Bipartisan Cannabis Legislation Seeks to Bridge Federal-State Regulatory Divide

Recent legislative initiatives in Congress mark a significant development in the ongoing tension between federal cannabis prohibition and state-level legalization efforts. A bipartisan coalition has introduced two bills that could fundamentally reshape the federal approach to cannabis regulation.

Representatives Dave Joyce and Max Miller (R-Ohio), along with Representative Dina Titus (D-Nevada), have reintroduced the Strengthening the Tenth Amendment Through Entrusting States (STATES) 2.0 Act. Concurrently, Representatives Joyce and House Democratic Leader Hakeem Jeffries (D-New York) have put forward the Preparing Regulators Effectively for a Post-Prohibition Adult Use Regulated Environment (PREPARE) Act.

Key Provisions of the STATES 2.0 Act

The STATES 2.0 Act would amend the Controlled Substances Act to exempt cannabis produced and distributed in compliance with state and tribal laws from federal regulation while maintaining federal prohibition in states that have not. This legislation acknowledges several critical findings:

• The persistent illicit marijuana market

• Excessive taxation driving consumers to unregulated markets

• The need for balanced regulatory frameworks that ensure product safety without overburdening legal operators

  
  

This bill proposes a federal excise tax on cannabis sales to fund regulatory initiatives while preserving tribal sovereignty in cannabis regulation. It also includes important consumer protection measures:

• Age restrictions prohibiting sales to individuals under 21 without a valid medical prescription

• Employment restrictions for those under 18 in cannabis operations

• Distribution limitations at certain locations such as rest areas and truck stops

  
  

The PREPARE Act and Federal Regulatory Framework

The PREPARE Act aims to establish a comprehensive federal regulatory framework for cannabis in anticipation of potential nationwide legalization. A centerpiece of this legislation is the proposed "Commission on the Federal Regulation of Cannabis," which would examine effective pathways for federal cannabis regulation.

This commission would work to:

• Improve financing access for cannabis entrepreneurs

• Enhance medical training regarding cannabis use

• Address the historical injustices of cannabis prohibition that have disproportionately affected minority communities

  
  

Implications for Cannabis Businesses

Should these bills advance, cannabis products would be regulated by the FDA and the TTB. Notably, transactions compliant with state laws would no longer be classified as trafficking, nullifying the application of 280E to cannabis businesses.

As bipartisan efforts progress, they represent a pivotal step toward harmonizing federal and state cannabis regulations, with potentially transformative implications for the industry. Legal practitioners advising cannabis businesses should closely monitor these developments as they could significantly impact compliance requirements and business operations in the near future.