PREPARE Act Sets 1-Year Deadline for Federal Plan to Regulate Cannabis Like Alcohol

The PREPARE Act of 2025 doesn’t legalize cannabis, but it’s the most serious step yet toward getting the federal government ready for when it does. This bill creates a brand new group—the Commission on the Federal Regulation of Cannabis—and gives it just one year to design a complete federal regulatory system for adult-use marijuana, specifically modeling it after existing alcohol laws.

The Commission: Policy Prep Work

Think of this Commission as the ultimate policy planning committee. Its main job is to figure out a “sensible and swift” transition away from prohibition. This means tackling huge, complex issues that have plagued the industry for years. For instance, they must figure out how to give cannabis businesses access to regular banking (Section 4), something they currently can’t do because of federal law. They also need to devise federal rules for product safety, labeling, and quality control that states can follow. If you’re a small business owner in a legal state, this bill is about finally getting a clear, consistent federal playbook instead of the confusing patchwork we have now.

Rectifying the Past

One of the most important mandates of the Commission is addressing the collateral damage from decades of prohibition. The bill explicitly recognizes that past bans were discriminatory and disproportionately harmed minority, low-income, and veteran communities (Section 2). Therefore, the Commission must investigate how to fix the fallout from criminalization. To ensure this isn't just lip service, the Commission is required to seek public testimony from people who were actually incarcerated for non-violent cannabis crimes (Section 4). The goal here isn't just making money; it’s about making things right for the people whose lives were derailed by the laws this bill seeks to end.

Alcohol as the Blueprint

Why model it after alcohol? The bill directs the Commission to use the existing federal and state alcohol regulatory structure as the main blueprint (Section 3). This means we could see a system where the federal government handles things like interstate commerce and taxation, while states retain significant control over licensing and local distribution—much like the three-tier system for beer, wine, and spirits. For consumers, this could mean more consistent products available across state lines, but it also raises the question of whether an alcohol model is truly appropriate for a product with different medical uses and societal impacts. That’s why the Commission must also prioritize research into medical applications and impairment testing, which are currently near-impossible due to cannabis's Schedule I status (Section 4).

Who’s at the Table (and Who Isn’t)

The Commission is packed with experts, including the heads of the FDA, IRS, and ATF, plus experts in substance abuse, history, and medical research. Crucially, it includes a person formerly incarcerated for a non-violent cannabis crime. However, there’s a catch: nobody on the Commission gets paid for their service (Section 4). While this keeps costs down, it effectively means that only people who can afford to volunteer their time—such as high-level federal employees or well-funded experts—will realistically be able to participate fully. This could inadvertently limit the voices of those with the most direct, real-world experience, such as those recently released from prison or small, equity-focused business owners.

The Bottom Line

This bill is a procedural measure, not a legalization one—the Commission has zero power to create rules itself; it’s strictly advisory. But it is a vital step. By setting a hard one-year deadline for the federal government to produce a detailed, comprehensive regulatory plan, the PREPARE Act forces the conversation forward. It moves the discussion from if cannabis will be legalized to how it will be regulated, ensuring that the next chapter prioritizes safety, research, and, most importantly, justice for those who suffered under the last one.