Cannabis law plans to incentive organic farming, licensing, and access to credits for small producers

If voted in favor, the law would give legal structure to homegrown cultivation.
May 20, 2020

This post is also available in: Español

The new text file  21,315  known as the Law on the Production of Cannabis and Hemp for Medicinal Purposes would give small producers economic and technical incentives to participate in the medical cannabis and hemp industry that is proposed from various sectors of the population.

The text was worked by the congressman of Frente Amplio, José María Villalta and plans to improve the proposal presented in March 2019 by the independent congresswoman Zoila Volio.

"The State will promote and encourage the development of sustainable hemp and cannabis cultivation for medical or therapeutic use, as well as industries that add value to such production, as alternatives for economic revival. For these purposes, natural and legal persons engaged in these activities will have the possibility of accessing the credit for its development, in accordance with the provisions of article 7 of Law No. 8634, System of Development Banking", notes the text.

On the other hand, the text of the law provides for the generation of incentives for hemp crops and medicinal cannabis in an organic way, with which, not only is it sought to protect the environment but also, could generate higher quality products.

"The Ministry of Agriculture and Livestock will provide training, advice and technical assistance to organizations of agricultural persons authorized, in accordance with this law to grow hemp and cannabis, in order to promote organic agricultural activity, for which they will have access to the benefits and incentives established in Law No. 8591, Law on the Development, Promotion and Promotion of Organic Agricultural Activity, for which they will have access to the benefits and incentives established in Law No. 8591, Law on the Development, Promotion and Promotion of Organic Agricultural Activity , 14 August 2007."

Licenses

If this bill is passed, large and small producers will have to pay a fee that will be fixed in the future by the presidency.

This is a major change, considering previous bills where licensing prices responded to licensing capabilities.

For the Frente Amplio, such measures would create a "private foreign monopoly".

With this alternative, legislators would really seek to incentivize the agricultural sector with job creation that would benefit the country's economic revival.

Under the new law, producers of medical cannabis and hemp would be subject to a special 5% tax on net after-tax profits.

This tribute would be used to strengthen the public finances of the Ministry of Health, the Costa Rican Institute on Drugs (ICD), the Ministry of Agriculture and Livestock, the Costa Rican Social Security Fund and finally, the Institute on Alcoholism and Pharmacodependence of Costa Rica (IAFA).

Volio has stated that in future legislative committees she will seek to focus the discussion on the basis of the replacement text worked with Villalta.

Last 4th of may, the President of the Republic, Carlos Alvarado announced first and foremost the country that the government will seek to incentivize the production of hemp to revive the economy and cope with the unemployment caused by the pandemic known as Covid-19.

Meanwhile, the Ministry of Agriculture announced that they would begin testing the crop in different areas of the country.

The bill will be taken up in discussion once the Committee on the Environment is satisfied, where this issue is discussed.

This post is also available in: Español

Escrito por: Daniel Gomez
Publicado en la revista 
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