Rob Sand’s Plan to Legalize, Tax, and Regulate Adult-use Cannabis

Iowa is facing a budget crisis to the tune of $1.4 billion. A common-sense way to help address that would be to fully legalize adult-use cannabis in Iowa.

Right now, Iowans are driving over the border to purchase regulated, taxed cannabis in our neighboring states. Iowa taxpayers are spending their money in Illinois, Missouri, and Minnesota when that money could be kept right here at home to help boost Iowa’s economy and increase state revenue.

Establishing an adult-use cannabis industry in Iowa would also create thousands of full-time and part-time jobs as well as entrepreneurship and investment opportunities for Iowans and Iowa small businesses, and also support Iowa farmers.

Here’s what Rob would do:

  • Legalize and regulate adult-use cannabis like alcohol: Right now, alcohol is regulated under the Alcoholic Beverages Division. As governor, Rob would add cannabis experts to the already-existing division to be charged with regulating the cultivation, manufacturing, distribution, and sale of cannabis. These experts would implement age restrictions, quality and safety standards, and taxation similar to how alcohol is regulated in the state.

  • Support Iowa farmers: Legalizing cannabis in Iowa would open up an additional revenue stream for Iowa farmers and the agriculture sector – the backbone of Iowa’s economy. As governor, Rob would prioritize the issue of grow licenses for small and mid-size family farms to help support them and manage the amount of initial licenses being issued across the state.

  • Reverse the prohibition of sales of consumable hemp products: In 2024, Gov. Reynolds signed HF 2605 into law, despite the harm and confusion it caused small businesses across the state. We should reverse that law to allow sales of hemp and THC beverage products while ensuring oversight and regulation over those products by hemp producers selling their products through cannabis retailers.

  • Establish clear provisions for cannabis products, including:

    • Establishing a clear licensing process: Task the division with licensing cannabis growers, manufacturers, retailers, and safety testing labs who will be the only businesses in Iowa permitted to produce, transport, and sell regulated cannabis products. Ensure that only safe, quality, and state-compliant products are being sold.

    • Limiting total THC content: Product limitations will include a maximum of 10mg of THC per serving and a maximum of 100mg of THC per package, similar to limitations in neighboring states.

    • Restricting purchases by age: Require retailers to restrict purchase of cannabis products to adults 21 and over, like with alcohol sales. Selling cannabis products to minors is illegal.

    • Regulating cannabis product packaging: Packaging must meet child-resistant packaging standards and cannot have any images that may appeal to children such as candy, baked goods, cartoons, or animals. Packaging must mention potential risks associated with cannabis use, a listing of noncannabis ingredients, and an itemization of all cannabinoid and terpene ingredients specified for the product. Products should not be similar to candy, like gummies.

    • Limiting advertisements: Any cannabis business advertisements cannot be targeted toward minors and cannot display any use of cannabis.

    • No public consumption: just as you can’t drink in public, you can’t smoke pot in public. Iowans shouldn’t have to smell it everywhere.

  • Create jobs: Legalizing adult-use cannabis would create new opportunities for small business owners in Iowa. Using data from other states with legal adult-use cannabis, it’s estimated to create around 7,000 jobs.