New Virginia rules banning the sale of hemp products containing more than 2 milligrams of THC took effect on Saturday, August 15. A federal judge declined a request to delay these regulations last week. The new standards require all hemp products sold in the state to contain no more than 0.3% THC or 2 milligrams of THC per package.
These rules were established under recent legislation that also enacts adult-use cannabis sales in the state. The law removed a previous legal definition that allowed products to contain higher THC levels if they maintained a 25:1 CBD to THC formulation. Consequently, many hemp products previously available in Virginia can no longer be sold by hemp retailers.
Under the new state law, these items are now effectively considered adult-use and medical cannabis products. Adult-use cannabis retailers licensed under the new law are expected to open in July 2027. This shift marks a significant change for the local hemp market and its operators.
U.S. District Judge Robert Ballou issued an opinion on Friday declining to postpone the change in state hemp regulations. Seven Virginia companies argued that the new rule would remove their ability to sell many products and could wipe out their businesses entirely. The hearing took place in federal court in Roanoke on Wednesday.
Attorney Chap Petersen, a former state senator, represented the hemp business owners during the three-and-a-half-hour hearing. He argued that the change would cause significant harm and was happening too quickly for businesses to adjust. Petersen stated that the rule would nullify 80 to 90% of their revenue and products during the hearing.
Judge Ballou stated that the businesses had not met the standards required for him to grant a delay. He noted that it is not the role of the court to second-guess the Virginia legislature in setting an effective date for the new law.
Chap Petersen expressed disappointment after the ruling but noted that his clients could appeal the judge’s decision. The plaintiffs had hoped to postpone the rule until the Virginia General Assembly could reconsider it.
Petersen argued that the law came out of a rushed budget process that lacked public hearings and other standard processes. He claimed that the sudden change in hemp definitions would be detrimental to their businesses. The defense countered that the state has the right to enforce its own regulations regarding public safety.
Deputy Solicitor General Ethan Fallon argued that the businesses were operating before the 25-to-1 rule was enacted in 2023. He stated that the emergency aspect of changing their business model is not as short as the plaintiffs suggest. The state also pointed to upcoming federal changes that further restrict total THC content to 0.4 milligrams per container.
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