Argentina Creates National Agency ARICCAME To Regulate & Promote Cannabis Sector

Argentina on Wednesday launched the first working group of a new national agency to regularize and promote the country’s nascent cannabis industry, which ministers hope will create new jobs and exports generating fresh income for the South American nation.

“This opens the door for Argentina to start a new path in terms of industrial exports, on the basis of huge global demand,” said Economy Minister Sergio Massa in a conference launching the national hemp and cannabis agency, ARICCAME.

Economy Minister Sergio Massa

 

All this needs to be transformed into an industry which generates work, which generates exports for Argentina and which generates value.”

Massa said that the agency would from Thursday begin regularizing programs and coordinating with various provinces and industrial sector, adding Argentina already counted on demand for projects linked to the agro-industrial sector.

Francisco Echarren, who will lead the agency, said the industry could generate thousands of new jobs, as well as create technological developments and new products for export.

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https://www.reuters.com/world/americas/argentina-sets-high-hopes-cannabis-exports-with-budding-new-agency-2023-01-26/

 

Agency Page https://www.argentina.gob.ar/ariccame

FUNCTIONS

We are the Agency that regulates the import, export, cultivation, industrial production, manufacture, commercialization and acquisition, by any title, of seeds of the cannabis plant, cannabis and its derivative products for medicinal or industrial purposes.

General objectives:
  • Establish through the respective regulations, the regulatory framework of the entire production chain and national commercialization and/or the export of the Cannabis Sativa L. plant, seeds and derivatives for purposes of use in favor of health and industrial hemp.
  • Promote a new agro-industrial productive sector for the commercial manufacture of medicines, phytotherapeutics, food and cosmetics for human use, medicines and food for veterinary use, as well as the different products made possible by industrial hemp.
  • Generate the framework for the adaptation to the regulatory regime, of the cultivation and production of cannabis derivatives for use in existing health, guaranteeing the traceability and quality of the products in order to safeguard the right to health of the users of medical cannabis.
  • Reintroduce hemp in Argentina and all its derivatives: food, construction materials, textile fiber, cellulose and bioplastics with low environmental impact.
  • Promote scientific research and sectoral technological progress, promoting favorable conditions for these existing industries in our country.
Specific objectives:
  • Establish clear rules that provide legal certainty to the sector and encourage federal participation.
  • Articulate through agreements and conventions with other State entities with intervention in the matter: INASE, SENASA, INTA, INTI, AFIP, INAES, BCRA, UIF, National Universities, etc.
  • Determine the system of licenses and administrative authorizations for the production chain.
  • Generate quality standards that safeguard the right to health of users and consumers of cannabis/hemp products.
  • Control non-compliance with the regulatory regime.

 

 

https://www.argentina.gob.ar/normativa/nacional/ley-27669-365303/texto

HONORABLE CONGRESS OF THE ARGENTINE NATION


REGULATORY FRAMEWORK FOR THE DEVELOPMENT OF THE MEDICINAL CANNABIS AND INDUSTRIAL HEMP INDUSTRY

Law 27669

Provisions.

The Senate and Chamber of Deputies of the Argentine Nation reunited in Congress, etc. sanction with force of

law:

REGULATORY FRAMEWORK FOR THE DEVELOPMENT OF THE MEDICINAL CANNABIS AND INDUSTRIAL HEMP INDUSTRY

CHAPTER I

PURPOSE AND GENERAL PROVISIONS

Article 1- Purpose. The purpose of this law is to establish the regulatory framework for the national production and commercialization chain and/or for export purposes of the cannabis plant, its seeds and its derivative products affected for medicinal use, including scientific research, and for the use industrial; thus promoting the national development of the sectoral productive chain.

Excluded from this regulatory framework are crops and projects planned and authorized under Law 27,350, which will be governed by the rules issued for that purpose by the enforcement authority of said law and the parameters set by its regulations.

For the purposes enshrined in this standard, the regulatory authority will be empowered to regulate, issue, and control the administrative authorizations that allow the registration and registration of seeds, cultivation, harvesting, storage, fractioning, transportation, distribution, processing, marketing, and any other stage or economic activity that integrates the productive chain of cannabis, its seeds and its derivatives affected for medicinal and industrial uses.

This law governs the entire territory of the Argentine Republic with a character of public order. The activities that are regulated therein will be subject to federal jurisdiction and any incident that may directly or indirectly arise or derive from the application of this will be the responsibility of the Federal Administrative Litigation jurisdiction.

Article 2 – Definitions. For the purposes of this law, the following definitions will be adopted:

“Psychoactive substance”: It is any chemical substance (drug or psychopharmaceutical) of natural or synthetic origin that affects the functions of the central nervous system, with effects on the inhibition of pain, change of mood and alteration of perception, among others.

“Cannabis plant”: Any plant of the genus Cannabis.

“Cannabis”: Are the tops, flowering or bearing fruit, of the cannabis plant (with the exception of the seeds and leaves not attached to the tops) from which the resin has not been extracted, whatever the name by which designate them.

“Psychoactive cannabis”: It is one whose tetrahydrocannabinol (THC) content is equal to or greater than the limit established by the national Executive Branch through regulations.

“Derived product”: It is that produced from the cannabis plant for industrial or medicinal use, in accordance with the specifications and regulations issued by the application authority.

“Hemp”, “Industrial and/or horticultural hemp”: These are the seeds, parts of the cannabis plant and their products, which contain up to the maximum concentration limit of the chemical component tetrahydrocannabinol (THC) established in the regulations.

“Narcotics”: Are the substances included in the list of Annex I, sections 165 and 439 and the substances included in the chemical groups of the list of Annex II identified as numerals 3, 4, 5, 6, 7, 8 and 9, both members of decree 560 dated August 14, 2019; when any of the activities listed in articles 1, 8 and 12 of this law are carried out without due prior state authorization, under the conditions established herein and in its regulations.

Article 3 – In accordance with the provisions of the United Nations Single Convention of 1961 on Narcotic Drugs, hemp, industrial and/or horticultural hemp and its products and/or products are excluded from the scope of application of Law 23,737 and its amendments. derivatives.

Meanwhile, the authorized crops within the regulatory framework enabled for medical and scientific research of medicinal, therapeutic and/or palliative use of the pain of the cannabis plant and its derivatives provided for in Law 27,350 and psychoactive cannabis and derivatives, contemplated in Articles 1, 8, 12 and 25 hereof, provided they have the proper prior state authorization, will not be considered narcotics for the purposes of criminal law.

CHAPTER II

ON THE CANNABIS INDUSTRY REGULATORY AGENCY

Article 4 – Creation. The Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) is hereby created, as a decentralized body that will function within the scope of the Ministry of Productive Development, with administrative, functional, technical and financial autonomy, with jurisdiction throughout the national territory.

It will be the competent body to regulate, control and issue administrative authorizations regarding the use of seeds of the cannabis plant, cannabis and its derivative products. Your patrimony will be made up of the assets that are transferred to you and those that you acquire in the future by any title.

Its domicile will be established in the Autonomous City of Buenos Aires, its personnel will be governed by the Labor Contract Law 20,744 (to 1976) and its amendments, and external control will be carried out by the General Audit of the Nation.

Likewise, the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) may establish regional or provincial delegations to expedite effective compliance with this law throughout the national territory. The board of directors will be able to coordinate with the respective jurisdictions the necessary actions for the best fulfillment of the present.

The Regulatory Agency for the Industry of Hemp and Medicinal Cannabis (ARICCAME) will have the regular function -among others- of the import, export, cultivation, industrial production, manufacture, commercialization and acquisition, by any title, of seeds of the cannabis plant, of cannabis and its derivative products for medicinal or industrial purposes.

Regarding seeds, the National Seed Institute (INASE), a decentralized body under the jurisdiction of the Ministry of Agriculture, Livestock and Fisheries, in its capacity as regulator of the conditions of production, dissemination, management and conditioning of the propagation organs of this species, will issue the complementary regulations that allow the traceability of plant products, in accordance with the provisions of Decree 883 dated November 11, 2020. Likewise, within the framework of this law and in coordination with the aforementioned Agency, the Institute Nacional de Semillas (INASE) will create a special exceptional and extraordinary registration plan for the term set by the regulations, for the purposes that seed holders,of complying with the requirements established in the Law of Seeds and Phytogenetic Creations 20,247, can protect the property of the phytogenetic creations of their authorship, through their registration.

The Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) will regulate and control the storage, fractioning, transportation, distribution, traceability and use of the seeds of the cannabis plant, cannabis and its derivative products for medicinal purposes. or industrial, in coordination with the Ministry of Productive Development; the Ministry of Health; the Ministry of Security; the Ministry of Agriculture, Livestock and Fisheries; the Ministry of Environment and Sustainable Development; the National Administration of Medicines, Food and Technology (ANMAT); the National Agrifood Health and Quality Service (SENASA); the National Seed Institute (INASE); the National Institute of Agricultural Technology (INTA); the National Institute of Industrial Technology (INTI); the Federal Administration of Public Revenues (AFIP); the National Agency for Public Laboratories (ANLAP); and the other public bodies with specific competence in the matter.

Article 5 – Management and Administration. The Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) will be directed by a Board of Directors made up of five (5) members with the rank and hierarchy of Secretary or Secretary and will be appointed and removed by the national Executive Power.

The President at the proposal of the Ministry of Productive Development, the Vice President at the proposal of the Ministry of Health, and the remaining members of the Board of Directors will be proposed by the Ministry of Agriculture, Livestock and Fisheries; the Ministry of Science, Technology and Innovation; and the Ministry of Security.

The duration of the mandates will be four (4) years with the possibility of being re-elected only once, they will last in their positions as long as they maintain good conduct and the grounds for removal will be those applicable to all public officials.

The regulations will determine the functioning of the government bodies, the Federal Council for the Development of the Hemp and Medicinal Cannabis Industry, the Honorary Advisory Council, the union, and the functions and missions of the different bodies.

The President of said Agency will exercise the legal representation of the organization before third parties. The executive administration of the same will be carried out by a General Management, under the conditions established in the regulations issued for this purpose.

The Board of Directors will validly meet with half plus one of its members. Resolutions will be taken by simple majority of votes. In the event of a tie in the decisions, the Presidency will have a double vote.

The obligations and attributions of the Board of Directors are:

a) Direct and administer the aforementioned Agency;

b) Advise and cooperate with it in the exercise of its functions. Provide an opinion or collect information whenever deemed necessary for the purposes of this law;

c) To rule on any matter that is submitted to its consideration and on those others that it considers pertinent to the objects of this law and its proper application;

d) Carry out or order the technical studies and surveys that it deems necessary for the best achievement of the objectives of this standard;

e) Publish their opinions, studies and information available, and other issues that it considers of interest to the value chain of the cannabis industry for medicinal and industrial use;

f) Dictate its own operating regulations;

g) Carry out or entrust to third parties investigations inherent to the cannabis industry, and coordinate and promote those of official and private entities, being able to agree to the latter contributions for such purposes;

h) Approve and manage its budget;

i) Arrange for the application of the surplus balances of the budget at the end of the fiscal year to the constitution of reserve funds for its investments and future financing;

j) Enter into agreements with international, national, provincial, public or private organizations and institutions of the Autonomous City of Buenos Aires and/or municipalities and civil society organizations dedicated to the subject, for purposes of cooperation and technical assistance and/or economic;

k) Inform the Federal Council, created by article 10 of this law, of the work plan and the performance and thematic reports; convene ordinary and extraordinary meetings of said Council and promote the strengthening of cannabis production throughout the country according to the standards established in this law;

l) Form, and periodically convene, an Honorary Advisory Council that functions as a space for consultation on the implementation and monitoring of this law and formulation of proposals for productive policies, recommendations for regulatory adjustments and, in general, propose actions that promote to the best efficiency of this law;

m) Prepare and present to the presidencies of the Honorable Senate of the Nation and the Honorable Chamber of Deputies of the Nation, a quarterly report detailing all the regulations issued and the actions carried out, in exercise of the delegated powers. hereby;

n) In general, adopt all necessary measures to ensure its purposes and compliance with this law.

Article 6 – Heritage. The assets and resources of the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) will come from:

a) The perception of the control and inspection rate of the authorized subjects within the framework of this law;

b) The allocations provided for in the General Budget of the National Administration;

c) Donations or legacies;

d) The proceeds of fines for non-compliance with the provisions of the law and tariffs for the services provided;

e) Income from the issuance of licenses and/or authorizations for: import, export, cultivation, industrial production, manufacturing, commercialization and acquisition, by any title of seeds of the cannabis plant, cannabis and its derivative products with medicinal or industrial purposes;

f) Any other public or private contribution destined to the fulfillment of the purposes and objectives of this law;

g) The resources that are not executed within a budget year will be transferred to the next and will be kept in the account of the aforementioned Agency, without corresponding their derivation to general income.

CHAPTER III

FUNCTIONS OF THE REGULATORY AGENCY OF THE HEMP AND MEDICINAL CANNABIS INDUSTRY (ARICCAME)

Article 7 – The Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) will be in charge of regulating and supervising the productive activity of the cannabis industry, its commercialization and distribution, for medicinal and industrial use in the territory national, in everything related to the registration, control and traceability of seeds, critical inputs and products derived from cannabis, within the framework of an industrial process duly authorized and enabled under the terms of this law and the regulations.

The functions of said body will be:

a) Dictate the rules of administrative procedure and those that tend to coordinate with the other competent public authorities, for the issuance of authorizations for the import, export, cultivation, industrial production, manufacture, commercialization and acquisition, by any title of seeds of the cannabis plant, cannabis and its derivative products for medicinal or industrial purposes;

b) Regulate the storage, fractionation, transportation, distribution, traceability and use of cannabis seeds, cannabis plants, critical inputs of the production process and its by-products, for industrial and medicinal purposes;

c) Exercise control and monitoring related to the granting of licenses and/or authorizations, as well as compliance with the requirements required for the administrative authorizations granted in accordance with the provisions of the respective regulations, in a coordinated and articulated manner with the remaining public control authorities with competence in the matter, and especially with due coordination with the provincial security forces, if applicable;

d) Establish the regulatory norms that receive the best practices in terms of planting and cultivation, subject to quality standards and certifications to which the authorized subjects for the internal and external market must comply, seeking, as far as possible, harmonization with the most representative international regulations of the industry;

e) Establish the necessary requirements and conditions for the authorization of production processes to be implemented in relation to products derived from cannabis for industrial and medicinal use;

f) Carry out audits and inspections on the facilities of duly authorized subjects, in order to control their proper functioning, compliance with current regulations and the authorization granted;

g) Determine the inspection and control rate that will be paid annually by the subjects covered by this law, as well as its payment and collection methodology, the amount of which will be up to FIVE PER THOUSAND (5‰) of the invoiced amount;

h) Dictate the norms related to the expiration of the administrative authorizations granted under the present legal regime and its regulations; issuing expiration administrative acts and issuing regulations that specifically contemplate mechanisms aimed at discouraging applications for speculative authorizations, issuing guidelines that penalize the lack of use and/or exploitation thereof;

i) Issue certifications of good productive practices and provide reports to financial entities that so require, regarding due diligence on the holders of authorizations, under the conditions established by the respective regulations;

j) Dictate joint regulations and/or carry out cooperation agreements, acting in coordination with the Central Bank of the Argentine Republic (BCRA), the National Securities Commission (CNV), the Federal Administration of Public Revenues (AFIP), the National Insurance Superintendence (SSN), the General Inspectorate of Justice (IGJ) and the Financial Information Unit (UIF), among other public entities, for the purpose of establishing complementary regulations aimed at harmonizing, under the terms of this law, regulations on financial, banking, capital market, stock market, asset laundering, insurance and/or related aspects;

k) Convoke the Federal Council for the Development of the Hemp and Medicinal Cannabis Industry on the occasions determined in this law and, likewise, when deemed pertinent;

l) Exercise any other authority and comply with the other obligations established in this law and its regulations;

m) Carry out the collection of the control and inspection rate, collect the fees related to the issuance of licenses and/or authorizations, in general of the services it provides, in accordance with the regulations issued for said purpose;

n) Summon the Honorary Advisory Council.

Article 8 – Human or legal persons whose activities are included in this law may not start their activities without the prior authorization of the aforementioned Agency. Any eventual merger and/or assignment and/or transfer of its shares and/or goodwill will also require prior and express authorization issued by the regulatory authority.

Article 9 – The Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) when evaluating the applications for authorization to operate, must analyze and weigh, under the conditions established in the respective regulations, the characteristics of the project, the general and specific market conditions, the financial and commercial background of the petitioner, the economic integrity plans and the prevention of money laundering and financing of terrorism, the security measures, their experience in related activities, the type of structure legal entity with which the applicant will operate, among other precautions, in accordance with the conditions established in the regulations.

CHAPTER IV

OF THE FEDERAL COUNCIL OF THE MEDICINAL CANNABIS AND INDUSTRIAL HEMP INDUSTRY

Article 10.- Federal Council. The Federal Council for the Development of the Hemp and Medicinal Cannabis Industry is created, which will be made up of one (1) representative of the Nation and one (1) for each province and for the Autonomous City of Buenos Aires, who will perform functions on an honorary basis. .

Said Federal Council will meet monthly, in ordinary sessions. For reasons of urgency, it may be called to an extraordinary session by the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) or at the request of at least forty percent (40%) of the members. He will fix his seat in plenary session with the assistance of at least two thirds (2/3) of the members. It will prepare its recommendations by a simple majority of the members present.

In order to modify its own regulations, it must be constituted in a plenary session with the assistance of at least two thirds (2/3) of the members.

Article 11.- Functions. The Federal Council for the Development of the Hemp and Medicinal Cannabis Industry will have the following functions:

a) Meet in ordinary and extraordinary sessions and issue its own regulations;

b) Suggest criteria for the distribution and granting of authorizations at the federal level and pronounce on their granting in a technical report whose issuance will be an essential requirement for the validity of the administrative act of issuance of authorizations and/or licenses, under the conditions of the regulation;

c) Recommend to the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) policies aimed at a harmonious development of the industry in each region;

d) Submit to the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) proposals and studies aimed at improving its work plan based on the national diagnosis reached in the plenary meetings of the Council;

e) Prepare studies and diagnoses in relation to the problems that arise from the application of the law and submit to the Regulatory Agency for the Industry of Hemp and Medicinal Cannabis (ARICCAME) proposals aimed at improving its work plan.

CHAPTER V

ABOUT THE AUTHORIZATIONS

Article 12.- Authorization. The Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) will issue the administrative authorizations that allow the import, export, cultivation, industrial production, manufacture, commercialization and acquisition, by any title of seeds of the cannabis plant, cannabis and its derived products for medicinal or industrial purposes with the provisions of article 1 of this law, with the administrative procedure established by the respective regulations.

The regulation must contemplate different categories of administrative authorizations on the basis of objective criteria that must be completed by the petitioner, linked to the various productive modalities and the activities to be carried out.

For this purpose, the regulations must stipulate authorizations with respect to the different stages and activities of the production process, with the aim of guaranteeing adequate and effective control of each of these stages, as well as the integral traceability of the chain.

In granting the aforementioned authorizations, the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) will have special consideration for those requests aimed at contributing to the development of regional economies and promoting the activity of cooperatives and small and medium-sized enterprises. agricultural producers, also attending to the inclusion of the gender and diversity perspective and federal projection in its granting.

For the granting of licenses and/or authorizations in the territories of the provinces and/or the Autonomous City of Buenos Aires, the representative before the Federal Council of the jurisdiction where the productive project is to be located must provide -prior to the issuance of the administrative act granting or denying the license and/or authorization- a technical report containing, in addition to the remaining precautions established by the regulations, the analysis of the impact that it will have on the orderly productive development of the industry in the province, online with the realities of the different regional economies of the country.

The regulations will determine the formalities of the aforementioned technical report, which will be considered an essential requirement of the administrative act of issuance or denial of licenses and/or authorizations.

The regulation will establish a special program of adaptation to this norm destined to the undertakings of the organizations of the civil society with aims of common good that have developed special knowledge, knowledge and experiences about the diverse medicinal, therapeutic and palliative uses of the plant. of cannabis.

To this end, the regulations must provide actions aimed at adapting said civil society organizations within the framework of this law, with the aim of inserting small producers into the production chain of cannabis plants for legally authorized uses, with special authorization procedures, social fees for access, technical support, among other forms of accompaniment.

The regulation will promote specific coordination actions that involve the National Institute of Associations and Social Economy (INAES), a decentralized body under the Ministry of Productive Development, aimed at adapting said civil society organizations within the framework of cooperative activity. and of small producers in the production chain of cannabis plants for legally authorized uses, with special procedures for authorizations, social fees for access, technical support, among other forms of accompaniment.

Likewise, the aforementioned National Institute of Associations and Social Economy (INAES) will promote the issuance of regulations that enable the registration of cooperatives that are established for the production of cannabis plants for legally authorized uses.

The aforementioned Agency may grant licenses and permits that simplify the procedures and that combine one or more activities or stages of those foreseen above, provided that the established requirements are met.

With regard to hemp, the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) is entrusted with providing a simplified differential regime to issue the authorizations provided for in this article in relation to industrial and/or horticultural hemp, taking into account the specific characteristics of said industrial sector.

Article 13.- Monitoring and Control of Authorizations. The monitoring and follow-up related to the granting and/or compliance with the charges and obligations assigned to the holders of the authorizations granted will be structured on the basis of two (2) components:

1) Administrative component: objective evaluation, control and technical and legal monitoring of the parameters required for the granting of authorizations or those parameters on which the granting was made, under the conditions provided in the regulations.

2) Operational component: monitoring and evaluation activities that are required for the verification of the technical and legal parameters mentioned in the administrative component and whose compliance must be carried out at the operational level as a condition related to the maintenance of the authorization, under the conditions established in the regulation.

Article 14.- Obligations of the holder of the authorization. The holder of an authorization granted within the framework of this law must comply with all its provisions and charges, the rules provided for in its regulations and the remaining conditions imposed in the administrative act of granting.

If an authorization granted within the framework of this law is suspended for any of the reasons regulated in the respective regulations, the owner must completely and immediately cease the activities related to the object of the authorization during the effective period of suspension, from the date of notification of the administrative act that ordered the suspension.

Each holder of an authorization granted within the framework of this law, must make information material in Spanish related to cannabis available to the public, in the form, with the contents and during the periods established by the regulations.

The holder of an authorization granted within the framework of this, must comply with the information regimes established by the aforementioned Agency regarding the control and traceability of all production processes and critical inputs, in accordance with the terms and forms that adhere to the regulations.

CHAPTER VI

PENALTY REGIME

Article 15.- Violation. Any violation of the regulatory framework established in this law, in the regulations issued or in the conditions of validity of the administrative authorizations granted by the regulatory authority will give rise to the administrative sanctions provided for in this regulation; without prejudice to the corresponding penal sanctions in the event of verifying crimes of public action, in accordance with the provisions of articles 204, 204 bis, 204 ter, 204 quater, 204 quinquies and concordant of the Penal Code of the Argentine Nation.

Article 16.- Sanctions. Failure to comply with the provisions of this law or the regulations that are issued as a result, without prejudice to the civil or criminal sanctions that may correspond as a result of judicial decisions related to these breaches, will be subject to the following sanctions, in which conditions established by the regulations; namely:

1) Warning.

2) Fine: the amount of which will be defined according to the seriousness of the verified offense and the circumstances of the case. The sanction of a fine will be established in units of value called “Fixed Units” (UF), equivalent to the price of one (1) liter of diesel fuel. The minimum fine will be one hundred Fixed Units (100 UF) and the maximum of three hundred thousand Fixed Units (300,000 UF).

3) Suspension of the authorization to carry out the activity.

4) Expiration of the authorization due to lack of exploitation, under the conditions established by the regulations.

5) Ineligibility to operate within the periods provided in the regulations.

Article 17.- The sanctions contemplated in the previous article will be applied by the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) prior investigation of a summary, which will be substantiated according to the administrative procedure that is timely established by regulation. , in which the right of defense of the alleged offenders or the alleged offenders will be guaranteed.

The sanctions will be graduated according to the nature and seriousness of the verified infringement, if there is a recurrence, as well as the damage caused, regardless of the eventual civil and/or criminal liability attributable to them.

Article 18.- In case of recidivism, the regulations may increase up to two (2) times, the maximum of the sanctions provided for in subparagraph 2) of article 16. A recidivist will be considered a person who, within the three (3) previous years on the date of the commission of the accused infraction, has been previously penalized for another infraction of the same or similar cause linked to the regime of this law.

Article 19.- The actions to impose the sanctions provided for in this law prescribe five (5) years from the date on which the infraction was committed. The initiation of the administrative proceeding provided for in article 17 will interrupt the course of the limitation period of the action.

Article 20.- The income from the fines regulated in article 16, subsection 2) will be received by the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) and allocated to operating expenses and health education programs.

Article 21.- The executive route for the judicial collection of the fines of this Title is established. For such purposes, the instrument determined by regulation by the national Executive Power will constitute sufficient executive title, in the terms established in subsection 7) of article 523 of the National Civil and Commercial Procedure Code. The collection trial will be carried out in accordance with the fiscal execution procedure regulated in articles 604, 605 and concordant of the Civil and Commercial Procedural Code of the Nation.

CHAPTER VII

PROMOTION OF RESEARCH, ENTREPRENEURSHIP AND SMEs

Article 22.- The Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) will articulate research programs with Public Universities, and National and provincial Science and Technology agencies, aimed at facilitating and promoting, in the scope of its competence, scientific research related to cannabis and hemp.

Article 23.- The Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) will articulate with the Secretariat of Small and Medium Enterprises and entrepreneurs financing programs and entrepreneurial support aimed at facilitating and promoting, within the scope of its competence. , the development of enterprises and SMEs linked to the activities regulated in this law.

CHAPTER VIII

SUPPLEMENTARY PROVISIONS

Article 24.- Replace article 6 of Law 27,350, which will read as follows:

Article 6: The application authority has the power to carry out all the actions required to guarantee the supply of inputs and derivatives necessary for the purpose of carrying out scientific and medical studies of the cannabis plant for medicinal purposes within the framework of the Program. For such purposes, it may be supplied with the supply of inputs and derivatives generated by those producers or national producers duly authorized within the framework of the provisions of the law of the “Regulatory Framework for the Development of the Industry of Medicinal Cannabis and Industrial Hemp” , or it will be empowered to request an authorization for its import from the Regulatory Agency for the Hemp Industry and Medicinal Cannabis (ARICCAME) created by said law. In all cases,

Article 25.- Those projects that have been approved under Law 27,350 and/or that at the time of enactment of this law are covered by provincial regulations of adherence to said law, will enjoy a simplified regime for obtaining authorizations and/or licenses.

Article 26.- Regulation. The national Executive Branch must regulate this law within a period of one hundred and eighty (180) calendar days from its publication in the Official Gazette.

Article 27.- Communicate to the national Executive Power.

GIVEN IN THE SESSION ROOM OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, ON THE FIFTH DAY OF MAY OF THE YEAR TWO THOUSAND TWENTY-TWO.

REGISTERED UNDER N° 27669

CLAUDIA LEDESMA ABDALA DE ZAMORA – SERGIO MASSA – Marcelo Jorge Fuentes – Eduardo Cergnul

and. 05/26/2022 No. 37105/22 v. 05/26/2022

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