Brewers Claim Iowa’s THC Rules Misinterpret Hemp Law, Threatening Certain Drinks

Iowa’s New Hemp Product Regulations Face Pushback from Brewers and Retailers

Des Moines, IA – Iowa’s new hemp product regulations have sparked significant backlash from local brewers and retailers. The controversy centers around House File 2605, a law that imposes strict limits on the potency of consumable hemp products and sets a minimum purchasing age of 21. Despite being signed into law by Governor Kim Reynolds on May 17, the implementation details have led to widespread concern within the industry.

Law and Proposed Regulations

House File 2605 restricts consumable hemp products to no more than 4 milligrams of tetrahydrocannabinol (THC) per serving, and no more than 10 milligrams per container. THC is the psychoactive component that produces a “high” when consumed.

However, the Iowa Department of Health and Human Services (HHS) has proposed regulations that define each “closed-container beverage” as a single serving. This means that any beverage containing more than 4 milligrams of THC per container would be banned. The HHS outlined these rules in a memo on May 24, which has since raised alarms among local brewers.

Industry Pushback

Local brewers argue that the proposed rules exceed the intent of the law and threaten their businesses. Dave Moore, CEO of Climbing Kites, which produces THC-infused drinks under Lua Brewing and Big Grove Brewery, expressed significant concerns. “Only one of our products would be compliant, and we would lose products that account for about 80% of our sales,” Moore stated. He also highlighted the potential financial impact due to unsellable inventory and packaging materials.

Similarly, Dan Caraher, director of operations at Field Day Brewing Co., noted that their THC-infused drink, Day Dreamer, would also suffer. The brewery had planned to adjust their product potency to comply with the new law but now faces further restrictions under the proposed regulations. “Once the law came out, we were going to reduce our 15 mg drinks down to 10,” Caraher explained. “And we ordered labels for all of that. And then … this proposal came out.”

Potential Legal Action

Brewers have been in discussions with HHS to seek a resolution. Moore remains hopeful that a sensible conclusion can be reached without resorting to legal action. However, he did not rule out the possibility of suing to protect business interests if an agreement cannot be found. “If we can’t find an amicable resolution that allows businesses to continue operating within the parameters set forth in the statute, we will take legal action as a last resort,” Moore warned.

Next Steps

The new law is set to take effect on July 1, and brewers are preparing for potential disruptions. Caraher mentioned an influx of purchase orders for higher-strength cans as consumers stock up before the regulations kick in. Breweries like Field Day Brewing are also considering permanent adjustments to their product lines to comply with the new rules.

The Department of Health and Human Services has not yet responded to requests for comment on the proposed regulations and their potential impact on local businesses.

As the implementation date approaches, the industry awaits further developments and possible amendments to the proposed rules to align more closely with the original intent of House File 2605.