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GOBIERNO DE PUERTO RICO

DEPARTAMENTO DE AGRICULTURA

OFICINA PARA EL LICENCIAMIENTO E INSPECCIÓN DEL

CÁÑAMO DE PUERTO RICO (OLIC)

Puerto Rico

Department of Agriculture

Hemp Program

 DA – Phone number: (787) 721-2120

 OLIC – Phone number: (787) 331-0737

 Email: olicpr@agricultura.pr.gov

 Physical Address: OLIC – Oficina 203, Edificio 1309, Ave. Manuel Fernández Juncos,

Parada 19 1⁄2, Santurce P.R. 00908

 Web Page: https://www.agricultura.pr/olicpr

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I. Index:

Title: Pages:

I. Index ................................................ 2

II. Introduction ................................................ 3

III. Definitions ................................................ 6

IV. Content ................................................ 10

1. Legal Background ................................................ 10

2. PRDAHP ................................................. 13

A. General Provisions ................................................ 13

B. Information that the OLIC will Report to the USDA ................. 16

C. Licenses ................................................ 17

D. Acquisition of Hemp Seed ................................................ 39

E. Reports ................................................ 40

F. Inspections, Samplings and Tests ....................................... 46

G. Violations, Sanctions, Notifications and Appeals ..................... 54

3. Resources and Personnel ................................................ 58

V. Conclusion ................................................ 59

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II. Introduction:

1. Written records throughout history show that humans have used Hemp in an industrial

manner since the earliest of civilizations. More than 30,000 Hemp derived products can

be made from this plant such as: clothing, food, furniture, nutritional oils, soap, shampoo,

insulating bags, paints and varnishes, fuels, lubricants, geotextiles that prevent erosion,

paper, high resistance ropes, car parts, food, forage for animals, material for housing

construction and bioplastics, among others. Its seeds have medical and cosmetic

applications. They contain Omega 3 and Omega 6 acids and are considered the plant-based

food with one of the highest values of protein and essential fatty acids with up to thirty four

(34%) of the same. It is considered one of the most complete plant-based foods.

2. Due to the island's privileged geographical position in a tropical region, Hemp could be

grown and harvested in Puerto Rico up to three (3) times a year, unlike the world's largest

producers that can currently only grow and harvest outdoors once or twice in a year.

3. The Department of Agriculture of Puerto Rico and the Department of Development and

Commerce of Puerto Rico offer some of the most extensive and attractive incentives for

growers and manufacturers in the United States.

4. Puerto Rico’s vast agricultural and manufacturing experience, complemented by its

existing agricultural and manufacturing infrastructure, provide it with the unique

opportunity to position itself as the spearhead of the Hemp industry, and continue to be

defined as the connector of the Americas.

5. During the year 2017, the Department of Agriculture of Puerto Rico began taking steps to

develop and implement the Hemp Research Pilot Projects Program (“LPPIC” for its

Spanish abbreviation) initiative, using the Agricultural Improvement Act of 20141

, better

as “Farm Bill 2014”, as its legal framework.

1 Agriculture Improvement Act of 2014 (P.L. 113-79)(Farm Bill 2014) (available at: https://d0707782-c346-41dc-b866-

9320e3ea38c4.filesusr.com/ugd/54671d_7013bc65d9fd4ff2a8fb272bdc68d3bb.pdf) (last visited: April 1, 2020)

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6. On December 28, 2018, eight days after the signing of the Agricultural Improvement Act

of 20182 better known as the “Farm Bill 2018”, the Department of Agriculture of Puerto

Rico created the Puerto Rico Hemp Licensing and Inspection Office (“OLIC” for its

Spanish abbreviation ) via Administrative Order OA-2018-29.3 The OLIC’s mission is the

creation, development, promotion, and enforcement of the Hemp industry in Puerto Rico.

7. On February 12 of 2019, the Governor of Puerto Rico signed Executive Order OE-2019-

0064

, which ordered the following:

“TO CREATE THE COMMITTEE TO ATTEND THE DEVELOPMENT OF HEMP IN

ACCORDANCE WITH THE FEDERAL AGRICULTURAL LAW OR “FARM BILL

2018 ”

This Committee, consisting of the Secretary of the Department of Public Security, the

Secretary of the Department of Economic Development and Commerce, and chaired by the

Secretary of Agriculture of Puerto Rico, has among its functions the provision of advice to

the Governor of Puerto Rico regarding the creation and implementation of public policy

related to Hemp growth and manufacture in Puerto Rico.

8. On July 1 of 2019, the Department of Agriculture of Puerto Rico issued Administrative

Order OA-2019-165 which reads as follows:

2 Agriculture Improvement Act 2018 (P.L. 115-334) (Farm Bill 2018) (available at: https://d0707782-c346-41dc-b866-

9320e3ea38c4.filesusr.com/ugd/54671d_18bf02817c654a1baa2376719b0af4ca.pdf) (last visited: April 1, 2020)

3 Puerto Rico. Department of Agriculture. (2018) Para Crear en el Departamento de Agricultura la Oficina para el

Licenciamiento e Inspección del Cáñamo de Puerto Rico, (OLIC) (OA-2018-29) (available at: https://d0707782-c346-

41dc-b866-9320e3ea38c4.filesusr.com/ugd/54671d_34c1b7f5cd2a42a380b06fcc48bdb442.pdf) (last visited: April 1, 2020) 4 Executive order from the Governor of Puerto Rico, Hon. Ricardo A. Rosselló Nevares. (2019). Para Crear el Comité

para Atender el Desarrollo del Cáñamo Conforme la Ley Agrícola Federal o “Farm Bill 2018” (OE-2019-006)

(available at: https://d0707782-c346-41dc-b866-9320e3ea38c4.filesusr.com/ugd/54671d_4987194aa1164ce8a0c0a608ce745654.pdf) (last

visited: April 1, 2020) 5 Puerto Rico. Department of Agriculture. (2019) Para Ordenar a la Oficina para el Licenciamiento e Inspección del

Cáñamo de Puerto Rico (OLIC) la Creación, Implementación y Fiscalización de Licencias para Proyectos Piloto de

Investigación del Cáñamo (LPPIC) (OA-2019-16) (available at: https://d0707782-c346-41dc-b866-

9320e3ea38c4.filesusr.com/ugd/54671d_0c954095a3994753a267b1e5ddcc89cb.pdf) (last visited: April 1, 2020)

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“TO ORDER THE PUERTO RICO HEMP LICENSING AND INSPECTION OFFICE

(OLIC) THE CREATION, IMPLEMENTATION AND AUDIT OF HEMP RESEARCH

PILOT PROJECTS (LPPIC)”

As a result of the OLIC’s efforts, on July 1, 2019, the Secretary of Agriculture of Puerto

Rico signed guidelines entitled “Licenses for Hemp Research Pilot Projects (LPPIC)”,

which describes the creation, implementation, and oversight of the Hemp program for

Puerto Rico.

9. On October 31, 2019, the United States Department of Agricultura (USDA), through the

Agricultural Marketing Service (AMS), issued the interim final rules to establish a

domestic program for the production of Hemp:

“Interim final rule with request for comments for the Establishment of a Domestic Hemp

Production Program, 7 CFR Part 990 (Federal Register/Vol. 84, No. 211/Thursday,

October 31, 2019/Rules and Regulations, pg. 58523 to 58563)”6

10. By March 1, 2020, the Puerto Rico Department of Agriculture, through the OLIC, had

granted sixty five (65) Cultivation Licenses and thirteen (13) Manufacturing Licenses

under the Hemp Research Pilot Projects program. The DA and the OLIC estimates that

approximately 10,000 acres (“cuerdas”) can be planted and cultivated throughout the island

once this State Plan is approved by the United States Department of Agriculture (USDA).

11. In compliance with the Farm Bill 2018 and the USDA-AMS interim final rules to establish

a domestic Hemp production program, the DA and the OLIC therefore and hereby present

the Puerto Rico State Plan entitled, Puerto Rico Department of Agriculture Hemp Program

(PRDAHP) for review and approval by the Secretary of Agriculture of the United States,

in order to obtain primary regulatory authority over the establishment of commercial Hemp

production in the territory.

6 Available at: https://www.govinfo.gov/content/pkg/FR-2019-10-31/pdf/2019-23749.pdf (last visited: April 1, 2020)

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III. Definitions:

1. Acceptable Hemp THC Level: when the application of the the measurement of

uncertainty to the reported delta-9 tetrahydrocannabinol content concentration level on

a dray weight basis produces a distribution or rage that includes 0.3% or less.

2. Agricultural Business Development Administration (ADEA for its Spanish

abbreviation): public corporation of the DA. The Agricultural Regions and the OLIC

are constituted as dependencies of ADEA.

3. Agricultural Insurance Corporation (CCA for its Spanish abbreviation): public

corporation of the DA that is a co-insurer of the Federal Crop Insurance Corporation

and is the only entity in Puerto Rico that offers crop insurance to farmers.

4. Agricultural Region: the seventy eight (78) municipalities of Puerto Rico are

organized into eight (8) geographic Agricultural Regions for DA purposes. These are

located in the municipalities of: Caguas, Ponce, San Germán, Mayagüez, Arecibo,

Lares, Naranjito and Utuado. Each of them are administrated by Regional Directors

that have the responsibility of approving incentives, such as the Bonafide Farmer

Certification, for farmers in municipalities belonging to their Agricultural Region.

5. Agrocomercial Integrity Auxiliary Secretary (SAIA for its Spanish abbreviation ):

DA inspection and regulation office. The Agrological Laboratory and the Plant Health

Office are part of the DA-SAIA.

6. Agrological Laboratory: DA laboratory with the ability to conduct THC concentration

tests in compliance with the Farm Bill 2018, USDA regulations, and PRDAHP. It will

be the regulatory laboratory for industry samples.

7. Applicant: legal person or entity that submitted an application for a Hemp license to

the OLIC in compliance with the PRDAHP.

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8. Annual or Annually: for the purpose of licensee reporting deadlines means by every

31st of January, for the calendar year that ended on the preceding December 31st.

9. Bonafide Farmer Certificate: certification issued by the DA through its Regional

Directors which allows a legal person or entity that generates fifty one percent (51%)

or more of its income from the agricultural sector, to participate in aid and incentives

programs offered by the DA and its dependencies. Agricultural operations of

individual or legal entities that obtain a Bonafide Farmer Certificate will have, among

other benefits, a ninety percent (90%) tax exemption.

10. Canabidiol (CBD): one of the Cannabinoids present in cannabis, which is generally

the main component in Hemp varieties.

11. Cannabinoids: organic chemical compounds present in various plants or fruits but only

in large quantities in the cannabis plant. There are one hundred and thirteen (113)

currently identified Cannabinoids, mostly present in the Hemp flower.

12. Cultivation License: a license granted by OLIC which allows the holder to possess,

germinate, grow, propagate, cultivate, dry, store, sell and export Hemp in Puerto Rico.

13. Decarboxylated: completion of a chemical reaction that converts THC acid to delta-9-

THC, the psychoactive component of cannabis.

14. Delta-9-Tetrahydrocannabinol (THC): one of the Cannabinoids present in cannabis,

known to be responsible for its psychoactive effects.

15. Department of Agriculture of Puerto Rico (DA): state agency with the power of law

to enact rules and regulations, and regulate, promote, incentivize, and train the

Agricultural Sector in Puerto Rico.

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16. Hemp: the plant Cannabis sativa L. and all derivatives, extracts, Cannabinoids,

isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9

tetrahydrocannabinol concentration of not more than 0.3% on a dry weight basis.

17. Hemp Research Pilot Project Licenses (LPPIC for its Spanish abbreviation ): OLIC

program that grants Licenses for Cultivation and Manufacturing of Hemp for

experimental purposes.

18. Innovation Fund for Agricultural Development (FIDA for its Spanish abbreviation):

dependency of the ATPR responsible for coordinating the "Next Level" courses. FIDA

also offers financing, loan guarantees, resources for training and promotion of

agricultural products.

19. Key Participant(s): a person or persons who have a direct or indirect financial interest

in the entity producing hemp, such as an individual owner or partner in a partnership.

A key participant also includes persons in a corporate entity at executive levels

including chief executive officer, chief operating officer and chief financial officer.

This does not include other management positions like farm, field or shift managers.

20. Laboratory License: license granted by the OLIC that allows a private laboratory to

carry out different tests on samples of Hemp and its derived products according to the

Farm Bill 2018 and the PRDAHP.

21. Land Authority of Puerto Rico (ATPR for its Spanish abbreviation): public

corporation of the DA which owns and rents land for the development of agricultural

projects.

22. License for the Importation and Distribution of Hemp Products for Consumption: a

license granted by OLIC which allows the importation and/or distribution of derived

products for human and/or animal consumption, including those containing CBD in

any of its forms.

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23. Manufacturing License: license granted by the OLIC which allows the purchasing,

processing, creation, sale and exportation of Hemp derived products in Puerto Rico.

24. Medicinal Cannabis: the Cannabis sativa L. plant and any part of it that is produced

under the Department of Health Medicinal Cannabis Program of Puerto Rico.

25. OLIC Inspectors (IO for its Spanish abbreviation): personnel assigned to the OLIC

in order to inspect and ensure compliance with all the laws and regulations of the Hemp

industry in Puerto Rico.

26. Phytosanitary Permit: document that evidences the inspection of seeds by the

regulatory entity of the jurisdiction from which seeds are imported.

27. Plant Health Office: office that grants Special Hemp Seed Importation Permits for

Hemp seeds.

28. Puerto Rico Department of Agriculture Hemp Program (PRDAHP): program

implemented and supervised by the DA’s OLIC for the regulation of the Hemp industry

in Puerto Rico.

29. Puerto Rico Hemp Licensing and Inspection Office (OLIC for its Spanish

abbreviation ): DA office that regulates and oversees all aspects of the Hemp industry

in Puerto Rico.

30. Quarterly: for the purpose of licensee reporting deadlines means each quarter (every

three months) of the calendar year.

31. Research License: license granted by the OLIC that allows research into Hemp and

Hemp derived products.

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32. Secretary: Secretary of Agriculture of Puerto Rico.

33. Seed Distributor License: a license granted by the OLIC that allows the importation,

distribution, and sale of Hemp seeds in Puerto Rico, as well as the export of Hemp

seeds from Puerto Rico.

34. Special Hemp Seed Importation Permit: special permit that allows the importation of

Hemp seeds into Puerto Rico.

35. United States Department of Agriculture (USDA): is the federal executive department

responsible for developing and executing federal laws related to farming, forestry, rural

economic development, and food production in the Unites States.

IV. Content:

1. Legal Backgrounds:

A. Agriculture Improvement Act of 2014 (P.L. 113-79) (Farm Bill 2014):

Defines the term industrial Hemp and provides legal authority for pilot Hemp

agricultural programs. Furthermore, it sets forth the requirements to establish such

programs in the states and authorizes the Departments of Agriculture of the states and

territories to promulgate rules and regulations to carry them out.

B. Agriculture Improvement Act 2018 (P.L. 115-334) (Farm Bill 2018):

Farm Bill 2018 amends the Controlled Substances Act, 21 U.S.C. §801, et seq.,

removing Hemp from the term "marijuana". The term “Hemp” is defined in Farm Bill

2018 as the Cannabis sativa L. plant and any of its parts, including the seeds and all its

derivatives, extracts, Cannabinoids, isomers, acids, salts, and salts of isomers, growing

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or not, with a delta-9-tetrahydrocannabinol concentration not higher than 0.3% in its

dry state. Hemp is legal as long as it has a concentration of 0.3% THC in its dry state

and complies with this law.

In addition, Farm Bill 2018 stipulates that the Departments of Agriculture will have

primary authority over the Hemp industry in their respective states and territories. In

order for a state or territory’s Department of Agriculture to obtain primary authority

over the Hemp industry, it must submit to the USDA Secretary of Agriculture, through

USDA-AMS, a State Plan in accordance to which the state or territory shall monitor

and regulate that production.

A State Plan shall include practices for maintaining relevant information on the

land on which Hemp is produced in the state or territory, including a legal tenure of the

land, for a period of not less than three (3) calendar years. It shall also include a

procedure for the test, using the post-decarboxylation method or other similar reliable

methods, of the concentration levels of Hemp delta-9-tetrahydrocannabinol produced

in the state or territory. A procedure for the effective elimination of products that are

produced in violation of this law and a procedure to comply with the execution of this

law must also be established. Also, it may include any other practice or procedure

established by a state to the extent that the practice or procedure is consistent with this

law. After submitting the State Plan, the USDA will have sixty (60) days to approve,

disapprove or request amendments to it.

C. Federal Insecticide, Fungicide, and Rodenticide Act of 1947 (FIFRA) (7 U.S.C. §

136, et seq.):

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Federal law administrated by the “Environmental Protection Agency” (EPA) that

regulates all aspects related to the registration, management and use of pesticides in

the United States in order to protect public health and the environment from the

adverse effects of pesticides.

7 Available at: http://www.agriculture.senate.gov/imo/media/doc/FIFRA.pdf (last visited: April 1, 2020)

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D. Interim Final Rule with Request for Comments for the Establishment of a

Domestic Hemp Production Program, 7 CFR Part 990:

Provides the regulatory framework for establishing a domestic Hemp production

program in the states and territories of the United States. In addition, it provides

supplementary information such as regulatory impact analysis, benefits and costs of

hemp production, projected growth in gross revenues, among others.

E. Puerto Rico Pesticide Act, Act Num. 49 of July 10, 1953 (5 L.P.R.A. § 1001 et seq):

Puerto Rico state law administrated by the DA that regulates all aspects related

to the registration, management and use of pesticides in order to protect public health

and the environment from the adverse effects of pesticides.

F. Administrative Order 2018-29, TO CREATE THE PUERTO RICO HEMP

LICENSING AND INSPECTION OFFICE (OLIC) WITHIN THE

DEPARTMENT OF AGRICULTURE:

This Administrative Order issued by the DA on December 28, 2018, creates the

OLIC, which is the DA office responsible for providing oversight for Hemp growing

and manufacturing operations, including the granting of licenses and performance of

inspections. The OLIC is located in the central office of the DA.

G. Executive Order OE-2019-006, TO CREATE THE COMMITTEE TO ADRESS

THE DEVELOPMENT OF HEMP IN COMPLIANCE WITH THE FEDERAL

AGRICULTURE ACT OR FARM BILL 2018:

This Executive Order creates a committee, chaired by the Secretary, that evaluates

and presents recommendations to the Governor of Puerto Rico regarding the

development of the Hemp industry in Puerto Rico.

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H. Administrative Order 2019-16, TO ORDER OLIC TO CREATE, IMPLEMENT,

AND FISCALIZE HEMP RESEARCH PILOT PROJECT LICENSES (“LPPIC”

for its Spanish abbreviation):

Through this administrative order and previous legal provisions, the OLIC is

authorized to create the Hemp Research Pilot Projects Program. By March 1, 2020, the

DA and OLIC had issued sixty five (65) Cultivation Licenses and thirteen (13)

Manufacturing Licenses.

2. Puerto Rico Department of Agricultura Hemp Program (PRDAHP):

A. General Provisions:

i. Any person or legal entity interested in participating in Puerto Rico’s Hemp

industry must comply with all the requirements set forth in this document.

ii. The PRDAHP does not condone or permit interference with interstate Hemp trade.

iii. A licensee that negligently violates this State Plan three (3) times in five (5) years

may not participate in the PRDAHP for a period of five (5) years beginning from

the date of the third violation.

iv. If the OLIC determines that a Hemp producer of the PRDAHP has violated the

State Plan with a culpable mental state greater than negligence, it will be

immediately reported to the Head of the Puerto Rico Police Department asindicated

in Section 297B, (D), (3), (ii), of the Farm Bill 2018.

v. Federal law authorizes the DA to appropriate necessary amounts of Hemp or its

derived products for the purpose of ensuring compliance with the PRDAHP.

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vi. Hemp batches that do not meet the Acceptable Hemp THC Level of 0.3% THC

concentration in their dry state will have to be destroyed in accordance with DEA

regulations, 21 CFR 1317.15 or any other reliable method accepted by the OLIC

and the public security agencies of Puerto Rico.

vii. An Applicant whose Key Participant has been or is convicted of a crime related to

the federal or state Controlled Substances Act may not participate in the PRDAHP

for a period of ten (10) years after the conviction. An exception applies to a person

who was lawfully growing hemp under the 2014 Farm Bill and the conviction

occurred before December 20, 2018.

viii. Submitting any falsified document will be sufficient reason for the Applicant to be

ineligible for the PRDAHP. In the case of a licensee, this action may result in the

immediate revocation of the license and individuals or legal entities and their

authorized representatives may not participate in the PRDAHP.

ix. In the event that information provided in the license application including acreage

(“cuerdaje”) location of crops or contact information, among others, requires

modification or ceases to be correct, an Applicant or licensee must immediately

notify OLIC in order to amend the information. Said notification must be made in

writing through an explanatory letter signed by the Applicant, licensee, or an

authorized representative delivered to the following email address:

olicpr@agricultura.pr.gov.

x. In the case of a Cultivation and Manufacturing License holders, making changes

to the legal tenure (ownership or lease) of the land will have a fee of $500.00.

xi. The importation of vegetative Hemp material, including clones, is prohibited for

phytosanitary reasons, except for those instances allowed under the law,

regulations, protocols and /or phytosanitary procedures established by the DASAIA.

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xii. In the case of Hemp products imported for consumption, the origin and percentage

of THC concentration, which shall be 0.3% or less, must be indicated.

xiii. Once registered with the DEA, the OLIC may use the DA’s Agrological Laboratory

to perform required testing of Hemp plants and Hemp derived products. The

Agrological Laboratory may also be used to corroborate the results of laboratory

tests performed by licensed private laboratories. In the event of a discrepancy

between results, the Agrological Laboratory’s results shall be presumed accurate.

xiv. Samples shall be performed by an IO and will be submitted by the IO to the

authorized laboratory chosen by the licensee and/or the Agrological Laboratory as

determined by the OLIC. The OLIC shall also determine the tests to be carried out

according to the type of product.

xv. OLIC reserves the right to re-submit samples taken to a private authorized

laboratory to the Agrological Laboratory. OLIC will promptly report the results of

the laboratory tests to the license holders via email or registered letter.

xvi. PRDAHP licenses do not empower licensees to import seeds or grow, germinate,

handle, cultivate, process, or sell plants or products derived from Medicinal

Cannabis.

xvii. Every holder of a cultivation and / or manufacturing LPPIC will have to coordinate

with the OLIC the transition to a new PRDAHP cultivation license, in the case of

cultivation, and / or manufacturing, in the case of manufacture, or investigation

after the approval of the State Plan by USDA-AMS and the Secretary of Agriculture

of the United States.

xviii. Hemp cultivation is not allowed in public or private schools in Puerto Rico.

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xix. The OLIC may adjust the cost of licenses and amount of fines with a written

authorization from the Secretary.

B. Information that the OLIC will Collect, Maintain and Report to the USDA:

i. Contact information of all PRDAHP participants:

a) Full name of the individual or legal entity. In the case of a legal entity, the full

name of the person authorized to represent the legal entity via corporate

resolution or other legally binding document must also be provided

b) Phone number

c) Email address

d) Legal Entity’s Employer Identification Number (EIN)

e) The residential and postal address of the locality authorized under the PRDAHP

licenses

f) Global Positioning System (GPS) location of each lot or structure where the

Hemp will be produced

g) Number of acres (“cuerdas”) or square feet that will be used for Hemp

cultivation

h) PRDAHP license number granted by OLIC

ii. Legal tenure of the land, greenhouses, or square feet dedicated to Hemp production.

iii. The status and identification number of each license granted by the OLIC under the

PRDAHP.

iv. Reports required by OLIC from licensees.

v. The information in this subsection (B) will be reported by the OLIC to the USDA

through a report in compliance with USDA-AMS Interim Final Rules for the

Establishment of a Domestic Hemp Production Program, 7 CFR 990.

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vi. The OLIC will maintain files of the information in this subsection (B) for a period

of three (3) calendar years.

C. Licenses:

i. Requirements and Procedures to Obtain a Cultivation License:

a) A Cultivation License granted by the OLIC permits the possession,

germination, growing, propagation, cultivation, drying, storage, sale and

exportation of Hemp in Puerto Rico. It also allows the sale, distribution and

export of viable seeds for sowing so long as it complies with applicable laws

and regulations.

b) Any person or legal entity wishing to obtain a Cultivation License must fill out

the application and pay the cost thereof. If the Applicant is a legal entity, the

application must include both the name of the legal entity and the full name of

the person authorized to represent the legal entity via corporate resolution or

other legally binding document. The application must be signed by the

individual Applicant or, in the event of a legal entity, the legal entity’s

authorized representative.

c) The application will have a cost of fifty dollars ($50.00), and will be available

electronically on the DA’s website, https://www.agricultura.pr/olicpr, or

physically at the OLIC. The renewal application will have no cost.

d) Photo identification (ID) of the Applicant must be provided. If the Applicant is

a legal entity, ID of its authorized representative must be provided.

e) All Applicants must submit the following government documents:

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1) Copy of the Merchant Register issued by the Puerto Rico Treasury

Department

2) Negative Debt Certification issued by the Puerto Rico Department of

Treasury

3) The Key Participant must provide a fingerprint based Criminal

Background Check issued by the Federal Bureau of Investigations (FBI)

4) Negative Certificate of Criminal Record issued by the state or territory

in which the Key Participant or its legal representative resides

f) If the Applicant is a legal entity, the following documents must also be

provided:

1) Certificate of Good Standing issued by the Puerto Rico State

Department

2) Corporate Resolution or applicable equivalent authorizing a

representative to act on behalf of the legal entity

g) Applications must include documentary evidence of the legal possession

(ownership or lease) of the land and/or structures where Hemp is going to be

produced. If the Applicant is a legal entity, the documents evidencing legal

possession must be in the name of said legal entity. Legal entities that provide

evidence of legal possession in the name of an individual rather than the

Applicant legal entity will not be accepted.

h) A diagram of the land or structure where Hemp will be produced is required.

The diagram must be in a digital format and electronically present the

coordinates or GPS location of the terrain and/or structures.

i) A Cultivation License may be issued to Applicants whose land and/or

structures are leased from the ATPR. The ATPR provides agricultural land

lease contracts for any eligible agricultural activity in Puerto Rico, including

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the production of Hemp and Hemp derived products. Further information is

available at ATPR offices.

j) A Bonafide Farmer Certificate issued by the DA Regional Director for the

municipality where the land, structure or property where the Hemp will be

produced is located. Further information is available at each of the DA’s

Agricultural Regions.

k) In substitution of the Bonafide Farmer Certificate, the Applicant may also

present a certificate of completion of the course entitled Next Level coordinated

by the DA’s FIDA.

l) In substitution of the Bonafide Farmer Certificate or Next Level certificate, a

certificate of completion of the Farm Administration Program (“PAF” for its

Spanish abbreviation) offered by the Agricultural Extension Service (“SEA”

for its Spanish abbreviation) of the University of Puerto Rico, Mayagüez

University Campus, shall also be accepted. Further information is available at

each of the five (5) SEA regions.

m) The Next Level and PAF courses, or other certifications that the DA may in

time determine fulfill thisrequirement, must have been completed from the year

2019 onwards to be accepted as a replacement for the Bonafide Farmer

Certificate.

n) The annual costs of a Cultivation License will be as follows:

Acres (“cuerdas”) for Outdoor

Production

Annual Cost

1 to 3 $500.00

19
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 to 25 $1,500.00

26 or more $4,000.00

Square feet (ft2) for Indoor

Production

Annual Cost

1,000 or less $500.00

1,001 to 4,000 $1,500.00

4,000 or more $3,000.00

Acres (“cuerdas”) for Outdoor

Production (Producer that will only

produce seeds)

Annual Cost

1 to 10

11 to 25

$500.00

$ 1,500.00

26 o more $ 3,000.00

o) Payment of the license may be made electronically on the DA webpage, under

the OLIC tab, or via check in the finance division of ADEA, located in the DA

at Ave. Fernández Juncos in Santurce, Puerto Rico. The check must be issued

in the name of ADEA, and the check description must indicate: OLIC - Puerto

Rico Hemp License.

p) If the Applicant wishes to grow Hemp on more than one (1) land, structure or

facility and these are not under the same legal tenure or lease, the Applicant

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will have to apply and pay a Cultivation License for each land, structure, or

facility tenure or lease.

q) Any person or legal entity that obtains a Cultivation License and wishes to

import Hemp seed into Puerto Rico must visit the Plant Health Office ascribed

to the DA-SAIA to obtain a Special Hemp Seed Importation Permit.

r) Only when obtaining the Cultivation License and the Special Hemp Seed

Importation Permit can Hemp seed be imported into Puerto Rico. The seeds

must arrive with a Phytosanitary Permit and laboratory tests that certify that the

mother plants (or seed donors) were Hemp, with a concentration of 0.3% THC

or less. The seeds must arrive at the OLIC’s physical address, as further detailed

in section (IV)(2)(D)(iii). Further information is available at the DA-SAIA

office.

s) Each farm, structure, or facility with Cultivation License must have a visible

sign, 3’x 3’, indicating the following in Spanish:

1) Hemp farm approved by the DA and OLIC (“Finca de Cáñamo

Aprobada por la DA y la OLIC”)

2) Does Not Contain THC (“No Contiene THC”)

3) No Psychoactive Effects (“No Causa Efecto Psicoactivo”)

4) License number (“Número de Licencia: XXXX-XX-XXXX”)

5) OLIC Phone Number (“Número de Teléfono OLIC: (787) 331-0737”)

t) Any person or legal entity that obtains a license under the PRDAHP must allow

OLIC personnel access to its facilities. Said personnel shall have the duty to

inspect and ensure proper compliance with regulations established by the office.

OLIC personnel may collect vegetative material or samples of Hemp derived

products in order to carry out tests in authorized laboratories for these purposes.

Failure to allow access to OLIC personnel may result in the immediate

21
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

revocation of the license, and individuals or legal entities and their authorized

representatives may not participate in the PRDAHP.

u) A Cultivation License holder must pay for the laboratory tests required by the

PRDAHP.

v) The cost of destruction of Hemp plants or Hemp derived products due to noncompliance with the PRDAHP will be the responsibility of the Cultivation

License holder.

w) Transporting live Hemp plants or their vegetative material to an unauthorized

location such as fairs, educational events, recreational events or any other event

without OLIC prior approval is prohibited.

x) Unsupervised visits by the general public to production areas are prohibited.

y) All Cultivation License holders must comply with the FIFRA and the Puerto

Rico Pesticide Law.

z) Every holder of a Cultivation License must submit Quarterly reports to the

OLIC regarding the buying, pre-sowing, sowing, cultivation, destruction and

sale of Hemp or its derivates.

aa) Any change to the information provided in the Cultivation License application

must be reported immediately to the OLIC.

bb) Any other document requested by the IO or OLIC must be provided as

requested.

cc) The issued licenses will be valid for one (1) year and can be renewed thirty (30)

days before their expiration.

22
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ii. Requirements and Procedures to Obtain a Seed Distributor License:

a) A Seed Distributor License granted by the OLIC allows importing, distributing,

selling and exporting viable Hemp seeds for sowing in compliance with

applicable laws and regulations.

b) Any person or legal entity wishing to obtain a Seed Distributor License must

fill out the application and pay the cost thereof. If the Applicant is a legal entity,

the application must include both the name of the legal entity and the full name

of the person authorized to represent the legal entity via corporate resolution or

other legally binding document. The application must be signed by the

individual Applicant, or in the event of a legal entity, the legal entity’s

authorized representative.

c) The application will have a cost of fifty dollars ($50.00), and will be available

electronically on the DA’s website, https://www.agricultura.pr/olicpr, or

physically at the OLIC. The renewal application will have no cost.

d) Photo identification (ID) of the Applicant must be provided. If the Applicant is

a legal entity, ID of its authorized representative must be provided.

e) All Applicants must submit the following government documents:

1) Copy of the Merchant Register issued by the Puerto Rico Treasury

Department

2) Negative Debt Certification issued by the Puerto Rico Department of

Treasury

3) The Key Participant must provide a fingerprint based Criminal

Background Check issued by the Federal Bureau of Investigations (FBI)

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4) Negative Certificate of Criminal Record issued by the state or territory

in which the Key Participant or its legal representative resides

f) If the Applicant is a legal entity, the following documents must also be

provided:

1) Certificate of Good Standing issued by the Puerto Rico State

Department

2) Corporate Resolution or applicable equivalent authorizing a

representative to act on behalf of the legal entity

g) Applications must include documentary evidence of the legal possession

(ownership or lease) of the structure where Hemp seed are going to be stored,

if applicable. If the Applicant is a legal entity, the documents evidencing legal

possession must be in the name of said legal entity. Legal entities that provide

evidence of legal possession in the name of an individual rather than the

Applicant legal entity will not be accepted.

h) The annual cost of the a Seed Distributor License will be as follows:

Seed Distributor Annual Cost

Person or Legal Entity $1,000.00

i) Payment of the license may be made electronically on the DA webpage under

the OLIC tab or via check in the finance division of ADEA in the DA located

at Ave. Fernández Juncos in Santurce, Puerto Rico. The check must be issued

in the name of ADEA and the check description must indicate: OLIC - Puerto

Rico Hemp License.

24
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

j) Any person or legal entity that obtains a Seed Distributor License and wishes

to import seeds into Puerto Rico must visit the DA-SAIA’s Plant Health Office

to obtain a Special Hemp Seed Importation Permit.

k) Only when obtaining the Seed Distributor License and the Special Hemp Seed

Importation Permit can Hemp seed be imported to Puerto Rico. The seeds must

arrive with a Phytosanitary Permit and laboratory tests that certify that the

mother plants (or seed donors) were Hemp, with a concentration of 0.3% THC

or less. The seeds must arrive at the OLIC’s physical address, as further detailed

in section (IV)(2)(D). Further information is available at the DA-SAIA office.

l) Any person or legal entity that obtains a license under the PRDAHP must allow

OLIC personnel access to its facilities. Said personnel shall have the duty to

inspect and ensure proper compliance with regulations established by the office.

OLIC personnel may collect vegetative material or samples of Hemp derived

products in order to carry out tests in authorized laboratories for these purposes.

Failure to allow access to OLIC personnel may result in the immediate

revocation of the license, and individuals or legal entities and their authorized

representatives may not participate in the PRDAHP.

m) The cost of destruction of Hemp seed due to non-compliance with the PRDAHP

will be the responsibility of the Seed Distributor License holder.

n) Every holder of a Seed Distributor License must submit an Annual report to the

OLIC regarding the buying, selling and destruction of Hemp seeds.

o) Any change to the information provided in the Seed Distributor License

application must be reported immediately to the OLIC.

p) Any other document requested by an IO or the OLIC must be provided as

requested.

25
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

q) The issued licenses will be valid for one (1) year and can be renewed thirty (30)

days before their expiration.

iii. Requirements and Procedures to Obtain a Manufacturing License:

a) A Manufacturing License granted by the OLIC allows for the purchasing,

processing, creation, sale, and importation of Hemp derived products into

Puerto Rico and the exportation thereof.

b) Any person or legal entity wishing to obtain a Manufacturing License must fill

out the application and pay the cost thereof. If the Applicant is a legal entity,

the application must include both the name of the legal entity and the full name

of the person authorized to represent the legal entity via corporate resolution or

other legally binding document. The application must be signed by the

individual Applicant, or in the event of a legal entity, the legal entity’s

authorized representative.

c) The application will have a cost of fifty dollars ($50.00), and will be available

electronically on the DA’s website, https://www.agricultura.pr/olicpr, or

physically at the OLIC. The renewal application will have no cost.

d) Photo identification (ID) of the Applicant must be provided. If the Applicant is

a legal entity, ID of its authorized representative must be provided.

e) All Applicants must submit the following government documents:

1) Copy of the Merchant Register issued by the Puerto Rico Treasury

Department

2) Negative Debt Certification issued by the Puerto Rico Department of

Treasury

26
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3) The Key Participant must provide a fingerprint based Criminal

Background Check issued by the Federal Bureau of Investigations (FBI)

4) Negative Certificate of Criminal Record issued by the state or territory in

which the Key Participant or its legal representative resides

f) If the Applicant is a legal entity, the following documents must also be

provided:

1) Certificate of Good Standing issued by the Puerto Rico State

Department

2) Corporate Resolution or applicable equivalent authorizing a

representative to act on behalf of the legal entity

g) Applications must include documentary evidence of the legal possession

(ownership or lease) of the structure where Hemp or Hemp derived products

will be processed. If the Applicant is a legal entity, the documents evidencing

legal possession must be in the name of said legal entity. Legal entities that

provide evidence of legal possession in the name of an individual rather than

the Applicant legal entity will not be accepted.

h) A diagram of the land or structure where the Hemp or Hemp derived products

will be processed is required. The diagram must be in a digital format and

electronically present the coordinates or GPS location of the terrain structures.

i) Structures leased under contract with the Department of Economic

Development and Commerce (“DDEC” for its Spanish abbreviation) are

eligible for purposes of obtaining a Manufacturing License. Further

information is available at DDEC offices or the following link:

https://www.ddec.pr.gov.

j) Annual cost of a Manufacturing License will be as follows:

27
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing Annual Cost

Structure $3,000.00

k) Payment of the license may be made electronically on the DA webpage under

the OLIC tab or via check in the finance division of ADEA in the DA located

at Ave. Fernández Juncos in Santurce, Puerto Rico. The check must be issued

in the name of ADEA and the check description must indicate: OLIC - Puerto

Rico Hemp License.

l) If the Applicant wishes to carry out Hemp manufacturing processes in more

than one (1) structure or facility and these are not under the same legal tenure

or lease, the Applicant will have to apply and pay a Manufacturing License for

each land, structure, or facility tenure or lease.

m) The Manufacturing License holder may not import and/or distribute seeds or

germinate, grow or cultivate Hemp in its facilities without the corresponding

license that authorizes the same.

n) Any legal entity that obtains a license under the PRDAHP must allow OLIC

personnel access to its facilities. Said personnel shall have the duty to inspect

and ensure proper compliance with regulations established by the office. OLIC

personnel may collect vegetative material or samples of Hemp derived products

in order to carry out tests in authorized laboratories for these purposes. Failure

to allow access to OLIC personnel may result in the immediate revocation of

the license and individuals or legal entities and their authorized representatives

may not participate in the PRDAHP.

28
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o) The Manufacturing License holder must pay for the laboratory tests required

by the PRDAHP.

p) The cost of destruction of Hemp derived products due to non-compliance with

the PRDAHP will be the responsibility of the Cultivation License holder.

q) Every holder of a Manufacturing License must submit Annually reports to the

OLIC regarding the purchase, sale and destruction of Hemp derived products.

r) Any change to the information provided in the Manufacturing License

application must be reported immediately to the OLIC.

s) Any other document requested by the IO or OLIC must be provided as

requested.

t) The issued licenses will be valid for one (1) year and can be renewed thirty (30)

days before their expiration.

iv. Requirements and Procedures for Obtaining a License for the Importation and

Distribution of Hemp Products for Consumption:

a) A License for the Importation and Distribution of Hemp Products for

Consumption granted by the OLIC allows for the importation and/or

distribution of Hemp derived products for human or animal consumption. This

includes Hemp derived products for human or animal consumption containing

CBD in any form.

b) Distributors of Hemp derived products for human and/or animal consumption

must comply with the requirements of this license regardless of whether the

products to be distributed are imported or locally produced.

c) The following distributors are exempted from the requirements of this section:

29
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1) Manufacturing License holders

2) Importers and distributors of Hemp seeds for human and/or animal

consumption. The importation and distribution of viable Hemp seeds for

sowing requires an OLIC license.

3) Importers and distributors of Hemp derived products that are not for

human or animal consumption

d) Any person or legal entity wishing to obtain a License for the Importation and

Distribution of Hemp Products for Consumption must fill out an application

and pay the cost thereof. If the Applicant is a legal entity, the application must

include both the name of the legal entity and the full name of the person

authorized to represent the legal entity via corporate resolution or other legally

binding document. The application must be signed by the individual Applicant

or, in the event of a legal entity, the legal entity’s authorized representative.

e) The license will have no cost, only an application fee of fifty dollars ($50.00).

The application will be available electronically on the DA’s website,

https://www.agricultura.pr/olicpr, or physically at the OLIC. The renewal

application will have no fee.

f) Photo identification (ID) of the Applicant must be provided. If the Applicant is

a legal entity, ID of its authorized representative must be provided.

g) All Applicants must submit the following government documents:

1) Copy of the Merchant Register issued by the Puerto Rico Treasury

Department

2) Negative Debt Certification issued by the Puerto Rico Department of

Treasury

30
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3) The Key Participant must provide a fingerprint based Criminal

Background Check issued by the Federal Bureau of Investigations (FBI)

4) Negative Certificate of Criminal Record issued by the state or territory

in which the Key Participant or its legal representative resides

h) If the Applicant is a legal entity, the following documents must also be

provided:

1) Certificate of Good Standing issued by the Puerto Rico State

Department

2) Corporate Resolution or applicable equivalent authorizing a

representative to act on behalf of the legal entity

i) Applications must include documentary evidence of the legal possession

(ownership or lease) of the structure where Hemp derived products are going to

be stored, if applicable. If the Applicant is a legal entity, the documents

evidencing legal possession must be in the name of said legal entity. Legal

entities that provide evidence of legal possession in the name of an individual

rather than the Applicant legal entity will not be accepted.

j) Any person or corporation that obtains a license under the PRDAHP must allow

OLIC personnel access to its facilities. OLIC personnel will have the duty to

inspect and ensure proper compliance with regulations established by the office.

OLIC personnel may collect vegetative material or samples of Hemp derived

products in order to carry out tests in authorized laboratories for these purposes.

Failure to allow access to OLIC personnel may result in the immediate

revocation of the license, and individuals or legal entities and their authorized

representatives may not participate in the PRDAHP.

k) The OLIC may sample and perform laboratory testing of products distributed

for human or animal consumption, regardless of whether they are imported or

31
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

locally produced, in authorized laboratories. A License for the Importation and

Distribution of Hemp Products for Consumption holder must pay for the

laboratory tests required under the PRDAHP.

l) The cost of destruction of Hemp derived products due to non-compliance with

the PRDAHP will be the responsibility of the license holder.

m) Every holder of a License for the Importation and Distribution of Hemp

Products for Consumption must submit Annually reports to the OLIC regarding

the purchase, sale and destruction of Hemp derived products.

n) Any change to the information provided in the application for a License for the

Importation and Distribution of Hemp Products for Consumption must be

reported immediately to the OLIC.

o) Any other document requested by the IO or OLIC must be provided as

requested.

p) Issued licenses will be valid for one (1) year and can be renewed thirty (30)

days before their expiration.

v. Requirements and Procedures to Obtain a Research License:

a) A Research License granted by the OLIC allows the importation of seeds, as

well as their germination, growth, cultivation, propagation, storage, processing

and investigation of Hemp and/or Hemp derived products in Puerto Rico.

b) Any person or legal entity wishing to obtain a Research License must fill out

the application and pay the cost thereof. If the Applicant is performing the

research or investigation as a member of an institution of higher learning

(college or university), the application must include both the name of the

institution and that of the principal investigator that will carry out the research

32
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

or investigation. If the Applicant is a legal entity that is not an institution of

higher learning, the application must include both the name of the legal entity

and the full name of the person authorized to represent the legal entity via

corporate resolution or other legally binding document. The application must

be signed by the individual Applicant or, in the event of an institution of higher

learning or legal entity, the principal investigator or legal entity’s authorized

representative, as applicable.

c) The license will have no cost, only an application fee of fifty dollars ($50.00).

The application will be available electronically on the DA’s website,

https://www.agricultura.pr/olicpr, or physically at the OLIC. The renewal

application will have no fee.

d) Photo identification (ID) of the individual Applicant, principal investigator, or

legal entity’s authorized representative, as applicable, must be provided.

e) Individual Applicants and legal entities that are not institutions for higher

learning must submit the following government documents:

1) Copy of the Merchant Register issued by the Puerto Rico Treasury

Department, if applicable

2) Negative Debt Certification issued by the Puerto Rico Department of

Treasury

3) The Key Participant must provide a fingerprint based Criminal

Background Check issued by the Federal Bureau of Investigations (FBI)

4) Negative Certificate of Criminal Record issued by the state or territory

in which the Key Participant or its legal representative resides

f) If the Applicant is a legal entity, the following documents must also be

provided:

33
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1) Certificate of Good Standing issued by the Puerto Rico State

Department

2) Corporate Resolution or applicable equivalent authorizing a

representative to act on behalf of the legal entity

g) In the event that the Applicant is performing the research or investigation as a

member of an institution of higher learning, the principal investigator must

present a fingerprint based Criminal Background Check issued by the Federal

Bureau of Investigations (FBI) and a letter ofsupport from the Dean or Director

of the Faculty or Department in which the principal investigator works.

h) A Research Proposal including, at a minimum, purpose, research design and

methods, research schedule, implications, and contribution to knowledge must

be included with the application.

i) Diagram of the terrain or structure where Hemp and/or Hemp derived products

will be produced and/or processed is required. The diagram must be in digital

format and electronically present the coordinates or GPS location of the terrain

or structures.

j) Hemp and/or Hemp derived products produced under this license cannot be

sold, and must be used for research purposes only. Upon completion of the

research all Hemp plants and/or Hemp derived products must be destroyed in

accordance with DEA regulations as set forth at 21 CFR 1317.15, or any other

reliable method approved by OLIC.

k) In the event that a licensee wishes to sell Hemp or any of its derived products

produced under this license, it must obtain and comply with the requirements

of the Cultivation and/or Manufacturing Licenses.

34
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

l) Any person or legal entity that obtains a Research License and wishes to import

seeds into Puerto Rico must visit the DA-SAIA’s Plant Health Office to obtain

a Special Hemp Seed Importation Permit.

m) Only when obtaining the Research License and the Special Hemp Seed

Importation Permit can Hemp seed be imported into Puerto Rico. The seeds

must arrive with a Phytosanitary Permit and laboratory tests that certify that the

mother plants (or seed donors) were Hemp, with a concentration of 0.3% THC

or less. The seeds must arrive at the OLIC’s physical address, asfurther detailed

in section (IV)(2)(D). Further information is available at the DA-SAIA office.

n) Any person or corporation that obtains a license under the PRDAHP must allow

OLIC personnel access to its facilities. OLIC personnel will have the duty to

inspect and ensure proper compliance with regulations established by the

office. OLIC personnel may collect vegetative material or samples of Hemp

derived products in order to carry out tests in authorized laboratories for these

purposes. Failure to allow access to OLIC personnel may result in the

immediate revocation of the license and individuals or legal entities and their

authorized representatives may not participate in the PRDAHP.

o) Every Research License holder must submit an Annual report to the OLIC

regarding the purchase, sowing and destruction of Hemp and/or its derived

products.

p) Every holder of a Research License must submit to OLIC copies of publications

arising from the research processes carried out under this license.

q) Any change to the information provided in the application for Research License

must be reported immediately to the OLIC.

35
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

r) Any other document requested by the IO or OLIC must be provided as

requested.

s) The issued licenses will be valid for one (1) year and can be renewed thirty (30)

days before their expiration.

vi. Requirements and Procedures to Obtain a Laboratory License:

a) A Laboratory License granted by the OLIC allows a private laboratory to

receive samples of Hemp vegetative material or Hemp derived products to

perform laboratory tests.

b) Private laboratories must be registered with the DEA and accredited in

compliance with state and federal laws and regulations.

c) OLIC and/or USDA may require in the future that authorized laboratories have

ISO 17025 accreditation.

d) Authorized laboratories shall comply with the requirements described in the

USDA-AMS interim final rules at 7 CFR Part 990, available at

https://www.govinfo.gov/content/pkg/FR-2019-10-31/pdf/2019-23749.pdf.

e) Samples will be submitted to the authorized private laboratory chosen by the

licensee and/or the Agrological Laboratory as determined by the OLIC. In

addition to the total THC concentration test, the OLIC may request additional

testing such as detection of contaminants, microbial counts, concentration of

heavy metals, presence of herbicides or pesticides, among others. OLIC

reserves the right to re-submit samples taken to a private authorized laboratory

to the Agrological Laboratory.

36
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

f) The cost of the tests will be set by the private laboratory or by the Agrological

Laboratory as the case may be.

g) Any legal entity wishing to obtain a Laboratory License must fill out the

application and pay the cost thereof. The application must include both the

name of the legal entity and the full name and signature of the person authorized

to represent the legal entity via corporate resolution or other legally binding

document.

h) The application will have a cost of fifty dollars ($50.00), and will be available

electronically on the DA’s website, https://www.agricultura.pr/olicpr, or

physically at the OLIC. The renewal application will have no cost.

i) Photo identification (ID) of the Applicant’s legally authorized representative

must be provided.

j) All Applicants must submit the following government documents:

1) Copy of the Merchant Register issued by the Puerto Rico Treasury

Department

2) Negative Debt Certification issued by the Puerto Rico Department of

Treasury

3) The Key Participant must provide a fingerprint based Criminal

Background Check issued by the Federal Bureau of Investigations (FBI)

4) Negative Certificate of Criminal Record issued by the state or territory

in which the Key Participant or its legal representative resides

5) Certificate of Good Standing issued by the Puerto Rico State

Department

6) Corporate Resolution or applicable equivalent authorizing a

representative to act on behalf of the legal entity

37
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

k) Applications must include documentary evidence of the legal possession

(ownership or lease) of the structures where the laboratory is located. The

documents evidencing legal possession must be in the name of said legal entity.

Legal entities that provide evidence of legal tenure in the name of an individual

rather than the Applicant legal entity will not be accepted.

l) The annual cost of a Laboratory License will be as follows:

Laboratory Annual Cost

Structure $3,000.00

m) Payment of the license may be made electronically on the DA webpage under

the OLIC tab or via check in the finance division of ADEA in the DA located

at Ave. Fernández Juncos in Santurce, Puerto Rico. The check must be issued

in the name of ADEA and the check description must indicate: OLIC - Puerto

Rico Hemp License.

n) Any person or corporation that obtains a license under the PRDAHP, must

allow OLIC personnel access to its facilities. OLIC personnel will have the duty

to inspect and ensure proper compliance with regulations established by the

office. OLIC personnel may collect vegetative material or samples of Hemp

derived products in order to carry out tests in authorized laboratories for these

purposes. Failure to allow access to OLIC personnel may result in the

immediate revocation of the license and individuals or legal entities and their

authorized representatives may not participate in the PRDAHP.

o) Authorized laboratories must submit test results to the OLIC no later than five

(5) days after receiving the samples from an IO.

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p) Any change to the information provided in the Laboratory License application

must be reported immediately to the OLIC.

q) Any other document requested by the IO or OLIC must be provided as

requested.

r) The issued licenses will be valid for one (1) year and can be renewed thirty (30)

days before their expiration.

D. Acquisition of Hemp Seeds:

i. Any individual or legal entity that wishes to import, buy, germinate or sell Hemp

seeds in Puerto Rico must obtain a license from the OLIC and comply with all the

requirements set forth in this document.

ii. Individuals or legal entities that already have a Cultivation, Seed Distribution or

Research License, may visit the DA-SAIA’s Plant Health Office to obtain a Special

Hemp Seed Importation Permit in order to import Hemp seeds.

iii. The seeds must arrive at the physical address of the OLIC, and must be identified

with the name of the licensee that purchased the seed. In addition, they must be

accompanied by a Phytosanitary Permit and laboratory tests that indicate that the

mother plants (or seed donors) are Hemp, 0.3% THC in its dry state. Both

documents must be provided by the seed seller. The seeds must be delivered at the

following address:

OLIC

Office 203, Building 1309, Ave. Fernández Juncos, Parada 19 1⁄2,

Santurce, Puerto Rico 00908-1163

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iv. Upon receiving the seeds, OLIC will coordinate the inspection and delivery of the

seeds with the DA-SAIA, Plant Health Office, and the license holder that made the

purchase.

v. The DA has the legal authority to confiscate seeds or vegetative material which

have been imported without following due process. Importing hemp seeds illegally

will be considered a violation of the State Plan. The license of the participant who

violates the State Plan with a guilty mental state greater than that of negligence may

be immediately revoked.

E. Reports:

i. The reports required by the OLIC will be used forstatistical purposes and to prepare

Quarterly reports that will be submitted to USDA.

ii. Cultivation Reports:

a) Every holder of a Cultivation License must submit a Quarterly report to the

OLIC.

b) The report must include the following information:

1) Purchase:

a. Name of the varieties and quantities of Hemp seeds and/or seedlings

purchased

b. Evidence of the seeds and/or seedlings purchase

c. Copy of the Special Hemp Seed Importation Permit and the

Phytosanitary Permit, if applicable

2) Pre-sowing:

40
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

a. Names of the varieties and quantities of germinated seeds

b. Number of developed seedlings and/or clones of mother plants

c. GPS location of germination area

3) Sowing:

a. Names of the varieties and quantities of seeds and/or plants planted

b. GPS location of sowing area

c. Measurements of sowing areas (acres, “cuerdas”, or square feet)

d. Results of THC concentration tests carried out in private authorized

laboratories or the Agrological Laboratory

4) Harvest:

a. Name of varieties and quantities of plants harvested

b. The date and area (acres, “cuerdas”, or square feet) harvested

5) Destruction (if applicable):

a. Names and quantities of Hemp derived products and/or the name of

the varieties and quantities of destroyed seeds, clones, and plants

b. Results of THC concentration tests performed on Hemp in private

authorized laboratories or the Agrological Laboratory

c. Description of destruction protocol (must include the previous

location of the destroyed product)

d. A Cultivation License holder may exercise discretion regarding the

protocol of destruction for male plants, and their destruction does

not have to be reported.

6) Sales:

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a. Description and quantities of the products sold

c) OLIC may request additional documents or information relevant to the reports

if necessary.

d) Every holder of a Cultivation License must report to USDA-Farm Service

Agency (FSA) the following information:

1) Street address and geospatial location for each lot or greenhouse where

hemp will be produced, including all productions sites from the

producer that operates in mote than one location

2) If an applicant has production sites licensed under a USDA-approved

State Plan, those sites will be covered under the respective plan and will

not need to be included under the producer’s application to become

licensed under the USDA plan

3) Acreage dedicated to the production of hemp, or greenhouse or indoor

square footage dedicated to the production of hemp

4) License or authorization identifier

iii. Seed Distributor Report:

a) Every Seed Distributor License holder must submit an Annual report to OLIC.

b) The report must include the following information:

1) Purchase:

a. Names of the varieties and quantities of Hemp seeds purchased

b. Evidence of the seeds’ and/or seedlings’ purchase

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c. Copy of the Special Hemp Seed Importation Permits and Phytosanitary

Permit, if applicable

2) Destruction (if applicable):

a. Names of the varieties and quantities of seeds destroyed

b. Description of destruction protocol

3) Sale:

b. Names of varieties and quantities of seeds sold

c) OLIC may request additional documents or information relevant to the reports

if necessary.

iv. Manufacturing Report:

a) Every Manufacturing License holder must submit an Annual report to OLIC.

b) The report must include the following information:

1) Purchase:

a. Description and quantity of Hemp and/or Hemp derived products

purchased for processing

b. Evidence of the purchase of Hemp or its derived products

2) Destruction: (if applicable):

a. Description and quantity of destroyed Hemp derived products

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b. Results of THC concentration tests performed on Hemp derived

products in private authorized laboratories or the Agrological

Laboratory

c. Description of destruction protocol (must include the previous location

of the destroyed product)

3) Sale:

a. Description and quantity of Hemp and/or Hemp derived products sold

c) OLIC may request additional documents or information relevant to the reports

if necessary.

v. Importation and Distribution of Hemp Products for Consumption Report:

a) Every Importation and Distribution of Hemp Products for Consumption Report

license holder must submit an Annual report to OLIC.

b) The report must include the following information:

1) Purchase:

a. Description and quantities of Hemp derived products purchased for

distribution

b. Evidence of the purchase of Hemp Derived Products

2) Destruction (if applicable)

a. Description and quantity of destroyed Hemp derived products

b. Results of THC concentration tests performed on Hemp derived

products in private authorized laboratories or the Agrological

Laboratory

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c. Description of destruction protocol (must include the previous location

of the destroyed product)

3) Sale:

a. Description and quantity of Hemp derived products sold

c) OLIC may request additional documents or information relevant to the reports

if necessary.

vi. Research Report:

a) Every Research License holder must submit an Annual report to OL.

b) The report will include the following information:

1) Purchase:

a. Names and quantities of Hemp seeds and/or seedlings purchased for

distribution

b. Evidence of the purchase of Hemp seeds and/or seedlings

c. Copy of the Special Hemp Seed Importation Permits and Phytosanitary

Permit, if applicable

2) Sowing

a. Names of the varieties and quantities of seeds and/or seedlings

b. GPS location of the cultivation area

3) Destruction:

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a. Description and quantity of destroyed Hemp derived products and/or

name of the varieties and quantities of destroyed seeds, clones, and

plants

b. Description of destruction protocol (must include the previous location

of the destroyed product)

c) OLIC may request additional documents or information relevant to the reports

if necessary.

vii. Laboratory Reports

a) Authorized laboratories must report test data to the USDA-AMS in accordance

with 7 CFR 990, using reporting templates provided by the USDA-AMS,

available at the following website:

https://www.ams.usda.gov/sites/default/files/media/LaboratoryTestResultsRep

ortAMS_22.pdf

F. Inspections, Sampling, and Testing:

i. Each licensee will be subject to inspections and sampling of vegetative material

and/or Hemp derived product by OLIC personnel.

ii. OLIC personnel will conduct annual inspections of, at a minimum, a random sample

of licensed producers to verify that hemp is not produced in violation of the

PRDAHP.

iii. The Department of Agriculture may appropriate as much Hemp plant material or

Hemp derived product material as reasonably necessary to carry out its

responsibilities under this section (F).

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iv. Hemp plants or Hemp derived products that do not comply with this section may not

be further handled, processed or enter the stream of commerce, including being sold

to other license holders or to the general public in Puerto Rico.

v. Cultivation License:

a) Cultivation License holders must request and coordinate necessary inspections

with the IO to carry out samplings.

b) The license holder or an authorized representative must be present during the

visit and provide the IO with any information required to carry out necessary

inspections.

c) The IO will perform at least two (2) samples of the flower material of the

cannabis plant:

1) The first sampling must be performed during the vegetative growth phase

of the plants, preferably the third week of growth.

2) The second sampling must be performed fifteen (15) days before

harvesting the plants.

d) The method used for sampling from the flower material of the cannabis plant

must be sufficient at a confidence level of ninety five percent (95%) that no

more than one percent (1%) of the plants in the lot would exceed the Acceptable

Hemp THC Level. The method used for sampling must ensure that a

representative sample is collected that represents a homogeneous composition

of the lot.

e) The sampling methodsto be used by IOsshall be those included in the Sampling

Guidelines for Hemp Growing Facilities and Hemp Sampling Training

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available at the USDA-AMS website, https://www.ams.usda.gov/rulesregulations/hemp/information-sampling, and any other methodology approved

by USDA-AMS.

f) During the sampling, the license holder or an authorized representative must be

present.

g) The samples will be taken by the IO to the authorized laboratory selected by the

licensee and/or the Agrological Laboratory, as ordered by the OLIC, to carry

out pertinent tests.

h) The OLIC will determine the type of tests to be carried out on the samples

according to the individual case of each license holder.

i) Payment for test results will be coordinated between the license holder and the

authorized laboratory and/or the Agrological Laboratory.

j) Authorized laboratories must deliver test results to the OLIC via email at

olicpr@agricultura.pr.gov, with the subject heading: “TEST RESULTS For

(name of individual or legal entity)”.

k) Laboratory results will be reported to the license holder within the next two (2)

business days after the OLIC receives the same.

l) License holders will have fifteen (15) days from the date on which the flower

material sample was collected to harvest the plant .

m) If the harvest cannot be carried out within these fifteen (15) days, samplings

will have to be carried out again since the THC concentration of the plants may

have varied.

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n) A producer shall not harvest the crop prior to samples being collected.

o) Hemp batches with laboratory test results of total THC concentration that do

not meet the definition of Acceptable Hemp THC Level must be destroyed in

accordance with DEA regulations as set forth at 21 CFR 1317.15, or any other

reliable method approved by the OLIC and USDA-AMS such as those included

in the Hemp Disposal Activities guidance issued by USDA-AMS, available at

the following website: https://www.ams.usda.gov/rulesregulations/hemp/disposal-activities.

p) Additional inspections and sampling will be conducted if there is reason for the

OLIC to understand that violations, noncompliance or discrepancies occur with

the reports required by PRDAHP.

vi. Seed Distributor License:

a) An IO may request meetings with the holders of this license at the OLIC offices.

b) An IO may inspect facilities that store Hemp seeds.

c) The license holder or an authorized representative must be present at the

meetings and inspections in order to provide the IO with the information

necessary to carry out required inspections.

d) IOs may request any document in order to ensure compliance with the PRDAHP.

e) Additional inspections may be carried out if the OLIC reasonably understands

that violations, noncompliance or discrepancies with the reports required by

PRDAHP have occurred.

vii. Manufacturing License:

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a) An IO may request meetings with the holders of this license at the OLIC offices.

b) An IO may inspect facilities where Hemp is processed.

c) The license holder or an authorized representative must be present during the

meetings and inspections to provide the IO with information necessary to carry

out required inspections.

d) An IO may sample any Hemp plants and/or Hemp derived products.

e) The license holder or an authorized representative must be present during the

sampling.

f) The samples will be delivered by the IO to an authorized laboratory to carry out

the applicable tests.

g) The OLIC will determine the type of tests to be carried out on the samples

according to the individual case of each license holder.

h) Payment for test results will be coordinated between the license holder and the

authorized laboratory and/or the Agrological Laboratory.

i) Authorized laboratories must deliver test results to the OLIC via email at

olicpr@agricultura.pr.gov, with the subject heading “TEST RESULTS For (name

of individual or legal entity)”.

j) Laboratory results will be reported to the license holder within the next two (2)

business days after the OLIC receives the same.

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k) Additional inspections and samplings may be carried out if the OLIC reasonably

understands that violations, noncompliance or discrepancies with the reports

required by PRDAHP have occurred.

viii. Importation and Distribution License for Hemp Consumption Products:

a) An IO may request meetings with the holders of this license at the OLIC

offices.

b) An IO may inspect facilities that store Hemp derived products.

c) The license holder or an authorized representative must be present during the

meeting and inspections to provide the IO with any information required to

carry out necessary inspections.

d) An IO may sample any Hemp derived product.

e) The license holder or an authorized representative must be present during the

sampling.

f) The samples will be taken by the IO to an authorized laboratory to carry out

applicable tests.

g) The OLIC will determine the type of tests to be carried out on the samples

according to the individual case of each license holder.

h) Payment for test results will be coordinated between the license holder and the

authorized laboratory and/or the Agrological Laboratory.

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i) Authorized laboratories must deliver test results to the OLIC via email at

olicpr@agricultura.pr.gov, with the subject heading “TEST RESULTS For

(name of individual or legal entity)”.

j) After receiving the test results, OLIC will notify the licensee of the results

within two (2) business days after receipt of the same.

k) Additional inspections and sampling will be conducted if there is reason for the

OLIC to understand that violations, noncompliance or discrepancies with the

reports required by PRDAHP occur.

ix. Research License:

a) An IO may request meetings with the holders of this license at the OLIC

offices.

b) An IO may inspect facilities where the research takes place.

c) The license holder or an authorized representative must be present during the

meeting and inspections to provide the IO with any information necessary to

carry out required inspections.

d) Mandatory testing is not required for Hemp and/or Hemp derived products

produced under this license as they cannot be sold or otherwise enter the stream

of commerce. Upon completion of the licensed research, all Hemp and/or its

derived products must be destroyed pursuant to 21 CFR 1317.15, or other AMS

and OLIC approved methods. OLIC may perform samples and tests at its

discretion to ensure compliance with the PRDAHP.

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e) All Research License Holders will have to destroy the Hemp plants or Hemp

derived products used in the research project, unless the license holder has

obtained a Cultivation or Manufacturing License.

x. Laboratory License:

a) An IO may request meetings with the holders of this license at the OLIC

offices.

b) The license holder or an authorized representative must be present during the

meeting to provide the IO with any information necessary to carry out required

inspections.

c) A post-decarboxylation method or other equally reliable method approved by

OLIC and USDA- AMS must be used to measure total THC concentration

levels to ensure compliance with Acceptable Hemp THC Levels.

d) The testing methodology used by the Agrological Laboratory and private

authorized laboratories must consider the potential conversion of delta9tetrahydrocannabinolic acid (THC-A) in hemp into THC and the test result

measures total available THC derived from the sum of the THC and THC-A

content. Gas or liquid chromatography testing meets this methodology

requirement.

e) The total THC concentration level shall be determined and reported on a dry

weight basis.

f) Authorized laboratories including the Agrological Laboratory must calculate

and include the measurement of uncertainty on the results of each delta-9-

tetrahydrocannabinol content concentration level samples test made to comply

with the Acceptable Hemp THC Level definition.

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g) Hemp samples from one lot must not be mixed with vegetative material from

other lots.

h) Laboratories may also carry out any other test requested by the OLIC.

G. Violations, Sanctions, Notifications, and Appeals:

i. Violations:

a) OLIC may determine that a negligent violation of the PRDAHP has occurred,

such as, but not limited to, the following:

1) Failure to provide legal description of land

2) Failure to obtain a license

3) Performing regulated activities without a license or activities not permitted

under the issued license(s)

4) Production of Cannabis sativa L. with a concentration of delta-9

tetrahydrocannabinol exceeding the Acceptable Hemp THC Level

5) Failure to provide required reports

6) Any other breach of the PRDAHP

b) Hemp producers do not commit a negligent violation under this section (i)(a) if

they make reasonable efforts to grow hemp and the cannabid (marijuana) does

not have a delta-9-tetrahydrocannabinol concentration of more than 0.5 percent

on a dry weight basis

c) The OLIC may request a Corrective Action Plan from a licensee to address a

negligent violation of the PRDAHP. The licensee must strictly comply with the

Corrective Action Plan as approved by the OLIC.

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d) A Corrective Action Plan must include:

1) Deadline by which the licensee must correct the violation

2) Detailed description of the steps that will be taken to correct the violation

and ensure compliance with the PRDAHP

3) Schedule for the delivery of reports of compliance with the Corrective

Action Plan spanning the next two (2) calendar years

e) The OLIC will carry out inspections to ensure compliance with the Corrective

Action Plan.

f) A Hemp producer or licensee that negligently violates the PRDAHP shall not

be subject to any criminal or civil enforcement action by the federal or state

government other than the enforcement action authorized by the PRDAHP.

g) A licensee that negligently violates this State Plan three (3) times in five (5)

years may not participate in the PRDAHP for a period of five (5) years

beginning from the date of the third violation.

h) If the DA determines that a producer or license holder has violated the State

Plan with a culpable mental state greater than that of negligence, it will be

immediately reported to the Head of the Puerto Rico Police Department and the

U.S. Attorney General.

i) The license of the participant who violates the State Plan with a guilty mental

state greater than that of negligence may be immediately revoked.

j) The license of a participant that violates the FIFRA or the Puerto Rico Pesticide

Act may be immediately revoked.

ii. Sanctions:

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a) Any person without an OLIC license that buys, germinates, grows, processes

or sells Hemp in any of its states will be subject to a $5,000.00 fine and will be

referred to the Puerto Rico Police Department.

b) Any participant that continues to operate with an expired license will be subject

to a fine of up to $4,000.00 per day.

c) A license holder that interferes with or does not permit an IO entry will be

subject to fines of $500.00 for the first violation, $1,000.00 for the second

violation and $2,000.00 for the third and each future violation.

d) If a licensee does not submit required reports in a timely manner, the licensee

will be subject to a fine of $100.00 for the first violation, $200.00 for the second

violation and $300.00 for the third and each future violation. OLIC reserves the

right to revoke the license of a licensee that fails to timely submit reports on

three (3) or more occasions, or fails to submit a requested report after receiving

notice that the same has not been submitted.

e) Failure to respond to an official communication from OLIC that expressly

states the need for a response within a specific timeframe may result in a fine

of $100.00 for the first violation, $200.00 for the second violation, and $300.00

for the third and future violations. OLIC reserves the right to revoke the license

of a licensee that failsto timely submit a requested response to a communication

after receiving three (3) or more written requests. Such communications

include, but are not limited to, notices for site inspections, requests for

documentation, follow up to reports, etc.

f) Other violations not mentioned above are subject to license revocation, fines

and/or sanctions up to a maximum of $5,000.00 per occurrence depending on

the severity of the action, at the OLIC’s and the Secretary’s discretion.

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iii. Notifications:

a) Official OLIC notifications will be sent to the email address provided in the

license application and/or certified mail to the postal address included in the

application. Said notifications may include, but are not limited to:

1) Certificates of approved licenses

2) Laboratory test results

3) IO reports

4) Follow-up for required reports

5) License renovations

6) License revocations

7) Appeal decisions

8) Information regarding educational or networking events for the

development of the Hemp industry in Puerto Rico

b) If a violation or event of non-compliance is identified, OLIC will notify the

licensee via email and certified mail, indicating the following:

1) The nature of the violation

2) The law, regulation, rule, or procedure violated

3) Administrative action to be taken as a result of the violation

4) Information regarding how to appeal the administrative decision

5) Any additional relevant information at the OLIC’s discretion

iv. Appeals:

a) An Appeal may be requested by means of a letter signed and submitted to the

OLIC by the license holder that committed the violation.

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b) The letter must explain in detail the reason for the appeal and the requested

remedy.

c) Appeals must be submitted within fifteen (15) business days after the OLIC

sends the notification.

d) Appeals will be evaluated by the Hemp Appeals Evaluation Committee,

composed of three agronomists appointed by the Secretary.

e) The Committee will meet once a month to evaluate all appeals.

f) The Committee will be guided by state and local laws, regulations, rules and

procedures and will use its professional discretion to evaluate each appeal.

g) If the OLIC does not receive a notice of intent to appeal within the specified

timeframe, the notification will become a final order.

3. Resources and Personnel:

A. The estimated operational costs of the PRDAHP, including implementation and

oversight of the PRDAHP by the OLIC, is approximately $280,000.00 annually.

B. The OLIC is attached to ADEA, a public corporation belonging to the DA that

providesthe necessary resourcesfor the operation of the office and the implementation

of the PRDAHP.

C. The OLIC will have an estimated self-generated income, when issuing licenses,

renewals and fines, of approximately $300,000.00 annually.

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V. Conclusion:

1. This document and the PRDAHP will be amended to include any changes in state or federal

law that occur after its approval.

2. The DA and OLIC will comply with the requirements of this document.

3. Information required by the USDA will be collected, maintained, and reported by the DA

and OLIC.

4. Accurate and adequate sampling will be conducted to meet state and federal requirements.

5. Laboratory testing procedures will be performed to properly identify the percentage of

THC concentration using the methodology and standards required at both the state and

federal levels.

6. OLIC will ensure compliance of the PRDAHP.

7. An IO will conduct the necessary inspections of Hemp license holders.

8. The DA and OLIC have the necessary resources to implement and monitor the PRDAHP.

9. The DA and OLIC will create a mechanism to share required information with the USDA

in the supported formats.

10. The DA and OLIC will inform the Hemp “cuerdas” or acres produced and will require

producers to register farms and report the production area to the USDA - FSA.

11. The DA and the OLIC will provide a numbered license to each Hemp producer.

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.

Agro. Carlos Flores Ortega

Secretary

Department of Agriculture

_______________________________

12. The DA and OLIC will report to USDA-AMS the total number of acres or “cuerdas”

planted, harvested and confiscated or destroyed, as applicable.

13. OLIC will publish this document to the general public through the webpage of the Puerto

Rico Department of Agriculture, https://www.agricultura.pr/olicpr.

14. All aspects of the Hemp industry in Puerto Rico will be governed by the State Plan, after

its approval, and regulations issued by the DA.

___________________________

Agro. Irving Y. Rodríguez Torres

Director - OLIC

Date: June 29, 2020

î

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