New regulations on consumable hemp products go into effect July 1. Here’s what to know

In May, Gov. Kim Reynolds signed a bill barring the sale of hemp-infused “consumables,” like gummies or drinks, to anyone under the age of 21. The law goes into effect July 1.

The new regulations restrict the potency of consumable hemp products that contain the psychoactive substance THC — tetrahydrocannabinol — to four milligrams per serving or ten milligrams per container .

Recreational marijuana is not — and has not been — legal in Iowa, though the consumable hemp program has allowed registered retailers and producers to sell non-inhalable products made from hemp, or cannabis plants with 0.3% or less total THC, without restrictions on potency.

What is consumable hemp?

Hemp products are derived or made from hemp, which are cannabis plants with a lower level of THC than marijuana (specifically, 0.3% or less). Consumable hemp products are drinks or edibles, like gummies, made from hemp that can be ingested. The Iowa Department of Health and Human Services also qualifies hemp lotions and oils that can be absorbed through the skin as consumables.

Consumable hemp does not include products meant to be inhaled, which are prohibited under Iowa Code.

Consumable hemp products were legalized in the 2018 Farm Bill and later in the Iowa Hemp Act , which was signed in 2021.

What’s in the law?

House File 2605 , first introduced in the 2024 legislative session, was passed on a 31-18 vote in the Senate and a 79-16 vote in the House. It acts as an update to Iowa Code Section 204 (the Iowa Hemp Act) and does the following:

• Bans the sale of consumables to people under 21
  
  • Before, Iowa had no age restrictions for selling or owning hemp products, though many registered hemp retailers/manufacturers had implemented their own restrictions
• Requires hemp products to limit THC amounts to four milligrams per serving, or ten milligrams per container
  
  • Many — if not most — of the consumable hemp products currently sold in Iowa do not meet this limit
• Increases penalties for violating Iowa’s existing hemp laws
• Prohibits synthetic THC from being used in products
• Requires a warning label, similar to labels on alcohol, to be printed on products

What does this mean for Iowans looking to buy consumable hemp?

Iowans age 21 and older are still legally able to buy consumable hemp products from Iowa businesses that comply with the new law's potency limits.

While many consumable hemp products above that limit are still available for sale ahead of July 1, consumers should be wary. The new law classifies any hemp product above the proscribed limits as marijuana, a controlled substance under Iowa Code . Penalties for owning and consuming that product can range from a serious misdemeanor to a Class B Felony, a spokesperson from the Iowa Department of Public Safety told IPR.

Why were these regulations passed?

The bill's floor manager, Sen. Dan Dawson, R-Council Bluffs, said the new legislation was necessary to regulate the growing hemp industry and make sure people don’t misuse the products as a substitute for the state’s medical cannabidiol program.

In a statement, Reynolds said she has concerns about the bill after hearing from people for and against it, but signed it to protect minors from dangerous and intoxicating products.

Democrats have voiced concerns about the bill possibly limiting hemp products for people who use them for medical purposes. Reynolds noted in her statement that she’s taken steps to ensure that children who are resistant to medications and suffer from seizures and other medical conditions continue to have access to consumable hemp alternatives for relief.

The Iowa Senate had also passed a bill expanding the maximum number of medical cannabidiol dispensary licenses in the state from five to ten, but the Iowa House did not pass it.

What does this mean for Iowa businesses?

Shelves in Iowa are currently stocked with many products that will be well above the legal potency limit once the law goes into effect. Consumable hemp is sold by hundreds of Iowa retailers and supplied to them by over 100 manufacturers.

Despensary , which operates two stores in Des Moines, claims the law is attempting to "eradicate the consumable hemp industry within Iowa that is not tied directly to medical dispensaries." Chief Operations Officer Sabrina Bergloff claims as much as 99% of current consumable hemp products sold in the state will no longer be allowed under the new law. The Despensary's THC products are now on sale at a reduced price, and the Iowa Department of Health and Human Services recommends registered businesses either ask their vendors if they can return the products, or work with the state to destroy them. After July 1, the state health department will have authority to dispose of it themselves.

A statement on the Despensary's website says the law "will effectively end The Despensary as a vendor of consumable hemp products."

“For the industry, it is incredibly disappointing. I expected more from the leadership of this state," Bergloff said.

The path forward for consumable hemp isn't clear yet, she said, but the Despensary expects to lean in to its other non-THC products, which range from CBD to kratom and psychedelics, in order to stay open. She says she plans to talk to manufacturers to create consumable hemp products that are compliant with the law, but she can see more customers turning to out-of-state sources for more potent THC products once they are no longer available in Iowa.

“We do have a lot of exciting things coming. It is not necessarily the shift we want to make — we would rather be able to serve our customers in the manner in which they are screaming for — but we will do our best to connect them with reputable sources, get them the right thing, because that is unfortunately something the state cannot seem to do.”

According to a fiscal note prepared by the Iowa Legislature’s fiscal services division in March, Iowa is estimated to represent 0.96% — or $3.7 million — of the national consumable hemp product market, currently valued at $390 million. According to Iowa Department of Revenue data, an estimated 8.5% of consumable hemp product sales are at bars and restaurants.

“I think for the year, until we can get back to changing things to where it should be, we're going to see a lot of things shut down," Bergloff said. "It's going to be really rough."

Bergloff also said that she worries that as more dispensaries go out of business, there will be less competition, so the dispensaries that remain might charge customers more for THC.

Some businesses, like Climbing Kites, have repackaged their products to include altered serving sizes to comply with the law. Rather than listing their most potent product, the 10 mg Mixed Berry flavor, as one serving, the drink is now listed to contain four servings. However, an FAQ from the Department of Health and Human Services states that it plans to define every "closed-container beverage" as only one serving per container, which means beverages with a potency of more than 4 mg of total THC would be banned.

Of note:

Hemp growers in Iowa — and across much of the Midwest — are dwindling , and producers have said the law will hurt them more.