I'm not sure if it's a legal thing or not. I can't find any statewide laws for Virginia regarding them except that the inspection book says that if they are repaired they may be welded to the exhaust pipe. I bought my car from Carmax, and took it to the dealer to have it looked over. The dealer told me about my exhaust set up, and I asked if it was going to be a problem with the law or passing inspection, and they said, "No." They passed it this past winter, so it seems like they weren't lying (about passing inspection anyway).
I have a very loud exhaust, and have never been pulled over for it. In fact, I think recently Virginia banned cops from pulling people over for exhaust, tint, lights out, etc.
So maybe the law is on my side? Probably not, though.
Either way, I'm looking to get it tuned. I guess sooner rather than later, from the sounds of it.