BILL ANALYSIS
SENATE AGRICULTURE COMMITTEE
Senator Jeff Denham, Chair
BILL NO: AB 1147 HEARING: 6/29/06
AUTHOR: Leno FISCAL: Yes
VERSION: 6/1/06 CONSULTANT: John Chandler
Industrial Hemp.
BACKGROUND AND EXISTING LAW
"Industrial Hemp" or "Hemp" refers to low level psychoactive
chemical tetrahydrocannabinol (THC), varieties of Cannabis
sativa L. For centuries countless consumer and industrial
products have been produced from Hemp around the world. Hemp
can be cultivated as a fiber or a seed crop. Hemp fiber can be
used for textiles, paper, construction materials, auto parts,
and home furnishings while hemp seeds can be used for body care
products, industrial oils, pharmaceuticals, and food. Despite
its many uses, Hemp is commonly lost in the shadow of its famous
Cannabis relative "Marijuana" most commonly used as a narcotic
due to its high THC content.
Hemp has been grown in the United States before the founding of
our nation. Some of the early growers included our founding
fathers, George Washington and Thomas Jefferson. However, by
the 1890's demand for natural fibers began to be met by imported
fibers while the greater cost effectiveness of machine harvested
cotton became more competitive for clothing fabric.
Beginning in 1937 with the federal Marihauna Tax Act, the
government began to excersize control of the production of
Cannabis plants. Following World War II, the competition of
synthetic fibers and a growing anti-drug public resulted in the
decline of hemp production. In 1970, the Controlled Substances
Act tightly restricted all Cannabis plants regardless of THC
content. This resulted in all hemp and hemp products being
imported or manufactured from imported hemp.
Drug Enforcement Agency (DEA) is the federal agency that
determines if any industrial hemp production authorized by state
statute is permitted. The DEA also enforces standards for the
security conditions under which industrial hemp must be grown if
permitted.
In 1998 Canada, a growing importer of hemp to California, lifted
their 50 year ban on Industrial Hemp cultivation. Farmers could
grow hemp only after meeting specific registration requirements
such as registering the location of each Hemp field and
certifying that the THC levels of the plant are below 10 parts
AB 1147 - Page 2
per million.
AB 388 (Strom-Martin) of 2002 was vetoed by Governor Davis.
That bill would have requested that the University of California
assess the economic opportunities of specialty or alternative
fiber crops, including industrial hemp, and report to the
legislature by January 1, 2004.
AB 1147 - Page 3
PROPOSED LAW
AB 1147 would permit the cultivation of industrial hemp in
California. Specifically, this bill would:
Define "Industrial Hemp" as an agriculture field crop of
Cannabis sativa L. with no more than 3/10 THC grown
exclusively to produce the mature plant stalks and stalk
products, oil or cake made from the seeds, and other
by-products except the resin or flowering tops.
Specify that industrial hemp seed may only be imported
according the federal laws or California seeds from feral
plants, cultivated plants, or plants grown for research.
Require that before harvest industrial hemp growers
obtain a laboratory test report of randomly sampled dried
flowering tops from a DEA registered laboratory identifying
if the crop meets the California industrial hemp limit of
no more than 3/10 percent. This report shall be retained
by the grower for two years.
Prohibit the cultivation, production, or possession of
resin, flowering tops, or leaves removed from the field and
are separate from the rest of the plant. The only
exception to this prohibition is for the purposes of
sampling for the required laboratory test of the flowering
tops.
Prohibit transportation or sale of any Cannabis sativa
L. seed capable of germination across state borders except
as permitted by federal law.
Specify that hemp may only be grown for research or as
an agriculture field crop.
Make legislative declarations and findings on Industrial
Hemp.
COMMENTS
1.Proponents of this bill state that America's $270 million hemp
sales are entirely from imported industrial hemp. Under the
current federal law, California farmers are denied the ability
to grow and sell hemp to fulfill our domestic demand.
California's state laws are silent on the cultivation of hemp
therefore this bill would clarify state law allowing
California growers to participate in the hemp market.
In addition to the potential economic benefits to growers,
proponents state that hemp provides a suitable rotation crop
that helps improve the soil and requires fewer pesticides or
herbicides than many other crops. Hemp is harvested for its
stalks and seeds rather than the flowering tops for which
marijuana is harvested. Advocates maintain that should hemp
and marijuana commingle and cross pollinate, the resulting
AB 1147 - Page 4
plants would be undesirable for traditional marijuana use or
as industrial hemp.
In 2004 the U.S. 9th Circuit Court ruled that hemp products
could be sold legally in the United State, overturning a DEA
regulation attempting to ban all products from sale that
contained any amount of THC. Since this decision, the federal
government has decided not to appeal this decision allowing
hemp seed and oil products to be sold and consumed in the U.S.
2.Opponents of this bill state that since marijuana and hemp are
so closely related, legalizing the cultivation of hemp would
hinder law enforcement efforts to suppress marijuana. They
also see this as a possible stepping stone to further relax
regulations on all Cannabis plants. The federal government
continues to consider the cultivation of hemp illegal.
California would then conflict with federal law. California
also faces challenges with the hemp industry competing against
subsidized hemp growers in Chinese and European countries.
3.Permitting the cultivation of industrial hemp in California
would essentially be introducing a new agriculture product to
the State. While hemp is grown in over 30 other countries
worldwide, the variety and cultural practices vary widely from
country to country due to such factors as the different
climates or soil. In California there has not been thorough
research into the growing of industrial hemp. Previous
legislation addressing cultivating industrial hemp in
California has focused on research rather than any cultivation
of hemp. The committee may want to consider if the bill
should focus on research of this issue before permitting
general cultivation of hemp.
4.Of the products produced from hemp, many are already grown
here in California with different commodities such as cotton
for fiber and olives for oil. In California cotton plantings
have shrunk over the years due to foreign competition.
Similarly, the influence of foreign competition hurt the hemp
industry in the 1890's reducing its economic appeal to
growers. It seems that hemp production in California would be
for a limited nitch market. The committee may want to
consider if it is appropriate to expose the state to conflict
with the federal government for a potential nitch crop when it
could prove more beneficial to focusing that energy on
improving existing crops.
PRIOR ACTIONS
Senate Public Safety 4-2
AB 1147 - Page 5
Assembly Floor 44-32
Assembly Appropriations 13-3
Assembly Public Safety 4-2
SUPPORT
Hemp Industries Association (co-sponsor)
Vote Hemp (co-sponsor)
Alice's Mountain Market
Alta Vista Growers
Alterna Professional Haircare
Appeal-Democrat - Marysville (editorial)
Atlas Corporation
Burcaw Chiropractic
California Certified Organic Farmers
California State Grange
CDM Corp
Center for Healing
Chico Enterprise-Record (editorial)
Community Alliance with Family Farmers
Creative Research Management
Dr. Bronner's Magic Soaps
Eagle Trust Union
Eco Goods
EnvironGentle
Environmental Wholesale Products
Elk Creek Ranch
Fiddler's Green Farm, Inc.
French Meadow Bakery
Global Exchange
Green Party of California
Guaranteed Organic Certification Agency
Heartsong Herbal Brewing Company
Heavenly Low Carb
Hemp Industries Association
Hemp Sisters
Hemp Traders
Hempy's
Hirai Farms
Human Exchange Musical Programs
Institute for Cultural Ecology
J. Ginsberg & Associates
Knoll Farms
Living Foods.Com
Luvland Farms Lavender
Malu Healthcare
New Hope Natural Media
N. American Hemp Company
N. American Industrial Hemp Council, Inc.
AB 1147 - Page 6
Nutiva
Organic Ag Advisors
Organic Consumers Association
Orange County Register (editorial)
PAD
Patagonia, Inc.
Peace of Mind Consulting
Planning and Conservation League
Rainforest Action Network
Raw 4 Real
Robinson's Health Products
Salon Charisma
Sensuous Beauty, Inc.
Sierra Club, California
Strictly Hemp.com
Sunset Ranch
Sweetgrass Natural Fibers
The City and County of San Francisco
The Living Temple
Threshold Enterprises
Ultra Oil for Pets
Whole Balance
OPPOSITION
Californians For Drug Free Schools
California Narcotics Officers' Association
Save Our Society From Drugs