Two federal cannabis reform bills are on the way that could change the landscape of U.S. cannabis regulation
If two independent bipartisan cannabis reform bills are passed, they will change cannabis regulation across the United States.
On April 17th, Dave Joyce, a Republican Congressman from Ohio, proposed the "PREPARE Act of 2025" (referred to as the "Effective Preparation of Regulatory Agencies to Respond to the Post-Ban Adult Use Regulatory Environment Act").
On the very same day, Congressman Joyce also proposed the "Strengthening the Tenth Amendment through Authorizing STATES 2.0 Act" (referred to as the States 2.0 Act), both of which propose comprehensive reforms to the way cannabis is supervised at the federal level.
"Preparation Act 2025"
The 2025 Preparation Act aims to establish a "Federal Cannabis Regulatory Commission", which is responsible for making recommendations for the federal government to formulate "fair, honest and transparent effective regulatory procedures" in order to formulate effective regulatory laws and regulations.
This bill aims to provide experts of different ideologies with the opportunity to participate in cannabis reform and offer legislators the best information needed to establish a safe and effective federal regulatory system. If such participation is not achieved, it is unlikely that Congress will reach the necessary consensus and promulgate the federal marijuana policy reform demanded by the entire American people.
Senator Joyce's report pointed out that marijuana is currently regulated as a Class I drug under federal law, which severely restricts medical research, hinders interstate trade, and leaves many individuals and businesses in legal trouble.
The bill would recommend that the US Attorney General establish a "Federal Cannabis Regulatory Commission" to provide suggestions on formulating a regulatory framework that mimics federal and state alcohol. Specifically, the bill will:
1. Instruct federal regulatory agencies to develop a regulatory and revenue framework to ensure the safe production and consumption of marijuana, which will take into account the unique needs, rights and laws of each state, and submit the framework to Congress within one year;
2. Building on the efforts of the recent administrations of both parties, strive to correct the unjust consequences caused by the marijuana war, especially those suffered by ethnic minorities, low-income groups and veteran groups;
3. Help medical professionals obtain key research opportunities and training;
4. Formulate protective measures for the cannabis industry, including measures to prevent cross-pollination.
5. Help ensure that marijuana remains a product for adult use only in the absence of a doctor's prescription for treatment.
If the bill is passed, the Attorney General Pam Bond must establish the committee within 30 days after the enactment of the bill, and the committee must include 29 or more members from various government departments.
"Authorizing States 2.0 Act"
Meanwhile, Joyce also proposed the "Empowering States 2.0 Act", which aims to grant states and Native American tribes full autonomy to determine the best way to handle marijuana within their territory, enabling it to be free from federal government intervention. The bill also extends these protective measures to Washington D.C., the territory of the United States, and federally recognized tribal states.
This bill addresses this issue by bridging the gap between federal and state policies, thereby creating a more reasonable approach to marijuana regulation. According to the proposal, states will be allowed to legalize, regulate or ban marijuana in the way they deem appropriate, which means that the production, sale and use of marijuana will no longer be subject to most provisions of the federal Controlled Substances Act.
Key points of the bill:
1. Revise the Controlled Substances Act (21 USC801) (CSA) to respect the wishes of the states and no longer classify marijuana as a substance covered by the CSA, that is, a substance manufactured, produced, held, distributed, distributed, managed or delivered in accordance with state and tribal laws, while ensuring that states that choose to maintain the ban receive support and assistance from the federal government for this enforcement.
2. Continue to apply the following federal criminal provisions of the CSA, which prohibit: distributing marijuana to anyone under the age of 21; And employ personnel under the age of 18 to engage in cannabis business activities.
3. Through the regulation of cannabis products by the Alcohol and Tobacco Tax and Trade Administration (TTB) and the Food and Drug Administration (FDA), it is outlined that the FDA should classify cannabis products into specific categories, such as drugs, food and dietary supplements, or cosmetics, to ensure that the products comply with standards for contaminant testing, manufacturing expectations, and marketing practices.
4. It is prohibited to distribute marijuana in traffic safety facilities such as rest areas and truck stops.
5. The distribution or sale of marijuana to persons under the age of 21 is prohibited, except for medical purposes.
6. Instruct the Comptroller General of the United States to conduct a study on the impact of the legalization of marijuana on traffic safety, including whether states can accurately assess the damage caused by marijuana, the testing standards used in these states, and detailed evaluations of traffic accidents.
7. Clearly stipulate that compliant transactions do not constitute trafficking and do not generate illegal transaction gains, thereby addressing the financial issues caused by the federal ban. Furthermore, acts that comply with the State 2.0 Act are not subject to the provisions of Section 280E of the Internal Revenue Code regarding expenditures and revenues from the sale of illegal drugs.
It is important to highlight that the bill mandates the complete removal of marijuana from the federal drug schedule, which represents a more significant step compared to merely reclassifying marijuana. Additionally, if both the state of origin and the destination state permit cannabis trade, the bill will encompass regulations governing interstate commerce of cannabis products.
The Authorizing States 2.0 Act further establishes the groundwork for federal oversight of cannabis products by the U.S. Food and Drug Administration (FDA), empowering the administration to regulate cannabis products in accordance with existing statutes on food, drugs, dietary supplements, and cosmetics.
If enacted, activities compliant with local cannabis regulations will no longer be considered violations of federal law, thereby exempting them from asset forfeiture and the constraints imposed by the contentious IRS Section 280E, which currently prohibits cannabis businesses from deducting standard business expenses.
