SENATE BILL REPORT

SB 5222

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Committee Activity: Agriculture, Water & Rural Economic Development: 1/29/13, 1/31/13 [DPS-WM].

Ways & Means: 2/07/13.

Majority Report: That Substitute Senate Bill No. 5222 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

Signed by Senators Hatfield, Chair; Delvin, Eide, Hobbs, Honeyford, Ranking Member; Schoesler and Shin.

Background: Industrial hemp production is not pursued in Washington to any significant extent at this time. The fact that hemp contains tetrahydrocannabinol, a controlled substance on the federal level and a regulated substance on the state level, complicates its feasibility as a farm product. A comprehensive inquiry into existing knowledge about the crop's growing requirements and the economic potential of hemp products could contribute to determination of whether industrial hemp production is an advantageous market opportunity for the state.

Summary of Bill (Recommended Substitute): Washington State University (WSU) must study the feasibility and desirability of industrial hemp production in Washington State. The concentration of tetrahydrocannabinol in industrial hemp may not exceed 0.3 percent by weight except for purposes of licensed seed research. The study's sources of information are prescribed and specific analyses are required. Hemp products to be studied include cloth, fuel, plastics, seed meal, and seed oil for consumption, among other things. WSU must report its findings to the legislature by January 14, 2014.

EFFECT OF CHANGES MADE BY AGRICULTURE, WATER & RURAL ECONOMIC DEVELOPMENT COMMITTEE (Recommended Substitute): Hemp's suitability for erosion control is added to the topics of study. WSU is encouraged to conduct the study at its Everett branch campus.

Staff Summary of Public Testimony on Original Bill (Agriculture, Water & Rural Economic Development): PRO: The Province of British Columbia allows industrial hemp production and manufacturing. It is estimated that there is a $300 million potential market for hemp and hemp products in the United States. Though growing hemp is not legal in the United States, products made from hemp are sold here. These include clothes, backpacks, and lip gloss among many others. The growing of hemp in colonial times was mandated in order to support the rope-making industry. Today hemp is valued as biofuel, a rotator crop, a successful eco-thermal insulator, for paper-making, furniture-making, erosion control, and in recycling, among other uses. It is a high-yield, low-input crop that requires minimal herbicide and pesticide application. Industrial hemp is not marijuana as defined in Washington law because its THC concentration is limited to 0.3 percent by weight. It is considered a green crop.

Staff Summary of Public Testimony (Ways & Means): PRO: Cultivation of hemp was legal in the United States until 1937. Hemp is not marijuana, which is defined in Initiative 502 as containing THC levels that are greater than 0.3 percent. Hemp is used in many products that are currently imported and sold in the United States. Canada is currently producing industrial hemp and their farmers are benefiting. Hemp can be used to produce biofuel and it is a crop that has less impact on the environment. Additionally, hemp is a good rotator crop because it helps to prevent soil erosion. This study is needed to determine if there is demand for growing industrial hemp.

CON: There is no need to study the benefits of producing industrial hemp because it is known that the revenue potential is there. We should just get going and put our farmers to work.

Persons Testifying (Ways & Means): PRO: Senator Kohl-Welles, prime sponsor; Jay Gordon, citizen.

CON: John Worthington, citizen.