The U.S. Fourth Circuit Court of Appeals has ruled that Virginia’s restrictions on intoxicating hemp products do not violate federal law, reinforcing the state’s ability to regulate hemp and THC levels within its borders.
Court Ruling & Legal Context
On January 7, the Fourth Circuit Court of Appeals determined that the 2018 Farm Bill does not override Virginia’s Senate Bill 903, which took effect on July 1, 2023. The Virginia law imposes strict THC limits on hemp products, capping total THC content—including THCA and other variants—at 0.3% and limiting retail products to no more than 2 milligrams of THC per package.
This decision impacts businesses selling hemp-derived products and individuals relying on them for medicinal use, reaffirming Virginia’s authority to regulate intoxicating cannabinoids beyond the federal framework.
Key Legal Takeaways
The court emphasized that the 2018 Farm Bill primarily governs hemp production at the federal level and does not explicitly prevent states from imposing their own regulations on hemp sales and consumption. Judge A. Marvin Quattlebaum Jr. noted that under constitutional federalism principles, states retain the right to regulate health and safety matters affecting their citizens.
The ruling also addressed concerns under the Dormant Commerce Clause, which prevents states from creating barriers to interstate trade. The court found that Virginia’s restrictions apply uniformly to all hemp products, regardless of origin, and do not unfairly benefit in-state businesses over out-of-state competitors.
Business & Consumer Impact
Hemp companies operating in Virginia have already felt the effects of S.B. 903. North Virginia Hemp and Agriculture LLC (NOVA Hemp), Franny’s Farmacy, and Virginia resident Rose Lane filed a lawsuit against the state, arguing that the law severely restricted their ability to operate and purchase hemp products. Franny’s Farmacy, a North Carolina-based company, claimed that over 100 of its products were rendered illegal under the new law, causing financial losses and market restrictions.
Additionally, hemp retailers must now comply with a $1,000 annual registration fee, new labeling and testing requirements, and penalties reaching up to $10,000 per day for violations. In just 12 months, Virginia state officials conducted 424 inspections, citing 346 businesses for 17,715 violations, with preliminary civil penalties exceeding $10.8 million.
Consumer Concerns & Health Implications
Virginia residents have also voiced concerns about accessibility to hemp-based medicinal products. Rose Lane, one of the plaintiffs in the lawsuit, stated that she relied on hemp products for arthritis relief but could no longer legally obtain them due to the new restrictions. Her fears highlight a broader debate about balancing consumer safety with access to alternative medicine.
State’s Justification for the Law
Virginia lawmakers argue that the restrictions were necessary to address rising concerns over unregulated hemp products containing Delta-8 THC and other intoxicating compounds. Reports from the Centers for Disease Control (CDC) and the Food and Drug Administration (FDA) have linked Delta-8 THC to increased adverse effects, particularly among children. Based on similar reports from within the state, Virginia officials deemed tighter regulations essential for public safety.
Conclusion
The Fourth Circuit’s decision underscores that states maintain the right to regulate hemp and THC-related products independently from federal laws. While the 2018 Farm Bill removed many restrictions on hemp production, it left the door open for individual states to enforce their own regulatory frameworks.
As the hemp industry continues to evolve, businesses and consumers in Virginia will need to navigate these stricter regulations while awaiting potential future legislative changes.
Source: Cannabis Business Times
