Two Iowa companies are suing the state over new restrictive THC-infused beverage regulations, claiming the rules misinterpret legislative intent and harm local businesses.
DES MOINES, Iowa — In a contentious move that could reshape the landscape of hemp-derived products, two Iowa-based companies, Climbing Kites and Field Day Brewing, have filed a lawsuit against the state. The suit challenges the Iowa Department of Health and Human Services (HHS) over its interpretation of new regulations on THC-infused beverages, claiming these restrictions are more stringent than what legislators intended.
The crux of the dispute lies in a law that took effect on July 1, limiting THC in consumable hemp products to 4 milligrams per serving and 10 milligrams per container. However, the plaintiffs argue that the law was meant to permit up to 10 milligrams per container, regardless of serving sizes. This discrepancy has sparked significant controversy, drawing attention to how different states regulate THC-infused products.
Distinction Between Iowa’s Medical Cannabis Program and Hemp Regulations
Iowa’s medical cannabis program, established under the Iowa Medical Cannabidiol Act, allows patients with qualifying medical conditions to purchase cannabis products containing up to 3% THC. Patients can acquire up to 4.5 grams of THC every 90 days, with exceptions for those who obtain a waiver. This program operates separately from the regulations governing THC-infused hemp products.
Meanwhile, the new hemp law, effective from July 1, 2024, restricts consumable hemp products to 4 milligrams of THC per serving and 10 milligrams per container. This law specifically targets products such as THC-infused beverages and edibles, distinct from the medical cannabis products regulated under the Iowa Medical Cannabidiol Act.
While the hemp law aims to regulate the broader market for hemp-derived products, it operates in the same realm in which the state medical cannabis program addresses the needs of patients with qualifying medical conditions.
Industry Pushback and Legal Controversy
The controversy surrounding Iowa’s new hemp law stems from its restrictive nature and perceived misinterpretation by state regulators. The Iowa Hemp Act of 2019 was intended to create a regulated market for hemp-derived products, including those containing THC. However, the recent amendments and subsequent enforcement by the HHS have led to significant pushback from businesses.
A primary issue is the stringent THC limits imposed by the new law, which many businesses argue do not align with the original legislative intent. The law’s vague language and lack of clear guidelines on serving sizes have left companies in a state of regulatory uncertainty, unsure of how to comply without risking legal repercussions. This has resulted in multiple lawsuits, with businesses seeking to block the enforcement of the new regulations.
The federal judge overseeing the case has expressed concerns about the law’s enforcement and its potential unconstitutionality due to its vagueness. The outcome of this legal battle could set a precedent for how hemp-derived THC products are regulated in Iowa and potentially influence regulations in other states.
Statements from the Plaintiffs and Governor’s Stance
Climbing Kites co-founder Scott Selix stated, “We wanted regulation in the industry, but we didn’t want to shut it down. The way the bill is being enforced is not what legislators intended.” The companies seek an injunction to block the enforcement of the new regulations, arguing that the HHS’s interpretation is arbitrary and discriminatory.
Governor Kim Reynolds has defended the new law, citing concerns about the potential impact of THC-infused products on children. “Significant amounts of THC added with alcohol in a container pose a risk, and we need to protect kids from dangerous products,” Reynolds said. However, the regulatory bulletin from Iowa’s Alcoholic Beverages Division states that mixing alcohol with THC is already illegal.
Economic Impact and Future Implications
Since the law took effect, several businesses have had to pull THC-infused products from their shelves, leading to layoffs and reduced hours. The companies argue that the new regulations are harming the local economy and stifling innovation in the hemp industry.
The outcome of this lawsuit could have significant implications for the hemp industry in Iowa and beyond. As the legal battle continues, businesses and consumers alike are watching closely to see how the courts will interpret the new regulations. This case could reshape the regulatory landscape for THC-infused products and set a precedent for future legislation.
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