BILL ANALYSIS �
SB 676
Page 1
SENATE THIRD READING
SB 676 (Leno)
As Amended August 30, 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
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and cultivated from seeds 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,
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signed copy of the laboratory test report for two years to be
made 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.
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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 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
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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
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: 0002361