iowa marijuana laws

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.

Allowable Forms of Medical Cannabidiol in Iowa:

Oral
Topical
Inhalable
Suppositories
Vaporizable

Application Fees/Start up costs

Dispensary license application fee: $5,000 (non-refundable)

Manufacturer license application fee: $7,000 (non-refundable)

Available License Types

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.

Medical Program

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.

Qualifying Conditions:

Cancer
Seizures
Crohn’s disease
Untreatable pain
Multiple Sclerosis
AIDS or HIV
Amyotrophic lateral sclerosis (ALS)
Parkinson’s disease
Any terminal illness with a probable life expectancy of under one year
Ulcerative colitis
Severe, intractable pediatric autism with self-injurious or aggressive behavior
Corticobasal Degeneration
Severe, intractable autism with aggressive or self-injurious behaviors (effective November 27, 2019)

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History

In 2014, Iowa’s state legislature passed a medical cannabidiol law that gave patients with seizure disorders such as epilepsy a defense to prosecution for use of cannabidiol.

In 2017, the state passed HF 524, allowing qualified patients in the state to use, possess, and access cannabis oil for cannabidiol (CBD), with a cap of 3% THC. The bill also allows for the production, delivery, transportation and dispensing of cannabidiol. The Iowa Legislature created a Medical Cannabidiol Program. To fully develop the details for this program, the Legislature authorized the Iowa Department of Public Health to adopt administrative rules.

The Iowa Department of Public Health (IDPH) established timelines for licensing manufacturers and dispensaries, requiring medical cannabidiol dispensaries to begin dispensing to patients in Iowa by December 1, 2018.

In May 2019, Gov. Kim Reynolds vetoed legislation that would have expanded Iowa’s medical marijuana program, eliminating the allowable cap on THC, and instead limiting the amount of medical cannabis a patient could purchase to 25 grams every 90 days.

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.

In November 2017, the IDPH awarded its first manufacturing license to MedPharm Iowa. On March 29, 2018, the IDPH granted five dispensary licenses. In June 2018, the IDPH awarded its second manufacturing license to Iowa Relief LLC, exhausting all available medical cannabis business licenses.

The state has issued 2 manufacturing licenses and 5 dispensary licenses. There is currently no

legislation in place for adult-use of THC cannabis. Qualified patients in the state can use, possess,

and access cannabidiol (CBD) oil with a maximum of 3% THC.

CBD derived from marijuana sources is legal for qualifying patients. However, CBD derived from hemp is still illegal in Iowa. Farmers cannot legally grow hemp in Iowa until the USDA approves the state’s proposed regulatory plan. Hemp production will likely not be legalized until the 2020 growing season at the earliest, depending on the timing of the review and approval process.

Estimated market size

how to start a marijuana business iowa

If you are just starting your marijuana business, the next best step is to start a Business Plan to help educate your team and be ready to apply for a marijuana business license. If you are ready to apply for a Marijuana Business License in Iowa, please Contact us or call our offices to set an appointment to get started. You can also select another State Opportunity, or fill out our Contact Form to discuss potential strategies such as Investment or Partnership Opportunities.