Gazette Daily News Podcast: Monday, Apr. 15, 2024

– Iowa retailers warn of unintended consequences of capping THC content in hemp products

– Settlement brings transparency to real estate market but not necessarily lower prices

– Clarkonomics: Caitlin Clark’s rising star brings economic jolt to Iowa

Episode Transcript

Welcome to The Gazette’s Daily News Podcast for Monday, April 15, 2024. This podcast provides the latest headlines from the Gazette newsroom. I’m Becky Lutgen Gardner.

First, Iowa consumable hemp retailers are warning that legislation recently passed by the Legislature that's still waiting for Gov. Kim Reynolds' signature will have quote devastating consequences for the consumable hemp market in Iowa.

Lawmakers earlier this month passed House File 2605 that would restrict the potency of hemp-derived products sold in Iowa and place several regulations on retailers.

Under the bill, products would be limited to less than 4 milligrams of THC per serving and 10 milligrams per package. THC is the main active chemical in cannabis that causes a “high.”

Consumable hemp products were legalized in the 2018 federal farm bill and later in the Iowa Hemp Act. The laws allow for the sale of hemp products that contain less than 0.3 percent THC by weight.

The laws were intended to address sales of non-intoxicating compounds like cannabidiol (CBD). Still, they also legalized the sale of hemp-derived THC products that have a similar psychoactive effect to traditional marijuana.

Products containing THC sold at shops and bars generally range from 2.5 milligrams to 10 milligrams per serving, but some contain higher concentrations.

The legislation would affect not only intoxicating products but also those sold for therapeutic purposes.

Rick Wagaman owns HW CBD in West Des Moines. The business sells various hemp products, including gummies, drinks, capsules, soft gels, oils, balms, lotions and creams.

Wagaman asserts by lumping hemp-derived THC products with psychoactive effects under the same definition as non-intoxicating consumable hemp products; the bill effectively restricts access to safe and legal products.

Wagaman says quote, “It will make it next to impossible to provide our thousands of customers with the non-intoxicating, legal consumable hemp products they have come to depend on for years now.” He says, “Yes, we agree there are loopholes that need to be fixed, but the language in this bill throws the baby out with the bathwater.”

If signed into law, the regulations would take effect July 1. Reynolds’ office did not respond to a request for comment.

Next, A recent $418 million national settlement with a major real estate group is poised to reshape how realtors engage with home sellers and buyers. This settlement, reached in class-action lawsuits against the National Association of Realtors, addresses allegations of excessive fees and steering buyers towards higher-priced properties for larger commissions.

The agreement, which is subject to court approval, mandates significant changes. It eliminates commission rules and upfront agreements on services and fees between realtors and their clients. This shift could usher in a rise in brokers offering discounted commission rates, altering the traditional 5 or 6-percent standard fee.

With the national median home price at $485,000, the potential savings are substantial. Buyers will now determine compensation for listing properties on Multiple Listing Services, granting them more control over costs.

Gavin Blair, CEO of the Iowa Association of Realtors, acknowledges some members' discomfort in disclosing fees upfront. Yet, he believes enhanced communication and transparency will facilitate the transition. This sentiment is echoed by William Boal, an economics professor at Drake University’s Zimpleman College of Business, who anticipates a market shift towards full-service and discount brokers, offering homeowners more choices.

Buyers are expected to capitalize on this shift, leveraging increased competition to negotiate lower commissions. Boal predicts a downward pressure on average commissions due to this heightened competition.

This landmark settlement promises a seismic shift in the real estate landscape, empowering buyers, and reshaping industry practices. As Blair notes, uncomfortable conversations about fees may arise, but ultimately, increased transparency and competition are expected to benefit consumers.

Finally, Caitlin Clark's performance during the NCAA's Final Four wasn't just about stats on the court; it also had significant economic implications for Iowa City. Josh Schamberger, president of Think Iowa City, noted a substantial increase in visitation, hotel bookings, and dining, attributing it to Clark's prominence. The Common Sense Institute attempted to quantify this, estimating an economic impact ranging from $14.4 to $52.3 million.

Out-of-town attendees spending an average of $227.50 (lodging needed) or $133.75 (no lodging needed) per Iowa women's basketball game significantly contributed to this impact. Clark's rising popularity led to a rise in out-of-state attendees at Carver-Hawkeye Arena, from 10.3% to 14.8%, even as overall attendance doubled.

Local businesses, like Brian Flynn's restaurants and Matt Swift's Big Grove Brewery, saw a surge in patronage during game nights, transforming slow Mondays into bustling evenings. Swift noted the significant shift from sparse attendance a few years ago to packed houses today, reflecting the newfound enthusiasm for Iowa women's basketball.

Despite Clark's imminent departure for the WNBA, Swift and others are optimistic about the enduring energy and economic benefits for Iowa women's basketball. Swift believes that while the buzz may subside, the teams' sustained success will keep the excitement alive.

As Swift aptly puts it, "I think the buzz is going to continue. It might not be fever pitch, but I think these teams are going to be good for a long time."

Monday’s weather will be sunny, with a high near 78. Monday night showers and possibly a thunderstorm, mainly after 2 am. Low around 53.

Tuesday will have showers and a possible thunderstorm. High near 71.

You can find a link to each of the stories featured in today’s episode in the episode’s description or at the gazette dot com.

Thank you for listening to The Gazette’s Daily News Podcast. I’m Becky Lutgen Gardner.