SAFE Advertising Act of 2022
Bill: S.4622 | Sponsor: Sen. Lujan, Ben Ray (D-NM)
Policy area: Science, Technology, Communications

Summary:
Secure And Fair Enforcement Advertising Act of 2022 or the SAFE Advertising Act of 2022
This bill prohibits the Federal Communications Commission from taking certain adverse actions against a radio or television station that advertises cannabis or hemp businesses or service providers if the station is licensed in a state where cannabis or hemp products are legal and other conditions are met. It also specifies that proceeds from transactions with legitimate businesses related to cannabis or hemp shall not be considered proceeds from an unlawful activity or require the denial of federal benefits.

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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