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SB-864 Industrial hemp: reporting of hemp production: laboratory test reports.(2019-2020)

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Date Published: 03/11/2020 09:00 PM
SB864:v98#DOCUMENT

Amended  IN  Senate  March 11, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 864


Introduced by Senator Wilk

January 17, 2020


An act to amend Section 81014 of Sections 81000 and 81006 of, and to add Section 81004.6 to, the Food and Agricultural Code, relating to industrial hemp.


LEGISLATIVE COUNSEL'S DIGEST


SB 864, as amended, Wilk. Industrial hemp. hemp: reporting of hemp production: laboratory test reports.
Existing law governs the cultivation of industrial hemp in this state and establishes a registration program administered by county agricultural commissioners and the Department of Food and Agriculture for growers of industrial hemp and hemp, hemp breeders. Existing law prohibits a person that materially falsifies information contained in an application or registration to grow or breed industrial hemp from participating in the industrial hemp program. breeders, and established agricultural research institutions, as defined. Existing law requires the collection and reporting of certain information regarding hemp production and requires laboratory testing of hemp, as prescribed. A violation of these provisions is a crime.
This bill would make a nonsubstantive change to the latter provision. require the department to report to the Farm Service Agency of the United States Department of Agriculture specified information regarding all hemp production in the state, including the location, acreage, and license or registration number associated with each location in the state where hemp will be produced by registered established agricultural research institutions, registered growers of industrial hemp, and registered hemp breeders. The bill would require that laboratory test reports of hemp include the measurement of uncertainty, as defined, associated with the test results. The bill would also require laboratories to use appropriate, validated methods and procedures for all testing activities, including when estimating the measurement of uncertainty. By adding new requirements for hemp testing, the violation of which would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 81000 of the Food and Agricultural Code, as amended by Section 2 of Chapter 838 of the Statutes of 2019, is amended to read:

81000.
 Definitions.
(a) For purposes of this division, the following terms have the following meanings:
(1) “Approved state plan” means a state plan for California that is approved pursuant to Section 297B of the federal Agricultural Marketing Act of 1946 (added by Section 10113 of the federal Agriculture Improvement Act of 2018 (Public Law 115-334)) and in effect.
(2) “Board” means the Industrial Hemp Advisory Board.
(3) “Cultivar” means a variety of industrial hemp.
(4) “Established agricultural research institution” means an institution that is either of the following:
(A) A public or private institution or organization that maintains land or facilities for agricultural research, including colleges, universities, agricultural research centers, and conservation research centers.
(B) An institution of higher education, as defined in Section 101 of the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1001), that grows, cultivates, or manufactures industrial hemp for purposes of research conducted under an agricultural pilot program or other agricultural or academic research.
(5) “Hemp breeder” means an individual or a public or private institution or organization that is registered with the commissioner to develop cultivars intended for sale or research.
(6) “Industrial hemp” or “Hemp” means an agricultural product, whether growing or not, that is limited to types of the plant Cannabis sativa L. and any part of that plant, including the seeds of the plant and all derivatives, extracts, the resin extracted from any part of the plant, cannabinoids, isomers, acids, salts, and salts of isomers, with a delta-9 tetrahydrocannabinol concentration of no more than 0.3 percent on a dry weight basis.
(7) “Industrial hemp program” means growth of industrial hemp pursuant to this division and, if in effect, an approved state plan.
(8) “Measurement of uncertainty” means the parameter associated with the result of a measurement that characterizes the dispersion of the values that could reasonably be attributed to the particular quantity subject to measurement.

(8)

(9) “Premises” has the same meaning as defined in subdivision (ap) of Section 26001 of the Business and Professions Code.

(9)

(10) “THC” means delta-9 tetrahydrocannabinol.

(10)

(11) “Variety development plan” means a strategy devised by a hemp breeder, or applicant hemp breeder, detailing their planned approach to growing and developing a new cultivar for industrial hemp.
(b) This section shall remain operative only until the date on which a state plan for California is approved pursuant to Section 297B of the federal Agricultural Marketing Act of 1946 (added by Section 10113 of the federal Agricultural Improvement Act of 2018 (Public Law 115-334)), and as of January 1 of the following year is repealed.

SEC. 2.

 Section 81000 of the Food and Agricultural Code, as added by Section 3 of Chapter 838 of the Statutes of 2019, is amended to read:

81000.
 Definitions.
(a) For purposes of this division, the following terms have the following meanings:
(1) “Approved state plan” means a state plan for California that is approved pursuant to Section 297B of the federal Agricultural Marketing Act of 1946 (added by Section 10113 of the federal Agriculture Improvement Act of 2018 (Public Law 115-334)) and in effect.
(2) “Board” means the Industrial Hemp Advisory Board.
(3) “Cultivar” means a variety of industrial hemp.
(4) “Established agricultural research institution” means an institution of higher education, as defined in Section 101 of the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1001), that grows, cultivates, or manufactures industrial hemp for purposes of agricultural or academic research.
(5) “Hemp breeder” means an individual or a public or private institution or organization that is registered with the commissioner to develop cultivars intended for sale or research.
(6) “Industrial hemp” or “Hemp” means an agricultural product, whether growing or not, that is limited to types of the plant Cannabis sativa L. and any part of that plant, including the seeds of the plant and all derivatives, extracts, the resin extracted from any part of the plant, cannabinoids, isomers, acids, salts, and salts of isomers, with a delta-9 tetrahydrocannabinol concentration of no more than 0.3 percent on a dry weight basis.
(7) “Industrial hemp program” means growth of industrial hemp pursuant to this division and, if in effect, an approved state plan.
(8) “Measurement of uncertainty” means the parameter associated with the result of a measurement that characterizes the dispersion of the values that could reasonably be attributed to the particular quantity subject to measurement.

(8)

(9) “Premises” has the same meaning as defined in subdivision (ap) of Section 26001 of the Business and Professions Code.

(9)

(10) “Research plan” means a strategy devised by an established agricultural research institution, or applicant established agricultural research institution, detailing its planned approach to growing or cultivating hemp for academic or agricultural research.

(10)

(11) “THC” means delta-9 tetrahydrocannabinol.

(11)

(12) “Variety development plan” means a strategy devised by a hemp breeder, or applicant hemp breeder, detailing their planned approach to growing and developing a new cultivar for industrial hemp.
(b) This section shall become operative as of the date on which a state plan for California is approved pursuant to Section 297B of the federal Agricultural Marketing Act of 1946 (added by Section 10113 of the federal Agricultural Improvement Act of 2018 (Public Law 115-334)).

SEC. 3.

 Section 81004.6 is added to the Food and Agricultural Code, to read:

81004.6.
 The department shall report on all hemp production in the state to the Farm Service Agency of the United States Department of Agriculture and shall provide, at minimum, all of the following information:
(a) Street address and, to the extent practicable, geospatial location of the lot, parcel, greenhouse, building, or site of all locations in the state where hemp will be produced by registered established agricultural research institutions, registered growers of industrial hemp, and registered hemp breeders.
(b) The acreage dedicated to the production of hemp, or greenhouse or indoor square footage dedicated to the production of hemp, for each location in the state where hemp will be produced.
(c) The license or registration number associated with each location in the state where hemp will be produced.

SEC. 4.

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

81006.
 Industrial Hemp Growth Limitations; Prohibitions; Imports; Laboratory Testing.
(a) Except when grown by a registered established agricultural research institution or a registered hemp breeder, industrial hemp shall be grown in acreages of not less than one-tenth of an acre at the same time.
(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) 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) (1) Except when industrial hemp is grown by a registered 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 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 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.
(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 indicate the percentage concentration 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 of THC that is equal to or less than 0.3 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 of THC that is greater than 0.3 percent, the words “FAILED AS CALIFORNIA INDUSTRIAL HEMP” shall appear at or near the top of the laboratory test report. The laboratory test report shall also include an estimate of the measurement of uncertainty associated with the test results. A laboratory shall use appropriate, validated methods and procedures for all testing activities and estimates of the measurement of uncertainty.
(6) If the laboratory test report indicates a percentage concentration of THC that is equal to or less than 0.3 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 of THC that is greater than 0.3 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 of THC that exceeds 1 percent or a second laboratory test report pursuant to paragraph (7) indicating a percentage concentration of THC that exceeds 0.3 percent but is less than 1 percent. If the percentage concentration of THC exceeds 1 percent, the destruction shall begin within 48 hours, and be completed within seven days, after receipt of the laboratory test report. If the percentage concentration of THC in the second laboratory test report exceeds 0.3 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 of THC that is greater than 0.3 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 to cultivate or possess industrial hemp with a laboratory test report that indicates a percentage concentration of THC that is greater than 0.3 percent in accordance with its approved research plan or variety development plan if that cultivation or possession contributes to the development of types of industrial hemp that will comply with the 0.3 percent THC limit established in this division.
(11) 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.

SEC. 5.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.Section 81014 of the Food and Agricultural Code is amended to read:
81014.

A person that materially falsifies information contained in an application or registration under Section 81003 or 81004, or other application to participate in the industrial hemp program, shall be ineligible to participate in the industrial hemp program.