Iowa Beverage Companies Challenge State’s New THC Limits in Lawsuit

Two Iowa-based beverage companies, Climbing Kites and Field Day Brewing Co., are taking legal action against the Iowa Department of Health and Human Services (DHHS) over the state’s interpretation of a new law that restricts THC levels in adult beverages. Here’s a breakdown of the situation:

The Background: Iowa’s Hemp Legislation

The dispute stems from the Iowa Hemp Act of 2019, which legalized hemp production in Iowa by excluding it from the state and federal definitions of “marijuana.” This legislation paved the way for the production and sale of hemp-based consumables in the state, including beverages.

The Lawsuit: Climbing Kites and Field Day Brewing Co.

In 2023, Climbing Kites in Des Moines and Field Day in North Liberty began producing canned beverages containing hemp-derived cannabis oil, with THC levels well below the legal limit of 0.3%. However, in 2024, Iowa lawmakers passed House File 2605, further restricting THC potency in hemp consumables.

The Issue: DHHS’ Interpretation of the Law

DHHS issued guidance stating that the new law limits THC content to 4 milligrams per serving, based on a serving size of one 12-ounce can. This interpretation conflicts with the statute, which allows up to 10 milligrams of THC per container.

The Lawsuit’s Allegations and Requests

The companies argue that DHHS’ interpretation would criminalize their products and significantly impact their revenue. They allege that DHHS’ actions violate the Supremacy Clause of the U.S. Constitution, as the federal FDA has authority over food safety. The companies seek an injunction to prevent DHHS from enforcing the new limits and a declaration that the 4-milligram limit per serving is unconstitutional.

Conclusion and Future Steps

The lawsuit highlights the complexities of navigating state and federal laws regarding hemp and cannabis products. As the legal battle unfolds, it will be interesting to see how the courts interpret the laws and whether there will be further changes to Iowa’s regulations on THC levels in consumables.