BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 566
Author: Leno (D)
Amended: 9/6/13
Vote: 21
SENATE AGRICULTURE COMMITTEE : 5-0, 4/2/13
AYES: Galgiani, Cannella, Berryhill, Lieu, Wolk
SENATE PUBLIC SAFETY COMMITTEE : 7-0, 4/30/13
AYES: Hancock, Anderson, Block, De León, Knight, Liu, Steinberg
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SENATE FLOOR : 39-0, 5/29/13
AYES: Anderson, Beall, Berryhill, Block, Calderon, Cannella,
Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,
Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff,
Jackson, Knight, Lara, Leno, Lieu, Liu, Monning, Nielsen,
Padilla, Pavley, Price, Roth, Steinberg, Torres, Walters,
Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Vacancy
ASSEMBLY FLOOR : 70-5, 9/10/13 - See last page for vote
SUBJECT : Industrial hemp
SOURCE : Hemp Industries Association
Vote Hemp
CONTINUED
SB 566
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DIGEST : This bill allows the regulated cultivation and
processing of industrial hemp upon federal approval, as
specified.
Assembly Amendments make numerous additions to this bill
including: (1) findings and declarations related to the use and
economic benefits of industrial hemp and the intent of the
Legislature that law enforcement not be burdened with
tetrahydrocannabinol (THC) testing of industrial hemp crops; (2)
includes various definitions for purposes of this bill,
including "seed breeder" and "seed cultivator;" (3) revises the
membership of the Industrial Hemp Advisory Board; (4) prohibits
the pruning and tending of individual industrial hemp plants,
except as provided; and (5) deletes and exemption from the
destruction requirement, as specified.
ANALYSIS :
Existing federal law:
1. Defines "marijuana" as "all parts of the plant Cannabis
sativa L., whether growing or not; the seeds thereof; the
resin extracted from any part of such plant; and every
compound, manufacture, salt, derivative, mixture, or
preparation of such plant, its seeds or resin. Such term
does not include the mature stalks of such plant, fiber
produced from such stalks, oil or cake made from the seeds of
such plant, any other compound, manufacture, salt,
derivative, mixture, or preparation of such mature stalks
(except the resin extracted therefrom), fiber, oil, or cake,
or the sterilized seed of such plant which is incapable of
germination."
2. Places controlled substances in five schedules, ranked by
medical benefit and potential for abuse. Schedule I
controlled substances are deemed to have no medical benefits
and high potential for abuse.
3. Lists marijuana as a schedule I controlled substance.
4. Lists THC as a separate schedule I substance. As clarified
by case law, THC in Schedule I applies only to synthetic THC,
because "if naturally-occurring THC were covered under THC,
there would be no need to have a separate category for
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marijuana, ? which contains naturally-occurring THC."
Existing law:
1. Defines "marijuana" as all parts of the plant Cannabis
sativa L., whether growing or not; the seeds thereof; the
resin extracted from any part of the plant; and every
compound, manufacture, salt, derivative, mixture, or
preparation of the plant, its seeds or resin. It does not
include the mature stalks of the plant, fiber produced from
the stalks, oil or cake made from the seeds of the plant, any
other compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted
therefrom), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination.
2. States that except as otherwise provided by law, every
person who plants, cultivates harvests, dries, or processes,
any marijuana, or any part thereof, except as otherwise
provided by law, shall be punishable by imprisonment in the
county jail as specified.
3. States that except as otherwise provided by law, every
person that possesses marijuana for the purposes of sale
shall be punished by imprisonment in the county jail as
specified.
4. Provides, except as authorized by law, every person who
possesses any concentrated cannabis shall be punished by
imprisonment in the county jail for a period of not more than
one year or by a fine of not more than $500, or by both such
fine and imprisonment, or shall be punished by imprisonment
in the county jail as specified.
5. States that except as authorized by law, every person who
possesses not more than 28.5 grams of marijuana, other than
concentrated cannabis, is guilty of an infraction punishable
by a fine of not more than $100.
6. States that except as authorized by law, every person who
possesses more than 28.5 grams of marijuana, other than
concentrated cannabis, shall be punished by imprisonment in
the county jail for a period of not more than six months or
by a fine of not more than $500, or by both such fine and
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imprisonment.
This bill:
1. Establishes the California Industrial Hemp Farming Act
(Act).
2. Defines "industrial hemp" as a fiber or oilseed crop, or
both, that is limited to nonpsychoactive types of the plant
Cannabis sativa L. and the seed produced therefrom, having no
more than three-tenths of 1% 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, or 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 or any
component of the seed, of the plant that is incapable of
germination.
3. Revises the definition of "marijuana" to clarify that it
does not include industrial hemp, as defined in this bill,
except where the plant is cultivated or processed for
purposes not expressly allowed.
4. Defines specified terms related to the cultivation of
industrial hemp.
5. States that there is in the Department of Food and
Agriculture (DFA) an Industrial Hemp Advisory Board (Board)
and specifies who shall sit on the Board.
6. States except when grown by an established agricultural
research institution or by a registered seed breeder
developing a new California seed cultivar, industrial hemp
shall only be grown if it is on the list of approved seed
cultivars.
7. Provides guidelines on what shall be included in the list of
approved seed cultivars.
8. Provides the procedure for the adoption, amendment or repeal
of the list of approved seed cultivars.
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9. States that, except for an established agricultural research
institution, and before cultivation, a grower of industrial
hemp for commercial purposes shall register with the
commissioner of the county in which the grower intends to
engage in industrial hemp cultivation.
10.States that, except for an established agricultural research
institution, and before cultivation, a seed breeder shall
register with the commissioner of the county in which the
seed breeder intends to engage in industrial hemp
cultivation.
11.Specifies the application procedures for a seed breeder and
a grower of industrial hemp to register with the commissioner
of the county.
12.Requires the County Agricultural Commissioner to transmit
information collected during the application process to DFA.
13.Provides requirements for keeping and maintaining records
pertaining to the seed development plan.
14.Requires DFA to establish a registration fee and appropriate
renewal fee to be paid by growers of industrial hemp for
commercial purposes and seed breeders, not including an
established agricultural research institution, to cover the
costs of implementing, administering, and enforcing these
provisions.
15.States that fees collected by the commissioners upon
registration or renewal shall be forwarded, according to
procedures set by DFA, to the DFA for deposit into the
Department of Food and Agriculture Fund to be used for the
administration and enforcement of these provisions.
16.States that, except when grown by an established
agricultural research institution or registered seed breeder,
industrial hemp shall be grown only as a densely planted
fiber or oilseed crop, or both, in acreages of not less than
five acres at the same time, and no portion of an acreage of
industrial hemp shall include plots of less than one
contiguous acre.
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17.Requires registered seed breeders to grow industrial hemp as
densely as possible in dedicated acreage of not less than one
acre and in accordance with the seed development plan.
18.Requires registered seed breeders, for purposes of seed
production, to only grow industrial hemp as a densely planted
crop in acreages of not less than two acres at the same time,
and no portion of the acreage of industrial hemp shall
include plots of less than one contiguous acre.
19.Prohibits ornamental and clandestine cultivation, as well as
the pruning, culling, and tending of individual plants, of
industrial hemp.
20.Prohibits the pruning and tending of individual industrial
hemp plants, except as provided.
21.Prohibits the culling of industrial hemp, except as
provided.
22.Requires all plots to have adequate signage indicating they
are industrial hemp.
23.Provides that industrial hemp shall include products
imported under the Harmonized Tariff Schedule of the United
States (2013) of the U.S. International Trade Commission.
24.Requires, except when industrial hemp is grown by an
established agricultural research institution, a registrant
that grows industrial hemp under this Act to obtain a
laboratory test report indicating the THC levels of a random
sampling of the dried flowering tops of the industrial hemp
grown before the harvest of each crop as specified.
25.Requires certain documentation to accompany the sample of
dried flowering tops of the industrial hemp plant collected
for THC testing.
26.Mandates, not later than January 1, 2019, or five years
after the provisions of this bill are authorized under
federal law, whichever is later, the Attorney General (AG) to
report to the Assembly and Senate Agriculture Committees and
the Assembly and Senate Public Safety Committees the reported
incidents, if any, of the following:
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A. A field of industrial hemp being used to disguise
marijuana cultivation; or,
B. Claims in a court hearing by persons other than those
specifically exempted that marijuana is industrial hemp.
1. States pursuant to existing law, this section related to the
AG's report is repealed on January 1, 2023, or four years
after the date that the report is due, whichever is later.
2. Requires, not later than January 1, 2019, or five years
after the provisions of this bill are authorized under
federal law, whichever is later, the Board, in consultation
with the Hemp Industries Association or its successor
industry association, to report the following to the Assembly
and Senate Agriculture Committees and the Assembly and Senate
Public Safety Committees:
A. The economic impacts of industrial hemp cultivation,
processing, and product manufacturing in California; and,
B. The economic impacts of industrial hemp cultivation,
processing, and product manufacturing in other states that
may have permitted industrial hemp cultivation.
1. States that these provisions shall not become operative
unless authorized under federal law.
2. Requires, if these provisions become operative, the AG to
issue an opinion on the extent of authorization under federal
law and California law, the operative date of those
provisions, and whether federal law imposes any limitations
that are inconsistent with these provisions.
3. Requires the AG to complete the opinion required in the
provisions of this Act as soon as possible or within four
months of authorization under federal law.
4. States, if in the AG's opinion it is determined that the
provisions of this Act are not sufficient to comply with
federal law, the DFA, in consultation with the Board, shall
establish procedures that meet the requirements of federal
law.
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5. States that the AG shall post the opinion on its Internet
Web site.
6. Makes various legislative declarations and findings on
industrial hemp.
Background
Congressional Research Service (CRS) report . In 2012, CRS
issued a report titled "Hemp as an Agricultural Commodity."
This report describes the current state of hemp in the U.S.,
including production and use, legal status, and legislative
activity. CRS reports that "although marijuana is also a
variety of cannabis, it is genetically distinct from industrial
hemp and is further distinguished by its use and chemical
makeup." The report continues that "nine states have legalized
the cultivation and research of industrial hemp, including
Hawaii, Kentucky, Maine, Maryland, Montana, North Dakota,
Oregon, Vermont, and West Virginia. However, because federal
law still prohibits cultivation, a grower still must get
permission from the DEA in order to grow hemp or face the
possibility of federal charges or property confiscation, despite
having a state-issued permit."
Prior Legislation
AB 388 (Strom-Martin, 2002) would have requested the University
of California to assess the economic opportunities of specialty
or alternative fiber crops, including industrial hemp, and
report to the Legislature by January 1, 2004. The bill was
vetoed by Governor Davis.
AB 448 (Strom-Martin, 2001) would have authorized the Secretary
of Department of Food and Agriculture (DFA) to issue licenses to
cultivate hemp for commercial purposes. The bill failed passage
in the Assembly Agriculture Committee,
AB 1147 (Leno, 2006) would have permitted the cultivation of
industrial hemp in California. The bill was vetoed by Governor
Schwarzenegger. In his veto message, the Governor stated that
hemp is still considered a cannabis plant regardless of its THC
content and, therefore, illegal under federal law.
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AB 684 (Leno, 2007) would have permitted the cultivation of
industrial hemp in California under a pilot program in four
counties. The bill was vetoed by Governor Schwarzenegger. In
his veto message, the Governor stated law enforcement has
expressed concerns that implementation of this measure could
place a drain on their resources and cause significant problems
with drug enforcement activities.
SB 676 (Leno, 2011) would have permitted the cultivation of
industrial hemp in California under a pilot program in four
counties. The bill was vetoed by Governor Brown. In his veto
message, the Governor stated that hemp is still a federally
regulated controlled substance, although it is absurd that hemp
is being imported into the state, but our farmers cannot grow
it.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Assembly Appropriations Committee:
Minor, likely absorbable, costs to DFA to support the
Industrial Hemp Advisory Board.
Minor, likely absorbable, costs to DFA to establish and
maintain a list of approved seed varietals.
Unknown administrative costs, fully covered by fee revenue,
to county agricultural commissions to operate a registration
program and to implement and enforce the Act.
Costs of laboratory reports would be borne by registrants.
Minor absorbable reporting costs to the Department of
Justice.
SUPPORT : (Verified 9/10/13)
Hemp Industries Association (co-source)
Vote Hemp (co-source)
American Civil Liberties Union
Business Alliance for Commerce in Hemp
California Certified Organic Farmers
California State Grange
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California State Sheriffs' Association
Colorganics Inc.
Community Alliance of Family Farmers
County of Lake
Dash Hemp
Datsusara
Dr. Bronner's Magic Soaps
Drug Policy Alliance
Ecological Farming Association
Hemp Aware
Hempsteads
Hemptopia Inc.
Hempy
Humbolt Traders
Instituto Laboral de la Raza
Jungmaven
Kern County Sheriff Donny Youngblood
Kings County Sheriff Dave Robinson
Knoll Farms
Lafes Natural BodyCare
Lazy Dog Designs
Nutiva
Planning and Conservation League
Santa Barbara Hemp Company
Sierra Club California
Teamsters
The Hemp Road
The Living Temple
United Food and Commercial Workers 8 - Golden State
United Food and Commercial Workers, Western States Council
US Hemp Oil, Inc.
OPPOSITION : (Verified 9/10/13)
Association for Los Angeles Deputy Sheriffs
Association of Orange County Deputy Sheriffs
California Fraternal Order of Police
California Narcotic Officers' Association
California Police Chiefs Association
Long Beach Police Officers Association
Los Angeles County Professional Peace Officers Association
Los Angeles Police Protective League
Riverside Sheriffs Association
Sacramento Deputy Sheriffs Association
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San Diego County Sheriff's Department
Santa Ana Police Officers Association
ARGUMENTS IN SUPPORT : According to the author, "SB 566 will
allow California farmers to be one of the most prepared farmers
in America to grow hemp once the federal government allows it.
Industrial hemp is a variety of the species Cannabis sativa L.
that has no psychoactive qualities because it contains less than
three-tenths of one percent THC. Even though it is a distant
cousin of marijuana, which ranges from three to 15 percent THC
content, industrial hemp is not a drug and it is not marijuana.
"This bill creates jobs. California companies account for over
50 percent of the revenues of the United States retail market
for hemp products which is approximately $500 million and
growing. California hemp cultivation will create the need for
hemp seed and fiber processing facilities. With so many
California-based hemp industry companies, investors will take
the opportunity to support the development of hemp processing
operations that would employ numerous Californians.
ARGUMENTS IN OPPOSITION : According to the opponents, "this
bill will undermine law enforcement efforts to curtail marijuana
cultivation and will result in significantly increased costs in
connection with the prosecution of marijuana trafficking cases."
Additionally, the opponents state, "the impact of legalizing
hemp will be that marijuana cultivators will be able to
camouflage their illegal grows with a perimeter of same sex hemp
plants. Effectively, this will require law enforcement to test
plants for THC content before taking any action."
According to the opponents, "since the state crime labs
currently are not equipped to test for THC content, they will
either have to incur the costs of gearing up for this function,
or local agencies will have to incur the additional costs of
finding a private lab to conduct testing? The increased costs
for marijuana trafficking prosecutions are incalculable."
ASSEMBLY FLOOR : 70-5, 9/10/13
AYES: Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Garcia, Gatto,
Gomez, Gonzalez, Gordon, Gorell, Gray, Hagman, Hall, Harkey,
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Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder,
Logue, Lowenthal, Maienschein, Mansoor, Melendez, Mitchell,
Mullin, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V.
Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. Pérez
NOES: Fox, Beth Gaines, Grove, Morrell, Muratsuchi
NO VOTE RECORDED: Allen, Frazier, Medina, Vacancy, Vacancy
JL:kd 9/11/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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