Amended in Assembly August 7, 2013

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 Section 81009 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 asbegin insert pursuant toend insert the Medical Marijuana Program. For purposes ofbegin delete theseend deletebegin insert theend insert provisionsbegin insert defining criminal conductend insert, 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, except as specified, that would become operative when authorized under federal law. The bill would require a grower of industrial hemp, as specified, and a seed breeder, as defined, to register, andbegin insert toend insert renewbegin insert that registrationend insert 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. The bill would require a registrant growingbegin delete theend delete 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 the registrant 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 thatbegin delete growingend deletebegin insert authorization to growend insert industrial hemp shall not be construed to authorize,begin insert certain other conduct, including,end insert 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. The bill would require the Attorney General and the Industrial Hemp Advisory Board 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.

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.

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.

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

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 lawbegin delete,end delete and, if the provisions become operative, would require the Attorney General to issue an opinion, as specified, and to post the opinion on thebegin delete Officeend deletebegin insert officeend insert of the Attorney General’s 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
14medical 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 shouldend deletebegin insert shallend insert be tightly controlledbegin insert pursuant to
39Division 24 (commencing with Section 81000) of the Food and
P5    1Agricultural Code, as added by Section 3 of this bill, which
2includes provisionsend insert
consistent withbegin insert all of end insert the following:

3(1) Farmersbegin delete are requiredend deletebegin insert shallend insert notbegin delete toend delete cultivate industrial hemp
4in acreages smaller than five acresbegin insert at the same timeend insert, andbegin insert noend insert acreage
5of industrial hempbegin delete should notend deletebegin insert shallend insert be comprised of plots smaller
6than one acre. The tending of individual plants, as well as
7ornamental and clandestine cultivation,begin delete should beend deletebegin insert isend insert expressly
8 prohibited.

9(2) Farmers are required, before harvest, to obtain a laboratory
10test report from a federally registered laboratory documenting that
11the THC content of their crop is within the legal limit and farmers
12begin delete shouldend deletebegin insert shallend insert destroy crops that fail the THC test.

13(3) Farmersbegin delete shouldend deletebegin insert shallend insert retain an original copy of the THC test
14report for the planting seed and the harvested crop for two years,
15make original copies available to law enforcement officials upon
16request, and are required to provide an original copy to each person
17purchasing, transporting, or otherwise obtaining the fiber, oil, cake,
18or seed of the plant from the farmer.

19(4) Although they have no psychoactive effect, any resin,
20flowering tops, or leaves of the industrial hemp plant that are
21removed from the lawful field of cultivation shall be, by definition,
22marijuana and subject to prosecution. Farmers should take care to
23ensure that all flowering tops and leaves remain in the lawful field
24of cultivation after the harvest of seed or fiberbegin insert, and the possession
25of those tops and leaves outside of the field of cultivation is
26prohibitedend insert
. There is no lawful reason to harvest, collect, or process
27the flowering tops of industrial hemp.

28(5) In addition to plant structure, height, and method of planting,
29the horticultural tending of cannabis plants indicates to law
30enforcement that it is marijuana and not industrial hemp. Signs of
31horticultural tending include, but are not limited to, pathways or
32rows within the field that provide access to each plant, the pruning
33of individual plants, or the culling of male plants from the field.

34

SEC. 3.  

Division 24 (commencing with Section 81000) is added
35to the Food and Agricultural Code, to read:

36 

37Division 24.  Industrial Hemp

38

 

39

81000.  

For purposes of this division, the following terms have
40the following meanings:

P6    1(a) “Board” means the Industrial Hemp Advisory Board.

2(b) “Commissioner” means the county agricultural
3commissioner.

4(c) “Established agricultural research institution” means a public
5or private institution or organization that maintains land for
6agricultural research, including colleges, universities, agricultural
7research centers, and conservation research centers.

8(d) “Industrial hemp” has the same meaning as that term is
9defined in Section 11018.5 of the Health and Safety Code.

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

11(f) “Seed breeder” means an individual or public or private
12institution or organization that is registered with the commissioner
13to develop seed cultivars intended for sale or research.

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

15

81001.  

(a) There is in the department an Industrial Hemp
16Advisory Board. The board shall consist of 11 members, appointed
17by the secretary as follows:

18(1) Three of the board members shall be growers of industrial
19hemp that are registered pursuant to the provisions of this division.
20A member of the board who is a grower of industrial hemp shall
21be a representative of at least one of the following functions:

22(A) Seed production.

23(B) Seed condition.

24(C) Marketing.

25(D) Seed utilization.

26(2) Two of the board members shall be members of an
27established agricultural research institution.

28(3) One member of the board shall be a begin deletelaw enforcementend delete
29 representativebegin insert of the California State Sheriffsend insertbegin insert’ Association or other
30law enforcement associationend insert
who has experience or a background
31in agricultural issues.

32(4) One member of the board shall be a county agricultural
33commissioner.

34(5) One member of the board shall be a representative of the
35Hemp Industries Association or its successor industry association.

36(6) One member of the board shall be a representative of
37industrial hemp product manufacturers.

38(7) One member of the board shall be a representative of
39businesses that sell industrial hemp products.

40(8) One member of the board shall be a member of the public.

P7    1(b) It is hereby declared, as a matter of legislative determination,
2that growers and representatives of industrial hemp product
3manufacturers and businesses appointed to the board pursuant to
4this division are intended to represent and further the interest of a
5particular agricultural industry, and that the representation and
6furtherance is intended to serve the public interest. Accordingly,
7the Legislature finds that persons who are appointed to the board
8shall be subject to the conflict-of-interest provisions described in
9Section 87103 of the Government Code.

10(c) The term of office for a member of the board is three years.
11If a vacancy exists, the secretary shall, consistent with the
12membership requirements described in subdivision (a), appoint a
13 replacement member to the board for the duration of the term.

14(d) A member of the board shall not receive a salary but may
15be reimbursed by the department for attendance at meetings and
16other board activities authorized by the board and approved by the
17secretary.

18(e) The board shall advise the secretary and may make
19recommendations on all matters pertaining to this division,
20including, but not limited to, industrial hemp seed law and
21regulations, enforcement, annual budgets required to accomplish
22the purposes of this division, and the setting of an appropriate
23assessment rate necessary for the administration of this division.

24(f) The board shall annually elect a chair from its membership
25and, from time to time, other officers as it deems necessary.

26(g) The board shall meet at the call of its chair or the secretary,
27or at the request of any four members of the board. The board shall
28meet at least once a year to review budget proposals and fiscal
29matters related to the proposals.

begin delete
30

81002.  

(a) The secretary shall establish and maintain a list of
31approved seed cultivars for industrial hemp and shall determine
32whether the seed cultivar is viable for grain cultivar, fiber cultivar,
33or as a dual purpose crop. The list of approved seed cultivars shall
34include, but is not limited to, the following:

35(1) All types of Kompolti, a variety from Hungary.

36(2) Anka, a variety from Canada.

37(3) Canma, a variety from Canada.

38(4) Carmagnola, a variety from Italy.

39(5) Delores, a variety from Canada.

40(6) Epsilon 68, a variety from France.

P8    1(7) Jutta, a variety from Canada.

2(8) Petera, a variety from Canada.

3(9) USO-31, a variety from the Netherlands.

4(b)

end delete
5begin insert

begin insert81002.end insert  

end insert

begin insert(a)end insert Except when grown by an established agricultural
6research institutionbegin insert or by a registered seed breeder developing a
7new California seed cultivarend insert
, industrial hemp shall only be grown
8if it is on the list of approved seed cultivars.

begin insert

9(b) The list of approved seed cultivars shall include all of the
10following:

end insert
begin insert

11(1) Industrial hemp seed cultivars that have been certified on
12or before January 1, 2013, by member organizations of the
13Association of Official Seed Certifying Agencies, including, but
14not limited to, the Canadian Seed Growers Association.

end insert
begin insert

15(2) Industrial hemp seed cultivars that have been certified on
16or before January 1, 2013, by the Organization of Economic
17Cooperation and Development.

end insert
begin insert

18(3) California varieties of industrial hemp seed cultivars that
19have been certified by a seed-certifying agency pursuant to Article
206.5 (commencing with Section 52401) of Chapter 2 of Division 18.

end insert

21(c) Upon recommendation by the board or the department, the
22secretary may update the listbegin delete provided in subdivision (a)end deletebegin insert of
23approved seed cultivarsend insert
by adding or removing seed cultivars.

24

81003.  

(a) Except for an established agricultural research
25institution, and before cultivation, a grower of industrial hemp for
26commercial purposes shall register with the commissioner of the
27county in which the grower intends to engage in industrial hemp
28cultivation.

29(1) The application shall include all of the following:

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

31(B) The legal description, Global Positioning System
32coordinates, and map of the land area on which the applicant plans
33to engage in industrial hemp cultivation.

34(C) The approved seed cultivar to be grown and whether the
35seed cultivar will be grown for its grain or fiber, or as a dual
36purpose crop.

37(2) (A) The application shall be accompanied by a registration
38fee, as determined pursuant to Section 81006.

39(B) A registration issued pursuant to this section shall be valid
40for two years, after which the registrant shall renew his or her
P9    1registration and pay an accompanying renewal fee, as determined
2pursuant to Section 81006.

3(b) If the commissioner determines that the requirements for
4registration pursuant to this division are met, the commissioner
5shall issue a registration to the applicant.

6(c) A registrant that wishes to alter the land area on which the
7registrant conducts industrial hemp cultivation shall, before altering
8the area, submit to the commissioner an updated legal description,
9Global Positioning System coordinates, and map specifying the
10proposed alteration. Once the commissioner has received the
11change to the registration, the commissioner shall notify the
12registrant that it may cultivate industrial hemp on the altered land
13area.

14(d) A registrant that wishes to change the seed cultivar grown
15shall submit to the commissioner the name of the new, approved
16seed cultivar to be grown. Once the commissioner has received
17the change to the registration, the commissioner shall notify the
18registrant that it may cultivate the new seed cultivar.

19

81004.  

(a) Except when grown by an established agricultural
20research institution, and before cultivation, a seed breeder shall
21register with the commissioner of the county in which the seed
22breeder intends to engage in industrial hemp cultivation.

23(1) The application shall include all of the following:

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

25(B) The legal description, Global Positioning System
26coordinates, and map of the land area on which the applicant plans
27to engage in industrial hemp cultivation.

28(C) The approved seed cultivar to be grown and whether the
29seed cultivar will be grown for its grain or fiber, as a dual purpose
30crop, or for seed production.

begin insert

31(D) If an applicant intends to develop a new California seed
32cultivar to be certified by a seed-certifying agency, the applicant
33shall include the name of the seed-certifying agency that will be
34conducting the certification and what industrial hemp varieties
35will be used in the development of the new California cultivar.

end insert

36(2) (A) The application shall be accompanied by a registration
37fee, as determined pursuant to Section 81006.

38(B) A registration issued pursuant to this section shall be valid
39for two years, after which the registrant shall renew its registration
P10   1and pay an accompanying renewal fee, as determined pursuant to
2Section 81006.

3(b) If the commissioner determines that the requirements for
4registration pursuant to this division are met, the commissioner
5shall issue a seed breeder registration to the applicant.

6(c) A registrant that wishes to alter the land area on which the
7registrant conducts industrial hemp cultivation shall, before altering
8the area, submit to the commissioner an updated legal description,
9Global Positioning System coordinates, and map specifying the
10proposed alteration. Once the commissioner has received the
11change to the registration, the commissioner shall notify the
12registrant that it may cultivate industrial hemp on the altered land
13area.

14(d) A registrant that wishes to change the seed cultivar grown
15shall submit to the commissioner the name of the new, approved
16seed cultivar to be grown. Once the commissioner has received
17the change to the registration, the commissioner shall notify the
18registrant that it may cultivate the new seed cultivar.

19(e) The commissioner shall transmit information collected under
20this section to the department.

21

81005.  

The department shall establish, and each commissioner
22shall collect, an assessment rate to be paid by growers of industrial
23hemp for commercial purposes and seed breeders, not including
24an established agricultural research institution, to defray the
25reasonable costs of each commissioner in implementing and
26enforcing the provisions of this division.

27

81006.  

The commissioner of each county shall process
28registrations and renewals within his or her county as economically
29as possible. Each commissioner shall establish a registration fee
30and a renewal fee to be imposed on industrial hemp growers and
31seed breeders, to cover the reasonable costs of the registration and
32renewal process pursuant to Sections 81003 and 81004. A renewal
33fee shall not exceed more than one-half of the registration fee.

34

81007.  

(a) begin insert(1)end insertbegin insertend insert Except when grown by an established
35agricultural research institution orbegin insert a registeredend insert seed breeder
36begin insert developing a new California seed cultivarend insert, industrial hemp shall
37be grown only as a densely planted fiber or oilseed crop, or both,
38in acreages of not less than five acresbegin insert at the same timeend insert, and no
39portion of an acreage of industrial hemp shall include plots of less
40than one contiguous acre.

begin insert

P11   1(2) Registered seed breeders, for purposes of seed production,
2shall only grow industrial hemp as a densely planted crop in
3acreages of not less than two acres at the same time, and no portion
4of the acreage of industrial hemp shall include plots of less than
5one contiguous acre.

end insert

6(b) Ornamental and clandestine cultivation, as well as the
7pruning, culling, and tending of individual plants, of industrial
8hemp is prohibited. All plots shall have adequate signage indicating
9they are industrial hemp.

10(c) Industrial hemp shall include products imported under the
11Harmonized Tariff Schedule of the United States (2013) of the
12United States International Trade Commission, including hemp
13seed, per subheading 1207.99.03, hemp oil, per subheading
141515.90.80, true hemp, per heading 5302, true hemp yarn, per
15subheading 5308.20.00, and woven fabrics of true hemp fibers,
16per subheading 5311.00.40.

17(d) Except when industrial hemp is grown by an established
18agricultural research institution, a registrantbegin delete whoend deletebegin insert thatend insert grows
19industrial hemp under this section shall, before the harvest of each
20crop and as provided below, obtain a laboratory test report
21indicating the tetrahydrocannabinol (THC) levels of a random
22sampling of the dried flowering tops of the industrial hemp grown.

23(1) Sampling shall occur as soon as practicable when the THC
24content of the leaves surrounding the seeds is at its peak and shall
25commence as the seeds begin to mature, when the first seeds of
26approximately 50 percent of the plants are resistant to compression.

27(2) The entire fruit-bearing part of the plant including the seeds
28shall be used as a sample. The sample cut shall be made directly
29underneath the inflorescence found in the top one-third of the plant.

30(3) The laboratory test report shall be issued by a laboratory
31registered with the federal Drug Enforcement Administration, shall
32state the percentage content of THC, shall indicate the date and
33location of samples taken, and shall state the Global Positioning
34System coordinates and total acreage of the crop. If the laboratory
35test report indicates a percentage content of THC that is equal to
36or less than three-tenths of 1 percent, the words “PASSED AS
37CALIFORNIA INDUSTRIAL HEMP” shall appear at or near the
38top of the laboratory test report. If the laboratory test report
39indicates a percentage content of THC that is greater than
40three-tenths of 1 percent, the words “FAILED AS CALIFORNIA
P12   1INDUSTRIAL HEMP” shall appear at or near the top of the
2laboratory test report.

3(4) If the laboratory test report indicates a percentage content
4of THC that is equal to or less than three-tenths of 1 percent, the
5laboratory shall provide the person who requested the testing not
6less than 10 original copies signed by an employee authorized by
7the laboratory and shall retain one or more original copies of the
8laboratory test report for a minimum of two years from its date of
9sampling.

10(5) If the laboratory test report indicates a percentage content
11of THC that is greater than three-tenths of 1 percent and does not
12exceed 1 percent, the registrant that grows industrial hemp shall
13submit additional samples for testing of the industrial hemp grown.

14(6) A registrant that grows industrial hemp shall destroy the
15industrial hemp grown upon receipt of a first laboratory test report
16indicating a percentage content of THC that exceeds 1 percent or
17a second laboratory test report pursuant to paragraph (5) indicating
18a percentage content of THC that exceeds three-tenths of 1 percent
19but is less than 1 percent. If the percentage content of THC exceeds
201 percent, the destruction shall take place within 48 hours after
21receipt of the laboratory test report. If the percentage content of
22THC in the second laboratory test report exceeds three-tenths of
231 percent but is less than 1 percent, the destruction shall take place
24as soon as practicable, but no later than 45 days after receipt of
25the second test report.

26(7) Paragraph (6) does not apply to industrial hemp grown by
27an established agricultural research institution if the destruction
28of the industrial hemp grown will impede the development of types
29of industrial hemp that will comply with the three-tenths of 1
30percent THC limit established in this section.

31(8) A registrant that intends to grow industrial hemp and who
32complies with this section shall not be prosecuted for the cultivation
33or possession of marijuana as a result of a laboratory test report
34that indicates a percentage content of THC that is greater than
35three-tenths of 1 percent but does not exceed 1 percent.

36(9) Paragraph (8) does not apply to industrial hemp grown by
37an established agricultural research institution. Established
38agricultural research institutions shall be permitted to cultivate or
39possess industrial hemp with a laboratory test report that indicates
40a percentage content of THC that is greater than three-tenths of 1
P13   1percent if that cultivation or possession contributes to the
2development of types of industrial hemp that will comply with the
3three-tenths of 1 percent THC limit established in this section.

4(10) Except for an established agricultural research institution,
5a registrant that grows industrial hemp shall retain an original
6signed copy of the laboratory test report for two years from its date
7of sampling, make an original signed copy of the laboratory test
8report available to the department, the commissioner, or law
9enforcement officials or their designees upon request, and shall
10provide an original copy of the laboratory test report to each person
11purchasing, transporting, or otherwise obtaining from the registrant
12that grows industrial hemp the fiber, oil, cake, or seed of the plant.

13

81008.  

This division shall not be construed to authorize any
14of the following, and all of the following are prohibited:

15(a) The possession, outside of a field of lawful cultivation, of
16resin, flowering tops, or leaves that have been removed from the
17hemp plant, except as is necessary to perform testing pursuant to
18subdivision (d) of Section 81007.

19(b) Any ornamental or clandestine cultivation of the industrial
20hemp plant.

21(c) Any pruning, culling, or tending of individual industrial
22hemp plants, except when the action is necessary to perform the
23THC testing pursuant to subdivision (d) of Section 81007.

24(d) Any cultivation of industrial hemp in acreages of less than
25five acres, or any acreage comprised of plots of less than one
26contiguous acre, except when the industrial hemp is grown by an
27established agricultural research institution or seed breeder.

28

81009.  

(a) Not later than January 1, 2019, or five years after
29the provisions of this division are authorized under federal law,
30whichever is later, the Attorney General shall report to the
31Assembly and Senate Committees on Agriculture and the Assembly
32and Senate Committees on Public Safety the reported incidents,
33if any, of the following:

34(1) A field of industrial hemp being used to disguise marijuana
35cultivation.

36(2) Claims in a court hearing by persons other than those
37exempted in subdivision (d) of Section 81007 that marijuana is
38industrial hemp.

P14   1(b) A report submitted pursuant to subdivision (a) shall be
2submitted in compliance with Section 9795 of the Government
3Code.

4(c) Pursuant to Section 10231.5 of the Government Code, this
5section is repealed on January 1, 2023, or four years after the date
6that the report is due, whichever is later.

7

81010.  

Not later than January 1, 2019, or five years after the
8provisions of this division are authorized under federal law,
9whichever is later, the board, in consultation with the Hemp
10Industries Association, shall report the following to the Assembly
11and Senate Committees on Agriculture and the Assembly and
12Senate Committees on Public Safety:

13(a) The economic impacts of industrial hemp cultivation,
14processing, and product manufacturing in California.

15(b) The economic impacts of industrial hemp cultivation,
16processing, and product manufacturing in other states that may
17have permitted industrial hemp cultivation.

18

81011.  

This division shall not become operative unless
19authorized under federal law.

20

SEC. 4.  

Section 11018 of the Health and Safety Code is
21amended to read:

22

11018.  

“Marijuana” means all parts of the plant Cannabis sativa
23L., whether growing or not; the seeds of that plant; the resin
24extracted from any part of the plant; and every compound,
25manufacture, salt, derivative, mixture, or preparation of the plant,
26its seeds or resin. It does not include industrial hemp, as defined
27in Section 11018.5, except where the plant is cultivated or
28processed for purposes not expressly allowed for by Division 24
29(commencing with Section 81000) of the Food and Agricultural
30Code.

31

SEC. 5.  

Section 11018.5 is added to the Health and Safety
32Code
, to read:

33

11018.5.  

“Industrial hemp” means a fiber or oilseed crop, or
34both, that is limited to nonpsychoactive types of the plant Cannabis
35sativa L. and the seed produced therefrom, having no more than
36three-tenths of 1 percent tetrahydrocannabinol (THC) contained
37in the dried flowering tops, and that is cultivated and processed
38exclusively for the purpose of producing the mature stalks of the
39plant, fiber produced from the stalks, oil or cake made from the
40seeds of the plant, or any other compound, manufacture, salt,
P15   1derivative, mixture, or preparation of the mature stalks, except the
2resin or flowering tops extracted therefrom, fiber, oil, or cake, or
3the sterilized seed of the plant that is incapable of germination.

4

SEC. 6.  

No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6a local agency or school district has the authority to levy service
7charges, fees, or assessments sufficient to pay for the program or
8level of service mandated by this act or because costs that may be
9incurred by a local agency or school district will be incurred
10because this act creates a new crime or infraction, eliminates a
11crime or infraction, or changes the penalty for a crime or infraction,
12within the meaning of Section 17556 of the Government Code, or
13changes the definition of a crime within the meaning of Section 6
14of Article XIII B of the California Constitution.

15

SEC. 7.  

(a) This act shall not become operative unless
16authorized under federal law.

17(b) If this act becomes operative, the Attorney General shall
18issue an opinion on the extent of that authorization under federal
19law and California law, the operative date of those provisions, and
20whether federal law imposes any limitations that are inconsistent
21with the provisions of this act.

22(c) The Attorney General shall post the opinion described in
23subdivision (b) on thebegin delete Officeend deletebegin insert officeend insert of the Attorney General’s
24Internet Web site.



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