On June 15, 2023 VDACS issued a memo to all registered hemp cultivators, processors, and handlers outlining new laws going into effect July 1, 2023.

The new laws establish product safety, composition, and registration requirements that will significantly change which products can be on the shelves. However, Virginia’s legitimate hemp businesses will be able to operate on a more level playing field as regulators crack down on black market dealers and out-of-state competitors.

As of July 1, 2023:

• Hemp products can contain no more than 0.3% THC concentration and either i) no less than 25 units of CBD per 1 unit of THC per package; or ii) 2mg of total THC per package.
o Total THC includes all derivatives of THC, including Delta-8, Delta-9, Delta-10, etc.
o Retailers cannot sell or offer for sale any substance intended for human consumption, orally or by inhalation, that contains a synthetic derivative of THC.

• Any person who intends to manufacture, sell, or offer for sale a substance intended to be consumed orally that contains an industrial hemp-derived cannabinoid must submit an Edible Hemp Products Disclosure Form.
o This is addition to current law: Anyone manufacturing a product intended for human consumption that contains industrial hemp extract must have an Industrial Hemp Processor Registration and obtain a Food Permit from VDACS.

• Products containing THC must be:
o Contained in child-resistant packaging;
o Labelled with all ingredients, the serving size, the total percentage and milligrams of THC per serving, and, if it contains THC, that the product cannot be sold to anyone under 21 years old;
o Accompanied by a certificate of analysis from a certified laboratory stating the total THC concentration of the substance that is also available at the retail location;
o Not in the shape of human, animal, vehicle, or fruit; and
o Not bearing the trademark, trade name, or famous mark of another product.

• Retailers may purchase compliant products from out-of-state only if that state has a regulatory system for edible hemp products and if the out-of-state manufacturer is under inspection in their state.
o E.g., NC does not have a system for regulating edible hemp products, therefore VA retailers are barred from selling products containing THC from NC, even if they comply with the new laws. Conversely, VA retailers may sell compliant products from NY, but only if that manufacturer is under inspection in NY and submits their Edible Hemp Products Disclosure Form to VDACS.

• Topical products must be labeled stating that the product is not intended for human consumption.
o Topical products manufactured prior to July 1, 2023 may be sold only if the seller provides documentation of the date of manufacture.

• Hemp-Related Penalties Effective July 1, 2023
o Food & Drink Law Violations
o Denial, revocation, or suspension of Food Permit
o Class 1 misdemeanor
o Civil penalty of up to $10,000 each day a violation occurs
o Virginia Consumer Protection Act Violations
o Civil penalty of up to $2,500 per violation
o Civil penalty of up to $5,000 for a second or subsequent violation of the THC-related provisions in the Virginia Consumer Protection Act
o Denial, suspension, or revocation of Food Permit

VDACS requested funding in the 2023 budget to hire new inspectors and set up the new registration process for hemp retailers. However, it is unlikely that legislators will pass the amended budget, so some of the laws passed during the 2023 Session will not go into effect or be enforced until funding is secured and VDACS approves its regulations.

The following provisions will become effective at a future date:

• Anyone wishing to sell edible or smokable hemp products or industrial hemp-derived cannabinoids must obtain a Regulated Hemp Product Retail Facility Registration from VDACS for a $1,000/facility/year fee.

• Smokable products containing THC must be:
o Contained in child-resistant packaging;
o Labelled with all ingredients, the serving size, the total percentage and milligrams of THC per serving, and, if it contains THC, that the product cannot be sold to anyone under 21 years old;
o Accompanied by a certificate of analysis from a certified laboratory with total THC
concentration of the substance that is also posted at the retail location.

• Failure to follow these new requirements results in a fine of $10,000/day.