IIB 

116TH CONGRESS 

1ST SESSION H. R. 1595 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 26, 2019 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To create protections for depository institutions that provide 

financial services to cannabis-related legitimate businesses and service providers for such businesses, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; PURPOSE. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Secure And Fair Enforcement Banking Act of 2019’’ or 

4 the ‘‘SAFE Banking Act of 2019’’. 

5 (b) PURPOSE.—The purpose of this Act is to increase 

6 public safety by ensuring access to financial services to 

7 cannabis-related legitimate businesses and service pro8 viders and reducing the amount of cash at such busi9 nesses. 

10 SEC. 2. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS. 

11 (a) IN GENERAL.—A Federal banking regulator may 

12 not— 

13 (1) terminate or limit the deposit insur14 ance or share insurance of a depository institu15 tion under the Federal Deposit Insurance Act 

16 (12 U.S.C. 1811 et seq.), the Federal Credit 

17 Union Act (12 U.S.C. 1751 et seq.), or take 

18 any other adverse action against a depository 

19 institution under section 8 of the Federal De20 posit Insurance Act (12 U.S.C. 1818) solely be21 cause the depository institution provides or has 

22 provided financial services to a cannabis-related 

23 legitimate business or service provider; 

24 (2) prohibit, penalize, or otherwise discour25 age a depository institution from providing fi26 nancial services to a cannabis-related legitimate 


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1 business or service provider or to a State, polit2 ical subdivision of a State, or Indian Tribe that 

3 exercises jurisdiction over cannabis-related le4 gitimate businesses; 

5 (3) recommend, incentivize, or encourage a 

6 depository institution not to offer financial serv7 ices to an account holder, or to downgrade or 

8 cancel the financial services offered to an ac9 count holder solely because— 

10 (A) the account holder is a cannabis11 related legitimate business or service pro12 vider, or is an employee, owner, or oper13 ator of a cannabis-related legitimate busi14 ness or service provider; 

15 (B) the account holder later becomes 

16 an employee, owner, or operator of a can17 nabis-related legitimate business or service 

18 provider; or 

19 (C) the depository institution was not 

20 aware that the account holder is an em21 ployee, owner, or operator of a cannabis-re22 lated legitimate business or service pro23 vider; 

24 (4) take any adverse or corrective super25 visory action on a loan made to— 


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1 (A) a cannabis-related legitimate busi2 ness or service provider, solely because the 

3 business is a cannabis-related legitimate 

4 business or service provider; 

5 (B) an employee, owner, or operator 

6 of a cannabis-related legitimate business or 

7 service provider, solely because the em8 ployee, owner, or operator is employed by, 

9 owns, or operates a cannabis-related legiti10 mate business or service provider, as appli11 cable; or 

12 (C) an owner or operator of real es13 tate or equipment that is leased to a can14 nabis-related legitimate business or service 

15 provider, solely because the owner or oper16 ator of the real estate or equipment leased 

17 the equipment or real estate to a cannabis18 related legitimate business or service pro19 vider, as applicable; or 

20 (5) prohibit or penalize a depository insti21 tution (or entity performing a financial service 

22 for or in association with a depository institu23 tion) for, or otherwise discourage a depository 

24 institution (or entity performing a financial 

25 service for or in association with a depository 


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1 institution) from, engaging in a financial service 

2 for a cannabis-related legitimate business or 

3 service provider. 

4 (b) SAFE HARBOR APPLICABLE TO DE NOVO INSTI5 TUTIONS.—Subsection (a) shall apply to an institution ap6 plying for a depository institution charter to the same ex7 tent as such subsection applies to a depository institution. 

8 SEC. 3. PROTECTIONS FOR ANCILLARY BUSINESSES. 

9 For the purposes of sections 1956 and 1957 of title 

10 18, United States Code, and all other provisions of Fed11 eral law, the proceeds from a transaction involving activi12 ties of a cannabis-related legitimate business or service 

13 provider shall not be considered proceeds from an unlawful 

14 activity solely because— 

15 (1) the transaction involves proceeds from a 

16 cannabis-related legitimate business or service pro17 vider; or 

18 (2) the transaction involves proceeds from— 

19 (A) cannabis-related activities described in 

20 section 14(4)(B) conducted by a cannabis-re21 lated legitimate business; or 

22 (B) activities described in section 

23 14(13)(A) conducted by a service provider. 


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1 SEC. 4. PROTECTIONS UNDER FEDERAL LAW. 

2 (a) IN GENERAL.—With respect to providing a finan3 cial service to a cannabis-related legitimate business or 

4 service provider within a State, political subdivision of a 

5 State, or Indian country that allows the cultivation, pro6 duction, manufacture, sale, transportation, display, dis7 pensing, distribution, or purchase of cannabis pursuant to 

8 a law or regulation of such State, political subdivision, or 

9 Indian Tribe that has jurisdiction over the Indian country, 

10 as applicable, a depository institution, entity performing 

11 a financial service for or in association with a depository 

12 institution, or insurer that provides a financial service to 

13 a cannabis-related legitimate business or service provider, 

14 and the officers, directors, and employees of that deposi15 tory institution, entity, or insurer may not be held liable 

16 pursuant to any Federal law or regulation— 

17 (1) solely for providing such a financial service; 

18 or 

19 (2) for further investing any income derived 

20 from such a financial service. 

21 (b) PROTECTIONS FOR FEDERAL RESERVE BANKS

22 AND FEDERAL HOME LOAN BANKS.—With respect to 

23 providing a service to a depository institution that pro24 vides a financial service to a cannabis-related legitimate 

25 business or service provider (where such financial service 

26 is provided within a State, political subdivision of a State, 


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1 or Indian country that allows the cultivation, production, 

2 manufacture, sale, transportation, display, dispensing, dis3 tribution, or purchase of cannabis pursuant to a law or 

4 regulation of such State, political subdivision, or Indian 

5 Tribe that has jurisdiction over the Indian country, as ap6 plicable), a Federal reserve bank or Federal Home Loan 

7 Bank, and the officers, directors, and employees of the 

8 Federal reserve bank or Federal Home Loan Bank, may 

9 not be held liable pursuant to any Federal law or regula10 tion— 

11 (1) solely for providing such a service; or 

12 (2) for further investing any income derived 

13 from such a service. 

14 (c) PROTECTIONS FOR INSURERS.—With respect to 

15 engaging in the business of insurance within a State, polit16 ical subdivision of a State, or Indian country that allows 

17 the cultivation, production, manufacture, sale, transpor18 tation, display, dispensing, distribution, or purchase of 

19 cannabis pursuant to a law or regulation of such State, 

20 political subdivision, or Indian Tribe that has jurisdiction 

21 over the Indian country, as applicable, an insurer that en22 gages in the business of insurance with a cannabis-related 

23 legitimate business or service provider or who otherwise 

24 engages with a person in a transaction permissible under 

25 State law related to cannabis, and the officers, directors, 


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1 and employees of that insurer may not be held liable pur2 suant to any Federal law or regulation— 

3 (1) solely for engaging in the business of insur4 ance; or 

5 (2) for further investing any income derived 

6 from the business of insurance. 

7 (d) FORFEITURE.— 

8 (1) DEPOSITORY INSTITUTIONS.—A depository 

9 institution that has a legal interest in the collateral 

10 for a loan or another financial service provided to an 

11 owner, employee, or operator of a cannabis-related 

12 legitimate business or service provider, or to an 

13 owner or operator of real estate or equipment that 

14 is leased or sold to a cannabis-related legitimate 

15 business or service provider, shall not be subject to 

16 criminal, civil, or administrative forfeiture of that 

17 legal interest pursuant to any Federal law for pro18 viding such loan or other financial service. 

19 (2) FEDERAL RESERVE BANKS AND FEDERAL

20 HOME LOAN BANKS.—A Federal reserve bank or 

21 Federal Home Loan Bank that has a legal interest 

22 in the collateral for a loan or another financial serv23 ice provided to a depository institution that provides 

24 a financial service to a cannabis-related legitimate 

25 business or service provider, or to an owner or operVerDate Sep 11 2014 00:45 Sep 27, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1595.RFS H1595

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1 ator of real estate or equipment that is leased or 

2 sold to a cannabis-related legitimate business or 

3 service provider, shall not be subject to criminal, 

4 civil, or administrative forfeiture of that legal inter5 est pursuant to any Federal law for providing such 

6 loan or other financial service. 

7 SEC. 5. RULES OF CONSTRUCTION. 

8 (a) NO REQUIREMENT TO PROVIDE FINANCIAL

9 SERVICES.—Nothing in this Act shall require a depository 

10 institution, entity performing a financial service for or in 

11 association with a depository institution, or insurer to pro12 vide financial services to a cannabis-related legitimate 

13 business, service provider, or any other business. 

14 (b) GENERAL EXAMINATION, SUPERVISORY, AND

15 ENFORCEMENT AUTHORITY.—Nothing in this Act may be 

16 construed in any way as limiting or otherwise restricting 

17 the general examination, supervisory, and enforcement au18 thority of the Federal banking regulators, provided that 

19 the basis for any supervisory or enforcement action is not 

20 the provision of financial services to a cannabis-related le21 gitimate business or service provider. 

22 SEC. 6. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY 

23 REPORTS. 

24 Section 5318(g) of title 31, United States Code, is 

25 amended by adding at the end the following: 


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1 ‘‘(5) REQUIREMENTS FOR CANNABIS-RELATED

2 LEGITIMATE BUSINESSES.— 

3 ‘‘(A) IN GENERAL.—With respect to a fi4 nancial institution or any director, officer, em5 ployee, or agent of a financial institution that 

6 reports a suspicious transaction pursuant to 

7 this subsection, if the reason for the report re8 lates to a cannabis-related legitimate business 

9 or service provider, the report shall comply with 

10 appropriate guidance issued by the Financial 

11 Crimes Enforcement Network. The Secretary 

12 shall ensure that the guidance is consistent with 

13 the purpose and intent of the SAFE Banking 

14 Act of 2019 and does not significantly inhibit 

15 the provision of financial services to a cannabis16 related legitimate business or service provider in 

17 a State, political subdivision of a State, or In18 dian country that has allowed the cultivation, 

19 production, manufacture, transportation, dis20 play, dispensing, distribution, sale, or purchase 

21 of cannabis pursuant to law or regulation of 

22 such State, political subdivision, or Indian 

23 Tribe that has jurisdiction over the Indian 

24 country. 


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1 ‘‘(B) DEFINITIONS.—For purposes of this 

2 paragraph: 

3 ‘‘(i) CANNABIS.—The term ‘cannabis’ 

4 has the meaning given the term ‘mari5 huana’ in section 102 of the Controlled 

6 Substances Act (21 U.S.C. 802). 

7 ‘‘(ii) CANNABIS-RELATED LEGITIMATE

8 BUSINESS.—The term ‘cannabis-related le9 gitimate business’ has the meaning given 

10 that term in section 14 of the SAFE 

11 Banking Act of 2019. 

12 ‘‘(iii) INDIAN COUNTRY.—The term 

13 ‘Indian country’ has the meaning given 

14 that term in section 1151 of title 18. 

15 ‘‘(iv) INDIAN TRIBE.—The term ‘In16 dian Tribe’ has the meaning given that 

17 term in section 102 of the Federally Rec18 ognized Indian Tribe List Act of 1994 (25 

19 U.S.C. 479a). 

20 ‘‘(v) FINANCIAL SERVICE.—The term 

21 ‘financial service’ has the meaning given 

22 that term in section 14 of the SAFE 

23 Banking Act of 2019. 

24 ‘‘(vi) SERVICE PROVIDER.—The term 

25 ‘service provider’ has the meaning given 


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1 that term in section 14 of the SAFE 

2 Banking Act of 2019. 

3 ‘‘(vii) STATE.—The term ‘State’ 

4 means each of the several States, the Dis5 trict of Columbia, Puerto Rico, and any 

6 territory or possession of the United 

7 States.’’. 

8 SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES. 

9 Not later than 180 days after the date of enactment 

10 of this Act, the Financial Institutions Examination Coun11 cil shall develop uniform guidance and examination proce12 dures for depository institutions that provide financial 

13 services to cannabis-related legitimate businesses and 

14 service providers. 

15 SEC. 8. ANNUAL DIVERSITY AND INCLUSION REPORT. 

16 The Federal banking regulators shall issue an annual 

17 report to Congress containing— 

18 (1) information and data on the availability of 

19 access to financial services for minority-owned and 

20 women-owned cannabis-related legitimate businesses; 

21 and 

22 (2) any regulatory or legislative recommenda23 tions for expanding access to financial services for 

24 minority-owned and women-owned cannabis-related 

25 legitimate businesses. 


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1 SEC. 9. GAO STUDY ON DIVERSITY AND INCLUSION. 

2 (a) STUDY.—The Comptroller General of the United 

3 States shall carry out a study on the barriers to market4 place entry, including in the licensing process, and the ac5 cess to financial services for potential and existing minor6 ity-owned and women-owned cannabis-related legitimate 

7 businesses. 

8 (b) REPORT.—The Comptroller General shall issue a 

9 report to the Congress— 

10 (1) containing all findings and determinations 

11 made in carrying out the study required under sub12 section (a); and 

13 (2) containing any regulatory or legislative rec14 ommendations for removing barriers to marketplace 

15 entry, including in the licensing process, and ex16 panding access to financial services for potential and 

17 existing minority-owned and women-owned cannabis18 related legitimate businesses. 

19 SEC. 10. GAO STUDY ON EFFECTIVENESS OF CERTAIN RE20 PORTS ON FINDING CERTAIN PERSONS. 

21 Not later than 2 years after the date of the enact22 ment of this Act, the Comptroller General of the United 

23 States shall carry out a study on the effectiveness of re24 ports on suspicious transactions filed pursuant to section 

25 5318(g) of title 31, United States Code, at finding individ26 uals or organizations suspected or known to be engaged 


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1 with transnational criminal organizations and whether any 

2 such engagement exists in a State, political subdivision, 

3 or Indian Tribe that has jurisdiction over Indian country 

4 that allows the cultivation, production, manufacture, sale, 

5 transportation, display, dispensing, distribution, or pur6 chase of cannabis. The study shall examine reports on sus7 picious transactions as follows: 

8 (1) During the period of 2014 until the date of 

9 the enactment of this Act, reports relating to mari10 juana-related businesses. 

11 (2) During the 1-year period after date of the 

12 enactment of this Act, reports relating to cannabis13 related legitimate businesses. 

14 SEC. 11. BANKING SERVICES FOR HEMP BUSINESSES. 

15 (a) FINDINGS.—The Congress finds that— 

16 (1) the Agriculture Improvement Act of 2018 

17 (Public Law 115–334) legalized hemp by removing 

18 it from the definition of ‘‘marihuana’’ under the 

19 Controlled Substances Act; 

20 (2) despite the legalization of hemp, some hemp 

21 businesses (including producers, manufacturers, and 

22 retailers) continue to have difficulty gaining access 

23 to banking products and services; and 


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1 (3) businesses involved in the sale of hemp-de2 rived cannabidiol (‘‘CBD’’) products are particularly 

3 affected, due to confusion about their legal status. 

4 (b) FEDERAL BANKING REGULATOR HEMP BANKING

5 GUIDANCE.—Not later than the end of the 90-day period 

6 beginning on the date of enactment of this Act, the Fed7 eral banking regulators shall jointly issue guidance to fi8 nancial institutions— 

9 (1) confirming the legality of hemp, hemp-de10 rived CBD products, and other hemp-derived 

11 cannabinoid products, and the legality of engaging 

12 in financial services with businesses selling hemp, 

13 hemp-derived CBD products, and other hemp-de14 rived cannabinoid products, after the enactment of 

15 the Agriculture Improvement Act of 2018; and 

16 (2) to provide recommended best practices for 

17 financial institutions to follow when providing finan18 cial services and merchant processing services to 

19 businesses involved in the sale of hemp, hemp-de20 rived CBD products, and other hemp-derived 

21 cannabinoid products. 

22 (c) FINANCIAL INSTITUTION DEFINED.—In this sec23 tion, the term ‘‘financial institution’’ means any person 

24 providing financial services. 


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1 SEC. 12. APPLICATION OF SAFE HARBORS TO HEMP AND 

2 CBD PRODUCTS. 

3 (a) IN GENERAL.—Except as provided under sub4 section (b), the provisions of this Act (other than sections 

5 6 and 10) shall apply to hemp (including hemp-derived 

6 cannabidiol and other hemp-derived cannabinoid products) 

7 in the same manner as such provisions apply to cannabis. 

8 (b) RULE OF APPLICATION.—In applying the provi9 sions of this Act described under subsection (a) to hemp, 

10 the definition of ‘‘cannabis-related legitimate business’’ 

11 shall be treated as excluding any requirement to engage 

12 in activity pursuant to the law of a State or political sub13 division thereof. 

14 (c) HEMP DEFINED.—In this section, the term 

15 ‘‘hemp’’ has the meaning given that term under section 

16 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 

17 1639o). 

18 SEC. 13. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMI19 NATION REQUESTS AND ORDERS. 

20 (a) TERMINATION REQUESTS OR ORDERS MUST BE

21 VALID.— 

22 (1) IN GENERAL.—An appropriate Federal 

23 banking agency may not formally or informally re24 quest or order a depository institution to terminate 

25 a specific customer account or group of customer ac26 counts or to otherwise restrict or discourage a deVerDate Sep 11 2014 00:45 Sep 27, 2019 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H1595.RFS H1595

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1 pository institution from entering into or maintain2 ing a banking relationship with a specific customer 

3 or group of customers unless— 

4 (A) the agency has a valid reason for such 

5 request or order; and 

6 (B) such reason is not based solely on rep7 utation risk. 

8 (2) TREATMENT OF NATIONAL SECURITY

9 THREATS.—If an appropriate Federal banking agen10 cy believes a specific customer or group of customers 

11 is, or is acting as a conduit for, an entity which— 

12 (A) poses a threat to national security; 

13 (B) is involved in terrorist financing; 

14 (C) is an agency of the Government of 

15 Iran, North Korea, Syria, or any country listed 

16 from time to time on the State Sponsors of 

17 Terrorism list; 

18 (D) is located in, or is subject to the juris19 diction of, any country specified in subpara20 graph (C); or 

21 (E) does business with any entity described 

22 in subparagraph (C) or (D), unless the appro23 priate Federal banking agency determines that 

24 the customer or group of customers has used 


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1 due diligence to avoid doing business with any 

2 entity described in subparagraph (C) or (D), 

3 such belief shall satisfy the requirement under para4 graph (1). 

5 (b) NOTICE REQUIREMENT.— 

6 (1) IN GENERAL.—If an appropriate Federal 

7 banking agency formally or informally requests or 

8 orders a depository institution to terminate a spe9 cific customer account or a group of customer ac10 counts, the agency shall— 

11 (A) provide such request or order to the 

12 institution in writing; and 

13 (B) accompany such request or order with 

14 a written justification for why such termination 

15 is needed, including any specific laws or regula16 tions the agency believes are being violated by 

17 the customer or group of customers, if any. 

18 (2) JUSTIFICATION REQUIREMENT.—A jus19 tification described under paragraph (1)(B) may not 

20 be based solely on the reputation risk to the deposi21 tory institution. 

22 (c) CUSTOMER NOTICE.— 

23 (1) NOTICE REQUIRED.—Except as provided 

24 under paragraph (2) or as otherwise prohibited from 

25 being disclosed by law, if an appropriate Federal 


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1 banking agency orders a depository institution to 

2 terminate a specific customer account or a group of 

3 customer accounts, the depository institution shall 

4 inform the specific customer or group of customers 

5 of the justification for the customer’s account termi6 nation described under subsection (b). 

7 (2) NOTICE PROHIBITED.— 

8 (A) NOTICE PROHIBITED IN CASES OF NA9 TIONAL SECURITY.—If an appropriate Federal 

10 banking agency requests or orders a depository 

11 institution to terminate a specific customer ac12 count or a group of customer accounts based on 

13 a belief that the customer or customers pose a 

14 threat to national security, or are otherwise de15 scribed under subsection (a)(2), neither the de16 pository institution nor the appropriate Federal 

17 banking agency may inform the customer or 

18 customers of the justification for the customer’s 

19 account termination. 

20 (B) NOTICE PROHIBITED IN OTHER

21 CASES.—If an appropriate Federal banking 

22 agency determines that the notice required 

23 under paragraph (1) may interfere with an au24 thorized criminal investigation, neither the de25 pository institution nor the appropriate Federal 


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1 banking agency may inform the specific cus2 tomer or group of customers of the justification 

3 for the customer’s account termination. 

4 (d) REPORTING REQUIREMENT.—Each appropriate 

5 Federal banking agency shall issue an annual report to 

6 the Congress stating— 

7 (1) the aggregate number of specific customer 

8 accounts that the agency requested or ordered a de9 pository institution to terminate during the previous 

10 year; and 

11 (2) the legal authority on which the agency re12 lied in making such requests and orders and the fre13 quency on which the agency relied on each such au14 thority. 

15 (e) DEFINITIONS.—For purposes of this section: 

16 (1) APPROPRIATE FEDERAL BANKING AGEN17 CY.—The term ‘‘appropriate Federal banking agen18 cy’’ means— 

19 (A) the appropriate Federal banking agen20 cy, as defined under section 3 of the Federal 

21 Deposit Insurance Act (12 U.S.C. 1813); and 

22 (B) the National Credit Union Administra23 tion, in the case of an insured credit union. 

24 (2) DEPOSITORY INSTITUTION.—The term ‘‘de25 pository institution’’ means— 


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1 (A) a depository institution, as defined 

2 under section 3 of the Federal Deposit Insur3 ance Act (12 U.S.C. 1813); and 

4 (B) an insured credit union. 

5 SEC. 14. DEFINITIONS. 

6 In this Act: 

7 (1) BUSINESS OF INSURANCE.—The term 

8 ‘‘business of insurance’’ has the meaning given such 

9 term in section 1002 of the Dodd-Frank Wall Street 

10 Reform and Consumer Protection Act (12 U.S.C. 

11 5481). 

12 (2) CANNABIS.—The term ‘‘cannabis’’ has the 

13 meaning given the term ‘‘marihuana’’ in section 102 

14 of the Controlled Substances Act (21 U.S.C. 802). 

15 (3) CANNABIS PRODUCT.—The term ‘‘cannabis 

16 product’’ means any article which contains cannabis, 

17 including an article which is a concentrate, an edi18 ble, a tincture, a cannabis-infused product, or a top19 ical. 

20 (4) CANNABIS-RELATED LEGITIMATE BUSI21 NESS.—The term ‘‘cannabis-related legitimate busi22 ness’’ means a manufacturer, producer, or any per23 son or company that— 

24 (A) engages in any activity described in 

25 subparagraph (B) pursuant to a law established 


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1 by a State or a political subdivision of a State, 

2 as determined by such State or political subdivi3 sion; and 

4 (B) participates in any business or orga5 nized activity that involves handling cannabis or 

6 cannabis products, including cultivating, pro7 ducing, manufacturing, selling, transporting, 

8 displaying, dispensing, distributing, or pur9 chasing cannabis or cannabis products. 

10 (5) DEPOSITORY INSTITUTION.—The term ‘‘de11 pository institution’’ means— 

12 (A) a depository institution as defined in 

13 section 3(c) of the Federal Deposit Insurance 

14 Act (12 U.S.C. 1813(c)); 

15 (B) a Federal credit union as defined in 

16 section 101 of the Federal Credit Union Act 

17 (12 U.S.C. 1752); or 

18 (C) a State credit union as defined in sec19 tion 101 of the Federal Credit Union Act (12 

20 U.S.C. 1752). 

21 (6) FEDERAL BANKING REGULATOR.—The 

22 term ‘‘Federal banking regulator’’ means each of the 

23 Board of Governors of the Federal Reserve System, 

24 the Bureau of Consumer Financial Protection, the 

25 Federal Deposit Insurance Corporation, the Federal 


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1 Housing Finance Agency, the Financial Crimes En2 forcement Network, the Office of Foreign Asset 

3 Control, the Office of the Comptroller of the Cur4 rency, the National Credit Union Administration, 

5 the Department of the Treasury, or any Federal 

6 agency or department that regulates banking or fi7 nancial services, as determined by the Secretary of 

8 the Treasury. 

9 (7) FINANCIAL SERVICE.—The term ‘‘financial 

10 service’’— 

11 (A) means a financial product or service, 

12 as defined in section 1002 of the Dodd-Frank 

13 Wall Street Reform and Consumer Protection 

14 Act (12 U.S.C. 5481); 

15 (B) includes the business of insurance; 

16 (C) includes, whether performed directly or 

17 indirectly, the authorizing, processing, clearing, 

18 settling, billing, transferring for deposit, trans19 mitting, delivering, instructing to be delivered, 

20 reconciling, collecting, or otherwise effectuating 

21 or facilitating of payments or funds, where such 

22 payments or funds are made or transferred by 

23 any means, including by the use of credit cards, 

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1 cess devices, accounts, original or substitute 

2 checks, or electronic funds transfers; 

3 (D) includes acting as a money transmit4 ting business which directly or indirectly makes 

5 use of a depository institution in connection 

6 with effectuating or facilitating a payment for 

7 a cannabis-related legitimate business or service 

8 provider in compliance with section 5330 of 

9 title 31, United States Code, and any applicable 

10 State law; and 

11 (E) includes acting as an armored car 

12 service for processing and depositing with a de13 pository institution or a Federal reserve bank 

14 with respect to any monetary instruments (as 

15 defined under section 1956(c)(5) of title 18, 

16 United States Code. 

17 (8) INDIAN COUNTRY.—The term ‘‘Indian coun18 try’’ has the meaning given that term in section 

19 1151 of title 18. 

20 (9) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

21 has the meaning given that term in section 102 of 

22 the Federally Recognized Indian Tribe List Act of 

23 1994 (25 U.S.C. 479a). 


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1 (10) INSURER.—The term ‘‘insurer’’ has the 

2 meaning given that term under section 313(r) of 

3 title 31, United States Code. 

4 (11) MANUFACTURER.—The term ‘‘manufac5 turer’’ means a person who manufactures, com6 pounds, converts, processes, prepares, or packages 

7 cannabis or cannabis products. 

8 (12) PRODUCER.—The term ‘‘producer’’ means 

9 a person who plants, cultivates, harvests, or in any 

10 way facilitates the natural growth of cannabis. 

11 (13) SERVICE PROVIDER.—The term ‘‘service 

12 provider’’— 

13 (A) means a business, organization, or 

14 other person that— 

15 (i) sells goods or services to a can16 nabis-related legitimate business; or 

17 (ii) provides any business services, in18 cluding the sale or lease of real or any 

19 other property, legal or other licensed serv20 ices, or any other ancillary service, relating 

21 to cannabis; and 

22 (B) does not include a business, organiza23 tion, or other person that participates in any 

24 business or organized activity that involves han25 dling cannabis or cannabis products, including 


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HR 1595 RFS

1 cultivating, producing, manufacturing, selling, 

2 transporting, displaying, dispensing, distrib3 uting, or purchasing cannabis or cannabis prod4 ucts. 

5 (14) STATE.—The term ‘‘State’’ means each of 

6 the several States, the District of Columbia, Puerto 

7 Rico, and any territory or possession of the United 

8 States. 

9 SEC. 15. DISCRETIONARY SURPLUS FUNDS. 

10 Section 7(a)(3)(A) of the Federal Reserve Act (12 

11 U.S.C. 289(a)(3)(A)) is amended by striking 

12 ‘‘$6,825,000,000’’ and inserting ‘‘$6,821,000,000’’. 

13 SEC. 16. DETERMINATION OF BUDGETARY EFFECTS. 

14 The budgetary effects of this Act, for the purpose of 

15 complying with the Statutory Pay-As-You-Go Act of 2010, 

16 shall be determined by reference to the latest statement 

17 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

18 Act, submitted for printing in the Congressional Record 

19 by the Chairman of the House Budget Committee, 


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HR 1595 RFS

1 provided that such statement has been submitted prior to 

2 the vote on passage. 

Passed the House of Representatives September 25, 

2019. 

Attest: CHERYL L. JOHNSON, 

Clerk. 


pamtmann on DSKBC07HB2PROD with BILLS