House Pass Bill allows weed advertising on TV and radio

The US House of Representatives this week passed legislation that would allow cannabis advertising on TV and radio stations. The legislation is part of the Financial Services and General Government Appropriations bill for fiscal year 2023 passed by lawmakers in the House of Representatives on Wednesday.

Under the terms of the Budget Act, the Federal Communications Commission (FCC) would be prohibited from using reasonable means to deny a broadcaster a license renewal or request for sale to broadcast cannabis advertising in jurisdictions that have legalized marijuana. The FCC would also be prohibited from requiring a broadcaster to submit an early license renewal application to broadcast cannabis advertising.

Current rules allow the FCC to revoke a license from stations that air advertisements for federally illegal products, including weed, even in states that have passed laws legalizing cannabis. As a result, cannabis companies are limited to advertising in other forums, including print newspapers and magazines, online, billboards, cable TV, satellite radio, and social media. Alex Siciliano, a spokesman for the National Associations of Broadcasters, said Wednesday that legislation passed in the House of Representatives this week levels the playing field for cannabis advertising.

“Local broadcasters have been stuck in regulatory purgatory for too long over conflicting federal and state cannabis laws,” Siciliano said in a statement. “Today’s passage marks an important step in giving broadcasters the same treatment for cannabis advertising that many other forms of media have enjoyed for years. While we welcome House legislation, broadcasters will continue to work with policymakers to permanently resolve these competitive differences for the benefit of consumers.”

Broadcasting groups welcome the legislation

The spending bill was passed by the House Appropriations Committee in June. The legislation gives broadcasters access to the growing cannabis advertising market, which is expected to reach $18.5 billion this year alone.

“We are pleased to see that this bipartisan language made headway in the House of Representatives today,” Siciliano said in a statement late last month. “With the vast majority of states having legalized cannabis in some form, today marks a long-overdue step to finally allow broadcasters the equal treatment regarding cannabis advertising that other forms of media have enjoyed for years.”

David Donovan, President of the New York State Broadcasters Association (NYSBA), thanked lawmakers in the House “for recognizing the unfairness of the current situation regarding cannabis advertising.”

“The provision in this budget bill is a major step forward in leveling the playing field for local broadcasters,” Donovan said in a statement from the Broadcasting Industry Group. “We believe that the law of the state in which a broadcaster is licensed should determine whether a broadcaster can accept cannabis advertising if it chooses to do so. We look forward to working with members of Congress and Administration to help restore parity between local broadcasters and other media outlets.”

“We believe that the law of the state in which a broadcaster is licensed should determine whether a broadcaster can accept cannabis advertising if it chooses to,” Donovan added. “We look forward to working with members of Congress and Administration to help restore parity between local broadcasters and other media outlets.”

Before the bill can go into effect, it still needs to be passed by the Senate and signed by President Joe Biden. The NYSBA noted that getting Senate approval for the legislation could be a challenge.

“The approval process is notoriously complex, which means the bill can get bogged down. Congress is likely to pass an interim budget through a rolling resolution. At some point, perhaps after the midterm elections, there will be a final vote. Even if passed, the law is not a magic bullet.”

Since the Cannabis Advertising Rules were passed as part of an annual budget, the FCC’s ban on taking action against broadcasters for broadcasting cannabis advertising would only last for one year, beginning October 1. the middle language must be re-approved every year.