Federal court backs Virginia hemp laws, rejects industry challenge

A federal appeals court on Tuesday affirmed Virginia’s authority to strictly regulate hemp products, rejecting claims that federal law prevents states from imposing tougher standards on THC content.

The unanimous ruling from the Fourth Circuit Court of Appeals upheld Virginia’s Senate Bill 903, which established a “total THC” standard that extends beyond federal limits on delta-9 THC to include other hemp-derived compounds.

“While the Supremacy Clause limits what a state can do, the plaintiffs have not shown that federal law preempts Virginia’s total THC standard,” Circuit Judge A. Marvin Quattlebaum Jr. wrote in the opinion first obtained by Law360.

The challenge was brought by Northern Virginia Hemp and Agriculture LLC, which claimed the law would ban approximately 95% of products it previously manufactured and sold. The company had evolved from wholesale hemp growing into retail products after market prices dropped in 2019.

Travis Lane, who founded Northern Virginia Hemp in 2019 after leaving construction work, previously told Green Market Report that delta-8 products became one of his company’s biggest revenue generators before state restrictions took effect.

The court rejected arguments that Virginia’s regulations violate interstate commerce rules, finding no evidence the state was trying to protect local firms or hinder out-of-state competitors.

Virginia lawmakers passed SB 903 in 2023 amid growing concerns about unregulated hemp products. Federal health officials warned that products labeled only with delta-9 THC content could understate their total psychoactive potential, particularly when combined with other compounds.

The appeals court noted that Virginia’s law still protects federally licensed hemp producers from criminal liability and allows interstate transportation of federally compliant products through the state.

The 2018 federal Farm Bill legalized hemp nationwide as long as it contains no more than 0.3% delta-9 THC, but it also left room for state-level regulation – a provision the appeals court found critical in upholding Virginia’s stricter standard.

Attorneys for the hemp companies did not immediately respond to requests for comment on potential next steps.

The American Trade Association for Cannabis & Hemp, which previously filed an amicus brief supporting Virginia’s position, praised the decision.

“Now is the time for states to continue building a common-sense, regulated marketplace centered around the legalization of natural THC products,” ATACH president Michael Bronstein said in a statement, Law360 reported.