City of Albuquerque cites funding concerns for denying advertising to state-licensed business

(Albuquerque) – Ultra Health, New Mexico’s #1 Cannabis Company, has been denied the opportunity to advertise on the ABQ Ride Buses due to concerns about losing federal funding.

Ultra Health is one of the 35 medical cannabis providers licensed by the New Mexico Department of Health, and its operations are completely legal under the Lynn and Erin Compassionate Use Act.

In a letter sent September 13, the city’s legal counsel believed it would lose federal grants which are used to fund ABQ Ride Buses because it is illegal on the federal level to advertise a Schedule I substance.

In response to the city’s letter, City Councilman Pat Davis sent the Federal Transit Administration a letter asking for clarification on the legality of advertising medical cannabis in New Mexico as it is legal pursuant to state law.

“I believe that the patients who rely on medical cannabis to treat their debilitating medical conditions will benefit from the goods and services of licensed producers being advertised,” Councilman Davis states in the letter. “Competition in the marketplace is to be encouraged, and advertising is part of encouraging a thriving market will emerge in New Mexico.”

The provider’s submitted advertising design does not violate any of the transit agency’s policies or contain any cannabis imagery.

Currently, the ABQ Ride Bus Advertising policy states advertising content will not be displayed that:

• Is false, misleading, or deceptive,
• Relates to an illegal or unlawful activity,
• Advertises alcohol or tobacco products,
• Depicts violence and/or anti-social behavior, or
• Includes language, which is obscene, vulgar, profane and scatological.

In 2016, The San Francisco Municipal Transportation Agency allowed a cannabis campaign to advertise on its buses. The agency is federally funded and did not report losing grants due to the campaign.

It is unknown whether any other transit agency or organization has lost federal funding by allowing state-licensed and legally operating cannabis business to advertise their service or products.