With the 2024 November election fast approaching, those in the cannabis industry may be wondering how the results could affect their business. While the economy, healthcare, and immigration dominate the national election discussions, cannabis remains a significant issue in some states. That leaves many of us interested in cannabis with unanswered questions about what’s at stake for the cannabis industry this election cycle. In this article, we will examine state and federal cannabis laws, look at some of the cannabis initiatives on the 2024 ballot, and what the implications of the election results on cannabis testing and regulation may be. We will also explore how the election could affect the California cannabis market, as well as the impact on the economic growth and overall growth of the industry. By understanding the potential outcomes of the 2024 election, you can stay informed about the future of the cannabis industry.
State and Federal Cannabis Laws
The current laws regarding the possession, manufacturing, distribution, and dispensation of marijuana are complex and conflicting between state and federal laws. The 2024 election has the potential to make a significant impact on the industry overall. Take a look at a comparison between federal and state law.
– Over half of the states have legalized marijuana. Currently, 24 states along with Washington D.C. have legalized recreational use, and an additional 17 states have laws strictly for medical use.
– Currently, cannabis is considered a Schedule I controlled substance, making it illegal under federal law. This law is governed by the Controlled Substance Act and enforced by the FDA, DEA, and state laws.
– With the results of the 2024 election, there is the possibility that the federal law will change and move marijuana to Schedule III thereby recognizing its medical use and reducing other restrictions.
– Both Presidential candidates have shifted their views over time but have recently stated that they support the effort to lessen federal regulations. Harris is critical of the federal classification and advocates for federal legalization. Trump supports federal legislation that would give more power to the states and expand access to banking services for cannabis companies.
– The federal government’s action, or inaction, after the election, could potentially impact banking, taxation, and commerce between states.
– Banking: If cannabis is rescheduled or specific legislation is passed, the cannabis industry will be allowed to use traditional banking services. Without federal action, cannabis businesses will continue to struggle with banking issues.
– Taxation: By changing tax laws or reclassifying cannabis, the federal government could reduce the heavy taxes on cannabis businesses. Inaction would mean a business could not deduct expenses leading to higher taxes and financial strain.
– Interstate Commerce: Without federal action, cannabis will continue to be federally illegal not allowing commerce between states. With legalization, states could participate in interstate commerce providing businesses with the opportunity of expanding their market. This expansion will help to develop growth and competition within the industry.
2024 State Ballots: Cannabis Initiatives
Although California does not have any cannabis initiatives on the ballot this year, there will be a ripple effect on the industry. With a change in public opinion, and as other states legalize marijuana, states like California will benefit from the overall growth of the industry.
– As of September 2024, there were six different states with cannabis initiatives on their 2024 ballot.
– Three states have legalization of recreational use along with decriminalization initiatives, one state to legalize medical use, one state to expand medical use, and one state has the unionization of marijuana workers initiative on its ballot.
– The ripple effect of more states legalizing cannabis can influence federal policy change, standardized regulation and testing, economic benefits, criminal justice reform, and other issues.
– These benefits will affect all states currently in the cannabis industry, including California.
Potential Implications for Testing and Regulations
– As more states legalize marijuana use and with the potential for federal rescheduling, testing regulations could be impacted. As laws change we may see increased requirements for testing things like potency, terpenes, and contaminants.
– In states like California, which already has some of the strictest testing regulations, cannabis products already undergo rigorous analysis to ensure compliance. A cannabis testing lab in Los Angeles, for instance, plays a crucial role in upholding these standards, helping to ensure that all products are safe and accurately labeled. Other states will likely follow California’s lead.
– Federal rescheduling could streamline state and federal laws, leading to consistent standards nationwide, and improving public safety and health.
– Regulation of quality may change with federal law and state law changes. The FDA or DEA would most likely play a more significant part in the regulation and testing of cannabis. This may lead to stricter enforcement of compliance with standards.
Potential Impact on California’s Market
– Being a leader in the cannabis industry, California has an absence of cannabis initiatives on this year’s ballot. This is a reflection of its regulatory rigor and large market size.
– With rescheduling on the federal level and many more states passing cannabis initiatives, interstate commerce may be possible in the future.
Economic and Industry Impact
– The 2024 ballot initiatives from six different states have the potential to reshape cannabis legalization across the nation. These changes would boost the overall growth and economic health of the industry.
– Rescheduling on a federal level could create shifts in taxation allowing a business owner to write off expenses which could impact pricing and profitability while allowing for job creation and growth.
The Impact of 2024
Ultimately, the 2024 election may have consequential effects on the cannabis industry at both the federal and state levels. Federal rescheduling of cannabis and the state ballot initiatives could reshape regulations, allow for more banking access, lower taxation burdens, and promote commerce between the states. As more states push for cannabis legalization, the ripple effect could standardize testing and quality regulations across the country, offering greater safety and transparency to customers. For California, which is already a leader in the cannabis market, these changes could initiate further growth and competitiveness. Staying informed about election results is important for businesses and stakeholders in the cannabis industry as they traverse the quickly evolving legal landscape of marijuana.
