Virginia’s New THC Limits on Hemp Products Face Federal Lawsuit Amid Concerns of Industry Setback

LOS ANGELES– In a recent development that underscores the ongoing debates surrounding the regulation of hemp products, a federal lawsuit has been filed against the state of Virginia, challenging the newly instituted THC limits on hemp products. The plaintiffs, comprising two hemp enterprises and a consumer, assert that the restrictions, which commenced on July 1, inflict financial distress on hemp businesses and obstruct interstate commerce.

The contentious law, ratified in February, delineates the maximum permissible THC content in hemp products as 0.3% concentration and 2 milligrams per package, imposing fines on businesses that contravene these guidelines.

The legal action has been initiated by Northern Virginia Hemp and Agriculture, a hemp retailer, Franny’s Operations, a North Carolina-based hemp producer and distributor, and Rose Lane, a hemp consumer. The plaintiffs maintain that the law, unless impeded, could inflict “millions of dollars of irreparable harm” and exacerbate potential health issues for thousands of Virginians by making the banned products unavailable in the state. They argue that the law contradicts the supremacy clause of the U.S. Constitution.

Central to the lawsuit is the contention that Virginia’s legal definition of hemp is at odds with the federal definition, which identifies legal hemp as cannabis containing less than 0.3% of delta-9 THC. Contrarily, Virginia’s law encompasses not only delta-9 THC but also delta-8 THC and other natural and synthetic isomers within the 0.3% total THC content threshold, as per the report.

Jason Amatucci, the president of the Virginia Hemp Coalition, criticized the law as “irresponsible”, accusing it of wielding “a straight sword” to undermine the industry. The coalition played a significant role in identifying plaintiffs and fundraising for the lawsuit.

The repercussions of the crackdown could be severe, with a study conducted by Whitney Economics in March – before the bill was enacted – projecting a potential loss of over 4,000 jobs in the hemp industry.

This lawsuit emerges in the backdrop of a shifting landscape for cannabis regulation in Virginia. In 2021, the state’s lawmakers approved a bill to legalize cannabis for adult use. However, the subsequent election of Republican Glenn Youngkin as governor in 2022 has stalled the progress, with his administration showing no inclination to facilitate the initiation of the program.

As the lawsuit progresses, it promises to be a significant chapter in the evolving narrative of hemp and cannabis regulation in Virginia, potentially setting a precedent for future legislative actions in the state and beyond.