Logan Murray, a lobbyist with Green Leaf Cannabis Co., said the expansion of the program through licensing would address issues brought forward by the Iowa Medical Cannabidiol Board in previous years. The board recommended in its 2023 report that the state grant more licenses “in an effort to provide Iowans with greater geographical access to medical cannabis products.” While the Medical Cannabidiol Board recommended removing the cap on licenses and moving to a system of approving licenses based on analysis of market demands, Murray said raising the cap would also help address current needs in Iowa’s medical cannabis system. But lobbyists representing the companies currently licensed under the medical cannabidiol program said there is not enough space in Iowa’s medical CBD market for the expansion to be a benefit for the state. Senators had approved a measure in 2024 raising the limits on the number of dispensaries in the state that failed to advance in the Iowa House.

Bill would allow for five new medical CBD dispensaries to open in Iowa

Another issue lobbyists brought up was the expansion of the program without a change to the current limit under state law for businesses of having a maximum three medical cannabidiol dispensary licenses. Sen. Scott Webster, R-Bettendorf, said he plans to amend the legislation to remove this provision and allow businesses to open more dispensaries while still abiding by the total limit of 10 dispensaries throughout the state. Phil Jeneary with the Iowa HEMP Coalition was opposed to the bill, saying the Legislature should not move to expand the medical CBD program while limiting hemp products through measures like the 2024 hemp law. That legislation set limits of 4 milligrams of tetrahydrocannabinol (THC) per serving in consumable hemp products and a 10 mg maximum per container, in addition to adding new restrictions and penalties on the possession, sale and manufacturing of hemp products.

Lawmakers are considering another bill Thursday, House Study Bill 29, that would limit the consumption of drinks containing tetrahydrocannabinol (THC) in vehicles. Jeneary said 2oo Iowa businesses either closed or had to relinquish their hemp registration because of the law. He said these regulations came despite hemp products being federally legal under the 2018 Farm Bill while the medical cannabidiol program is still in conflict with federal law. Webster said medical cannabidiol programs have been “recognized across federal levels,” and that medical CBD products sold through the program should not be compared to consumable hemp products.

The measure advanced out of subcommittee with unanimous support, heading to the Senate Commerce Committee for further consideration.