This week, the US House of Representatives passed a bill allowing cannabis advertising on television and radio stations. The law is included as part of the 2023 fiscal year financial services and general government spending bill passed by lawmakers in the House of Representatives on Wednesday.
Under the provisions of Budget planThe Federal Communications Commission (FCC) is prohibited from using appropriate funds to refuse license renewals or sales offers to broadcast cannabis ads in jurisdictions that have legalized marijuana. The FCC is also prohibited from requiring stations to submit an early license renewal application to broadcast cannabis ads.
Current regulations allow the FCC to revoke licenses from broadcasters that broadcast advertisements for federal illegal products, including weeds, even in states that have passed legislation to legalize cannabis. As a result, the cannabis business is limited to advertising in printed newspapers and magazines, online, billboards, cable TV, satellite radio, social media and other forums. A spokesman for the National Broadcasting Corporation, Alex Siciliano, said Wednesday that a law passed in the House of Representatives this week would level the competition for cannabis advertising.
“Federal and state cannabis laws conflict, and local broadcasters have long been stuck in regulated purgatory.” Siciliana said In the statement. “Today’s passages show an important step in enabling broadcasters to receive equal treatment for cannabis advertising that many other media have enjoyed for many years. Looking at the House Act We are pleased that broadcasters will continue to work with policy makers to permanently close this competitive gap for the benefit of consumers. “
Broadcast group praises the law
The spending bill was passed by the House Expenditure Committee in June. The law gives broadcasters access to a growing market for cannabis advertising, which is expected to total $ 18.5 billion this year alone.
“I’m pleased that this bipartisan language has progressed in the house today.” Siciliana said In a statement at the end of last month. “As the majority of states have somehow legalized cannabis, today it is ultimately that broadcasters will eventually receive equal treatment for cannabis advertising that other forms of media have had for years. Shows a long delay towards allowing to. “
David Donovan, chairman of the New York State Broadcasting Corporation (NYSBA), thanked Congressman for “acknowledging the current injustices regarding cannabis advertising.”
“The provisions of this House Expenditure Bill are a major step forward in leveling the competition for local broadcasters.” Donovan said In a statement from the broadcasting industry group. “We believe that the state law in which the station is licensed needs to determine whether the station can accept cannabis ads. We work with parliamentarians and the administration. We look forward to helping restore equality between local broadcasters and other media. “
“We believe that state law where stations are licensed must determine whether stations can accept cannabis ads,” Donovan added. “We look forward to working with parliamentarians and the government to help restore equality between local broadcasters and other media.”
Before the bill comes into force, it must still be passed by the Senate and signed by President Joe Biden. NYSBA said it could be difficult to get Senate approval for the bill.
“The processing of budget slots is so complex that billing can be delayed. Congress is likely to adopt a provisional budget through ongoing resolutions. At some point, perhaps after a midterm election, a final vote. The law is not a “silver bullet,” even if it passes. “
Since the cannabis advertising clause was passed as part of the annual budget, the FCC’s ban on proceedings against broadcasters to broadcast weed ads is only valid for one year from October 1st. Become. Budget language must be re-approved annually.