Iowa Brewers and Retailers Push Back Against State’s New Hemp Law

The new law not only sets potency limits on hemp products but also establishes a minimum age of 21 for purchases. Local brewers and retailers are raising concerns, claiming the regulations could severely impact their businesses.

A new Iowa law regulating hemp products has sparked complaints from local brewers and retailers, with some even threatening legal action.

Passed by state lawmakers in April and signed into law by Republican Governor Kim Reynolds last month, the measure “prohibits the sale and possession of consumable hemp products that contain more than 4 mg of total THC per serving and over 10 mg per container in Iowa.”

The Iowa Department of Health and Human Services notes that the state’s medical cannabis program, launched in 2018, “allows individuals with certain eligible conditions to access medical cannabis through five retail dispensaries,” and permits “the use of medical cannabis in four forms: oral (including tinctures, capsules, sublinguals, and tablets), topical (creams and gels), inhaled (vaporized), and suppositories.”

However, as the Des Moines Register highlights, the department's proposed rules define “closed-container beverage” as “one serving per container,” meaning any beverage exceeding 4 mg of total THC would be banned from sale.

Local brewers argue this was not the law's intention and warn that the new rules could severely impact their products. One major manufacturer indicated it might pursue legal action if a resolution isn’t reached.

“Only one of our products would be compliant, and we’d lose offerings that represent about 80% of our sales,” said Dave Moore, CEO of Lua Brewing and Big Grove Brewery, in an interview with the Des Moines Register. “We would also be left with a significant inventory of finished goods and packaging materials that would become unusable. This ruling would have serious financial consequences for our business.”

Moore’s Brewing Companies Concerned Over New Hemp Law Impact

Dave Moore, CEO of Lua Brewing and Big Grove Brewery, expressed worries about the new law’s effect on his THC-infused beverages. “If we can’t reach an amicable resolution that allows us to operate within the law, we may have to resort to legal action to protect our interests,” he stated. “However, we believe it’s possible to resolve this with HHS and the state without going to court.”

When Governor Kim Reynolds signed the bill into law last month, she acknowledged her discomfort with certain provisions. “I have concerns about this bill and have heard from various individuals and groups,” Reynolds remarked. “Ultimately, I’m signing it to protect minors from dangerous and intoxicating products, while ensuring that children with serious medical conditions still have access to consumable hemp alternatives.”

The bill, introduced by the Iowa Department of Public Safety earlier this year, aims to address the rise of high-potency THC products on the market. Josie Wagler, the department’s legislative liaison, noted, “We’ve seen a surge in high-THC products, and the lack of age restrictions is alarming. This law aims to provide HHS and law enforcement with better tools to regulate these intoxicating products.”

The legalization of hemp through the 2018 Farm Bill allowed for the sale of hemp-derived products, prompting other states to create similar regulations. However, some lawmakers indicated that these reforms led to unintended consequences.

State House Rep. Steve Holt, a Republican, stated in February, “We thought we were addressing the intoxicating aspects, only to discover there are ways to circumvent that. It’s become a sort of ‘wild, wild west,’ with THC-infused drinks accessible to minors and other unacceptable practices.”

The proposal has faced strong opposition from Iowa business owners and hemp growers since its inception.

“Let’s address the real issues instead of just sweeping everyone under the rug,” said Scott Booher, owner of Four Winds Farms, during a hearing earlier this year. “We have patients who are children, and parents purchasing our hemp products for issues like ADD and behavioral problems.”

The Des Moines Register reported this week that “breweries in Iowa have been in touch with HHS since the draft rules were released, but it remains uncertain whether any changes will be made.”