PREPARE Act of 2023

Subjects: Crime and Law Enforcement, Aging, Banking and financial institutions regulation, Congressional oversight, Financial literacy, Financial services and investments, Fraud offenses and financial crimes, Government studies and investigations


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2598 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 2598

  To establish a Commission on the Federal Regulation of Cannabis to 
   study a prompt and plausible pathway to the Federal regulation of 
                   cannabis, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2023

    Mr. Joyce of Ohio (for himself and Mr. Jeffries) introduced the 
   following bill; which was referred to the Committee on Energy and 
Commerce, and in addition to the Committees on the Judiciary, Ways and 
    Means, Agriculture, and Financial Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
  To establish a Commission on the Federal Regulation of Cannabis to 
   study a prompt and plausible pathway to the Federal regulation of 
                   cannabis, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preparing Regulators Effectively for 
a Post-prohibition Adult-use Regulated Environment Act of 2023'' or the 
``PREPARE Act of 2023''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Cannabis was federally legal in the United States until 
        1937.
            (2) Cannabis was federally prohibited to codify 
        discriminatory practices against minority communities.
            (3) Medical cannabis prohibition was established despite 
        objection from the American Medical Association.
            (4) 38 States and the District of Columbia have legalized 
        cannabis for medical purposes.
            (5) 21 States and the District of Columbia have legalized 
        cannabis for adult use.
            (6) Despite the Federal Government collecting revenue from 
        the sale of cannabis, individuals are still criminally 
        persecuted for its use.
            (7) Cannabis research, including research on medical uses, 
        product safety, and impairment standards, is severely hindered 
        and made nearly impossible by its schedule 1 classification.
            (8) Cannabis should remain an adult product aside from the 
        physician prescribed treatment of minors.
            (9) Cannabis has proven medically beneficial for patients 
        suffering from pain, cancer, post-traumatic stress disorder, 
        seizure disorders, and multiple sclerosis, among other 
        diseases.
            (10) Since 2003, the United States Government by way of the 
        Department of Health and Human Services has held a patent for 
        medical cannabis as an antioxidant and neuroprotectant.
            (11) While the United States remains trapped in antiquated 
        cannabis regulations, other nations and scientific competitors, 
        including the United Kingdom, Canada, South Korea, Germany, and 
        Israel have modified their laws to allow for varying degrees of 
        cannabis legality and medical research.

SEC. 3. PURPOSE.

    The President and Congress shall prepare the Federal Government for 
an inevitable and prompt end to Federal marihuana prohibition by 
establishing a commission to advise on the development of a regulatory 
framework with respect to marihuana regulation, including accounting 
for the different characteristics of communities, agencies, and 
industries impacted by Federal marihuana prohibition. Such regulatory 
framework shall be modeled after Federal and State regulatory 
frameworks with respect to alcohol.

SEC. 4. COMMISSION ESTABLISHMENT AND MEMBERSHIP.

    (a) Establishment.--Not later than 30 days after the date of the 
enactment of this Act, the Attorney General shall establish a 
commission to be known as the ``Commission on the Federal Regulation of 
Cannabis'' (in this Act referred to as the ``Commission'') to study a 
plausible and prompt pathway to cannabis regulation.
    (b) Duties of Commission.--
            (1) Proposal of measures.--The Commission shall propose 
        measures to alleviate and remedy the:
                    (A) Impact of cannabis criminalization, 
                particularly on minority, low income, and veteran 
                communities.
                    (B) Lack of access to the financial service sector 
                for cannabis entrepreneurs and their affiliated 
                industries.
                    (C) Lack of access to cannabis related research, 
                including research on medical uses and the effects of 
                impairment.
                    (D) Lack of access to medical cannabis and 
                research, particularly with respect to Federal 
                agencies.
                    (E) Lack of medical cannabis training at publicly 
                funded medical training centers.
                    (F) Lack of consistent regulations for cannabis 
                product and safety, use, and labeling requirements, 
                including requirements to protect youth and reduce 
                harms to youth.
                    (G) Lack of efficient cannabis revenue reporting 
                and collecting, including efficient and tenable Federal 
                revenue frameworks.
                    (H) Lack of guidance for cannabis crop production, 
                sale, intrastate, interstate, and international trade.
                    (I) Lack of guidance regarding the successful 
                coexistence of individual hemp and cannabis industries, 
                including prevention of cross pollination of cannabis 
                and hemp products.
                    (J) Any other barriers to Federal cannabis 
                legalization identified by the commission.
            (2) Public comment; public witness; reports.--
                    (A) Comment period.--Not later than 60 days after 
                the date of the enactment of this Act, the Commission 
                shall solicit comment with respect to the regulation of 
                cannabis from industry stakeholders, criminal justice 
                reform advocates, substance use advocates, healthcare 
                experts, State cannabis regulators, and the Department 
                of Justice of each State or Tribal government.
                    (B) Public witness hearing.--
                            (i) In general.--Not later than 180 days 
                        after the date of the enactment of this Act, 
                        the Commission shall convene a public witness 
                        hearing and solicit written or verbal testimony 
                        from:
                                    (I) Not less than two unique 
                                individuals or entities, who are not 
                                employed by the Federal Government, and 
                                represent a State legal operation that 
                                is licensed by a single State to sell, 
                                produce, manufacture, process, 
                                cultivate, or transport cannabis.
                                    (II) Not less than two unique 
                                individuals or entities, who are not 
                                employed by the Federal Government, and 
                                represent a State legal operation with 
                                a multi-State presence that is licensed 
                                by such States to sell, produce, 
                                manufacture, process, cultivate, or 
                                transport cannabis.
                                    (III) An individual who was 
                                convicted and incarcerated by the 
                                Federal Government for a non-violent 
                                offense with respect to cannabis.
                                    (IV) An individual who was 
                                convicted and incarcerated by a State 
                                for a non-violent offense with respect 
                                to cannabis.
                            (ii) Public availability.--Written and 
                        verbal testimony under clause (i) shall be made 
                        publicly available in the final recommendations 
                        published under paragraph (5).
            (3) Initial report and recommendations.--Not later than 120 
        days after the date of the enactment of this Act, the 
        Commission shall publish initial findings and recommendations 
        pursuant to section 4(b), including an identification of 
        barriers to and suggestions for regulating cannabis in a way 
        that is similar to the regulation of alcohol with respect to 
        the rights of State, Tribal, and the Federal Government, on the 
        internet website of the Department of Justice.
            (4) Additional public comment period.--Beginning 120 days 
        after the date of the enactment of this Act, the Commission 
        shall solicit additional public comment from stakeholders 
        identified pursuant to paragraph (2)(A) with respect to the 
        initial recommendations published pursuant to paragraph (3).
            (5) Final recommendations.--Not later than one year after 
        the date of the enactment of this Act, the Commission shall 
        publish a report including findings and recommendations 
        pursuant to section 4(b), including an identification of 
        barriers to and suggestions for regulating cannabis in a way 
        that is similar to the regulation of alcohol, on the internet 
        website of the Department of Justice.
    (c) Membership.--The Commission shall be composed of the following 
members:
            (1) The majority leader of the Senate shall appoint one 
        member who is not employed by the Federal Government and was 
        formerly incarcerated for a non-violent crime with respect to 
        cannabis use or possession.
            (2) The minority leader of the Senate shall appoint one 
        member who is not employed by the Federal Government and is an 
        expert in substance abuse prevention.
            (3) The minority leader of the House of Representatives 
        shall appoint one member who is not employed by the Federal 
        Government and is an expert in the history of cannabis 
        criminalization and the impact of criminalization on various 
        communities, particularly minorities, medical patients, and 
        veterans.
            (4) The majority leader of the House of Representatives 
        shall appoint one member who is not employed by the Federal 
        Government and who is medically licensed with substantial 
        knowledge and demonstrated research into cannabis use and 
        medical treatments.
            (5) The Attorney General shall appoint one member from the 
        Department of Justice, who is an expert in the history of 
        cannabis criminalization and the impact of criminalization on 
        various communities, particularly minorities, medical patients, 
        and veterans.
            (6) The Director of the Bureau of Alcohol, Tobacco, 
        Firearms and Explosives.
            (7) The Director of the National Highway Traffic Safety 
        Administration.
            (8) The Secretary of Education shall appoint one member 
        from the Department of Education who is an expert in prevention 
        of youth access to alcohol and tobacco.
            (9) The Director of Occupational Safety and Health 
        Administration.
            (10) The Secretary of Agriculture shall appoint one member 
        from the Department of Agriculture who is an expert on cannabis 
        and hemp cultivation.
            (11) The Commissioner of the Food and Drug Administration.
            (12) The Director of the Alcohol and Tobacco Tax and Trade 
        Bureau.
            (13) The Commissioner of the Internal Revenue Service.
            (14) The United States Trade Representative.
            (15) The Secretary of Commerce shall appoint one member 
        from the Department of Commerce who is an expert on regulated 
        goods in interstate commerce.
            (16) The Secretary of Health and Human Services shall 
        appoint one member employed by the Department of Health and 
        Human Services who is an expert on medical cannabis use and 
        access.
            (17) The Director of the National Institutes of Health.
            (18) The Secretary of the Veterans Affairs shall appoint 
        one member from the Department of Veterans Affairs with 
        knowledge of treatments for pain management and post-traumatic 
        stress disorder and for providing patients with affordable 
        treatment options.
            (19) The Deputy Secretary of the Interior.
            (20) The Administrator of the Small Business Administration 
        shall appoint one member employed by the Small Business 
        Administration who is an expert in creating industry access for 
        historically marginalized communities.
            (21) The Director of the National Institute of Standards 
        and Technology.
            (22) One representative from a trade organization or other 
        non-profit entity with members from multiple, highly regulated 
        adult goods and consumer package goods, appointed by the 
        Attorney General.
            (23) Two representatives who have worked to develop two 
        successful, separate, and unique State-level regulatory 
        systems, appointed by the Attorney General.
    (d) Leadership.--
            (1) Chairperson.--The Chairperson shall be elected by the 
        members of the Commission at the first meeting of the 
        Commission.
            (2) Secretary.--The Secretary shall be elected by the 
        members of the Commission at the first meeting of the 
        Commission.
            (3) Vacancies.--A vacancy in the Chairperson or Secretary 
        position shall be filled in the manner in which the original 
        appointment was made by the remaining members of the 
        Commission.
    (e) Membership by Political Party.--If after the Commission is 
appointed there is a partisan imbalance of Commission members, the 
congressional leaders of the political party with fewer members on the 
Commission shall jointly name additional members to create partisan 
parity on the Commission.
    (f) Appointments; Removals; Vacancies.--
            (1) Timing of appointments.--Each initial appointment to 
        the Commission shall be made no later than 30 days after the 
        Commission is established. If any appointing authorities fail 
        to appoint a member to the Commission, their appointment shall 
        be made by the Attorney General.
            (2) Removal.--A member of the Commission may be removed 
        from the Commission at any time by the appointing authority 
        should the member fail to meet Commission attendance 
        requirement pursuant to subsection (g).
            (3) Vacancies.--A vacancy in the Commission shall be filled 
        in the manner in which the original appointment was made prior 
        to the date of the Commission's next meeting.
    (g) Meeting Requirements.--
            (1) First meeting.--The Commission shall have its first 
        meeting no later than 90 days after the date of the enactment 
        of this Act.
            (2) Quarterly meetings.--The Commission shall meet 
        quarterly. In addition to all quarterly meetings, the 
        Commission shall meet at other times at the call of the 
        Chairperson or as determined by a majority of Commission 
        members.
            (3) Quorum; rule for voting on final actions.--A majority 
        of the members of the Commission constitute a quorum, and an 
        affirmative vote of a majority of the members present is 
        required to issue recommendations.
            (4) Attendance by members.--Members are expected to attend 
        all Commission meetings. In the case of an absence, members are 
        expected to report to the Chairperson prior to the meeting and 
        allowance may be made for an absent member to participate 
        remotely. Members will still be responsible for fulfilling 
        prior commitments, regardless of attendance status. If a member 
        is absent twice in a given year, he or she will be reviewed by 
        the Chairperson and appointing authority and further action 
        will be considered, including removal and replacement on the 
        Commission.
    (h) Minutes.--Minutes shall be taken at each meeting by the 
Secretary, or in that individual's absence, the Chairperson shall 
select another Commission member to take minutes during that absence.
    (i) Administrative Requirements.--The Attorney General shall 
provide staff and administrative support to the Commission. All 
entities of the United States Government shall provide information that 
is otherwise a public record at the request of the Commission.
    (j) No Rulemaking Authority.--The Commission shall not have 
rulemaking authority.
    (k) Prohibition of Compensation.--
            (1) Federal employees.--Members of the Commission who are 
        full-time officers or employees of the United States may not 
        receive additional pay, allowances, or benefits by reason of 
        their service on the Commission.
            (2) Other members.--Members of the Commission who are not 
        full-time officers or employees of the United States may not 
        receive additional pay, allowances, or benefits by reason of 
        their service on the Commission.
    (l) Definitions.--In this Act:
            (1) Cannabis.--The term ``cannabis'' has the meaning given 
        the term ``marihuana'' in section 102 of the Controlled 
        Substances Act (21 U.S.C. 802).
            (2) State.--The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, and any territory or 
        possession of the United States.
            (3) Tribal government.--The term ``Tribal government'' 
        means the recognized governing body of any Indian or Alaska 
        Native tribe, band, nation, pueblo, village, community, 
        component band, or component reservation, individually 
        identified (including parenthetically) in the list published 
        most recently as of the date of enactment of this paragraph 
        pursuant to section 104 of the Federally Recognized Indian 
        Tribe List Act of 1994 (25 U.S.C. 5131).
                                 &lt;all&gt;
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