Cannabis Industry Opportunities
Iowa
In May 2017, Gov. Terry Branstad signed HF 524, allowing qualified patients in the state to use, possess, and access cannabidiol (CBD) oil with a maximum of 3% THC. The bill also allows for the production, delivery, transportation and dispensing of cannabidiol. The Iowa Department of Public Health (IDPH) is responsible for regulating cannabidiol, and has issued all available licenses, consisting of 5 dispensaries and 2 manufacturers.
Dispensary license application fee: $5,000 (non-refundable)
Manufacturer license application fee: $7,000 (non-refundable)
There are no available licenses in Iowa at this time. The state has issued licenses for dispensaries and manufacturers. Only two manufacturers are authorized in the state, home cultivation is not allowed.
On June 29, 2020, Gov. Kim Reynolds (R) signed a bill HF 2589 that expands the list of medical conditions that qualify for medical cannabis preparations, revises the amount of THC that can be possessed, and makes other changes to the state's medical cannabidiol program. Another bill (Senate Study Bill 1177) would slash fees paid by the manufacturers of medical cannabis to $2,000 a year and create an income tax deduction for business expenses associated with manufacturing or dispensing medical cannabis.
In 2014, Iowa’s state legislature took its first step toward medical cannabis reform by passing a law that provided legal protection for patients with seizure disorders, such as epilepsy, who used cannabidiol (CBD). This law granted patients a defense against prosecution but did not establish a formal program for production or distribution.
In 2017, Iowa expanded its medical cannabis program with the passage of HF 524. This legislation allowed qualified patients to use, possess, and access CBD oil containing up to 3% THC. It also permitted the production, delivery, transportation, and dispensing of cannabidiol, leading to the creation of the Iowa Medical Cannabidiol Program. The Iowa Department of Public Health (IDPH) was authorized to oversee the program and establish administrative rules.
The IDPH set licensing timelines for manufacturers and dispensaries, mandating that medical cannabidiol dispensaries begin operations by December 1, 2018. In November 2017, the state awarded its first manufacturing license to MedPharm Iowa, followed by five dispensary licenses in March 2018. In June 2018, the state granted its second and final manufacturing license to Iowa Relief LLC, effectively filling all available business licenses for medical cannabis.
Despite these advancements, Iowa's medical cannabis program faced setbacks. In May 2019, Governor Kim Reynolds vetoed a bill that would have removed the 3% THC cap, instead imposing a restriction that limits patients to purchasing 25 grams of medical cannabis every 90 days.
As of April 18, over 2,500 patients have been issued registration cards under the Iowa Medical Cannabidiol Program. The state currently licenses two manufacturers and five dispensaries to serve qualified patients. However, adult-use (recreational) cannabis remains illegal in Iowa, and the state's medical cannabis program remains highly restrictive.
While CBD derived from marijuana is legal for qualifying patients, CBD sourced from hemp remains illegal in Iowa. Farmers cannot legally cultivate hemp until the USDA approves the state's regulatory plan, with legalization expected no sooner than the 2020 growing season, depending on the review process.
Iowa continues to navigate the complexities of medical cannabis regulation, balancing patient access with restrictive THC limitations and regulatory oversight. The future of cannabis reform in Iowa will depend on legislative developments and ongoing advocacy efforts.
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As of April 18, over 2,500 patients have been issued registration cards by the state, according to the Iowa Office of Medical Cannabidiol. Currently, there are 5 licensed dispensaries operating in Iowa.
If you are just starting your marijuana business, the best next step is to create a Business Plan to educate your team and prepare for the marijuana business license application process.
If you are ready to apply for a Marijuana Business License in Iowa, please contact us or call our offices to set up an appointment. You can also explore other state opportunities or fill out our Contact Form to discuss strategies such as investment or partnership opportunities.
Our headquarters are located in the San Francisco Bay Area and Las Vegas Nevada. We offer a full suite of custom solutions for your cannabis business including business planning, license application development, and investment opportunities. If you are in need of assistance, please call us during business hours listed below. Thank you.
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