BILL ANALYSIS �
SB 676
Page 1
SENATE THIRD READING
SB 676 (Leno)
As Amended August 15, 2011
Majority vote
SENATE VOTE :22-14
PUBLIC SAFETY 5-2 AGRICULTURE 6-0
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|Ayes:|Ammiano, Cedillo, Hill, |Ayes:|Galgiani, Bill Berryhill, |
| |Mitchell, Skinner | |Hill, Ma, Mendoza, Yamada |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Hagman | | |
| | | | |
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APPROPRIATIONS 11-3
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|Ayes:|Fuentes, Blumenfield, | | | |
| |Bradford, Charles | | | |
| |Calderon, Davis, Gatto, | | | |
| |Hall, Hill, Mitchell, | | | |
| |Norby, Solorio | | | |
| | | | | |
|-----+--------------------------+--------------------------+-----+--------------------------|
|Nays:|Harkey, Nielsen, Wagner | | | |
| | | | | |
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SUMMARY : Authorizes an eight-year, four-county pilot project with
respect to the cultivation and processing of industrial hemp.
Specifically, this bill :
1)Makes various legislative declarations and findings on industrial
hemp.
2)Permits a pilot program for industrial hemp research by
established agricultural research institutions as specified, and
for the agricultural production of hemp in four counties.
3)Defines "industrial hemp" as an agricultural field crop limited to
the non-psychoactive varieties of the plant Cannabis sativa L.,
having no more than three-tenths of 1% tetrahydrocannabinol (THC)
contained in the dry flowering tops and cultivated from seeds
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originating in California, 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), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination.
4)Provides that the statutory definition of marijuana does not
include industrial hemp.
5)Clarifies that industrial hemp shall include the defined hemp
products in the 2007 Harmonized Tariff Schedule of the United
States.
6)Prohibits the cultivation, production, or possession of resin,
flowering tops, or leaves that have been removed from the field of
cultivation and separated from the other constituent parts of the
industrial hemp plant.
7)Prohibits transportation or sale of any Cannabis sativa L. seed
capable of germination across state borders except as permitted by
federal law.
8)Requires industrial hemp farmers to post signs identifying the
crop, as specified.
9)Regulates the plot size of industrial hemp farms, and specifically
prohibits tending of individual plants.
10)Requires industrial hemp growers, except those that are
established agricultural research institutions, to obtain a
laboratory test report indicating THC levels prior to harvesting,
as specified.
11)Specifies the requirements of the testing regimen to be used to
ensure program hemp has no psychoactive properties.
12)Requires the destruction of hemp within 48 hours if the first
laboratory test results indicate a THC content over 1%, and the
destruction of the hemp within 45 days if a second laboratory test
report indicates a THC content over 0.3%.
13)Requires industrial hemp growers to retain an original, signed
copy of the laboratory test report for two years to be made
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available to law enforcement officials or their designees, and to
persons purchasing, transporting, or otherwise obtaining the
industrial hemp.
14)Specifies the agricultural production pilot program shall take
effect only in Imperial, Kings, Kern, and San Joaquin counties.
15)Requires the Department of Justice (DOJ) to report to specified
legislative committees, on or before January 1, 2018, and reported
incidents of a field of industrial hemp being used to disguise
marijuana cultivation, and claims in a court hearing that
marijuana is industrial hemp, except where the person making the
claim is subject to a specified exemption.
16)Requires the Hemp Industries Association to submit economic
impact reports to the Legislature by January 1, 2018.
17)Includes a January 1, 2020, sunset provision.
EXISTING STATE 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 state prison.
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 state prison.
EXISTING FEDERAL LAW : 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
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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."
FISCAL EFFECT : According to the Assembly Appropriations Committee:
1)Minor increase in revenues, likely less than $30,000 per year, for
the Seed Services Program.
2)The cost of the report would be minor and absorbable within
existing DOJ resources.
COMMENTS : According to the author," SB 676 is about job creation
and allowing farmers to choose crops that suit their business needs
and prospects. Preventing American farmers from cultivating
industrial hemp has created a growing market for other countries to
supply the state's food and personal care product manufacturers.
The U.S. imports millions of pounds of hemp fiber, seed and oil.
The current U.S. market for industrial hemp products is $400 million
and growing at a rate of $26 million per year. Of the U.S.-based
hemp product companies, more than 55 percent are based in
California, many of which would expand their business if a local and
more economical source of industrial hemp was available. These are
our companies and our farmers should be able to supply them.
"In addition to the economic opportunities, hemp is an
environmentally-friendly and sustainable crop that reduces the use
of chemicals and saves farmers money. Hemp requires little or no
pesticides and herbicides, puts nutrients back into the soil and
leaves the field virtually free of weeds making it an excellent
rotational crop. As a source for paper, hemp produces more fiber
per acre than timber and hemp matures in 90 days as opposed to the
decades required for timber. Hemp can also be used for plywood-type
building materials. Over time, hemp cultivation could allow us to
meet an ever growing demand for paper products as well as the demand
for building materials traditionally met by timber.
"Industrial hemp, by definition, has no psychoactive properties and
is distinct from marijuana; however, the bill has been carefully
crafted to address concerns of law enforcement. The bill
establishes a limited pilot program and hemp cultivation is
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permitted only as an agricultural field crop or in an established
research setting. Upon request of law enforcement, farmers must
show the lab report verifying that THC level of the crop meets the
three-tenths of one percent THC standards. All crops that fail THC
requirement or failure to meet other requirements outlined in the
bill be considered marijuana under the law. Although they contain
no psychoactive properties and have no legal commercial application,
all industrial hemp flowering tops and leaves that are removed from
the field of cultivation are still defined as marijuana in the bill.
This ensures that in the event of a drug bust, law enforcement does
not need to question if cannabis leaves are hemp or marijuana."
Please see the policy committee analysis for a full discussion of
this bill.
Analysis Prepared by : Sandy Uribe / PUB. S. / (916) 319-3744 FN:
0002018