[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4622 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 4622
To establish protections for radio and television stations that provide
advertising services to cannabis-related legitimate businesses and
service providers for such businesses, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 26, 2022
Mr. Lujan (for himself and Mr. Merkley) introduced the following bill;
which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To establish protections for radio and television stations that provide
advertising services to cannabis-related legitimate businesses and
service providers for such businesses, 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; TABLE OF CONTENTS; PURPOSE.
(a) Short Title.--This Act may be cited as the ``Secure And Fair
Enforcement Advertising Act of 2022'' or the ``SAFE Advertising Act of
2022''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents; purpose.
Sec. 2. Definitions.
Sec. 3. Safety for advertising.
Sec. 4. Protections for ancillary businesses.
Sec. 5. Protections under Federal law.
Sec. 6. Application of this Act with respect to hemp-related legitimate
businesses and hemp-related service
providers.
Sec. 7. GAO report.
(c) Purpose.--The purpose of this Act is to ensure access to
advertising services from radio and television stations for cannabis-
related legitimate businesses and service providers.
SEC. 2. 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) Cannabis product.--The term ``cannabis product'' means
any article that contains cannabis, including an article that
is a concentrate, an edible, a tincture, a cannabis-infused
product, or a topical.
(3) Cannabis-related legitimate business.--The term
``cannabis-related legitimate business'' means a manufacturer,
a producer, or any person or company that--
(A) engages in any activity described in
subparagraph (B) pursuant to a law established by a
State or political subdivision of a State, as
determined by the State or political subdivision; and
(B) participates in any business or organized
activity that involves handling cannabis or cannabis
products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing cannabis or
cannabis products.
(4) CBD.--The term ``CBD'' means cannabidiol.
(5) Hemp.--The term ``hemp'' has the meaning given the term
in section 297A of the Agricultural Marketing Act of 1946 (7
U.S.C. 1639o).
(6) Indian country.--The term ``Indian country'' has the
meaning given that term in section 1151 of title 18, United
States Code.
(7) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 102 of the
Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C.
5130).
(8) Manufacturer.--The term ``manufacturer'' means a person
who manufactures, compounds, converts, processes, prepares, or
packages cannabis or cannabis products.
(9) Producer.--The term ``producer'' means a person who
plants, cultivates, harvests, or in any way facilitates the
natural growth of cannabis.
(10) Service provider.--The term ``service provider''--
(A) means a business, organization, or other person
that--
(i) sells goods or services to a cannabis-
related legitimate business; or
(ii) provides any business services,
including the sale of advertising, the sale or
lease of real or any other property, legal or
other licensed services, or any other ancillary
service, relating to cannabis; and
(B) does not include a business, organization, or
other person that participates in any business or
organized activity that involves handling cannabis or
cannabis products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing cannabis or
cannabis products.
(11) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, and any territory or possession of the United States.
SEC. 3. SAFETY FOR ADVERTISING.
(a) In General.--The Federal Communications Commission may not--
(1) with respect to an authorization relating to a radio or
television broadcast station, deny, fail to renew for a full
term or condition the authorization, decline to approve an
application for authority to assign the authorization or
transfer direct or indirect control of the licensee, require an
early renewal application, or otherwise impair the
authorization, because the station broadcast or otherwise
transmitted advertising of a cannabis-related legitimate
business or service provider, if the activities of the
cannabis-related legitimate business or service provider were,
at the time of the broadcast or other transmission of
advertising, authorized in the State, political subdivision of
a State, or Indian country in which the community of license of
the station is located;
(2) commence any proceeding against, issue a notice of
apparent liability or inquiry to, or impose a forfeiture
penalty on a radio or television broadcast station under title
V of the Communications Act of 1934 (47 U.S.C. 501 et seq.)
because the station broadcast or otherwise transmitted
advertising of a cannabis-related legitimate business or
service provider, if the activities of the cannabis-related
legitimate business or service provider were, at the time of
the broadcast or other transmission of advertising, authorized
in the State, political subdivision of a State, or Indian
country in which the community of license of the station is
located; or
(3) deny or designate for hearing any application for an
authorization relating to a radio or television broadcast
station solely because--
(A) the applicant--
(i) is or has been a cannabis-related
legitimate business or service provider; or
(ii) is an owner, officer, operator, or
employee of a cannabis-related legitimate
business or service provider; or
(B) an owner, officer, director, or employee of the
applicant, any parent entity of the applicant, or the
applicant has provided or is providing services,
including advertising services, equipment, or other
support, for the operation of a cannabis-related
legitimate business or service provider.
(b) Labeling Requirement.--Subsection (a) shall only apply with
respect to the advertising of products sold by a cannabis-related
legitimate business if--
(1) the advertisement--
(A) contains a disclosure that states, ``This
product has not been evaluated by the Food and Drug
Administration. There may be health risks associated
with consumption of this product.''; or
(B) complies with any applicable labeling
requirements or other requirements adopted by the
Surgeon General or the Food and Drug Administration for
advertising of cannabis or cannabis products; and
(2) the advertiser has reliable evidence that not less than
70 percent of the audience for the advertisement is reasonably
expected to be not less than 21 years of age, with the burden
of proof regarding the expected audience composition lying with
the advertiser.
SEC. 4. PROTECTIONS FOR ANCILLARY BUSINESSES.
For the purposes of sections 1956 and 1957 of title 18, United
States Code, section 421 of the Controlled Substances Act (21 U.S.C.
862), and any other provision of Federal law, the proceeds from a
transaction involving activities of a cannabis-related legitimate
business or service provider shall not be considered proceeds from an
unlawful activity or require the denial of Federal benefits solely
because--
(1) the transaction involves proceeds from a cannabis-
related legitimate business or service provider; or
(2) the transaction involves proceeds from--
(A) cannabis-related activities described in
section 2(3)(B) conducted by a cannabis-related
legitimate business; or
(B) activities described in section 2(10)(A)
conducted by a service provider.
SEC. 5. PROTECTIONS UNDER FEDERAL LAW.
With respect to providing advertising service to a cannabis-related
legitimate business (where the cannabis-related legitimate business
operates within a State, a political subdivision of a State, or Indian
country in which the cultivation, production, manufacture, sale,
transportation, display, dispensing, distribution, or purchase of
cannabis is allowed pursuant to a law or regulation of the State, the
political subdivision, or the Indian Tribe with jurisdiction over the
Indian country, respectively) or a service provider (wherever located),
a radio or television station licensed to a community within a State, a
political subdivision of a State, or Indian country in which the
activities of the cannabis-related legitimate business promoted in the
advertising service are allowed, a depository institution, insurer, or
other entity that provides a financial or other service to such a radio
or television station providing advertising service to a cannabis-
related legitimate business or service provider, and the officers,
directors, and employees of such radio or television station,
depository institution, insurer, or other entity may not be held liable
pursuant to any Federal law or regulation, including subsection (b) or
(c) of section 403 of the Controlled Substances Act (21 U.S.C. 843)--
(1) solely for providing such advertising service or
related financial or other service; or
(2) for further investing any income derived from such
advertising service or related financial or other service.
SEC. 6. APPLICATION OF THIS ACT WITH RESPECT TO HEMP-RELATED LEGITIMATE
BUSINESSES AND HEMP-RELATED SERVICE PROVIDERS.
(a) In General.--This Act shall apply with respect to a hemp-
related legitimate business or hemp-related service provider in the
same manner as the Act applies with respect to a cannabis-related
legitimate business or service provider.
(b) Definitions.--In this section:
(1) Hemp-related legitimate business.--The term ``hemp-
related legitimate business'' means a manufacturer, producer,
or any person that--
(A) engages in any activity described in
subparagraph (B) in conformity with--
(i) subtitle G of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1639o et seq.)
and the regulations issued to implement that
subtitle by the Department of Agriculture,
where applicable; and
(ii) the applicable law of a State,
political subdivision of a State, or Indian
Tribe; and
(B) participates in any business or organized
activity that involves handling hemp, hemp-derived CBD
products, and other hemp-derived cannabinoid products,
including cultivating, producing, extracting,
manufacturing, selling, transporting, displaying,
dispensing, or purchasing hemp, hemp-derived CBD
products, and other hemp-derived cannabinoid products.
(2) Hemp-related service provider.--The term ``hemp-related
service provider''--
(A) means a business, organization, or other person
that--
(i) sells goods or services to a hemp-
related legitimate business; or
(ii) provides any business services,
including the sale of advertising, the sale or
lease of real or any other property, legal or
other licensed services, or any other ancillary
service, relating to hemp, hemp-derived CBD
products, or other hemp-derived cannabinoid
products; and
(B) does not include a business, organization, or
other person that participates in any business or
organized activity that involves handling hemp, hemp-
derived CBD products, or other hemp-derived cannabinoid
products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing hemp, hemp-
derived CBD products, and other hemp-derived
cannabinoid products.
SEC. 7. GAO REPORT.
(a) Definitions.--In this section--
(1) the term ``small business concern'' has the meaning
given the term in section 3 of the Small Business Act (15
U.S.C. 632); and
(2) the term ``socially and economically disadvantaged
individual'' has the meaning given the term in section 8(d) of
the Small Business Act (15 U.S.C. 637(d)) and relevant
subcontracting regulations prescribed under such section 8(d),
except that women are presumed to be socially and economically
disadvantaged.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General of the United States shall--
(1) conduct a study of cannabis-related legitimate
businesses that--
(A) are small business concerns; or
(B) are owned by a socially and economically
disadvantaged individual; and
(2) submit a report on the results of the study conducted
under paragraph (1) to Congress.
(c) Contents.--The report submitted under subsection (b) shall
include--
(1) an evaluation of whether cannabis-related legitimate
businesses that are small business concerns or are owned by a
socially and economically disadvantaged individual face
systemic barriers to access service providers compared to other
cannabis-related legitimate businesses; and
(2) recommendations to Congress to facilitate the access of
cannabis-related legitimate businesses to service providers,
particularly cannabis-related legitimate businesses that--
(A) are small business concerns; or
(B) are owned by a socially and economically
disadvantaged individual.
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