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Confused about Iowa’s new hemp law? Here’s what we know

Store front reading "despensary."
Madeleine Charis King
/
Iowa Public Radio
Despensary — a shop selling consumable hemp and CBD products — opened a second location in Des Moines in the fall, citing high demand at its downtown location.

This article was updated on July 26 to note that new rules clarifying how House File 2605 will be enforced are now in effect, and that all injunction requests to block the new law have been denied.

A new law that went into effect July 1 bars the sale of hemp-infused “consumables,” like gummies or drinks, to anyone under the age of 21. Unchanged in the law is that recreational marijuana is not — and has not been — legal in Iowa.

The new regulations restrict the potency of consumable hemp products that contain the psychoactive substance THC — tetrahydrocannabinol — to four milligrams per serving, or ten milligrams per container.

There’s been a lot of confusion and frustration among businesses that sell consumable hemp products about how the law will be enforced, though recently new rules to clarify elements of the law have gone into effect. Here’s what we know:

Hemp’s got new rules 

Before the law took effect, several Iowa companies that sell consumable hemp products took action against the state to block it. However, all injunction requests have been denied.

The most recent lawsuit, brought about by eight Iowa businesses, was rejected in part because the Iowa Department of Health and Human Services has put forth new rules defining legal serving sizes and the wording of proposed labels for hemp products. These rules, known as “The Hemp Amendments,” were put in place just days before a hearing for the lawsuit and essentially deflated the companies’ argument that the wording of the law was “unconstitutionally vague.” The department had previously said the rules might not officially go into effect until August.

The original statute as written doesn’t mention the exact definition of a serving size, and left that to the state health department. In June, the department caused a stir among THC beverage companies when it proposed defining a serving size as 12 fluid ounces. Several state-approved THC beverage varieties on sale at the time served more than 4 mg of THC in each of their 12 oz cans.

But the department’s new rules, put into place July 17, point to the federal serving size for carbonated and noncarbonated beverages — 12 fl. oz — as the standard.

Climbing Kites, a THC beverage that experienced booming popularity in 2023, has already released multiple 4 mg varieties of its drink to comply with the new potency standard. Previously, its most potent drink served 10 mg per 12 oz can.

What’s in the law?

House File 2605, first introduced in the 2024 legislative session, was passed on a 31-18 vote in the Senate and a 79-16 vote in the House. It acts as an update to Iowa Code Section 204 (the Iowa Hemp Act) and does the following:

  • Bans the sale of consumables to people under 21
    • Before, Iowa had no age restrictions for selling or owning hemp products, though many registered hemp retailers/manufacturers had implemented their own restrictions
  • Requires hemp products to limit THC amounts to four milligrams per serving, or ten milligrams per container
  • Increases penalties for violating Iowa’s existing hemp laws
  • Prohibits synthetic THC from being used in products
  • Requires a warning label, similar to labels on alcohol, to be printed on products

What does this mean for Iowans looking to buy consumable hemp?

Iowans age 21 and older are still legally able to buy consumable hemp products from Iowa businesses that comply with the new law's potency limits.

Many consumable hemp products above that limit were available for sale in the days ahead of July 1. Because the new law classifies any hemp product above the proscribed limits as marijuana, a controlled substance under Iowa Code, penalties for owning and consuming that product can range from a serious misdemeanor to a Class B Felony, a spokesperson from the Iowa Department of Public Safety told IPR.

Why were these regulations passed?

The bill's floor manager, Sen. Dan Dawson, R-Council Bluffs, said the new legislation was necessary to regulate the growing hemp industry and make sure people don’t misuse the products as a substitute for the state’s medical cannabidiol program.

In a statement, Reynolds said she has concerns about the bill after hearing from people for and against it, but signed it to protect minors from dangerous and intoxicating products.

Later, while on a visit to the Alcohol & Drug Dependency Services of Southeast Iowa in Keokuk on June 21, the governor shared that she’s been worried about the growth of hemp-infused products in the state, and believes the burgeoning market for hemp-infused goods has taken advantage of the 2018 Farm Bill.

Democrats have voiced concerns about the bill possibly limiting hemp products for people who use them for medical purposes. Reynolds noted in her statement that she’s taken steps to ensure that children who are resistant to medications and suffer from seizures and other medical conditions continue to have access to consumable hemp alternatives for relief.

The Iowa Senate had also passed a bill expanding the maximum number of medical cannabidiol dispensary licenses in the state from five to ten, but the Iowa House did not pass it.

What does this mean for Iowa businesses?

Some businesses, like The Happy Can, have been prepared to pivot. The company has rolled out gummies and a new seltzer that both comply with the new law’s potency limit, while their previous products that no longer comply have been transported out of the state to be sold elsewhere.

Happy Can developer Ashley Hartman said the brand’s 10 mg cans were the most popular, even though they weren’t the highest dose of THC product the company sold.

“Businesses are hurt. They're really hurt,” she said ahead of July 1. “We've done a lot of lobbying. We tried really hard to meet with legislators to try to find a middle ground and we're not getting as far as we had hoped. Going into the next session we're going to have to really lobby harder.”

Hartman says she worries the new rules will push consumers to buy out-of-state products.

“We agree that there should be regulation, but at the end of the day, we’ve got to make it so businesses can still operate as well and people can still consume these products,” she said. “I mean, what stops these people from going online?”

Businesses like Despensary, which operates two stores in Des Moines, put out a statement saying the law "will effectively end The Despensary as a vendor of consumable hemp products."

“For the industry, it is incredibly disappointing. I expected more from the leadership of this state," Bergloff said.

Instead, Bergloff says the Despensary expects to lean in to its other non-THC products, which range from CBD to kratom and psychedelics, in order to stay open.

According to a fiscal note prepared by the Iowa Legislature’s fiscal services division in March, Iowa was estimated to represent 0.96% — or $3.7 million — of the national consumable hemp product market, currently valued at $390 million. According to Iowa Department of Revenue data, an estimated 8.5% of consumable hemp product sales were at bars and restaurants.

“I think for the year, until we can get back to changing things to where it should be, we're going to see a lot of things shut down," Bergloff said. "It's going to be really rough."

Josie Fischels is IPR's Arts & Culture Reporter, with expertise in performance art, visual art and Iowa Life. She's covered local and statewide arts, news and lifestyle features for The Daily Iowan, The Denver Post, NPR and currently for IPR. Fischels is a University of Iowa graduate.