this division are met, the commissioner
29shall issue a registration to the applicant.

30(c) A registrant that wishes to alter the land area on which the
31registrant conducts industrial hemp cultivation shall, before
32 altering the area, submit to the commissioner an updated legal
33description, Global Positioning System coordinates, and map
34specifying the proposed alteration. Once the commissioner has
35received the change to the registration, the commissioner shall
36notify the registrant that it may cultivate industrial hemp on the
37altered land area.

38(d) A registrant that wishes to change the seed cultivar grown
39shall submit to the commissioner the name of the new, approved
40seed cultivar to be grown. Once the commissioner has received
P9    1the change to the registration, the commissioner shall notify the
2registrant that it may cultivate the new seed cultivar.

end insert
begin insert
3

begin insert81004.end insert  

(a) Except when grown by an established agricultural
4research institution, and before cultivation, a seed breeder shall
5register with the commissioner of the county in which the seed
6breeder intends to engage in industrial hemp cultivation.

7(1) The application shall include all of the following:

8(A) The name and address of the applicant.

9(B) The legal description, Global Positioning System
10coordinates, and map of the land area on which the applicant
11plans to engage in industrial hemp cultivation.

12(C) The approved seed cultivar to be grown and whether the
13seed cultivar will be grown for its grain or fiber, as a dual purpose
14crop, or for seed production.

15(2) (A) The application shall be accompanied by a registration
16fee, as determined pursuant to Section 81006.

17(B) A registration issued pursuant to this section shall be valid
18for two years, after which the registrant shall renew its registration
19and pay an accompanying renewal fee, as determined pursuant to
20Section 81006.

21(b) If the commissioner determines that the requirements for
22registration pursuant to this division are met, the commissioner
23shall issue a seed breeder registration to the applicant.

24(c) A registrant that wishes to alter the land area on which the
25registrant conducts industrial hemp cultivation shall, before
26altering the area, submit to the commissioner an updated legal
27description, Global Positioning System coordinates, and map
28specifying the proposed alteration. Once the commissioner has
29received the change to the registration, the commissioner shall
30notify the registrant that it may cultivate industrial hemp on the
31altered land area.

32(d) A registrant that wishes to change the seed cultivar grown
33shall submit to the commissioner the name of the new, approved
34seed cultivar to be grown. Once the commissioner has received
35the change to the registration, the commissioner shall notify the
36registrant that it may cultivate the new seed cultivar.

37(e) The commissioner shall transmit information collected under
38this section to the department.

end insert
begin insert
39

begin insert81005.end insert  

The department shall establish, and each commissioner
40shall collect, an assessment rate to be paid by growers of industrial
P10   1hemp for commercial purposes and seed breeders, not including
2an established agricultural research institution, to defray the
3reasonable costs of each commissioner in implementing and
4enforcing the provisions of this division.

end insert
begin insert
5

begin insert81006.end insert  

The commissioner of each county shall process
6registrations and renewals within his or her county as economically
7as possible. Each commissioner shall establish a registration fee
8and a renewal fee to be imposed on industrial hemp growers and
9seed breeders, to cover the reasonable costs of the registration
10and renewal process pursuant to Sections 81003 and 81004. A
11renewal fee shall not exceed more than one-half of the registration
12fee.

end insert
13

begin delete81001.end delete
14begin insert81007.end insert  

(a) Except when grown by an established agricultural
15research institution or seed breeder, industrial hemp shall be grown
16only as a densely planted fiber or oilseed crop, or both, in acreages
17of not less than five acres, and no portion of an acreage of industrial
18hemp shall include plots of less than one contiguous acre.
19begin delete Ornamentalend delete

20begin insert(b)end insertbegin insertend insertbegin insertOrnamentalend insert and clandestine cultivation, as well as the
21pruning, culling, and tending of individual plants, of industrial
22hemp is prohibited. All plots shall have adequate signage indicating
23they are industrial hemp.

begin delete

24(b)

end delete

25begin insert(c)end insert Industrial hemp shall include products imported under the
26Harmonized Tariff Schedule of the United States (2013) of the
27United States International Trade Commission, including hemp
28seed, per subheading 1207.99.03, hemp oil, per subheading
291515.90.80, true hemp, per heading 5302, true hemp yarn, per
30subheading 5308.20.00, and woven fabrics of true hemp fibers,
31per subheading 5311.00.40.

begin delete

32(c)

end delete

33begin insert(d)end insert Except when industrial hemp is grown by an established
34agricultural research institutionbegin delete or seed breederend delete, abegin delete personend deletebegin insert registrantend insert
35 who grows industrial hemp under this section shall, before the
36harvest of each crop and as provided below, obtain a laboratory
37test report indicating the tetrahydrocannabinol (THC) levels of a
38random sampling of the dried flowering tops of the industrial hemp
39grown.

P11   1(1) Sampling shall occur as soon as practicable when the THC
2content of the leaves surrounding the seeds is at its peak and shall
3commence as the seeds begin to mature, when the first seeds of
4approximately 50 percent of the plants are resistant to compression.

5(2) The entire fruit-bearing part of the plant including the seeds
6shall be used as a sample. The sample cut shall be made directly
7underneath the inflorescence found in the top one-third of the plant.

8(3) The laboratory test report shall be issued by a laboratory
9registered with the federal Drug Enforcement Administration, shall
10state the percentage content of THC, shall indicate the date and
11location of samples taken, and shall state the Global Positioning
12System coordinates and total acreage of the crop. If the laboratory
13test report indicates a percentage content of THC that is equal to
14or less than three-tenths of 1 percent, the words “PASSED AS
15CALIFORNIA INDUSTRIAL HEMP” shall appear at or near the
16top of the laboratory test report. If the laboratory test report
17indicates a percentage content of THC that is greater than
18three-tenths of 1 percent, the words “FAILED AS CALIFORNIA
19INDUSTRIAL HEMP” shall appear at or near the top of the
20laboratory test report.

21(4) If the laboratory test report indicates a percentage content
22of THC that is equal to or less than three-tenths of 1 percent, the
23laboratory shall provide the person who requested the testing not
24less than 10 original copies signed by an employee authorized by
25the laboratory and shall retain one or more original copies of the
26laboratory test report for a minimum of two years from its date of
27sampling.

28(5) If the laboratory test report indicates a percentage content
29of THC that is greater than three-tenths of 1 percent and does not
30exceed 1 percent, thebegin delete person whoend deletebegin insert registrant thatend insert grows industrial
31hemp shall submit additional samples for testing of the industrial
32hemp grown.

33(6) Abegin delete person whoend deletebegin insert registrant thatend insert grows industrial hemp shall
34destroy the industrial hemp grown upon receipt of a first laboratory
35test report indicating a percentage content of THC that exceeds 1
36percent or a second laboratory test report pursuant to paragraph
37(5) indicating a percentage content of THC that exceeds
38three-tenths of 1 percentbegin insert but is less than 1 percentend insert. If the percentage
39content of THC exceeds 1 percent, the destruction shall take place
40within 48 hours after receipt of the laboratory test report. If the
P12   1percentage content of THC in the second laboratory test report
2 exceeds three-tenths of 1 percentbegin insert but is less than 1 percentend insert, the
3destruction shall take place as soon as practicable, but no later than
445 days after receipt of the second test report.

5(7) Paragraph (6) does not apply to industrial hemp grown by
6an established agricultural research institutionbegin delete or seed breederend delete if
7the destruction of the industrial hemp grown will impede the
8development of types of industrial hemp that will comply with the
9three-tenths of 1 percent THC limit established in this section.

10(8) Abegin delete person whoend deletebegin insert registrant thatend insert intends to grow industrial hemp
11and who complies with this section shall not be prosecuted for the
12cultivation or possession of marijuana as a result of a laboratory
13test report that indicates a percentage content of THC that is greater
14than three-tenths of 1 percent but does not exceed 1 percent.

15(9) Paragraph (8) does not apply to industrial hemp grown by
16an established agricultural researchbegin delete institution or seed breederend delete
17begin insert institutionend insert. Established agricultural research institutionsbegin delete or seed
18breedersend delete
shall be permitted to cultivate or possess industrial hemp
19with a laboratory test report that indicates a percentage content of
20THC that is greater than three-tenths of 1 percent if that cultivation
21or possession contributes to the development of types of industrial
22hemp that will comply with the three-tenths of 1 percent THC limit
23established in this section.

24(10) begin deleteThe person who end deletebegin insertExcept for an established agricultural
25research institution, a registrant that end insert
grows industrial hemp shall
26retain an original signed copy of the laboratory test report for two
27years from its date of sampling, make an original signed copy of
28the laboratory test report available tobegin insert the department, the
29commissioner, orend insert
law enforcement officials or their designees upon
30request, and shall provide an original copy of the laboratory test
31report to each person purchasing, transporting, or otherwise
32obtaining from thebegin delete person whoend deletebegin insert registrant thatend insert grows industrial
33hemp the fiber, oil, cake, or seed of the plant.

begin delete

34(d) For purposes of this section, the following terms have the
35following meanings:

end delete
begin delete

36(1) “Established agricultural research institution” means a public
37or private institution or organization that maintains land for
38agricultural research, including colleges, universities, agricultural
39research centers, and conservation research centers.

end delete
begin delete

P13   1(2) “Seed breeder” means an individual or public or private
2institution or organization that develops viable industrial hemp
3seed intended for sale or research.

end delete
4

begin delete81002.end delete
5begin insert81008.end insert  

This division shall not be construed to authorize any
6of the following, and all of the following are prohibited:

7(a) The possession, outside of a field of lawful cultivation, of
8resin, flowering tops, or leaves that have been removed from the
9hemp plant, except as is necessary to perform testing pursuant to
10subdivisionbegin delete (c)end deletebegin insert (d)end insert of Sectionbegin delete 81001end deletebegin insert 81007end insert.

11(b) Any ornamental or clandestine cultivation of the industrial
12hemp plant.

13(c) Any pruning, culling, or tending of individual industrial
14hemp plants, except when the action is necessary to perform the
15THC testing pursuant to subdivisionbegin delete (c)end deletebegin insert (d)end insert of Sectionbegin delete 81001end delete
16begin insert 81007end insert.

17(d) Any cultivation of industrial hemp in acreages of less than
18five acres, or any acreage comprised of plots of less than one
19contiguous acre, except when the industrial hemp is grown by an
20established agricultural research institution or seed breeder.

21

begin delete81003.end delete
22begin insert81009.end insert  

(a) Not later than January 1, 2019, or five years after
23the provisions of this division are authorized under federal law,
24whichever is later, the Attorney General shall report to the
25Assembly and Senate Committees on Agriculture and the Assembly
26and Senate Committees on Public Safety the reported incidents,
27if any, of the following:

28(1) A field of industrial hemp being used to disguise marijuana
29cultivation.

30(2) Claims in a court hearing by persons other than those
31exempted in subdivisionbegin delete (c)end deletebegin insert (d)end insert of Sectionbegin delete 81001end deletebegin insert 81007end insert that
32marijuana is industrial hemp.

33(b) A report submitted pursuant to subdivision (a) shall be
34submitted in compliance with Section 9795 of the Government
35Code.

36(c) Pursuant to Section 10231.5 of the Government Code, this
37section is repealed on January 1, 2023, or four years after the date
38that the report is due, whichever is later.

P14   1

begin delete81004.end delete
2begin insert81010.end insert  

Not later than January 1, 2019, or five years after the
3provisions of this division are authorized under federal law,
4whichever is later, thebegin insert board, in consultation with theend insert Hemp
5Industriesbegin delete Associationend deletebegin insert Association,end insert shall report the following to
6the Assembly and Senate Committees on Agriculture and the
7Assembly and Senate Committees on Public Safety:

8(a) The economic impacts of industrial hemp cultivation,
9processing, and product manufacturing in California.

10(b) The economic impacts of industrial hemp cultivation,
11processing, and product manufacturing in other states that may
12have permitted industrial hemp cultivation.

13

begin delete81005.end delete
14begin insert81011.end insert  

This division shall not become operative unless
15authorized under federal law.

16

SEC. 4.  

Section 11018 of the Health and Safety Code is
17amended to read:

18

11018.  

“Marijuana” means all parts of the plant Cannabis sativa
19L., whether growing or not; the seeds of that plant; the resin
20extracted from any part of the plant; and every compound,
21manufacture, salt, derivative, mixture, or preparation of the plant,
22its seeds or resin. It does not include industrial hemp, as defined
23in Section 11018.5, except where the plant is cultivated or
24processed for purposes not expressly allowed for by Division 24
25(commencing with Section 81000) of the Food and Agricultural
26Code.

27

SEC. 5.  

Section 11018.5 is added to the Health and Safety
28Code
, to read:

29

11018.5.  

“Industrial hemp” means a fiber or oilseed crop, or
30both, that is limited to nonpsychoactive types of the plant Cannabis
31sativa L. and the seed produced therefrom, having no more than
32three-tenths of 1 percent tetrahydrocannabinol (THC) contained
33in the dried flowering tops, and that is cultivated and processed
34exclusively for the purpose of producing the mature stalks of the
35plant, fiber produced from the stalks, oil or cake made from the
36seeds of the plant, or any other compound, manufacture, salt,
37derivative, mixture, or preparation of the mature stalks, except the
38resin or flowering tops extracted therefrom, fiber, oil, or cake, or
39the sterilized seed of the plant that is incapable of germination.

begin delete
P15   1

SEC. 6.  

No reimbursement is required by this act pursuant to
2Section 6 of Article XIII B of the California Constitution because
3the only costs that may be incurred by a local agency or school
4district will be incurred because this act creates a new crime or
5infraction, eliminates a crime or infraction, or changes the penalty
6for a crime or infraction, within the meaning of Section 17556 of
7the Government Code, or changes the definition of a crime within
8the meaning of Section 6 of Article XIII B of the California
9Constitution.

end delete
10begin insert

begin insertSEC. 6.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
11Section 6 of Article XIII B of the California Constitution because
12a local agency or school district has the authority to levy service
13charges, fees, or assessments sufficient to pay for the program or
14level of service mandated by this act or because costs that may be
15incurred by a local agency or school district will be incurred
16because this act creates a new crime or infraction, eliminates a
17crime or infraction, or changes the penalty for a crime or
18infraction, within the meaning of Section 17556 of the Government
19 Code, or changes the definition of a crime within the meaning of
20Section 6 of Article XIII B of the California Constitution.

end insert
21

SEC. 7.  

(a) This act shall not become operative unless
22authorized under federal law.

begin insert

23(b) If this act becomes operative, the Attorney General shall
24issue an opinion on the extent of that authorization under federal
25law and California law, the operative date of those provisions,
26and whether federal law imposes any limitations that are
27inconsistent with the provisions of this act.

end insert
begin delete

28(b) When this act becomes operative, the

end delete

29begin insert(c)end insertbegin insertend insertbegin insertTheend insert Attorney General shall postbegin delete the fact that this act has
30become operativeend delete
begin insert the opinion described in subdivision (b)end insert onbegin delete itsend delete
31begin insert the Office of the Attorney General’send insert Internet Web site.



O

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