Today's Law As Amended


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SB-1409 Industrial hemp.(2017-2018)



As Amends the Law Today
As Amends the Law on Nov 08, 2018


SECTION 1.

 Section 81002 of the Food and Agricultural Code is amended to read:

81002.
 (a) Except when grown by a registered  an  established agricultural research institution or by a registered hemp  seed  breeder developing a new California seed  cultivar, industrial hemp shall only  be grown only  if it is on the list of approved seed  cultivars, or produced by clonal propagation of industrial hemp that is on the list of approved seed  cultivars and therefore genetically identical to, and capable of exhibiting the same range of characteristics as, the parent cultivar.
(b) The list of approved seed  cultivars shall include all of the following:
(1) Industrial hemp seed  cultivars that have been certified by member organizations of the Association of Official Seed Certifying Agencies, including, but not limited to, the Canadian Seed Growers’ Association.
(2) Industrial hemp seed  cultivars that have been certified by the Organization of Economic Cooperation and Development.
(3) California varieties of industrial hemp seed  cultivars that have been certified by a seed-certifying agency pursuant to Article 6.5 (commencing with Section 52401) of Chapter 2 of Division 18.
(c) (1) Upon recommendation by the board or the department, the secretary may update the list of approved seed  cultivars by adding, amending, or removing seed  cultivars.
(2) The adoption, amendment, or repeal of the list of approved seed  cultivars, and the adoption of a methodology and procedure to add, amend, or remove a seed  cultivar from the list of approved seed  cultivars, pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(3) The department, in consultation with the board, shall hold at least one public hearing with public comment to determine the methodology and procedure by which a seed  cultivar is added, amended, or removed from the list of approved seed  cultivars.
(4) The department shall finalize the methodology and procedure to add, amend, or remove a seed  cultivar from the list of approved seed  cultivars and send the methodology and procedure to the Office of Administrative Law. The Office of Administrative Law shall file the methodology and procedure promptly with the Secretary of State without further review pursuant to Article 6 (commencing with Section 11349) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code. The methodology and procedure shall do all of the following:
(A) Indicate that the methodology and procedure are adopted pursuant to this division.
(B) State that the methodology and procedure are being transmitted for filing.
(C) Request that the Office of Administrative Law publish a notice of the filing of the methodology and procedure and print an appropriate reference in Title 3 of the California Code of Regulations.
(d) The department, in consultation with the board, may determine the manner in which the public is given notice of the list of approved seed  cultivars, and any addition, amendment, or removal from that list.

SEC. 2.

 Section 81003 of the Food and Agricultural Code is amended to read:

81003.
 (a) (1) Except for an established agricultural research institution subject to Section 81004.5 or a hemp breeder subject to Section 81004,  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.
(2) The application shall include all of the following:
(A) The name, physical address, and mailing address of the applicant.
(B) The legal description, Global Positioning System coordinates, and map of the land area on which the applicant plans to engage in industrial hemp cultivation, storage, or both.
(C) The approved seed  cultivar to be grown, including the state or county of origin.
(3) (A)  The application shall be accompanied by a registration fee, as determined pursuant to Section 81005.
(4) (B)  A registration issued pursuant to this section shall be valid for one year, after which the registrant shall renew the  his or her  registration and pay an accompanying renewal fee, as determined pursuant to Section 81005.
(b) If the commissioner determines that the requirements for registration pursuant to this division are met and that the applicant is eligible to participate in the industrial hemp program, in accordance with Sections 81012 to 81014, inclusive, the  met, the  commissioner shall issue a registration to the applicant.
(c) A registrant that wishes to change or  alter the land area on which the registrant conducts industrial hemp cultivation or  cultivation,  storage, or both, shall, before any alteration or change,  altering the area,  submit to the commissioner an updated registration with the  legal description, Global Positioning System coordinates, and map specifying the proposed land change or  alteration. Once the commissioner has received the change to the registration and the commissioner determines that the requirements pursuant to this division are met, the commissioner  registration, the commissioner  shall notify the registrant that it may cultivate industrial hemp on the changed or  altered land area.
(d) A registrant that wishes to change the seed  cultivar grown shall submit to the commissioner the name of the new, approved seed  cultivar to be grown. Once the commissioner has received the change to the registration and the commissioner determines that the requirements pursuant to this division are met, the commissioner  registration, the commissioner  shall notify the registrant that it may cultivate the new seed  cultivar.
(e) (1)  The commissioner shall transmit information collected under this section to the department.
(2) The following information shall be transmitted by the commissioner to the department no more than 10 business days, and submitted by the department to the United States Department of Agriculture no more than 30 business days, after the date on which it is collected, or, in the case of subparagraph (C), the date of a change in registration status:
(A) Contact information for each grower of industrial hemp.
(B) A legal description of the land on which the grower engages in industrial hemp cultivation.
(C) Registration status of the grower of industrial hemp.
(f) The department and the commissioner shall retain information collected under this section for at least three years after collecting or receiving it.

SEC. 3.

 Section 81004 of the Food and Agricultural Code is amended to read:

81004.
 (a) (1) Except when grown by an established agricultural research institution subject to Section 81004.5,  institution,  and before cultivation, a hemp seed  breeder shall register with the commissioner of the county in which the hemp seed  breeder intends to engage in industrial hemp cultivation.
(2) The application shall include all of the following:
(A) The name, physical address, and mailing address of the applicant.
(B) The legal description, Global Positioning System coordinates, and map of the land area on which the applicant plans to engage in industrial hemp cultivation, storage, or both.
(C) A variety development plan, which shall include all of the following: The approved seed cultivar to be grown for seed production, including the state or county of origin. 
(i) (D)  If an applicant intends to develop  a new California seed  cultivar is  to be certified by a seed-certifying agency, the name of the seed-certifying agency that will be conducting the certification. applicant shall include all of the following: 
(i) The name of the seed-certifying agency that will be conducting the certification.
(ii) The industrial hemp varieties that will be used and, if applicable, how those varieties will be used  in the development of a the  new California seed  cultivar.
(iii) A plan for testing all of the plants grown.
(iv) The measures that will be taken to destroy any plants with THC concentrations that test above 0.3 percent.
(v) (iii)  The  A seed development plan specifying how the listed industrial hemp varieties will be used in the development of the new seed cultivar,  measures that will be taken to prevent the unlawful use of industrial hemp under this division. or seed cultivars under this division, and a procedure for the maintenance of records documenting the development of the new seed cultivar. 
(vi) A procedure for the maintenance of records documenting the development of the new cultivar.
(3) (A)  The application shall be accompanied by a registration fee, as determined pursuant to Section 81005.
(4) (B)  A registration issued pursuant to this section shall be valid for one year, after which the registrant shall renew its registration and pay an accompanying renewal fee, as determined pursuant to Section 81005.
(b) If the commissioner determines that the requirements for registration pursuant to this division are met and that the applicant is eligible to participate in the industrial hemp program, in accordance with Sections 81012 to 81014, inclusive, the  met, the  commissioner shall issue a hemp seed  breeder registration to the applicant.
(c) A registrant that wishes to change or  alter the land area on which the registrant conducts industrial hemp cultivation or  cultivation,  storage, or both, shall, before any alteration or change,  altering the area,  submit to the commissioner an updated registration with the  legal description, Global Positioning System coordinates, and map specifying the proposed land change or  alteration. Once the commissioner has received the change to the registration and the commissioner determines that the requirements pursuant to this division are met, the commissioner  registration, the commissioner  shall notify the registrant that it may cultivate industrial hemp on the changed or  altered land area.
(d) A registrant that wishes to change the seed  cultivar grown shall submit to the commissioner the name of the new, approved seed  cultivar to be grown. Once the commissioner has received the change to the registration and the commissioner determines that the requirements pursuant to this division are met, the commissioner  registration, the commissioner  shall notify the registrant that it may cultivate the new seed  cultivar.
(e) A registrant developing a new California seed  cultivar who wishes to change any provision of the variety seed  development plan shall submit to the commissioner the revised variety seed  development plan. Once the commissioner has received the change to the registration and the commissioner determines that the requirements pursuant to this division are met, the commissioner  registration, the commissioner  shall notify the registrant that the registrant  he or she  may cultivate under the revised variety seed  development plan.
(f) All records pertaining to the variety seed  development plan shall be kept and maintained by the hemp seed  breeder and be available upon request by the commissioner, a law enforcement agency, or a seed certifying agency.
(g) (1)  The commissioner shall transmit information collected under this section to the department.
(2) The following information shall be transmitted by the commissioner to the department no more than 10 business days, and submitted by the department to the United States Department of Agriculture no more than 30 business days, after the date on which it is collected, or, in the case of subparagraph (C), the date of a change in registration status:
(A) Contact information for each hemp breeder.
(B) A legal description of the land on which the hemp breeder engages in industrial hemp cultivation.
(C) Registration status of the hemp breeder.
(h) The department and the commissioner shall retain information collected under this section for at least three years after collecting or receiving it.

SEC. 4.

 Section 81005 of the Food and Agricultural Code is amended to read:

81005.
 (a) The department shall establish a registration fee and appropriate renewal fee to be paid by growers of industrial hemp and hemp for commercial purposes and seed  breeders, not including an established agricultural research institution, to cover the actual costs of implementing, administering, and enforcing the provisions of this division.
(b) Fees established pursuant to subdivision (a) that are collected by the commissioners upon registration or renewal pursuant to Section 81003 or 81004, except for amounts retained pursuant to this subdivision, shall be forwarded, according to procedures set by the department, to the department for deposit into the Department of Food and Agriculture Fund to be used for the administration and enforcement of this division. A commissioner or the county, as appropriate, may retain the amount of a fee necessary to reimburse direct costs incurred by the commissioner in the collection of the fee.
(c) The board of supervisors of a county may establish a reasonable fee, in an amount necessary to cover the actual costs of the commissioner and the county of implementing, administering, and enforcing the provisions of this division, except for costs that are otherwise reimbursed pursuant to subdivision (b), to be charged and collected by the commissioner upon registrations or renewals required pursuant to Section 81003 or 81004 and retained by the commissioner or the county, as appropriate.

SEC. 5.

 Section 81006 of the Food and Agricultural Code is amended to read:

81006.
 Industrial Hemp Growth Limitations; Prohibitions; Imports; Laboratory Testing.
(a) (1)  Except when grown by a registered  an  established agricultural research institution or a registered hemp  seed  breeder, industrial hemp shall be grown in acreages of not less than one-tenth of an acre at the same time.
(2) Seed breeders, for purposes of seed production, shall only grow industrial hemp in acreages of not less than one-tenth of an acre at the same time.
(3) Seed breeders, for purposes of developing a new California seed cultivar, shall grow industrial hemp in dedicated acreage of not less than one-tenth of an acre and in accordance with the seed development plan. The entire area of the dedicated acreage is not required to be used for the cultivation of the particular seed cultivar.
(b) Clandestine cultivation of industrial hemp is prohibited. All plots shall have adequate signage indicating they are industrial hemp.
(c) Industrial hemp shall not be cultivated on a premises licensed by the department to cultivate or process cannabis. Industrial hemp, regardless of its THC content, that is cultivated on a premises licensed by the department for cannabis cultivation shall be considered cannabis as defined in subdivision (f) of Section 26001 of the Business and Professions Code and subject to licensing and regulatory requirements for cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.
(d) (c)  Industrial hemp shall include products imported under the Harmonized Tariff Schedule of the United States (2013) of the United States International Trade Commission, including, but not limited to, hemp seed, per subheading 1207.99.03, hemp oil, per subheading 1515.90.80, oilcake, per subheading 2306.90.01, true hemp, per heading 5302, true hemp yarn, per subheading 5308.20.00, and woven fabrics of true hemp fibers, per subheading 5311.00.40.
(e) (d)  (1) Except when industrial hemp is grown by a registered  an  established agricultural research institution and tested in accordance with an approved research plan or by a registered hemp breeder and tested in accordance with an approved variety development plan, a  institution, a  registrant that grows industrial hemp under this section shall, before the harvest of each crop and as provided below, obtain a laboratory test report indicating the THC levels of a random sampling of the dried flowering tops of the industrial hemp grown.
(2) Sampling shall occur no more than 30 days before harvest.
(3) The sample collected for THC testing shall be taken with the grower or hemp seed  breeder present. The department shall establish, by regulation, the sampling procedures, including all of the following:
(A) The number of plants to be sampled per field, and any composting of samples.
(B) The portions of the plant to be sampled.
(C) The plant parts to be included in a sample.
(D) Additional procedures as necessary to ensure accuracy and the sanitation of samples and fields.
(4) The sample collected for THC testing shall be accompanied by the registrant’s proof of registration. following documentation: 
(A) The registrant’s proof of registration.
(B) Seed certification documentation for the seed cultivar used.
(C) The THC testing report for each certified seed cultivar used.
(5) The laboratory test report shall be issued by a laboratory approved by the department, using a department-approved testing method. The testing method shall use postdecarboxylation or similarly reliable methods for determining THC concentration levels. The laboratory test report shall  method, and  indicate the percentage concentration content  of THC on a dry-weight basis, indicate the date and location of samples taken, and state the Global Positioning System coordinates and total acreage of the crop. If the laboratory test report indicates a percentage concentration content  of THC that is equal to or less than 0.3  three-tenths of 1  percent, the words “PASSED AS CALIFORNIA INDUSTRIAL HEMP” shall appear at or near the top of the laboratory test report. If the laboratory test report indicates a percentage concentration content  of THC that is greater than 0.3  three-tenths of 1  percent, the words “FAILED AS CALIFORNIA INDUSTRIAL HEMP” shall appear at or near the top of the laboratory test report.
(6) If the laboratory test report indicates a percentage concentration content  of THC that is equal to or less than 0.3  three-tenths of 1  percent, the laboratory shall provide the person who requested the testing not less than 10 original copies signed by an employee authorized by the laboratory and shall retain one or more original copies of the laboratory test report for a minimum of two years from its date of sampling.
(7) If the laboratory test report indicates a percentage concentration content  of THC that is greater than 0.3  three-tenths of 1  percent and does not exceed 1 percent, the registrant that grows industrial hemp shall submit additional samples for testing of the industrial hemp grown.
(8) A registrant that grows industrial hemp shall destroy the industrial hemp grown upon receipt of a first laboratory test report indicating a percentage concentration content  of THC that exceeds 1 percent or a second laboratory test report pursuant to paragraph (7) indicating a percentage concentration content  of THC that exceeds 0.3  three-tenths of 1  percent but is less than 1 percent. If the percentage concentration content  of THC exceeds 1 percent, the destruction shall begin within 48 hours, and be completed within seven 7  days, after receipt of the laboratory test report. If the percentage concentration content  of THC in the second laboratory test report exceeds 0.3  three-tenths of 1  percent but is less than 1 percent, the destruction shall take place as soon as practicable, but no later than 45 days after receipt of the second test report.
(9) A registrant that intends to grow industrial hemp and who complies with this section shall not be prosecuted for the cultivation or possession of marijuana as a result of a laboratory test report that indicates a percentage concentration content  of THC that is greater than 0.3  three-tenths of 1  percent but does not exceed 1 percent.
(10) A registered established agricultural research institution or a registered hemp breeder shall obtain laboratory results in accordance with its approved research plan or variety development plan. The secretary may authorize a registered established agricultural research institution or hemp breeder  Established agricultural research institutions shall be permitted  to cultivate or possess industrial hemp with a laboratory test report that indicates a percentage concentration content  of THC that is greater than 0.3 percent in accordance with its approved research plan or variety development plan  three-tenths of 1 percent  if that cultivation or possession contributes to the development of types of industrial hemp that will comply with the 0.3  three-tenths of 1  percent THC limit established in this division.
(11) A  Except for an established agricultural research institution, a  registrant that grows industrial hemp shall retain an original signed copy of the laboratory test report for two years from its date of sampling, make an original signed copy of the laboratory test report available to the department, the commissioner, or law enforcement officials or their designees upon request, and shall provide an original copy of the laboratory test report to each person purchasing, transporting, or otherwise obtaining from the registrant that grows industrial hemp the fiber, oil, cake, or seed, or any component of the seed, of the plant.
(e) If, in the Attorney General’s opinion issued pursuant to Section 8 of the act that added this division, it is determined that the provisions of this section are not sufficient to comply with federal law, the department, in consultation with the board, shall establish procedures for this section that meet the requirements of federal law.

SEC. 6.

 Section 81007 is added to the Food and Agricultural Code, to read:

81007.
 As part of the registration program established pursuant to this division, the department may establish and carry out, by regulation, an agricultural pilot program pursuant to Section 7606 of the federal Agricultural Act of 2014 (7 U.S.C. Sec. 5940) in accordance with the purposes of that section.

SEC. 7.

 Section 81011 is added to the Food and Agricultural Code, to read:

81011.
 Before cultivating industrial hemp, an established agricultural research institution shall provide the Global Positioning System coordinates of the planned cultivation site to the commissioner of the county in which the site is located.

SEC. 8.

 Section 11018.5 of the Health and Safety Code is amended to read:

11018.5.
 (a) “Industrial hemp” means a crop that is limited to types of the plant Cannabis sativa L. having no more than three-tenths of 1 percent tetrahydrocannabinol (THC) contained in the dried flowering tops, whether growing or not; the seeds of the plant; 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 produced therefrom.
(b) Industrial hemp shall not be subject to the provisions of this division or of Division 10 (commencing with Section 26000) of the Business and Professions Code, but instead shall be regulated by the Department of Food and Agriculture in accordance with the provisions of Division 24 (commencing with Section 81000) of the Food and Agricultural Code, inclusive.
SEC. 9.
 The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act, for the following reason:
By removing limitations on the manner in which industrial hemp may be grown and the uses for which it may be grown, this act removes barriers to the growth of industrial hemp as an agricultural product, and for agricultural or academic research.