Amended in Assembly September 6, 2013

Amended in Assembly August 27, 2013

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 amend Section 221 of, to add Division 24 (commencing with Section 81000) to, and to repeal Section 81008 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, and making an appropriation therefor.

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 pursuant to the Medical Marijuana Program. For purposes of the provisions defining criminal conduct, 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 billbegin insert, the California Industrial Hemp Farming Act,end insert 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 sterilizedbegin delete seedend deletebegin insert seed, or any component of theend insertbegin insert seed,end insert 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.begin insert The bill would require, except as specified, that industrial hemp be grown only if it is on the list of approved seed cultivars and would require the Department of Food and Agriculture to determine the methodology and procedure by which the list of approved seed cultivars may be amended, as specified. end insert The bill would require a grower of industrial hemp, as specified, and a seed breeder, as defined, to register, and to renew that registration every 2 years, with the county agricultural commissioner and to pay a registration or renewal fee, as determined by the Department of Food and Agriculture. The bill would require the fees collected pursuant to these provisions to be deposited into the Department of Food and Agriculture Fund, to be continuously appropriated to cover thebegin insert actualend insert costs of implementing, administering, and enforcing these provisions. By establishing a new source of revenue for a continuously appropriated fund, this bill would make an appropriation.

The bill would require a registrant growing 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 wouldbegin delete provide that authorization to grow industrial hemp shall not be construed to authorizeend deletebegin insert prohibitend insert certain other conduct, including, 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,begin insert and the pruning and tending of individual industrial hemp plants,end insert except asbegin delete necessary to perform the required laboratory testingend deletebegin insert specifiedend insert. 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, and would make nonsubstantive changes.

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 law and, if the provisions become operative, would require the Attorney General to issue an opinionbegin insert regarding that authorizationend insert, as specified, and to post the opinion on the office of the Attorney General’s Internet Web site.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

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

P4    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
7thousands of products, including paper, textiles, food, oils,
8automotive parts, and personal care products.

9(b) The United States Court of Appeals for the Ninth Circuit
10has ruled in Hemp Industries Association v. Drug Enforcement
11Administration, (9th Cir. 2004) 357 F.3d 1012, that the federal
12Controlled Substances Act of 1970 (21 U.S.C. Sec. 812(b))
13explicitly excludes nonpsychoactive hemp from the definition of
14marijuana, and the federal government has declined to appeal that
15decision.

16(c) The federal Controlled Substances Act of 1970 specifies the
17findings to which the government must attest in order to classify
18a substance as a schedule I drug and those findings include that
19the substance has a high potential for abuse, has no accepted
20medical use, and has a lack of accepted safety for use, none of
21which apply to industrial hemp.

22(d) According to estimates by the Hemp Industries Association,
23sales of industrial hemp products in the United States have grown
24steadily since 1990 to more than $500 million annually in 2012.

25(e) California manufacturers of hemp products currently import
26from around the world tens of thousands of acres’ worth of hemp
27seed, oil, and fiber products that could be produced by California
28farmers at a more competitive price, and the intermediate
29processing of hemp seed, oil,begin insert food ingredients,end insert and fiber could
30create jobs in close proximity to the fields of cultivation.

31(f) In 1999, the Assembly passed House Resolution 32, which
32resolved that “the domestic production of industrial hemp can help
33protect California’s environment, contribute to the growth of the
34state economy, and be regulated in a manner that will not interfere
35with the enforcement of marijuana laws.”

P5    1(g) Assessment of the economic benefits of industrial hemp
2cultivation and determination of possible impacts on the
3enforcement of laws prohibiting illicit marijuana cultivation are
4important concerns.

5(h) It is the intent of the Legislature that law enforcement not
6be burdened with tetrahydrocannabinol (THC) testing of industrial
7hemp crops when cultivation is in compliance with Section 11018.5
8of the Health and Safety Code; therefore, the cultivation of
9industrial hemp shall be tightly controlled pursuant to Division 24
10(commencing with Section 81000) of the Food and Agricultural
11Code, as added by Sectionbegin delete 3end deletebegin insert 4end insert of this bill, which includes
12provisions consistent with all of the following:

13(1) begin deleteFarmers end deletebegin insertFarmers, not including established agricultural
14research institutions or registered seed breeders, end insert
shall not cultivate
15industrial hemp in acreages smaller than five acres at the same
16time, and no acreage of industrial hemp shall be comprised of plots
17smaller than one acre. begin delete The tending of individual plants, as well as
18ornamentalend delete
begin insert Ornamentalend insert and clandestinebegin delete cultivation,end deletebegin insert cultivationend insert is
19expresslybegin delete prohibitedend deletebegin insert prohibited, and the pruning and tending of
20individual industrial hemp plants are prohibited except when those
21plants are grown by an established agricultural research institution
22or when necessary to perform THC testingend insert
.

23(2) Farmers are required, before harvest, to obtain a laboratory
24test report from a federally registered laboratory documenting that
25the THC content of their crop is within the legal limit and farmers
26shall destroy crops that fail the THC test.

27(3) Farmers shall retain an original copy of the THC test report
28for the planting seed and the harvested crop for two years, make
29original copies available to law enforcement officials upon request,
30and are required to provide an original copy to each person
31purchasing, transporting, or otherwise obtaining the fiber, oil, cake,
32or seed of the plant from the farmer.

33(4) Although they have no psychoactive effect, any resin,
34flowering tops, or leaves of the industrial hemp plant that are
35removed from the lawful field of cultivation shall be, by definition,
36marijuana and subject to prosecution. Farmers should take care to
37ensure that all flowering tops and leaves remain in the lawful field
38of cultivation after the harvest of seed or fiber, and the possession
39of those tops and leaves outside of the field of cultivation is
P6    1prohibited. There is no lawful reason to harvest, collect, or process
2the flowering tops of industrial hemp.

3(5) In addition to plant structure, height, and method of planting,
4the horticultural tending of cannabis plants indicates to law
5enforcement that it is marijuana and not industrial hemp. Signs of
6horticultural tending include, but are not limited to, pathways or
7rows within the field that provide access to each plant, the pruning
8of individual plants, or the culling of male plants from the field.

9

SEC. 3.  

Section 221 of the Food and Agricultural Code is
10amended to read:

11

221.  

(a) The “Department of Food and Agriculture Fund,”
12which is a special fund, is continued in existence. Anybegin delete moneyend delete
13begin insert moneysend insert thatbegin delete isend deletebegin insert areend insert directed by law to be paid into the fund shall
14be paid into it and, unless otherwise specifically provided, shall
15be expended solely for the enforcement of the law under which
16thebegin delete money wasend deletebegin insert moneys wereend insert derived. The expenditure from the
17fund for the enforcement of any law shall not, unless otherwise
18specifically provided, exceed the amount ofbegin delete moneyend deletebegin insert moneysend insert that
19is credited to the fund pursuant to the law.

20 (b) Notwithstanding Section 13340 of the Government Code,
21allbegin delete moneyend deletebegin insert moneysend insert deposited in the fund under the provisions
22enumerated in subdivision (c)begin delete isend deletebegin insert areend insert hereby continuously
23appropriated to the department without regard to fiscal years for
24expenditure in carrying out the purposes for which thebegin delete money wasend delete
25begin insert moneys wereend insert deposited and for making the refunds authorized by
26Section 302.

27 (c) All moneys deposited in the fund under the provisions
28enumerated belowbegin delete isend deletebegin insert areend insert hereby exempted from Sections 13320
29to 13324, inclusive, of the Government Code:

30(1) Article 7 (commencing with Section 5821) and Article 7.5
31(commencing with Section 5850) of Chapter 8 of Part 1 of Division
324, Chapter 1 (commencing with Section 6701) of Part 3 of Division
334, and Chapter 5 (commencing with Section 53301) of Division
3418.

35(2) Article 5 (commencing with Section 6001) of Chapter 9 of
36Part 1 of Division 4.

37(3) Article 8.5 (commencing with Section 6047.1) of Chapter
389 of Part 1 of Division 4.

39(4) Article 5 (commencing with Section 6981) of Chapter 2 of
40Part 3 of Division 4.

P7    1(5) Chapter 4 (commencing with Section 14200), Chapter 5
2(commencing with Section 14501), and Chapter 6 (commencing
3with Section 14901) of Division 7.

4(6) Part 1 (commencing with Section 16301) and Part 2
5(commencing with Section 17401) of Division 9.

6(7) Sections 19225, 19227, 19312, and 19315.

7(8) Division 10 (commencing with Section 20001).

8(9) Division 11 (commencing with Section 23001).

9(10) Part 4 (commencing with Section 27501) of Division 12.

10(11) Division 16 (commencing with Section 40501).

11(12) Chapter 9 (commencing with Section 44971) of Division
1217.

13(13) Chapter 1 (commencing with Section 52001) of Division
1418.

15(14) Chapter 2 (commencing with Section 52251) of Division
1618.

17(15) Chapter 3 (commencing with Section 52651) of Division
1818.

19(16) Chapter 4 (commencing with Section 52851) of Division
2018.

21(17) Chapter 6 (commencing with Section 55401), Chapter 7
22(commencing with Section 56101), and Chapter 7.5 (commencing
23with Section 56701) of Division 20.

24(18) Section 58582.

25(19) Chapter 1 (commencing with Section 61301), Chapter 2
26(commencing with Section 61801), and Chapter 3 (commencing
27with Section 62700) of Part 3 of Division 21.

28(20) Division 24 (commencing with Section 81000).

29(21) Chapter 5.5 (commencing with Section 12531) of Division
305 of the Business and Professions Code.

31(22) Chapter 7 (commencing with Section 12700) of Division
325 of the Business and Professions Code.

33(23) Chapter 14 (commencing with Section 13400) and Chapter
3415 (commencing with Section 13700) of Division 5 of the Business
35and Professions Code.

36

SEC. 4.  

Division 24 (commencing with Section 81000) is added
37to the Food and Agricultural Code, to read:

 

P8    1Division 24.  Industrial Hemp

2

 

3

81000.  

For purposes of this division, the following terms have
4the following meanings:

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

6(b) “Commissioner” means the county agricultural
7commissioner.

8(c) “Established agricultural research institution” means a public
9or private institution or organization that maintains land for
10agricultural research, including colleges, universities, agricultural
11research centers, and conservation research centers.

12(d) “Industrial hemp” has the same meaning as that term is
13defined in Section 11018.5 of the Health and Safety Code.

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

15(f) “Seed breeder” means an individual or public or private
16institution or organization that is registered with the commissioner
17to develop seed cultivars intended for sale or research.

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

begin insert

19(h) “Seed development plan” means a strategy devised by a
20seed breeder, or applicant seed breeder, detailing his or her
21planned approach to growing and developing a new seed cultivar
22for industrial hemp.

end insert
23

81001.  

(a) There is in the department an Industrial Hemp
24Advisory Board. The board shall consist of 11 members, appointed
25by the secretary as follows:

26(1) Three of the board members shall be growers of industrial
27hemp that are registered pursuant to the provisions of this division.
28begin insert In the case of forming the initial board, and if the registration
29program established pursuant to this division has not yet been
30implemented, these board members shall be those who intend to
31register as growers of industrial hemp. end insert
A member of the board
32who is a grower of industrialbegin delete hempend deletebegin insert hemp, or who intends to register
33as a grower of industrial hemp,end insert
shall be a representative of at least
34one of the following functions:

35(A) Seed production.

36(B) Seed condition.

37(C) Marketing.

38(D) Seed utilization.

39(2) Two of the board members shall be members of an
40established agricultural research institution.

P9    1(3) One member of the board shall be a representativebegin delete ofend deletebegin insert as
2provided byend insert
the California State Sheriffs’ Associationbegin delete or other law
3enforcement association who has experience or a background in
4agricultural issues.end delete
begin insert and approved by the secretary.end insert

5(4) One member of the board shall be a county agricultural
6commissioner.

7(5) One member of the board shall be a representative of the
8Hemp Industries Association or its successor industry association.

9(6) One member of the board shall be a representative of
10industrial hemp productbegin insert processors orend insert manufacturers.

11(7) One member of the board shall be a representative of
12businesses that sell industrial hemp products.

13(8) One member of the board shall be a member of the public.

14(b) It is hereby declared, as a matter of legislative determination,
15that growers and representatives of industrial hemp product
16manufacturers and businesses appointed to the board pursuant to
17this division are intended to represent and further the interest of a
18particular agricultural industry, and that the representation and
19furtherance is intended to serve the public interest. Accordingly,
20the Legislature finds that persons who are appointed to the board
21shall be subject to the conflict-of-interest provisions described in
22Section 87103 of the Government Code.

23(c) The term of office for a member of the board is three years.
24If a vacancy exists, the secretary shall, consistent with the
25membership requirements described in subdivision (a), appoint a
26 replacement member to the board for the duration of the term.

27(d) A member of the board shall not receive a salary but may
28be reimbursed by the department for attendance at meetings and
29other board activities authorized by the board and approved by the
30secretary.

31(e) The board shall advise the secretary and may make
32recommendations on all matters pertaining to this division,
33including, but not limited to, industrial hemp seed law and
34regulations, enforcement, annual budgets required to accomplish
35the purposes of this division, and the setting of an appropriate
36assessment rate necessary for the administration of this division.

37(f) The board shall annually elect a chair from its membership
38and, from time to time, other officers as it deems necessary.

39(g) The board shall meet at the call of its chair or the secretary,
40or at the request of any four members of the board. The board shall
P10   1meet at least once a year to review budget proposals and fiscal
2matters related to the proposals.

3

81002.  

(a) Except when grown by an established agricultural
4research institution or by a registered seed breeder developing a
5new California seed cultivar, industrial hemp shall only be grown
6if it is on the list of approved seed cultivars.

7(b) The list of approved seed cultivars shall include all of the
8following:

9(1) Industrial hemp seed cultivars that have been certified on
10or before January 1, 2013, by member organizations of the
11Association of Official Seed Certifying Agencies, including, but
12not limited to, the Canadian Seedbegin delete Growersend deletebegin insert Growers’end insert Association.

13(2) Industrial hemp seed cultivars that have been certified on
14or before January 1, 2013, by the Organization of Economic
15Cooperation and Development.

16(3) California varieties of industrial hemp seed cultivars that
17have been certified by a seed-certifying agency pursuant to Article
186.5 (commencing with Section 52401) of Chapter 2 of Division
1918.

20(c) Upon recommendation by the board or the department, the
21secretary may update the list of approved seed cultivars bybegin delete addingend delete
22begin insert adding, amending, end insert or removing seed cultivars.

begin insert

23(1) The adoption, amendment, or repeal of the list of approved
24seed cultivars, and the adoption of a methodology and procedure
25to add, amend, or remove a seed cultivar from the list of approved
26seed cultivars, pursuant to this section shall not be subject to the
27requirements of the Administrative Procedure Act (Chapter 3.5
28(commencing with Section 11340) of Part 1 of Division 3 of Title
292 of the Government Code).

end insert
begin insert

30(2) The department, in consultation with the board, shall hold
31at least one public hearing with public comment to determine the
32methodology and procedure by which a seed cultivar is added,
33amended, or removed from the list of approved seed cultivars.

end insert
begin insert

34(3) The department shall finalize the methodology and procedure
35to add, amend, or remove a seed cultivar from the list of approved
36seed cultivars and send the methodology and procedure to the
37Office of Administrative Law. The Office of Administrative Law
38shall file the methodology and procedure promptly with the
39Secretary of State without further review pursuant to Article 6
40(commencing with Section 11349) of Chapter 3.5 of Part 1 of
P11   1Division 3 of Title 2 of the Government Code. The methodology
2and procedure shall do all of the following:

end insert
begin insert

3(A) Indicate that the methodology and procedure are adopted
4pursuant to this division.

end insert
begin insert

5(B) State that the methodology and procedure are being
6transmitted for filing.

end insert
begin insert

7(C) Request that the Office of Administrative Law publish a
8notice of the filing of the methodology and procedure and print
9an appropriate reference in Title 3 of the California Code of
10Regulations.

end insert
begin insert

11(d) The department, in consultation with the board, may
12determine the manner in which the public is given notice of the
13list of approved seed cultivars, and any addition, amendment, or
14removal from that list.

end insert
15

81003.  

(a) Except for an established agricultural research
16institution, and before cultivation, a grower of industrial hemp for
17commercial purposes shall register with the commissioner of the
18county in which the grower intends to engage in industrial hemp
19cultivation.

20(1) The application shall include all of the following:

21(A) Thebegin delete name andend deletebegin insert name, physical address, and mailingend insert address
22of the applicant.

23(B) The legal description, Global Positioning System
24coordinates, and map of the land area on which the applicant plans
25to engage in industrial hempbegin delete cultivationend deletebegin insert cultivation, storage, or
26bothend insert
.

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

30(2) (A) The application shall be accompanied by a registration
31fee, as determined pursuant to Section 81005.

32(B) A registration issued pursuant to this section shall be valid
33for two years, after which the registrant shall renew his or her
34registration and pay an accompanying renewal fee, as determined
35pursuant to Section 81005.

36(b) If the commissioner determines that the requirements for
37registration pursuant to this division are met, the commissioner
38shall issue a registration to the applicant.

39(c) A registrant that wishes to alter the land area on which the
40registrant conducts industrial hemp cultivationbegin insert, storage, or both,end insert
P12   1 shall, before altering the area, submit to the commissioner an
2updated legal description, Global Positioning System coordinates,
3and map specifying the proposed alteration. Once the commissioner
4has received the change to the registration, the commissioner shall
5notify the registrant that it may cultivate industrial hemp on the
6altered land area.

7(d) A registrant that wishes to change the seed cultivar grown
8shall submit to the commissioner the name of the new, approved
9seed cultivar to be grown. Once the commissioner has received
10the change to the registration, the commissioner shall notify the
11registrant that it may cultivate the new seed cultivar.

begin insert

12(e) The commissioner shall transmit information collected under
13this section to the department.

end insert
14

81004.  

(a) Except when grown by an established agricultural
15research institution, and before cultivation, a seed breeder shall
16register with the commissioner of the county in which the seed
17breeder intends to engage in industrial hemp cultivation.

18(1) The application shall include all of the following:

19(A) Thebegin delete name andend deletebegin insert name, physical address, and mailingend insert address
20of the applicant.

21(B) The legal description, Global Positioning System
22coordinates, and map of the land area on which the applicant plans
23to engage in industrial hempbegin delete cultivationend deletebegin insert cultivation, storage, or
24bothend insert
.

25(C) The approved seed cultivar to be grown and whether the
26seed cultivar will be grown for its grain or fiber, as a dual purpose
27crop, or for seed production.

28(D) If an applicant intends to develop a new California seed
29cultivar to be certified by a seed-certifying agency, the applicant
30shall include begin delete the name of the seed-certifying agency that will be
31conducting the certification and what industrial hemp varieties
32will be used in the development of the new California seed cultivar.end delete

33begin insert all of the following:end insert

begin insert

34(i) The name of the seed-certifying agency that will be
35conducting the certification.

end insert
begin insert

36(ii) The industrial hemp varieties that will be used in the
37development of the new California seed cultivar.

end insert
begin insert

38(iii) A seed development plan specifying how the listed industrial
39hemp varieties will be used in the development of the new seed
40cultivar, measures that will be taken to prevent the unlawful use
P13   1of industrial hemp or seed cultivars under this division, and a
2procedure for the maintenance of records documenting the
3development of the new seed cultivar.

end insert

4(2) (A) The application shall be accompanied by a registration
5fee, as determined pursuant to Section 81005.

6(B) A registration issued pursuant to this section shall be valid
7for two years, after which the registrant shall renew its registration
8and pay an accompanying renewal fee, as determined pursuant to
9Section 81005.

10(b) If the commissioner determines that the requirements for
11registration pursuant to this division are met, the commissioner
12shall issue a seed breeder registration to the applicant.

13(c) A registrant that wishes to alter the land area on which the
14registrant conducts industrial hempbegin delete cultivationend deletebegin insert cultivation, storage,
15or both,end insert
shall, before altering the area, submit to the commissioner
16an updated legal description, Global Positioning System
17coordinates, and map specifying the proposed alteration. Once the
18commissioner has received the change to the registration, the
19commissioner shall notify the registrant that it may cultivate
20industrial hemp on the altered land area.

21(d) A registrant that wishes to change the seed cultivar grown
22shall submit to the commissioner the name of the new, approved
23seed cultivar to be grown. Once the commissioner has received
24the change to the registration, the commissioner shall notify the
25registrant that it may cultivate the new seed cultivar.

begin insert

26(e) A registrant developing a new California seed cultivar who
27wishes to change any provision of the seed development plan shall
28submit to the commissioner the revised seed development plan.
29Once the commissioner has received the change to the registration,
30the commissioner shall notify the registrant that he or she may
31cultivate under the revised seed development plan.

end insert
begin insert

32(f) All records pertaining to the seed development plan shall be
33kept and maintained by the seed breeder and be available upon
34request by the commissioner, a law enforcement agency, or a seed
35certifying agent.

end insert
begin delete

36(e)

end delete

37begin insert(g)end insert The commissioner shall transmit information collected under
38this section to the department.

39

81005.  

(a) The department shall establish a registration fee
40and appropriate renewal fee to be paid by growers of industrial
P14   1hemp for commercial purposes and seed breeders, not including
2an established agricultural research institution, to cover thebegin insert actualend insert
3 costs of implementing, administering, and enforcing the provisions
4of this division.

5(b) Fees collected by the commissioners upon registration or
6renewal pursuant to Section 81003 or 81004 shall be forwarded,
7according to procedures set by the department, to the department
8for deposit into the Department of Food and Agriculture Fund to
9be used for the administration and enforcement of this division.

10

81006.  

(a) (1) Except when grown by an established
11agricultural research institution or a registered seed breeder
12begin delete developing a new California seed cultivarend delete, industrial hemp shall
13be grown only as a densely planted fiber or oilseed crop, or both,
14in acreages of not less than five acres at the same time, and no
15portion of an acreage of industrial hemp shall include plots of less
16than one contiguous acre.

17(2) Registered seed breeders, for purposes of seed production,
18shall only grow industrial hemp as a densely planted crop in
19acreages of not less than two acres at the same time, and no portion
20of the acreage of industrial hemp shall include plots of less than
21one contiguous acre.

begin insert

22(3) Registered seed breeders, for purposes of developing a new
23California seed cultivar, shall grow industrial hemp as densely as
24possible in dedicated acreage of not less than one acre and in
25accordance with the seed development plan. The entire area of
26the dedicated acreage is not required to be used for the cultivation
27of the particular seed cultivar.

end insert

28(b) Ornamental and clandestinebegin delete cultivation, as well as the
29pruning, culling, and tending of individual plants,end delete
begin insert cultivationend insert of
30industrial hemp is prohibited. All plots shall have adequate signage
31indicating they are industrial hemp.

begin insert

32(c) Pruning and tending of individual industrial hemp plants is
33prohibited, except when grown by an established agricultural
34research institution or when the action is necessary to perform the
35THC testing described in this section.

end insert
begin insert

36(d) Culling of industrial hemp is prohibited, except when grown
37by an established agricultural research institution, when the action
38is necessary to perform the THC testing described in this section,
39or for purposes of seed production and development by a registered
40seed breeder.

end insert
begin delete

P15   1(c)

end delete

2begin insert(e)end insert Industrial hemp shall include products imported under the
3Harmonized Tariff Schedule of the United States (2013) of the
4United States International Trade Commission,begin delete includingend deletebegin insert including,
5but not limited to,end insert
hemp seed, per subheading 1207.99.03, hemp
6oil, per subheading 1515.90.80,begin insert oilcake, per subheading
72306.90.01,end insert
true hemp, per heading 5302, true hemp yarn, per
8subheading 5308.20.00, and woven fabrics of true hemp fibers,
9per subheading 5311.00.40.

begin delete

10(d)

end delete

11begin insert(f)end insert Except when industrial hemp is grown by an established
12agricultural research institution, a registrant that grows industrial
13hemp under this section shall, before the harvest of each crop and
14as provided below, obtain a laboratory test report indicating the
15tetrahydrocannabinol (THC) levels of a random sampling of the
16dried flowering tops of the industrial hemp grown.

17(1) Sampling shall occur as soon as practicable when the THC
18content of the leaves surrounding the seeds is at its peak and shall
19commence as the seeds begin to mature, when the first seeds of
20approximately 50 percent of the plants are resistant to compression.

21(2) The entire fruit-bearing part of the plant including the seeds
22shall be used as a sample. The sample cut shall be made directly
23underneath the inflorescence found in the top one-third of the plant.

begin insert

24(3) The sample collected for THC testing shall be accompanied
25by the following documentation:

end insert
begin insert

26(A) The registrant’s proof of registration.

end insert
begin insert

27(B) Seed certification documentation for the seed cultivar’s
28used.

end insert
begin insert

29(C) The THC testing report for each certified seed cultivar used.

end insert
begin delete

30(3)

end delete

31begin insert(4)end insert The laboratory test report shall be issued by a laboratory
32registered with the federal Drug Enforcement Administration, shall
33state the percentage content of THC, shall indicate the date and
34location of samples taken, and shall state the Global Positioning
35System coordinates and total acreage of the crop. If the laboratory
36test report indicates a percentage content of THC that is equal to
37or less than three-tenths of 1 percent, the words “PASSED AS
38CALIFORNIA INDUSTRIAL HEMP” shall appear at or near the
39top of the laboratory test report. If the laboratory test report
40indicates a percentage content of THC that is greater than
P16   1three-tenths of 1 percent, the words “FAILED AS CALIFORNIA
2INDUSTRIAL HEMP” shall appear at or near the top of the
3laboratory test report.

begin delete

4(4)

end delete

5begin insert(5)end insert If the laboratory test report indicates a percentage content
6of THC that is equal to or less than three-tenths of 1 percent, the
7laboratory shall provide the person who requested the testing not
8less than 10 original copies signed by an employee authorized by
9the laboratory and shall retain one or more original copies of the
10laboratory test report for a minimum of two years from its date of
11sampling.

begin delete

12(5)

end delete

13begin insert(6)end insert If the laboratory test report indicates a percentage content
14of THC that is greater than three-tenths of 1 percent and does not
15exceed 1 percent, the registrant that grows industrial hemp shall
16submit additional samples for testing of the industrial hemp grown.

begin delete

17(6)

end delete

18begin insert(7)end insert A registrant that grows industrial hemp shall destroy the
19industrial hemp grown upon receipt of a first laboratory test report
20indicating a percentage content of THC that exceeds 1 percent or
21a second laboratory test report pursuant to paragraphbegin delete (5)end deletebegin insert (6)end insert
22 indicating a percentage content of THC that exceeds three-tenths
23of 1 percent but is less than 1 percent. If the percentage content of
24THC exceeds 1 percent, the destruction shall take place within 48
25hours after receipt of the laboratory test report. If the percentage
26content of THC in the second laboratory test report exceeds
27three-tenths of 1 percent but is less than 1 percent, the destruction
28shall take place as soon as practicable, but no later than 45 days
29after receipt of the second test report.

begin delete

30(7) Paragraph (6) does not apply to industrial hemp grown by
31an established agricultural research institution if the destruction
32of the industrial hemp grown will impede the development of types
33of industrial hemp that will comply with the three-tenths of 1
34percent THC limit established in this section.

end delete

35(8) A registrant that intends to grow industrial hemp and who
36complies with this section shall not be prosecuted for the cultivation
37or possession of marijuana as a result of a laboratory test report
38that indicates a percentage content of THC that is greater than
39three-tenths of 1 percent but does not exceed 1 percent.

P17   1(9) begin deleteParagraph (8) does not apply to industrial hemp grown by
2an established agricultural research institution. end delete
Established
3 agricultural research institutions shall be permitted to cultivate or
4possess industrial hemp with a laboratory test report that indicates
5a percentage content of THC that is greater than three-tenths of 1
6percent if that cultivation or possession contributes to the
7development of types of industrial hemp that will comply with the
8three-tenths of 1 percent THC limit established in thisbegin delete sectionend delete
9begin insert divisionend insert.

10(10) Except for an established agricultural research institution,
11a registrant that grows industrial hemp shall retain an original
12signed copy of the laboratory test report for two years from its date
13of sampling, make an original signed copy of the laboratory test
14report available to the department, the commissioner, or law
15enforcement officials or their designees upon request, and shall
16provide an original copy of the laboratory test report to each person
17purchasing, transporting, or otherwise obtaining from the registrant
18that grows industrial hemp the fiber, oil, cake, orbegin delete seedend deletebegin insert seed, or any
19component of the seed,end insert
of the plant.

begin insert

20(g) If, in the Attorney General’s opinion issued pursuant to
21Section 8 of the act that added this division, it is determined that
22the provisions of this section are not sufficient to comply with
23federal law, the department, in consultation with the board, shall
24establish procedures for this section that meet the requirements
25of federal law.

end insert
begin delete
26

81007.  

This division shall not be construed to authorize any
27of the following, and all of the following are prohibited:

28(a) The

end delete
29begin insert

begin insert81007.end insert  

end insert

begin insert(a)end insertbegin insertend insertbegin insertExcept as provided in subdivision (b) or as
30necessary to perform testing pursuant to subdivision (f) of Section
3181006, theend insert
possession, outside of a field of lawful cultivation, of
32resin, flowering tops, or leaves that have been removed from the
33hemp begin delete plant, except as is necessary to perform testing pursuant to
34subdivision (d) of Section 81006end delete
begin insert plant is prohibitedend insert.

begin insert

35(b) The presence of a de minimis amount, or insignificant
36number, of hemp leaves or flowering tops in hemp bales that result
37from the normal and appropriate processing of industrial hemp
38shall not constitute possession of marijuana.

end insert
begin delete

39(b) Any ornamental or clandestine cultivation of the industrial
40hemp plant.

P18   1(c) Any pruning, culling, or tending of individual industrial
2hemp plants, except when the action is necessary to perform the
3THC testing pursuant to subdivision (d) of Section 81006.

4(d) Any cultivation of industrial hemp in acreages of less than
5five acres, or any acreage comprised of plots of less than one
6contiguous acre, except when the industrial hemp is grown by an
7established agricultural research institution or seed breeder in
8accordance with Section 81006.

end delete
9

81008.  

(a) Not later than January 1, 2019, or five years after
10the provisions of this division are authorized under federal law,
11whichever is later, the Attorney General shall report to the
12Assembly and Senate Committees on Agriculture and the Assembly
13and Senate Committees on Public Safety the reported incidents,
14if any, of the following:

15(1) A field of industrial hemp being used to disguise marijuana
16cultivation.

17(2) Claims in a court hearing by persons other than those
18exempted in subdivisionbegin delete (d)end deletebegin insert (f)end insert of Section 81006 that marijuana
19is industrial hemp.

20(b) A report submitted pursuant to subdivision (a) shall be
21submitted in compliance with Section 9795 of the Government
22Code.

23(c) Pursuant to Section 10231.5 of the Government Code, this
24section is repealed on January 1, 2023, or four years after the date
25that the report is due, whichever is later.

26

81009.  

Not later than January 1, 2019, or five years after the
27provisions of this division are authorized under federal law,
28whichever is later, the board, in consultation with the Hemp
29Industries Association,begin insert or its successor industry association,end insert shall
30report the following to the Assembly and Senate Committees on
31Agriculture and the Assembly and Senate Committees on Public
32Safety:

33(a) The economic impacts of industrial hemp cultivation,
34processing, and product manufacturing in California.

35(b) The economic impacts of industrial hemp cultivation,
36processing, and product manufacturing in other states that may
37have permitted industrial hemp cultivation.

38

81010.  

This division shall not become operative unless
39authorized under federal law.

P19   1

SEC. 5.  

Section 11018 of the Health and Safety Code is
2amended to read:

3

11018.  

“Marijuana” means all parts of the plant Cannabis sativa
4L., whether growing or not; the seeds of that plant; the resin
5extracted from any part of the plant; and every compound,
6manufacture, salt, derivative, mixture, or preparation of the plant,
7its seeds or resin. It does not include industrial hemp, as defined
8in Section 11018.5, except where the plant is cultivated or
9processed for purposes not expressly allowed for by Division 24
10(commencing with Section 81000) of the Food and Agricultural
11Code.

12

SEC. 6.  

Section 11018.5 is added to the Health and Safety
13Code
, to read:

14

11018.5.  

“Industrial hemp” means a fiber or oilseed crop, or
15both, that is limited to nonpsychoactive types of the plant Cannabis
16sativa L. and the seed produced therefrom, having no more than
17three-tenths of 1 percent tetrahydrocannabinol (THC) contained
18in the dried flowering tops, and that is cultivated and processed
19exclusively for the purpose of producing the mature stalks of the
20plant, fiber produced from the stalks, oil or cake made from the
21seeds of the plant, or any other compound, manufacture, salt,
22derivative, mixture, or preparation of the mature stalks, except the
23resin or flowering tops extracted therefrom, fiber, oil, or cake, or
24the sterilizedbegin delete seedend deletebegin insert seed, or any component of the seed,end insert of the plant
25that is incapable of germination.

26

SEC. 7.  

No reimbursement is required by this act pursuant to
27Section 6 of Article XIII B of the California Constitution because
28a local agency or school district has the authority to levy service
29charges, fees, or assessments sufficient to pay for the program or
30level of service mandated by this act or because costs that may be
31incurred by a local agency or school district will be incurred
32because this act creates a new crime or infraction, eliminates a
33crime or infraction, or changes the penalty for a crime or infraction,
34within the meaning of Section 17556 of the Government Code, or
35changes the definition of a crime within the meaning of Section 6
36of Article XIII B of the California Constitution.

37

SEC. 8.  

(a) This act shall not become operative unless
38authorized under federal law.

39(b) If this act becomes operative, the Attorney General shall
40issue an opinion on the extent of that authorization under federal
P20   1law and California law, the operative date of those provisions, and
2whether federal law imposes any limitations that are inconsistent
3with the provisions of this act.begin insert The Attorney General should
4complete the opinion as soon as possible or within four months of
5authorization under federal law.end insert

6(c) The Attorney General shall post the opinion described in
7subdivision (b) on the office of the Attorney General’s Internet
8Web site.



O

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