The 10th Circuit Court of Appeals has upheld Wyoming’s 2024 law banning intoxicating hemp products such as delta-8 THC, ruling that the state acted within its authority despite arguments that the statute conflicts with the federal 2018 Farm Bill.

The case was filed by Green Room LLC of Casper along with 10 other hemp retailers, manufacturers and wholesalers. They claimed the law should be preempted by federal standards, violated the dormant Commerce Clause, amounted to an unconstitutional taking of property and was so vague that it threatened the entire hemp industry. The court rejected each claim, affirming a district court decision that dismissed the lawsuit earlier this year.

Senate Bill 24, approved last year, amended Wyoming’s hemp law to remove synthetic substances from the definition of hemp, apply the 0.3% THC threshold to all forms of the compound instead of just delta-9 THC, and add delta-8 THC to the state’s list of Schedule I controlled substances. That change makes it illegal to make or sell hemp products in Wyoming containing more than 0.3% THC in any form, even though those same products may be lawful under federal law. Writing for the panel, Judge Harris Hartz said the Farm Bill regulates hemp producers but does not confer an individual right to sell hemp products as defined by federal statute.

The ruling mirrors decisions by the 4th and 8th circuits earlier this year that upheld restrictions in Virginia and Arkansas. In those cases, courts found that states can regulate hemp products more stringently than federal law without violating the Farm Bill. The Wyoming decision now places three federal appeals courts in agreement that states can set their own definitions and restrictions for hemp within their borders.

The Wyoming plaintiffs argued the law interferes with interstate commerce, but the court ruled it applies equally to in-state and out-of-state products and that the companies did not show they were moving goods across state lines. They also claimed the law amounted to a regulatory taking because they had invested in businesses under the federal hemp definition. Green Room has already announced it will close at the end of the year, citing the new restrictions. The court said such closures do not entitle businesses to compensation, ruling that companies should have been aware lawmakers could change regulations.

The challenge also claimed the statute was vague, pointing to terms like “psychoactive” and “synthetic substance” that are not defined. The court dismissed that argument as well, noting that Wyoming officials have confirmed CBD is not banned under the law and ruling that a reasonable interpretation would not put the entire hemp industry at risk.

The decision cements Wyoming’s prohibition on delta-8 and similar products.