CAROLINE COUNTY, Va. — A group of hemp business owners filed a federal lawsuit against Virginia, seeking to block a new law set to take effect Aug. 15 that they say would make the majority of hemp products currently sold across the commonwealth illegal.
Graham Redfern is one of seven business owners named in the lawsuit, filed in federal court in Roanoke.
"Unfortunately, about 90% of our products are going to be gone," Redfern said.
Watch: How Virginia's recreational marijuana plan could impact hemp farmers
The law stems from legislation that legalized recreational marijuana sales in Virginia starting next July. Hemp business owners say changes included in that legislation would devastate their industry.
"I'm not gonna be able to pay payroll, I won't be able to pay the rent. I have a business that I built that I won't be able to afford because I'm not able to sell any products," Redfern said.
At the center of the dispute is a 2mg cap per product on certain hemp compounds.
"Products that are currently compliant in Virginia, they're gonna be illegal because they have a 2mg cap per product, and so that means that my 30 day supply of CBD oil in one bottle, it is going to have to be repackaged and I'm gonna have to do 30 bottles," Redfern said. "The cost of production is going to outprice the actual consumer's willingness to buy, as well."
Supporters of the law argue that many of the products currently on shelves were only permitted through a legal loophole, and that the new standards bring hemp products closer in line with federal regulations.
Redfern said the lawsuit and its request for an injunction are aimed at creating space for hemp businesses to work with lawmakers on a path forward.
"We have to kind of protect ourselves and the consumer, and really that's what it boils down to," Redfern said. "We can establish a dual market that makes sense and that the government can agree with,because the farmers, the small businesses, and the constituents who vote are being harmed massively right now."
Redfern acknowledged that not every business in the industry operates responsibly, but said the law unfairly punishes those who do.
"Yes, there are bad actors, but there's bad actors in every industry and so taking out compliant businesses or trying to do it right is just disheartening," Redfern said.
In response to the lawsuit, the attorney general released a statement that reads in part:
"This new law creates clear standards for business participation in the marketplace, and sets up enforcement mechanisms to address the illicit market ... My office stands ready to defend this law that will keep Virginians safe."
Redfern said he and other business owners will hold a press conference in front of the state Capitol on Monday at 10 a.m.
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