DES MOINES, Iowa (WHO) — Iowa businesses that sell hemp-derived products will need to make changes before July 1 when Iowa’s new hemp law is enacted.
The bill was originally made to set the legal age to purchase and sell consumable hemp products, and to set criminal and civil penalties. But, when the law passed the House, an amendment was added to the bill, restricting tetrahydrocannabinol (THC) concentration in products.
House File 2605 passed the Senate and was signed by Governor Kim Reynolds in May.
Under the law, consumable hemp products can contain no more than 4 milligrams of THC per serving, and no more than 10 milligrams per container.
This law impacts all THC products, including the THC-drink industry, which was growing in popularity across Iowa. Climbing Kites is one of these drinks and is the state’s first cannabis-infused sparkling water. Back in February, Big Grove Brewery in Downtown Des Moines acquired a majority share of the product.
Draft rules outlined by the Department of Health and Human Services defined that, “a closed-container beverage shall be defined as one serving per container, regardless of its ability to be re-sealed or the total fluid ounces it contains.” This means consumable hemp drinks must contain less than 4 milligrams of THC per serving and per container.
This rule will impact the sale of Climbing Kites, according to CEO and owner David Moore.
“Only one of our products would be compliant, and we would lose products that account for about 80% of our sales,” said Moore.
Moore also said that they will have a large inventory of finished products that they will no longer be able to sell in the state after July 1st.
According to the draft rules by HHS, businesses that have non-conforming products should either return the product to the vendor, or work with local law enforcement to destroy the product.
Climbing Kites has a meeting set with HHS this week to discuss the state’s plans.
Despensary is a local shop selling CBD and THC products. They sell Climbing Kites, as well as several other consumable hemp products in their two Des Moines locations.
Chief Operations Officer Sabrina Bergloff said that this law is detrimental for the legal hemp industry.
“The entire community is taking a hit. Anybody that’s in this industry, all of us are being taken down to ground zero. That’s what’s happening,” said Bergloff.
80-90% of Despensary’s current products would be considered illegal after July 1st, according to Bergloff.
Businesses that sell hemp-derived products will need to make changes in the coming weeks to comply with the new rules.
The Department of Health and Human Services and Governor Reynolds’ office did not provide statements.