Hemp companies sue to block Virginia THC cap implementation 

Seven Virginia hemp businesses have filed a lawsuit in federal court seeking to block the enforcement of a forthcoming state law capping THC content in hemp products. 

The 66-page complaint, filed July 31 in the U.S. District Court for the Western District of Virginia, aims to declare the new THC cap unconstitutional. The complaint alleges Fifth and 14th Amendment violations and asks a judge to stop the state from enforcing the cap on THC sales. 

A new law, effective Aug. 15, would mandate that hemp products contain no more than 2 milligrams of THC, or tetrahydrocannabinol, the psychoactive component in the cannabis plant that is responsible for the high a user may feel.   

Since 2023, hemp products have been restricted to no more than 0.3% total THC in Virginia. Under the 2023 law, hemp products can exceed 2 milligrams of THC if the ratio of cannabidiol — a non-psychoactive compound found in cannabis plants — to THC is 25:1 or more.  

As legislators approved the state budget in House Bill 30 earlier this summer, Virginia’s hemp statute was also altered, eliminating the 25:1 CBD-to-THC ratio exception and instituting a hard cap of 2 milligrams per package of THC for hemp products.  

While the budget resulted in plans for a commercial cannabis market in Virginia launching July 1, 2027, the bill moved responsibilities for regulating hemp products to the Virginia Cannabis Control Authority and instituted the new hemp regulations. 

“[T]he new Hemp Prohibition creates an arbitrary divide between identical chemical compounds based solely on source or retail channel, rather than public safety,” the complaint states. “If a 3mg THC beverage is banned on a hemp retailer’s shelf for ‘public safety,’ but a 3mg THC beverage is completely legal and deemed safe if purchased at a state-licensed marijuana dispensary, the distinction is not based on the public safety, but on economic protectionism.” 

The complaint also takes aim at the “per package” language in the statute, noting that “a concentrated, high-potency 1-ounce dropper bottle containing 1.9 milligrams of THC is lawful under Virginia law, despite possessing a high concentration of active cannabinoids. 

“Conversely, a heavily diluted 12-ounce beverage or a large-volume therapeutic topical containing 2.1 milligrams of total THC is completely criminalized — even though the THC is so heavily diluted by volume that it would not cause intoxication or impairment,” the complaint continues. 

The plaintiff hemp businesses allege that if the restriction is enforced, they stand to lose much of their monthly revenue as a direct result while being required to maintain fixed costs stemming from operating expenses. The plaintiffs claim this could lead to loss of business value, invested capital, revenue and anticipated future profits. 

The businesses further allege their owners and employees may face criminal charges under the statute for possession of banned products that were previously legal. 

In the complaint, the plaintiffs claim they are already experiencing hardship from the new law. District Hemp Botanicals in Manassas stated it has “terminated its staff” due to financial strain from the prohibition creating an inability to make payroll. 

Cypress Hemp, a hemp distributor in Powhatan County, stated that it would have to destroy more than half of its inventory value if the new law becomes effective. The distributor said it had already laid off two employees, with more layoffs likely after Aug. 15. 

The remaining plaintiffs include Northern Virginia Hemp & Agriculture, Redfern Hemp, Pure Shenandoah, Kultivate Wellness and Simply Hemp. 

“In sum, the elimination of the ‘25:1′ exception has devastated the legal hemp operation, even as the General Assembly has legalized various forms of marijuana, which had not been previously legal and indeed have no history of legality in Virginia,” the plaintiffs said in their complaint. 

The hemp businesses are represented by former state Sen. J. Chapman Petersen of Chap Petersen & Associates in Fairfax County. 

The complaint lists Gov. Abigail Spanberger, Attorney General Jay Jones, Virginia Department of Agriculture and Consumer Services Commissioner Charles Green, the Virginia Cannabis Control Authority and multiple prosecutors as defendants.