Iowa Governor Signs Bill Imposing THC Caps on Hemp-Derived Products

1.8 min readPublished On: May 24th, 2024By

LOS ANGELES- Iowa Governor Kim Reynolds has signed a new bill that imposes strict THC caps on cannabinoid-infused hemp products, significantly impacting the industry. The law, effective July 1, limits THC content to 4 milligrams per serving and 10 milligrams per container.

Industry Impact and Responses

The new regulations have sparked concern among local businesses. Tyler Underberg, owner of Pure Releaf, stated that the measure will effectively ban all THC products his business sells. He noted that his customers, primarily aged between 50 and 95, rely on CBD products for relief from pain, anxiety, and sleep issues. With the new caps, these products will no longer be available.

“No one sells CBD single servings,” Underberg explained, indicating that the container limit will render existing products obsolete. He has already removed THC products from his shelves in compliance with the new law.

Josh Brown, manager of Marshall Tobacco and Vape Outlet, echoed similar concerns, stating that the law would leave only two hemp products on his shelves. Brown criticized the legislation, emphasizing the medical benefits his customers seek from these products over pharmaceuticals.

Concerns Over Youth Access

Brown also addressed concerns about youth access to THC products. He stated that all product packaging clearly indicates they are not for sale to individuals under 18, and his store adheres to a strict policy of not selling to anyone under 21. He argued that minors are likely obtaining these products through parents seeking safer alternatives to street drugs.

State Rep. Sue Cahill criticized the bill, arguing that it neglects the healthcare benefits of these products and negatively impacts local businesses. Retailers have responded by filing a class action lawsuit against the law, which is currently proceeding through the courts.

Legal and Regulatory Landscape

The legislation reflects ongoing efforts to regulate hemp-derived products and address concerns about their intoxicating effects. However, the new caps have drawn significant backlash from both retailers and consumers who depend on these products for medical relief.

The outcome of the class action lawsuit and any potential legislative revisions will be closely watched by industry stakeholders and patients alike as Iowa navigates the balance between regulation and access to cannabinoid-infused hemp products.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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