Climbing Kites, Field Day Brewing seek to dismiss lawsuit against Iowa over new THC rules

Two Iowa makers of beverages infused with federally approved, hemp-derived THC are asking a judge to dismiss their lawsuit against the state of Iowa.

Climbing Kites THC sparkling water — a joint venture of Des Moines-based Lua Brewing and Solon's Big Grove Brewery — and North Liberty-based Field Day Brewing, maker of Day Dreamer THC seltzer, sued the state in June, contending a new Iowa law governing the sale and manufacture of consumable hemp products was unconstitutional.

A federal judge twice denied the beverage makers' requests for a temporary injunction to stop implementation of the law, which they contended was at odds with federal law, in particular when it came to how it defined the amount of hemp-derived tetrahydrocannabinol — or THC, the psychoactive ingredient in cannabis — the drinks could contain.

On Thursday, both companies asked the U.S. District Court for the Southern District of Iowa to dismiss the case and for the parties to be responsible for their own attorneys' fees.

A separate lawsuit by eight other companies, mostly stores that sell consumable hemp products like gummies, is still proceeding, though U.S. District Judge Stephanie Rose in late July also rejected a request for a temporary injunction from those companies.

Products back on the market after uncertainty over serving size

The Iowa Legislature approved the law, known as the Hemp Amendments, during this year's session, and it took effect July 1. It allows up to 10 milligrams of THC in a container as long as no serving size contains more than 4 milligrams of THC. But it left the decision about what constituted a serving size up to the Iowa Department of Health and Human Services, which failed to finalize the details before the law went into effect.

Climbing Kites, which sold its product in 12-ounce cans with 2.5, 5 and 10 milligrams of THC, and Field Day, which sold its Day Dreamer seltzer with up to 15 milligrams of THC per serving, both suspended sales amid the uncertainty. But Climbing Kites in late July began selling what it said were state-approved versions of its drink with 2.5 or 4 milligrams of THC per 12-ounce serving.

The Quad City Times recently reported that Field Day likewise was selling a modified version of Day Dreamer.

Climbing Kites is made under contract in Minnesota, Texas and Ohio. Co-owner Dave Moore told the Des Moines Register the company had hoped to bring to Iowa the manufacturing of the drink, which a retail monitoring company says Climbing Kites is the fastest-growing hemp THC beverage in the country. But Moore said that the plan was on hold because of the regulatory climate in Iowa, which has some of the nation's strictest rules on cannabis.

Philip Joens covers retail and real estate for the Des Moines Register. He can be reached at 515-284-8184, pjoens@registermedia.com or on Twitter @Philip_Joens.

This article originally appeared on Des Moines Register: Climbing Kites, Field Day Brewing seek to dismiss lawsuit against Iowa over new THC rules