Latest State Alerts Bulletin | Cannabis Law Report

Virginia

Cannabis Budget Bill Hemp Implications (Oppose) 
In a significant development following Governor Abigail Spanberger’s May 19 veto of SB 542 / HB 642 that we recently reported, Virginia lawmakers passed budget legislation that includes cannabis and hemp-related provisions. The budget bill has been sent to the Governor.

While the legislation primarily establishes a regulated adult-use marijuana retail marketplace with sales beginning July 1, 2027, it contains provisions directly impacting the hemp industry.

Most notably, the bill eliminates Virginia’s current CBD-to-THC ratio pathway and redefines lawful hemp products as those containing no more than 2 mg of THC per package. As written, this change would effectively prohibit approximately 95% of hemp products currently sold in Virginia, including many non-intoxicating CBD products, and create an abrupt regulatory cliff for more than 1,500 hemp retailers and related businesses operating under the Commonwealth’s existing legal framework.

Reports indicate that the hemp definition changes currently have an August 15, 2026 effective date. That timing would force compliant hemp businesses into a state-level ban nearly three months before the scheduled federal hemp definition change on November 12, 2026, placing unnecessary burdens on Virginia businesses ahead of federal action. Virginia hemp products are already subject to important consumer protections, including lab testing, restrictions on synthetic cannabinoids, and child-resistant packaging.

The bill would also transfer oversight of hemp products from the Virginia Department of Agriculture and Consumer Services (VDACS) to the Virginia Cannabis Control Authority (VCCA)- the same body that will oversee the new adult-use cannabis market. This consolidation of regulatory authority could have significant implications for how hemp-derived cannabinoid products are regulated going forward.

Other key provisions of the broader cannabis deal include up to 350 retail marijuana stores statewide, a 6 percent excise tax increasing to 8 percent after two years, serving size caps of 10 mg THC per serving and 100 mg per package, and a $10 million licensing conversion fee for existing medical cannabis operators entering the adult-use market.

Virginia Residents: Take Action! Contact Governor Spanberger and urge her to delay the effective date of the hemp definition changes until at least November 12, 2026, when the federal hemp definition is scheduled to change.

*The Virginia session adjourned on March 14th, 2026 and reconvened on April 22, 2026.