This week, the U.S. House of Representatives passed a bill to allow cannabis advertising on radio and television. It is part of the Fiscal Year 2023 General Government and Financial Services appropriations bill. The House passed it Wednesday.

The appropriations bill would prohibit the Federal Communications Commission from using funds appropriated to refuse a broadcaster’s license renewal application or sale application in order to air cannabis advertisements in legalized areas. It would be illegal for the FCC to require a station not yet licensed to broadcast cannabis advertisements that it has filed an application early.

According to current regulations, the FCC has the power to cancel broadcasters licenses that advertise federally illegal products. Cannabis businesses can only advertise in print media, magazines, internet, billboards and satellite radio. On Wednesday, Alex Siciliano, spokesperson for the National Associations of Broadcasters stated that this week’s legislation would make it easier for marijuana advertising.

“For too long, local broadcasters have been stuck in a regulatory purgatory because of conflicting federal and state cannabis laws,” Siciliano said in a statement. “Today’s passage marks an important step towards allowing broadcasters to receive equal treatment for cannabis advertising that many other forms of media have enjoyed for years. While we are pleased to see the House act, broadcasters will continue to work with policymakers for a permanent resolution to this competitive disparity to the benefit of consumers.”

Broadcasting Groups Applaud Legislation

House Appropriations committee approved the spending bill in June. This legislation allows broadcasters to access the expanding market for cannabis advertising. It is estimated that it will reach $18.5 million this year.

“We are pleased to see that this bipartisan language has advanced in the House today,” Siciliano said in a statement late last month. “As the vast majority of states have legalized cannabis in some form, today marks a long overdue step toward finally allowing broadcasters to receive equal treatment regarding cannabis advertising that other forms of media have had for years.”

David Donovan, president of the New York State Broadcasters Association (NYSBA), thanked lawmakers in the House “for recognizing the unfairness of the present situation with respect to cannabis advertising.”

“The provision in this House appropriations bill is a major step forward for leveling the playing field for local broadcasters,” Donovan said in a statement from the broadcasting industry group. “We believe the law of the state in which a station is licensed should determine whether a station can accept cannabis advertising if they so choose. We look forward to working with members of Congress and the Administration to help restore parity between local broadcasters and other media outlets.”

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

The bill must be approved by the Senate before it can become effective. It also needs to be signed by President Joe Biden. NYSBA stated that getting Senate approval may be difficult.

“The appropriations process is notoriously complex, which means the bill may get stalled. The likelihood is that Congress will adopt an interim budget by continuing resolution. There will likely be a final vote, possibly after the midterm elections. Even if it passes, the legislation is not a ‘silver bullet.’”

The prohibition that the FCC could take action against broadcasters who air cannabis ads was passed in an annual appropriations bill. This means the ban on the FCC taking any action against them would be only in place for one year. It will start on October 1. The appropriations language for marijuana must be renewed each year in order to allow the terms of the advertising agreement to remain.