H.R. 2935: Preparing Regulators Effectively for a Post-prohibition Adult-use Regulated Environment Act of 2025

The bill titled "Preparing Regulators Effectively for a Post-prohibition Adult-use Regulated Environment Act of 2025" (PREPARE Act of 2025) seeks to establish a framework for the federal regulation of cannabis following the anticipated end of its prohibition. Here are the main points of the bill:

Findings

• Cannabis was federally legalized in the U.S. until 1937, when its prohibition began, partly to enforce discriminatory practices.
• Currently, 38 states and Washington D.C. have legalized cannabis for medical use, and 21 states have legalized it for adult recreational use.
• Despite some states legalizing cannabis, individuals still face criminal charges at the federal level.
• Research on cannabis is severely limited by its classification as a Schedule I substance, hindering exploration of its medical benefits.
• Various global competitors have updated their cannabis laws to facilitate legal use and research.

Purpose

The bill mandates the creation of a commission to develop a regulatory framework for cannabis. This framework is to align with existing federal and state regulations pertaining to alcohol. The commission will consider the diverse impacts of cannabis legislation on various communities and industries.

Commission Establishment and Membership

Commission Creation

The Attorney General is required to establish a "Commission on the Federal Regulation of Cannabis" within 30 days of the bill's enactment.

Commission Duties

• Propose measures to address the impacts of cannabis criminalization, especially for minority, low-income, and veteran communities.
• Address issues related to financial services accessibility for cannabis businesses.
• Facilitate cannabis-related research and access to medical cannabis.
• Recommend consistent product and safety standards for cannabis.
• Improve revenue reporting and collection processes for cannabis sales at the federal level.
• Provide guidance on trade and crop production related to cannabis and hemp.
• Identify additional barriers to federal cannabis legalization.

Public Engagement

The commission will solicit public comments, including from industry stakeholders, advocates, healthcare experts, and community members affected by cannabis laws. The commission will hold public hearings and gather testimonies, including from individuals previously convicted for non-violent cannabis-related offenses.

Reporting

Within 120 days of establishment, the commission must provide initial findings and recommendations. After an additional public comment period, it will issue final recommendations within one year.

Membership

The commission will consist of a diverse group of individuals appointed by leaders from Congress and other governmental departments, including experts in cannabis regulation, medical use, and social justice related to cannabis criminalization.

Meeting Requirements

The commission will meet quarterly and must hold its first meeting within 90 days of its establishment. Minutes of meetings will be documented, and the commission will not have rulemaking authority.

Administrative Support

The Attorney General will provide necessary staff and administrative support for the commission's operations.

Duration and Compensation

Members of the commission who are federal employees will not receive additional compensation for their service, nor will other members be entitled to remuneration beyond their regular pay.

Definitions

• Cannabis: Refers to the type of cannabis defined under the Controlled Substances Act.
• State: Includes all states, D.C., and U.S. territories.
• Tribal government: Refers to the recognized governing bodies of American Indian or Alaska Native tribes.

Relevant Companies

• CGC (Canopy Growth Corporation): A major player in the cannabis industry which could be significantly impacted by federal regulations on cannabis.
• ACB (Aurora Cannabis Inc.): This Canadian cannabis company may see changes in its operational framework depending on U.S. federal cannabis regulations.
• CRON (Cronos Group Inc.): Another cannabis company that could be affected by the establishment of new federal regulations.