A federal judge in Roanoke declined Friday to block Virginia's new regulation limiting THC content in hemp products, leaving seven hemp business owners scrambling to comply with restrictions they say will devastate their operations.
U.S. District Judge Michael Urbanski acknowledged the legislation was "rushed" but said the businesses failed to demonstrate sufficient legal grounds for an injunction against the state's 2-milligram THC per product cap, which took effect earlier this year.
"The judge himself acknowledged that this was rushed legislation, leading to complications and unintended consequences," said Samantha Willis, reporting for the Virginia Mercury.
The regulation removes a previous exception that allowed hemp-derived products to contain higher THC concentrations, provided the total THC remained under 0.3% by weight. Now, any product exceeding 2 milligrams of THC—regardless of overall concentration—is prohibited for retail sale in Virginia.
Hundreds of products currently on store shelves across Virginia exceed that threshold, including many popular edibles, tinctures, and beverages marketed for wellness purposes.
Industry Response
Hemp retailers and manufacturers immediately called on state lawmakers to convene a special session to address what they describe as hasty rulemaking that didn't account for market realities.
The seven plaintiffs in the case operate retail locations and manufacturing facilities across Virginia. They argued the new limits would force them to destroy existing inventory worth hundreds of thousands of dollars and eliminate product lines that represent significant portions of their revenue.
Virginia's hemp industry has grown rapidly since federal legalization in 2018, with the state becoming a hub for both cultivation and retail operations. Industry advocates estimate the sector supports thousands of jobs statewide.
But the regulatory environment has grown increasingly uncertain. Virginia lawmakers passed the restrictions during the 2024 legislative session amid concerns about intoxicating hemp products being sold without the same oversight as adult-use cannabis, which remains illegal in the state despite earlier legislative efforts toward legalization.
The Legal Arguments
The hemp businesses sought a preliminary injunction, arguing the regulation violates federal law and the Commerce Clause. Their attorneys contended that Virginia's approach conflicts with the 2018 Farm Bill, which legalized hemp and hemp-derived products containing less than 0.3% THC on a dry weight basis.
Judge Urbanski's decision doesn't address the merits of those constitutional claims. Instead, he found the plaintiffs didn't meet the high bar required for a preliminary injunction, which demands showing both a likelihood of success on the merits and irreparable harm.
The ruling allows the case to proceed, but businesses must comply with the 2-milligram limit while litigation continues—a reality that could prove financially catastrophic for some operators.
What's Next
Hemp industry groups are now focusing their efforts on the Virginia General Assembly. They're requesting lawmakers convene a special session to reconsider the regulation or at least provide a longer compliance timeline and clearer guidance on implementation.
Several delegates and state senators have indicated openness to revisiting the issue, though no special session has been scheduled. The General Assembly's regular session doesn't reconvene until January 2025.
Meanwhile, Virginia retailers face an immediate choice: remove non-compliant products from shelves or risk enforcement action from state regulators. The Virginia Department of Agriculture and Consumer Services, which oversees hemp regulation, hasn't announced specific enforcement plans or timelines.
The situation mirrors regulatory conflicts playing out in multiple states as lawmakers attempt to address the proliferation of intoxicating hemp products while traditional cannabis legalization efforts stall or fail. Similar restrictions have been proposed or enacted in Texas, North Carolina, and Minnesota, creating a patchwork of state-level regulations that industry participants say makes compliance nearly impossible.
This article is based on original reporting by www.marijuanamoment.net.
