SUSAN ANABLE

RESEARCH STAFF DIRECTOR

NATURAL RESOURCES, AGRICULTURE AND ENVIRONMENT COMMITTEE

Telephone: (602) 542-3171

Facsimile: (602) 542-7833

NATURAL RESOURCES, AGRICULTURE

AND ENVIRONMENT COMMITTEE

DATE: March 7, 2001

SUBJECT: Proposed Strike Everything Amendment to S.B. 1519

Purpose

Legalizes industrial hemp in Arizona and requires the Arizona State University (ASU)-East School of Agri-business and Resource Management to conduct a study on the feasibility of industrial hemp production in Arizona. Appropriates $100,000 from the general fund in FY 2001-2001 for this study.

Background

Hemp is a variety of the cannabis plant that is regulated under the federal Controlled Substances Act as a schedule 1 drug. In addition, hemp is currently an illegal substance under Arizona drug laws.

According to the Hemp Industries Association, industrial hemp is currently legal in 25 countries and legislation has been passed in five states to legalize industrial hemp (North Dakota, Hawaii, Minnesota, Illinois and Maryland). Legislation to legalize industrial hemp is currently pending in seven states and voter initiatives are underway in three states. There is currently a nationwide effort underway to legalize the production of this variety of cannabis for non drug-related uses.

Hemp can be used in the manufacturing of numerous products, including clothing, paper, textiles, cosmetics, accessories and certain foods. Industrial hemp is also currently being studied for use as a biomass fuel source.

The proposed strike everything amendment to S.B. 1519 specifies that industrial hemp is not classified as marijuana and is therefore not prohibited in the state of Arizona. The fiscal impact of the proposed strike everything amendment to S.B. 1519 is a $100,000 general fund appropriation in FY 2001-2002 for a feasibility study on the production of industrial hemp in Arizona.

Provisions

1. Excludes from the legal definition of marijuana under the criminal code, industrial hemp that has a concentration of delta-9 tetrahydrocannabinol of less than one percent on a dry weight basis and that is grown in compliance with federal permit conditions.

2. Requires the ASU-East School of Agri-business and Resource Management to conduct a study on the feasibility and desirability of industrial hemp production in Arizona. Requires the School to report its findings and recommendations to the Governor and the Legislature by December 1, 2002.

3. Appropriates $100,000 from the general fund in FY 2001-2002 to ASU for the study and requires any unexpended or unencumbered monies to revert to the general fund on January 1, 2003.

4. Repeals the authority for the study on January 31, 2003.

5. Makes technical and conforming changes.

6. Provides for a general effective date.

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