As the cannabis industry continues to grow and evolve, state regulations surrounding cannabis are constantly changing. For cannabis business owners, staying up to date with these changes is crucial to maintaining compliance, protecting your business, and seizing new opportunities. In 2024, several states are expected to introduce new regulations that will impact the cultivation, sale, marketing, and distribution of cannabis products. In this blog, we’ll explore some of the most important regulatory changes and what cannabis business owners need to know to stay ahead of the curve.

1. Regulatory Changes in Licensing

Stricter Licensing Requirements

One of the most common trends in state cannabis regulations is the tightening of licensing requirements. As the cannabis market matures, many states are increasing oversight to ensure that businesses meet stringent health, safety, and environmental standards.

• Increased Background Checks: Several states are expected to require more comprehensive background checks for business owners, executives, and employees. These checks may include financial audits and criminal background assessments to ensure the integrity of cannabis operators.
• Tiered Licensing: Some states are introducing tiered licensing systems, which categorize businesses based on their size and scope. These new categories may come with different fee structures, allowing smaller businesses to compete while ensuring that larger operations meet more rigorous requirements.

Example Quote: “With stricter licensing requirements being introduced, cannabis businesses will need to focus on compliance and transparency to secure and maintain their licenses,” says Jane Smith, Cannabis Compliance Consultant at MKC Cannabis.

Social Equity Programs

Many states are incorporating social equity initiatives into their cannabis licensing regulations to address the harm caused by decades of cannabis prohibition. In 2024, expect to see more states expanding their social equity programs, which aim to promote diversity and inclusion within the industry.

• Priority Licensing for Social Equity Applicants: Some states are offering priority licensing or reduced fees for social equity applicants—those who come from communities disproportionately impacted by cannabis prohibition.
• Mentorship and Funding: In addition to preferential licensing, many states are creating support programs to help social equity applicants succeed in the cannabis industry through mentorship, training, and access to capital.

Where to Use Data: Reference reports from Marijuana Policy Project (MPP) to highlight the increasing role of social equity in cannabis regulations and its impact on business owners.

2. New Compliance Standards for Cannabis Cultivation

Environmental Regulations and Sustainability

As cannabis cultivation expands, concerns about its environmental impact are growing. States are responding by introducing stricter environmental regulations to reduce the ecological footprint of cannabis operations. In 2024, cannabis cultivators will face new requirements to promote sustainability and minimize resource use.

• Water Use Restrictions: States with limited water resources may impose new restrictions on water usage, requiring cannabis growers to adopt more efficient irrigation techniques, such as drip irrigation and water recycling systems.
• Energy Efficiency Standards: Indoor cultivation operations may be required to use energy-efficient lighting, ventilation, and climate control systems to reduce their carbon footprint. Some states are offering incentives for growers who adopt renewable energy sources like solar or wind power.

Example Quote: “Sustainability is becoming a top priority for cannabis regulators. Businesses that invest in eco-friendly cultivation practices will not only stay compliant but also appeal to environmentally-conscious consumers,” notes Laura White, Environmental Consultant at MKC Cannabis.

Organic Certification and Pesticide Use

The growing demand for organic cannabis is driving regulatory changes related to pesticide use and organic certification. In 2024, expect more states to introduce stricter regulations regarding the types of pesticides that can be used in cannabis cultivation.

• Pesticide Restrictions: States are implementing stricter limits on which pesticides can be used in cannabis cultivation, with a focus on reducing the presence of harmful chemicals in cannabis products.
• Organic Cannabis Certification: Some states are rolling out official organic cannabis certification programs that provide consumers with assurance that their cannabis products meet organic farming standards.

Where to Use Data: Reference sustainability and pesticide regulations from New Frontier Data to discuss the impact of environmental standards on cannabis cultivation.

3. Changes in Packaging and Labeling Requirements

Child-Resistant and Tamper-Evident Packaging

Cannabis packaging regulations continue to evolve as states aim to ensure consumer safety and prevent accidental consumption. In 2024, states are expected to introduce stricter rules around child-resistant and tamper-evident packaging, making compliance a top priority for businesses.

• Child-Resistant Packaging: Many states already require child-resistant packaging for cannabis products, but some are tightening these regulations to include more specific requirements for product accessibility and safety features.
• Tamper-Evident Packaging: New regulations may require businesses to use tamper-evident seals on all cannabis products to ensure that consumers can trust the integrity of their purchases.

Example Quote: “Compliance with new packaging regulations is essential for maintaining consumer safety and building trust. Businesses need to stay on top of changes in packaging laws to avoid fines and recalls,” says Kevin Green, Packaging Compliance Specialist at MKC Cannabis.

Updated Labeling Regulations

As cannabis markets grow, states are implementing more detailed labeling requirements to ensure that consumers have clear information about the products they’re purchasing. In 2024, cannabis businesses can expect to see updated regulations regarding the information that must appear on product labels.

• Cannabinoid Potency: States may introduce more detailed labeling requirements around cannabinoid potency, ensuring that consumers have accurate information about THC and CBD content.
• Ingredient Disclosure: Edibles and other infused products may be subject to stricter ingredient disclosure rules, requiring businesses to list all ingredients, allergens, and nutritional information on packaging.
• QR Codes for Transparency: Some states are encouraging or requiring the use of QR codes on product labels, which consumers can scan to access detailed information about the product’s origin, testing results, and batch information.

Where to Use Data: Reference cannabis packaging regulations from Cannabis Packaging Association (CPA) to highlight the importance of adhering to new packaging and labeling laws.

4. Evolving Marketing and Advertising Restrictions

Stricter Advertising Guidelines

Cannabis marketing is heavily regulated, and new advertising restrictions are expected to take effect in 2024. These restrictions are designed to prevent cannabis marketing from targeting minors and to ensure that advertising is responsible and compliant with state laws.

• Prohibited Marketing Channels: Some states are further restricting where cannabis businesses can advertise, such as banning advertisements on platforms or media where a significant portion of the audience is underage.
• Social Media Compliance: Social media platforms have strict rules around cannabis advertising, and states are increasing scrutiny on how businesses use social media to promote their products. Businesses must ensure that their posts and campaigns are fully compliant with both platform rules and state regulations.

Example Quote: “Marketing cannabis products in compliance with state regulations is critical. Businesses must be strategic about how they reach consumers while avoiding any potential legal pitfalls,” explains Sarah Johnson, Digital Marketing Specialist at MKC Cannabis.

Consumer Education Campaigns

While many states are tightening advertising restrictions, they are also encouraging cannabis businesses to focus on consumer education as part of their marketing strategy. Educational content that informs consumers about responsible use, product safety, and health benefits is often allowed under these regulations.

• Education-Focused Content: Instead of direct promotion, cannabis businesses can create educational content that provides valuable information to consumers, helping to build brand trust while remaining compliant with state laws.
• Public Health Messaging: Some states are requiring cannabis businesses to include public health messages in their advertising to promote safe consumption and discourage misuse.

Where to Use Data: Reference marketing reports from Cannabis Marketing Association (CMA) to emphasize the importance of consumer education in cannabis marketing.

5. New Taxes and Fees for Cannabis Businesses

Increased Cannabis Taxes

As cannabis markets expand, states are reassessing their tax structures to ensure they are maximizing revenue from legal cannabis sales. In 2024, expect to see new cannabis taxes and fees introduced at both the state and local levels.

• Excise Taxes: Some states are increasing excise taxes on cannabis products, which may affect pricing and consumer demand. Business owners need to be prepared to adjust their pricing strategies accordingly.
• Local Cannabis Taxes: In addition to state-level taxes, local governments may impose their own cannabis taxes, adding another layer of complexity for businesses operating in multiple jurisdictions.

Example Quote: “Cannabis businesses must stay on top of new tax regulations to avoid financial pitfalls. Understanding how new taxes will impact pricing and profitability is essential,” says John Doe, Tax Consultant at MKC Cannabis.

Staying Ahead of Regulatory Changes in 2024

The cannabis industry is constantly evolving, and staying compliant with new state regulations is crucial for business success. From licensing and packaging to marketing and taxes, cannabis business owners must stay informed about the latest changes to navigate the regulatory landscape effectively. At MKC Cannabis, we specialize in helping cannabis businesses stay compliant with state regulations while building strong, successful brands.

Need help navigating the latest cannabis regulations? Explore our compliance services and check out our portfolio to see how we’ve helped other cannabis businesses thrive. Partner with MKC Cannabis to ensure your business stays ahead of regulatory changes and is positioned for growth in 2024.

By working with MKC Cannabis, you gain access to expert regulatory insights and strategies that keep your business compliant and competitive in the evolving cannabis market.