On May 17, Iowa Gov. Kim Reynolds signed 20 bills prior to the end of the legislative session. One of which was House File 2605, which establishes regulations regarding hemp-derived consumable products that contain THC.

The passage of HF-2605 includes new restrictions and penalties applied for hemp-derived consumable sales, manufacturing, and possession. Now, such products may only contain 4 mg of THC per serving, or 10 mg THC per container on a dry weight basis, according to the Iowa Capital Dispatch. It also requires that warning labels be adhered to those products, which can be sold to adults over 21, and prohibits the use of synthetic THC.

Many people reached out expressing their opposition to the bill, and called for Reynolds to reject it. Prior to signing HF-2605, Reynolds explained that she considered both sides of the argument for and against the bill. “I have concerns about this bill and have heard from individuals and groups on both sides of the issue,” said Reynolds. “Ultimately, I am signing it into law to protect minors from dangerous and intoxicating products. At the same time, we’ve 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.”

In early April, HF-2605’s floor manager, Sen. Dan Dawson, explained that the bill is a necessary update to the Iowa Hemp Act. “The medical cannabidiol program actually puts an individual with a doctor to get these products, that’s the biggest distinction,” Dawson said. “The Iowa hemp program has none of those barriers there. So if we want to protect Iowans with these products… there has to be some type of guardrails on here, to make sure that the medical cannabidiol program is the program that we can direct Iowans to when they have one of these diagnosed conditions.”

In March, Rep. John Forbes expressed concern for the possible “unintended consequences” for patients who rely on hemp-based medicine that’s not included in the state medical cannabis program. “I think we’re not hitting the nail on the head here, when it comes to being able to help Iowans that are seeking out this as an alternative to maybe taking other prescription medications, and increasing quality of life, helping them,” Forbes said at the time.

During that same meeting, Sen. Tom Shipley, who helped create the Iowa Hemp Act when it passed in 2019, said he saw opportunities for loopholes. However, he was more than happy to support HF-2605 as a way to improve upon the current act. “We found out some people could find an angle to get around things and do things that are not good for Iowans,” said Shipley. “And I just want to stand up in support of Senator Dawson’s bill to try and close some of these loopholes that even I could figure out were coming.”

Following Gov. Reynolds’ approval, many others welcomed the new regulations. “This has created a lot of awareness about these products, and it’s put things in place that were necessary,” said Alec Travis, owner of the Iowa-based brewery Field Day Brewing, which offers THC-infused beverages. “Having a small cap while people get used to these products is probably good.”

Earlier in February, House Study Bill 665 was introduced, which would give the Iowa Department of Health and Human Services the ability to regulate consumable hemp products. “We thought we were dealing with the intoxicating aspect, only to find out that there are ways to get around that,” said Rep. Steve Holt. “So it’s sort of the wild, wild west out there in a lot of ways, with THC-infused drinks being able to be served to minors, a lot of other things going on that are not acceptable.” The bill has not received any further hearings after February 19. 

Similar hemp regulations are also being pursued by other states, such as Georgia. Earlier this month, Gov. Brian Kemp signed Senate Bill 494, which “makes changes to the framework for hemp regulation in Georgia to allow the Georgia Department of Agriculture to have greater oversight and enforcement power and adds labeling, packaging, and marketing requirements to protect children from misleading and dangerous marketing.” 

At the signing ceremony, Kemp explained that hemp cultivation is rapidly growing. “The vast majority of the jobs and the vast majority of the investment that have been created by these great private-sector companies … have been located outside the metro-Atlanta counties, creating opportunities for Georgians to succeed no matter what their zip code,” Kemp said.

Additionally, Kemp signed Senate Bill 420 as well, which prevents a “foreign adversary” from owning agricultural land. “As valued members of our state’s number one industry, Georgia’s farming families deserve our enduring support as they face unprecedented challenges, including having to navigate disastrous federal energy policies, attempts by foreign adversaries to acquire farm land, and theft of property,” Kemp said. “We are tackling these challenges head on, and I want to thank our legislative partners for their work on these important issues.”

On May 17, GOP House representatives recently published a 942-page draft version of the 2024 Farm Bill. Although still a work in progress, the draft currently includes a revision of the word “hemp” and provides numerous separate categories to label cultivators growing hemp for the purposes of animal feed, fiber, or non-food-based production of grain, seed, or oil.

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One company called HWY35, LLC, currently based in Missouri, recently received funds from the Minnesota Department of Iron Range Resources and Rehabilitation’s Advisory board (IRRR) voted 5-3 to approve a loan to be used to build a cannabis cultivation and manufacturing site in Grand Rapids, Minnesota.

The department’s goal is “…to invest in resources to foster vibrant growth and economic prosperity in northeastern Minnesota by enhancing livable communities, maximizing collaborations and partnerships and strengthen businesses and worker education.” It provides low or no interest loans and grants to businesses who plan to relocate into Minnesota, or are currently based in the state and are seeking to expand.

The department recently approved a $10 million loan for HWY35 to build a cannabis grow and manufacturing facility in Grand Rapids. “While launching the cultivation and manufacture of cannabis products as a new industry in the state of Minnesota is exciting, the opportunity to create positive economic impacts in northeastern Minnesota and, in particular the Grand Rapids and greater Iron Range communities, for generations to come is both thrilling and rewarding,” said HWY35 Lead Minnesota Investment Partner, John Hyduke. “We will revitalize the 138-acre former Ainsworth site into a high-tech, state-of-the-art, cannabis cultivation and manufacturing facility that our communities will be proud of and that will serve as an industry leader for the state of Minnesota.”

According to Rob Mattei, City of Grand Rapids Director of Community Development, HWY35 has exhibited great success in operating cannabis facilities in similar states as well, which is why their proposal was approved.

The property was once home to Canada-based Ainsworth Lumber Company, which made oriented strand boards used in single-family home construction. The company initially bought the Grand Rapids location in 2004, which it sat idle as of 2006, and closed permanently in 2008. According to the Grand Rapids Herald Review, the house market was part of the reason for the closure.

At its peak, 190 people were employed at the facility. HWY35 on the other hand estimates it will create hundreds of new jobs with its cannabis business, according to IRR Commissioner Ida Rukavina. “The HWY35 project is expected to benefit northeastern Minnesota through the creation of 400 jobs and increased tax revenues that can be reinvested back into the region,” Rukavina said. “Because the project is based in both manufacturing and agriculture, it has the potential to significantly diversify the local economy, which is one of our agency’s primary goals.” According to MPR News, the jobs will pay an average of $24 an hour, and offer a range of salaries between $40,000 to $160,00 per year.

HWY35’s licenses are not in hand yet, but IRRR director of business development, Mathew Sjoberg, said that they should be up and operating by the end of 2024.

Rukavina told MPR News that approving cannabis in the area will help add diversity to the region’s industries, mainly mining and timber. “We know that not everyone may agree with this type of industry,” said Rukavina. “But it is now legal in the state of Minnesota. This type of manufacturing, if it doesn’t happen here, it is going to happen somewhere else in our state.”

The IRR and HWY35 came to the agreement that $5 million of the loan will be forgiven if the company can reach 150 employees within five years, or 175 employees within the next 10 years.

Of course, there is traditionally opposition from some parties regarding the growth of cannabis in a new market. Minnesota Rep. Ben Davis said that he used cannabis in his youth, and claims that it is addictive. “I’m absolutely for free market capitalism,” said Davis. “But that does not mean I need to put my stamp of approval on us taking $10 million of people’s money, of government money, and putting it towards basically subsidizing this industry.”

Sen. Justin Eichorn also opposed the public financing support, and said that the public should have been able to voice their opinion about how the money was being used. “I’m surprised it’s going to take darn near 33 percent of the total project cost and government money to get this thing off the ground, based on conversations I had with other people that are in the industry and other states,” Eichorn said.

HWY35’s IRRR loan application stated that this was a “remarkable market opportunity,” and that “industry is poised for explosive growth, offering an unprecedented chance for HWY35 to become a dominant force in the emerging market.”

Recreational cannabis is new in Minnesota, thanks to Gov. Tim Walz signing a cannabis legalization bill in May. “We’ve known for too long that prohibiting the use of cannabis hasn’t worked. By legalizing adult-use cannabis, we’re expanding our economy, creating jobs, and regulating the industry to keep Minnesotans safe,” Walz said. “Legalizing adult-use cannabis and expunging or resentencing cannabis convictions will strengthen communities. This is the right move for Minnesota.” The program began on Aug. 1, but dispensaries won’t be ready for at least a couple of years.

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A bill to make Hawaii the next state to legalize recreational cannabis cleared a legislative hurdle this week.

The legislation “advanced out of two state Senate committees Thursday — and is now moving to the full senate,” according to local station HawaiiNewsNow.

Under the measure, adults aged 21 and older could legally possess and consume marijuana, while the state would regulate and oversee a cannabis market. 

The station said that the bill was “approved by the Consumer Protection and Ways and Means Committees.”

According to local news station KHON2, the chair of the Consumer Protection Committee “chose to provide some proposals on amendments that had been integrated to cover issues that had been raised in earlier hearings.”

Per the station, those amendments are: “1. Language was added to establish civil penalties for unlicensed cannabis growth and distribution activities; 2. Language was added that protects employers who seek to prohibit cannabis use amongst their employees; 3. Prohibition of advertising within 1,000 feet of any youth-centered area; 4. Proposed licensing of cultivation, manufacturing, testing and retail facilities that ensure a properly regulated industry while also preventing future consolidation and monopoly control of cannabis dispensaries.”

Democratic state Sen. Jarrett Keohokalole, who chairs the Consumer Protection Committee, said that the bill’s approval by the two senate committees marked “a significant step forward in the legalization of adult-use cannabis in Hawaiʻi.”

“These amendments are reflective of the Senate’s commitment to ensuring a fair and well-regulated cannabis market that provides safe access to both adult consumers and existing medical patients,” said Keohokalole, as quoted by KHON2.

Democrats control both chambers of the Hawaii state legislature. The state’s Democratic governor, Josh Green, who was elected and took office last year, has said that he would sign a cannabis legalization bill if it were to land on his desk.

“I think that people already have moved past that culturally as a concern,” Green said during a gubernatorial debate in the fall. “But here’s what I would do. First of all, if marijuana is legalized, it should be very carefully monitored, and only done like cigarettes, or I’ve been very careful to regulate tobacco over the years. We should take the $30 to $40 million of taxes we would get from that and invest in the development and recreation of our mental healthcare system for the good of all.”

An adviser to the governor reiterated that support this week.

“Governor Green supports legalized use of cannabis by adults, providing that any legislation that emerges protects public safety and consumers, and assures product safety with testing and tracking. The Governor also seeks to ensure the continued viability of our medical cannabis industry. Because these are complicated issues, he has encouraged his departments to state their concerns, and to make suggestions if there are ways to mitigate them. If a bill passes the legislature that accounts for his primary concerns, he has indicated he will likely sign it,” the adviser said in a statement, as quoted by HawaiiNewsNow.

Moreover, there is broad public support for legalization among Hawaiians. 

A poll released earlier this year found that more than 50% of residents there support the legalization of adult-use marijuana.

But while the bill is widely expected to pass out of the Hawaii state Senate, it is “likely to run into strong opposition in the state House,” according to HawaiiNewsNow.

The station reported that the speaker of the state House of Represenatives, Scott Saiki, has “said the state is not ready this year.”

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The New Mexico Cannabis Control Division (CCD) announced on December 28 that it has finalized the rules for cannabis manufacturers, retailers and couriers. The final rules were published in Issue 24 of the New Mexico Register. Hundreds of applications for licenses are currently under review. 

The rules are effective immediately, with last-minute revisions following several rounds of public comment from small business owners, CEOs and other businesspeople. 

“Every day brings us closer to the first adult-use cannabis sales in New Mexico,” Cannabis Control Division Director Kristen Thomson said in a press release. “Thanks to the Cannabis Control Division’s open and transparent rule-making process over the past six months, businesses and consumers can be confident that all necessary support and protection is in place to ensure a thriving cannabis industry in our state.” 

Under the state Cannabis Regulation Act, adult sales in New Mexico are scheduled to begin by April 1, 2022. The rules that took effect Tuesday include manufacturing rules that replace emergency manufacturing rules implemented last fall, with intentions to protect workers and improve workplace safety.

The rules outline the licensing of retail stores, with new restrictions. The courier rules set guidelines for safe delivery and proper distribution of cannabis products by licensed couriers. 

According to a news release, the CCD has been accepting manufacturing and retail license applications through its online licensing system and has received more than 300 submitted applications total across all industry sectors. 

“Our dedicated team of professionals is working hard through the holidays and… every day to work with applicants to get licenses issued and businesses up and running,” Thomson said. “Standing up a thriving new industry is no small feat, and I know that our team, our system and New Mexico’s prospective licensees are up to the challenge. New Mexico will be ready for adult-use sales in 2022.”

Manufacturing Rules

Manufacturers are also prohibited from adding nicotine or caffeine to cannabis products under the final rules, but naturally-occuring caffeine is tolerated. Manufacturing licenses are divided into four classes:

• Class I: packaging and re-packaging of already-made products
• Class II: manufacturing of edibles or topical products from already-extracted products; can also conduct Class I activities
• Class III: manufacturing of extracts (extracting) using mechanical methods and nonvolatile solvents; can also conduct Class I and Class II activities
• Class IV: manufacturing of extracts (extracting) using volatile solvents or supercritical CO2; can also conduct Class I, Class II, and Class III activities

Retail Rules

Once retail sales begin on April 1, 2022, customers ages 21 and over, and people 18 and over who possess a valid qualified patient, primary caregiver or reciprocal participant registry identification card, will be allowed inside.

Retailers can take cannabis out of the packaging to display for customers, but the displayed product cannot be sold or consumed, and it must be destroyed. Retailers are also prohibited from providing free samples. Many other restrictions apply.

Courier Rules (Delivery)

The maximum retail value of products that a courier can carry is $10,000, and couriers are not allowed to carry packages for delivery for more than 24 hours. Delivery recipients will have their identity Delivery recipients must either over 21 or older, or be 18 or older as a qualified medical cannabis patient or primary caregiver, and must be pre-verified electronically before a courier delivers cannabis.

The full list of final rules can be found on the New Mexico Commission of Public Records.

The New Mexico Regulation and Licensing Department had issued a license to the first company, Mother’s Meds, to operate as a cannabis cultivator on November 1.

Deadlines were tight, but the state’s leadership pulled together. The final rules are in place four months ahead of the plan for adult-use cannabis sales. Under the Cannabis Regulation Act, which was passed earlier this year, cannabis industry rules need to be in place by January 1, 2022, and adult-use cannabis sales will start by April 1, 2022. 

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Move as quickly as the cannabis industry, printing variable data on demand.

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