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New Virginia hemp law faces legal challenges, retailers say business threatened
Virginia business owners are taking legal action to block a new state hemp law set to take effect on Aug. 15. They argue restrictions on THC in hemp products will make a large chunk of their inventory unsellable.
MCLEAN, Va. - A major change to Virginia’s hemp laws is set to take effect in a matter of days, but a group of business owners is fighting in federal court to stop it.
New THC restrictions
What we know:
Beginning Aug. 15, Virginia will eliminate an existing exemption for certain hemp products and generally limit them to no more than 2 milligrams of total THC per package.
Business owners who spoke with FOX 5 say the change will make much of the inventory they can legally sell today noncompliant almost overnight.
What they're saying:
Barbara Biddle, owner of District Hemp Botanicals, described herself as "emotional, devastated, scared, angry."
"They’re destroying our livelihoods overnight, and they’re giving us 45 days to adjust," Biddle said.
Biddle said she has taken out loans and signed multi-year leases while operating under Virginia’s existing regulatory structure and now fears she could be forced into bankruptcy.
Virginia leaders reach deal to establish regulated cannabis retail market
Virginia leaders announced a deal Tuesday to create a legal retail cannabis market, a shift after the governor rejected similar legislation last month.
She also pushed back against characterizations of the hemp industry as unregulated, pointing to existing requirements surrounding testing, labeling, age restrictions and packaging.
"For them to say that this is an unregulated industry or a loophole after putting out a list of products we were approved to sell, it feels deceitful," Biddle said.
Business owners say most of their products could be affected
Travis Lane, with NOVA Hemp and Agriculture, estimates roughly 85% of his company’s current inventory will no longer comply with the new limit.
"That includes drinks, gummies, it includes our baked goods as well," Lane said. "It’s a complete wipeout of what our sales and inventory has been for the past few years."
Lane recently invested thousands of dollars in a beverage manufacturing operation, including stainless steel tanks, processing equipment and staffing. He says the regulatory change now threatens the business model behind that investment.
The Aug. 15 change eliminates what is known as Virginia’s 25-to-1 exemption, which allowed certain hemp products containing more than 2 milligrams of THC if they contained significantly more CBD relative to THC.
Once that exemption disappears, hemp products produced or sold under Virginia’s hemp framework will generally be limited to 2 milligrams of total THC per package.
Lawmaker says change is about public safety
The other side:
State Sen. Lashrecse Aird defended the change in a statement to FOX 5, saying it does not prohibit farmers from growing industrial hemp or businesses from producing hemp products that comply with Virginia’s THC limit.
Aird argues the 25-to-1 provision created a loophole that allowed intoxicating products to be marketed and sold outside the regulatory framework governing cannabis.
In her full statement, Aird said:
"We understand that changes in the marketplace create uncertainty for existing businesses, and I sympathize with farmers and producers who are trying to plan for the future. However, it’s important to be clear about what this provision does and does not do. Closing the 25-to-1 loophole does not prevent farmers from continuing to grow industrial hemp or produce hemp products that comply with Virginia’s 2 milligram THC limit. What it does is address a loophole that has allowed intoxicating products to be marketed and sold as cannabis outside of a robust regulatory framework that protects consumers.
"This is fundamentally a public safety issue. If a product is being marketed and consumed as cannabis, it should be subject to the same safeguards, testing requirements, and age restrictions as cannabis. While I understand concerns about changing market conditions, lawmakers have a responsibility to put consumer safety first."
Doctors point to risks of THC exposure in children
Why you should care:
Public health concerns surrounding THC products have included accidental ingestion by children, particularly when products come in gummies, drinks or other forms that can resemble ordinary food or candy.
Dr. Miriam Fischer, an emergency room physician with MedStar, told FOX 5 that even a relatively small amount of a high-THC product can have a significant effect on a child.
"Once they’re home with these products that have a very high dose of THC, just a little bit can really impact a child," Fischer said.
She said accidental exposures can happen when children get access to products brought into the home, including products packaged in containers that may look appealing to them.
"This is something that we’re seeing, and that we’re seeing enough that it makes sense for us to think about as a society how to keep our children safe and ourselves safe, because adults are at risk also," Fischer said.
Hemp business owners, however, argue that Virginia already requires them to follow numerous safety measures, including restrictions on sales to minors, product testing, labeling requirements and child-resistant packaging for certain products. They argue those safeguards could be strengthened or enforced without effectively removing much of their existing inventory from the market.
Seven businesses take Virginia to federal court
What's next:
Seven Virginia hemp businesses have now filed a federal lawsuit challenging the upcoming restrictions.
The businesses argue they were given too little time to restructure their operations after making substantial investments under Virginia’s existing rules. They are asking a federal judge to block the new restrictions from taking effect while their legal challenge moves forward.
For business owners like Biddle and Lane, the fight is now a race against the Aug. 15 deadline.
The businesses involved in the challenge are also planning a news conference at the Virginia State Capitol in Richmond on Monday, where they are expected to call on state leaders to address their concerns.