The PREPARE Act of 2025 would create the Commission on the Federal Regulation of Cannabis to study a prompt and plausible pathway to federal cannabis regulation, modeled after alcohol regulation. The Commission would solicit input from industry, regulators, tribal governments, and the public, publish an initial set of findings within 120 days, and deliver final recommendations within one year.
The bill makes clear the Commission has no rulemaking authority, and it relies on broad federal collaboration to develop a regulatory framework that accounts for the unique characteristics of communities and industries affected by prohibition.
At a Glance
What It Does
Not later than 30 days after enactment, the Attorney General must establish a Commission to study a plausible, prompt pathway to federal cannabis regulation, including issues identified in the findings and purpose. It will accept public input, hold hearings, and publish both initial and final recommendations modeled after alcohol regulation.
Who It Affects
State cannabis regulators, tribal governments, licensed cannabis operators, patients and researchers, and federal agencies involved in health, safety, and commerce.
Why It Matters
It creates a concrete, federal mechanism to imagine and guide a regulatory framework for cannabis, aiming to repair harms from criminalization, unlock research, support public health and youth protection, and prepare for potential federal-market alignment.
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What This Bill Actually Does
The bill sets up the Commission on the Federal Regulation of Cannabis to chart a course toward possible federal cannabis regulation. It defines cannabis, states, state cannabis control commissions, and tribal governments to ensure consistent terminology across jurisdictions.
The Commission’s purpose is to advise on a regulatory framework that mirrors alcohol regulation, while recognizing state- and tribal-level diversity in your cannabis programs and markets.
The Five Things You Need to Know
The Commission is established within 30 days of enactment to study a federal regulation pathway for cannabis.
Public input is required: a 60-day comment period and a public hearing process within 180 days that includes diverse participants (state operators, multi-state operators, individuals with cannabis-conviction history).
Initial findings must be published within 120 days, with a final report due within one year.
The Commission has no rulemaking authority and members cannot receive additional compensation.
Membership spans a wide set of federal agencies and political appointees, designed to incorporate regulatory, health, labor, agriculture, commerce, and industry perspectives.
Section-by-Section Breakdown
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Findings and Purpose
The bill lays out findings that frame the need for a federal pathway to regulate cannabis, including the historical prohibition, current state legality, and the barriers to research, impairment standards, and banking. It then states the purpose: to prepare the federal government for a future where cannabis is regulated federally, with attention to community impacts and the interplay between federal, state, and tribal systems.
Definitions
Key terms are defined to ensure consistent interpretation: cannabis as defined by the CSA, State including DC and territories, State cannabis control commissions, and Tribal governments. These definitions establish the scope for the Commission’s work and the entities eligible for participation in public proceedings.
Establishment of the Commission
Not later than 30 days after enactment, the Attorney General must establish the Commission on the Federal Regulation of Cannabis to study a plausible and prompt pathway to cannabis regulation and alignment with alcohol-regulatory practices.
Duties of the Commission
The Commission shall propose measures addressing a wide set of barriers: criminalization harms on minority and veteran communities, banking access for cannabis businesses, research access and impairment standards, medical cannabis access, training at public medical centers, consistent product safety and labeling, and revenue reporting and tax guidance, among other regulatory barriers.
Public Comment; Public Witness; Reports
The Commission must solicit public comment within 60 days, hold a public witness hearing within 180 days with diverse participants (state-licensed operators, multi-state operators, and individuals with cannabis-related convictions), and publish initial findings on the Department of Justice website. It will also host a second round of public comment following the initial recommendations and finally publish a comprehensive report within a year.
Membership
The Commission’s composition includes a broad set of appointees: party leaders from Congress appoint members with relevant expertise, senior federal agency officials, and other representatives (including those with experience in cannabis regulation, health, agriculture, labor, commerce, and veterans affairs). The Attorney General also appoints members and provides staffing.
Meeting Requirements
The Commission’s first meeting must occur within 90 days of enactment, with quarterly meetings thereafter and additional meetings as needed. A majority of members constitutes a quorum, and final recommendations require an affirmative vote of the majority present.
No Rulemaking Authority
The Commission is explicitly prohibited from possessing rulemaking authority, limiting its role to study, recommendations, and reporting rather than implementing binding regulatory changes.
Prohibition of Compensation
No federal employees serving on the Commission may receive additional pay or benefits beyond standard compensation; non-federal members are likewise restricted from extra compensation.
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Explore Economy in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- State cannabis control commissions and their licensees gain a defined federal-implied pathway and guidance for alignment with possible future regulation.
- Tribal governments gain inclusion in the governance discussion and data that can inform tribal-federal regulatory coordination.
- Cannabis researchers and medical communities benefit from clearer access to data and potential research frameworks (including impairment and safety studies).
- Minority communities and veterans—disproportionately affected by criminalization—stand to gain from harm-reduction measures and equity-focused policy design.
- Federal agencies (DOJ, HHS, Education, Commerce, Treasury, etc.) gain a structured, cross-agency process to coordinate regulatory thinking and public input.
Who Bears the Cost
- State and tribal regulators may incur transitional costs to align programs with federal considerations.
- Cannabis licensees and ancillary businesses may face new reporting and compliance expectations as policy evolves.
- Public agencies could incur staffing and administrative costs to support public hearings and data collection.
- Taxpayers may bear costs related to start-up administrative work and the federal coordination required to build a national framework.
Key Issues
The Core Tension
The bill’s core dilemma is whether a non-rulemaking Commission can meaningfully shape a federal regulatory pathway for cannabis without immediate enforcement authority or binding power, while relying on future legislation and intergovernmental coordination to translate recommendations into policy.
The PREPARE Act is aspirational in design: it creates a high-level process to study and propose a pathway to regulation, rather than codifying a federal legalization framework itself. This approach hinges on successful coordination across many federal agencies and state/tribal regulators, and on the political reality that recommendations may or may not translate into enacted policy.
The public-input process helps ensure broad perspectives are heard but also raises questions about how much weight the Commission’s findings will carry in actual legislation. A central tension is balancing respect for state and tribal regulatory autonomy with the desire for a unified federal framework, all while avoiding premature preemption or regulatory overreach.
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