BILL ANALYSIS �
SENATE AGRICULTURE COMMITTEE
Senator Anthony Cannella, Chairman
BILL NO: SB 676 HEARING: 04/05/11
AUTHOR: Leno FISCAL: Yes
VERSION: 03/31/11 CONSULTANT: John Chandler
(Analysis revised 04/01/11)
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 cost effectiveness of machine-harvested cotton
became more competitive for clothing fabric.
Beginning in 1937 with the federal Marijuana Tax Act, the
government began to exercise control of the production of
Cannabis plants. Following World War II, competition from
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.
The 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 exporter of hemp to California, lifted
their 50-year ban on industrial hemp cultivation. Farmers could
grow hemp only after meeting specific registration requirements
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such as registering the location of each hemp field and
certifying that the THC levels of the plant are not more than
.3% of the weight of leaves and flowering parts.
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 (Leno) of 2006 would have permitted the cultivation of
industrial hemp in California. This 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.
AB 684 (Leno) of 2007 would have permitted the cultivation of
industrial hemp in California under a pilot program in five
counties, Butte, Imperial, Kings, Mendocino, and Yolo. This
bill was vetoed by the 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.
PROPOSED LAW
SB 676 would permit the cultivation of industrial hemp in
California. Specifically, this bill would:
Define "industrial hemp" as an agricultural 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.
Clarify that "industrial hemp" shall include the defined
hemp products in the 2007 Harmonized Tariff Schedule of the
United States.
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 % and includes the Global Positioning
System coordinates and total acreage of the crop. 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
separate from the rest of the plant. The only exception to
this prohibition is for the purposes of sampling for the
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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 agricultural field crop.
Require the Attorney General and the Hemp Industries
Association to submit economic and law enforcement impact
reports to the legislature by January 1, 2017.
Make legislative declarations and findings on industrial
hemp.
COMMENTS
1.Proponents of this bill state that America's $400 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. Because
California's state laws are silent on the cultivation of hemp,
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
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 States, overturning a DEA
regulation attempting to ban all products from sale that
contain any amount of THC. Since this ruling, 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.Permitting the cultivation of industrial hemp in California
would essentially be introducing a new agricultural 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 different climates
or soil. In California, there has not been thorough research
into the growing of new varieties of industrial hemp.
Previous legislation addressing cultivation of industrial hemp
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in California has focused on pilot programs and research
rather than statewide cultivation of hemp. The committee may
want to consider if the bill should focus on a pilot program
and research of this issue before permitting the general
cultivation of hemp.
3.Under the Controlled Substances Act (CSA), the DEA determines
whether any industrial hemp production is authorized and would
issue permits for cultivation. Further, SB 676 would require
a hemp grower to have tests performed by a DE- certified lab
and DEA registered transporter. DEA has viewed industrial
hemp as a controlled substance under the CSA. Currently,
there are no federal permits authorizing hemp production in
any of the nine states already authorizing some form of
industrial hemp cultivation. The committee may want to
consider if it is appropriate to expose the state to conflict
with the federal government for a potential niche crop.
4.The Senate Rules Committee has doubled referred this bill to
the Senate Public Safety Committee as the second committee of
referral. Therefore, if this measure is approved by this
committee, the motion should include an action to re-refer the
bill to the Senate Committee on Public Safety.
SUPPORT
American Hemp Inc.
Asher Hemp Gelato
CA Conference of Machinists
California Certified Organic Farmers
California State Grange
California Teamsters Public Affairs Council
Drug Policy Alliance
Green Field Paper Company
Hemp House Maui
Hemp Industries Association
Hemp Shield and Fibre Alternatives
Hemp Traders
Hemp.com
High Grade Distribution
Instituto Laboral De La Raza
Jungmaven Ltd.
Living Harvest Foods
Nutriva
Skin & Coat Supplement
United Food and Commercial Workers - Local 5
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United Food and Commercial Workers - Western States Conference
Vote Hemp
OPPOSITION
None received