Federal judge upholds Virginia's new hemp rules, rejecting industry challenge

Virginia's new hemp regulations, slated to begin on August 15, were affirmed by U.S. District Judge Robert Ballou after a coalition of manufacturers, sellers and processors sought an injunction. The rules eliminate a provision that previously permitted retail hemp items to contain more than 2 milligrams of THC per package if the product also held at least 25 times as much CBD. Plaintiffs claimed the changes amounted to an unconstitutional taking and denied them due process, asserting that as much as 85% of their products would be barred.

Ballou rejected these arguments, stating the law imposes sales restrictions without forcing owners to surrender or destroy existing inventory, and that the industry had 40 days to liquidate compliant stock after a July 6 notice. He emphasized that the state's police power to protect public health is not subject to judicial overturning. The court also dismissed due-process concerns, noting the Constitution does not obligate the state to let each business contest regulations before enactment. Industry representatives, including NOVA Hemp, reported potential losses exceeding $300,000.