SAFE Banking Act of 2023

Subjects: Finance and Financial Sector, Administrative law and regulatory procedures, Asia, Bank accounts, deposits, capital, Banking and financial institutions regulation, Business records, Congressional oversight, Consumer affairs, Credit and credit markets, Criminal investigation, prosecution, interrogation, Department of the Treasury, Drug trafficking and controlled substances, Drug, alcohol, tobacco use, Evidence and witnesses, Federal Deposit Insurance Corporation (FDIC), Federal Reserve System, Financial services and investments, Fraud offenses and financial crimes, Government information and archives, Government liability, Government studies and investigations, Insurance industry and regulation, Iran, Judicial procedure and administration, Licensing and registrations, Middle East, Minority and disadvantaged businesses, National Credit Union Administration, North Korea, Organized crime, Syria, Terrorism, Women in business


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2891 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 2891

To create protections for financial institutions that provide financial 
services to State-sanctioned marijuana businesses and service providers 
              for such businesses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 2023

   Mr. Joyce of Ohio (for himself, Mr. Blumenauer, Mr. Davidson, Mr. 
    Himes, Mr. Mast, Ms. Lee of California, Mr. Reschenthaler, Ms. 
    Velazquez, Mrs. Chavez-DeRemer, and Mr. Correa) introduced the 
   following bill; which was referred to the Committee on Financial 
   Services, and in addition to the Committees on the Judiciary, and 
 Veterans' Affairs, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To create protections for financial institutions that provide financial 
services to State-sanctioned marijuana 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.

    (a) Short Title.--This Act may be cited as the ``Secure And Fair 
Enforcement Banking Act of 2023'' or the ``SAFE Banking Act of 2023''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Safe harbor for depository institutions.
Sec. 4. Protections for providing services to State-sanctioned 
                            marijuana businesses.
Sec. 5. Protections under Federal law.
Sec. 6. Requirements for filing suspicious activity reports.
Sec. 7. Guidance and examination procedures.
Sec. 8. Banking services for hemp-related legitimate businesses and 
                            hemp-related service providers.
Sec. 9. Treatment of income derived from a State-sanctioned marijuana 
                            business for qualification for a federally 
                            backed single-family mortgage loan.
Sec. 10. Requirements for deposit account termination requests and 
                            orders.
Sec. 11. Annual diversity and inclusion report.
Sec. 12. GAO study on diversity and inclusion.
Sec. 13. GAO study on effectiveness of certain reports on finding 
                            certain persons.
Sec. 14. Applicability to hemp-related legitimate businesses and hemp-
                            related service providers.
Sec. 15. Rules of construction.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Business of insurance.--The term ``business of 
        insurance'' has the meaning given the term in section 1002 of 
        the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481).
            (2) CBD.--The term ``CBD'' means cannabidiol.
            (3) Community development financial institution.--The term 
        ``community development financial institution'' has the meaning 
        given the term in section 103 of the Community Development 
        Banking and Financial Institutions Act of 1994 (12 U.S.C. 
        4702).
            (4) Depository institution.--The term ``depository 
        institution''--
                    (A) means--
                            (i) a depository institution, as defined in 
                        section 3(c) of the Federal Deposit Insurance 
                        Act (12 U.S.C. 1813(c));
                            (ii) a Federal credit union, as defined in 
                        section 101 of the Federal Credit Union Act (12 
                        U.S.C. 1752); and
                            (iii) a State credit union, as defined in 
                        section 101 of the Federal Credit Union Act (12 
                        U.S.C. 1752); and
                    (B) includes any minority depository institution, 
                as defined in section 308 of the Financial Institutions 
                Reform, Recovery, and Enforcement Act of 1989 (12 
                U.S.C. 1463 note).
            (5) Federal banking regulator.--The term ``Federal banking 
        regulator'' means each of the Board of Governors of the Federal 
        Reserve System, the Bureau of Consumer Financial Protection, 
        the Federal Deposit Insurance Corporation, the Federal Housing 
        Finance Agency, the Office of the Comptroller of the Currency, 
        the National Credit Union Administration, the Department of the 
        Treasury (including the Financial Crimes Enforcement Network 
        and the Office of Foreign Assets Control), or any Federal 
        agency or department that regulates banking or financial 
        services, as determined by the Secretary of the Treasury.
            (6) Financial product or service.--The term ``financial 
        product or service'' has the meaning given the term in section 
        1002 of the Consumer Financial Protection Act of 2010 (12 
        U.S.C. 5481).
            (7) Financial service.--The term ``financial service''--
                    (A) means--
                            (i) a financial product or service, 
                        regardless of whether the customer receiving 
                        the product or service is a consumer or 
                        commercial entity; or
                            (ii) a financial product or service, or any 
                        combination of products and services, permitted 
                        to be provided by--
                                    (I) a national bank or a financial 
                                subsidiary pursuant to the authority 
                                provided under--
                                            (aa) the paragraph 
                                        designated as the ``Seventh'' 
                                        of section 5136 of the Revised 
                                        Statutes (12 U.S.C. 24); or
                                            (bb) section 5136A of the 
                                        Revised Statutes (12 U.S.C. 
                                        24a);
                                    (II) a Federal credit union, 
                                pursuant to the authority provided 
                                under the Federal Credit Union Act (12 
                                U.S.C. 1751 et seq.); or
                                    (III) a community development 
                                financial institution; and
                    (B) includes--
                            (i) the business of insurance;
                            (ii) whether performed directly or 
                        indirectly, the authorizing, processing, 
                        clearing, settling, billing, transferring for 
                        deposit, transmitting, delivering, instructing 
                        to be delivered, reconciling, collecting, or 
                        otherwise effectuating or facilitating the 
                        payment of funds that are made or transferred 
                        by any means, including by the use of credit 
                        cards, debit cards, other payment cards, or 
                        other access devices, accounts, original or 
                        substitute checks, or electronic funds 
                        transfers;
                            (iii) acting as a money transmitting 
                        business that directly or indirectly makes use 
                        of a depository institution in connection with 
                        effectuating or facilitating a payment for a 
                        State-sanctioned marijuana business or service 
                        provider in compliance with section 5330 of 
                        title 31, United States Code, and any 
                        applicable State or Tribal law; and
                            (iv) acting as an armored car service for 
                        processing and depositing with a depository 
                        institution or a Federal reserve bank with 
                        respect to any monetary instruments, as defined 
                        in section 1956(c)(5) of title 18, United 
                        States Code.
            (8) 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).
            (9) Hemp-related legitimate business.--The term ``hemp-
        related legitimate business'' means a manufacturer, producer, 
        or any person or company that--
                    (A) engages in any activity described in 
                subparagraph (B) in conformity with the Agriculture 
                Improvement Act of 2018 (Public Law 115-334; 132 Stat. 
                4490), amendments made by that Act, and the regulations 
                issued to implement that Act by the Department of 
                Agriculture, where applicable, and the law of a State, 
                an Indian Tribe, or a political subdivision of a State; 
                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, distributing, or purchasing hemp, hemp-
                derived CBD products, and other hemp-derived 
                cannabinoid products.
            (10) 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 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.
            (11) 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).
            (12) Insurer.--The term ``insurer'' has the meaning given 
        the term in section 313(r) of title 31, United States Code.
            (13) Manufacturer.--The term ``manufacturer'' means a 
        person who manufactures, compounds, converts, processes, 
        prepares, or packages marijuana or marijuana products.
            (14) Marijuana.--The term ``marijuana'' has the meaning 
        given the term ``marihuana'' in section 102 of the Controlled 
        Substances Act (21 U.S.C. 802).
            (15) Marijuana product.--The term ``marijuana product'' 
        means any article that contains marijuana, including an article 
        that is a concentrate, an edible, a tincture, a marijuana-
        infused product, or a topical.
            (16) Producer.--The term ``producer'' means a person who 
        plants, cultivates, harvests, or in any way facilitates the 
        natural growth of marijuana.
            (17) Service provider.--The term ``service provider''--
                    (A) means a business, organization, or other person 
                that--
                            (i) sells goods or services to a State-
                        sanctioned marijuana business; or
                            (ii) provides any business services, 
                        including the sale or lease of real or any 
                        other property, legal or other licensed 
                        services, or any other ancillary service, 
                        relating to a State-sanctioned marijuana 
                        business; and
                    (B) does not include a business, organization, or 
                other person that participates in any business or 
                organized activity that involves handling marijuana or 
                marijuana products, including cultivating, producing, 
                manufacturing, selling, transporting, displaying, 
                dispensing, distributing, or purchasing marijuana or 
                marijuana products.
            (18) 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.
            (19) State-sanctioned marijuana business.--The term 
        ``State-sanctioned marijuana business'' means a manufacturer, 
        producer, or any person that--
                    (A) engages in any activity described in 
                subparagraph (B) pursuant to a law established by a 
                State, an Indian Tribe, or a political subdivision of a 
                State, as determined by such State, Indian Tribe, or 
                political subdivision; and
                    (B) participates in any business or organized 
                activity that involves handling marijuana or marijuana 
                products, including cultivating, producing, 
                manufacturing, selling, transporting, displaying, 
                dispensing, distributing, or purchasing marijuana or 
                marijuana products.

SEC. 3. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS.

    (a) Prohibition.--A Federal banking regulator may not--
            (1) terminate or limit the deposit insurance or share 
        insurance of a depository institution under the Federal Deposit 
        Insurance Act (12 U.S.C. 1811 et seq.) or the Federal Credit 
        Union Act (12 U.S.C. 1751 et seq.) or take any other adverse 
        action against a depository institution under the Federal 
        Deposit Insurance Act (12 U.S.C. 1811 et seq.) or the Federal 
        Credit Union Act (12 U.S.C. 1751 et seq.) solely because the 
        depository institution provides or has provided financial 
        services to a State-sanctioned marijuana business or service 
        provider;
            (2) prohibit, penalize, or otherwise discourage a 
        depository institution from providing financial services to--
                    (A) a State-sanctioned marijuana business or 
                service provider solely because the business or service 
                provider is a State-sanctioned marijuana business or 
                service provider; or
                    (B) a State, an Indian Tribe, or a political 
                subdivision of a State solely because that entity 
                exercises jurisdiction over State-sanctioned marijuana 
                businesses;
            (3) recommend, incentivize, or encourage a depository 
        institution not to offer financial services to an account 
        holder, or to downgrade or cancel the financial services 
        offered to an account holder, solely because--
                    (A) the account holder is a State-sanctioned 
                marijuana business or service provider, or is an 
                employee, owner, or operator of a State-sanctioned 
                marijuana business or service provider;
                    (B) the account holder later becomes an employee, 
                owner, or operator of a State-sanctioned marijuana 
                business or service provider; or
                    (C) the depository institution was not aware, after 
                conducting sufficient risk-based customer due diligence 
                in accordance with applicable requirements, that the 
                account holder is an employee, owner, or operator of a 
                State-sanctioned marijuana business or service 
                provider;
            (4) take any adverse or corrective supervisory action on a 
        loan made to--
                    (A) a State-sanctioned marijuana business or 
                service provider, solely because the business is a 
                State-sanctioned marijuana business or service 
                provider;
                    (B) an employee, owner, or operator of a State-
                sanctioned marijuana business or service provider, 
                solely because the employee, owner, or operator is 
                employed by, owns, or operates a State-sanctioned 
                marijuana business or service provider, as applicable; 
                or
                    (C) an owner or operator of real estate or 
                equipment that is leased to a State-sanctioned 
                marijuana business or service provider, solely because 
                the owner or operator of the real estate or equipment 
                leased the equipment or real estate to a State-
                sanctioned marijuana business or service provider, as 
                applicable; or
            (5) prohibit or penalize a depository institution (or 
        entity performing a financial service for or in association 
        with a depository institution) for, or otherwise discourage a 
        depository institution (or entity performing a financial 
        service for or in association with a depository institution) 
        from, engaging in a financial service for a State-sanctioned 
        marijuana business or service provider solely because the 
        business or service provider is a State-sanctioned marijuana 
        business or service provider.
    (b) Safe Harbor Applicable to De Novo Institutions.--Subsection (a) 
shall apply to an institution applying for a depository institution 
charter to the same extent as such subsection applies to a depository 
institution.

SEC. 4. PROTECTIONS FOR PROVIDING SERVICES TO STATE-SANCTIONED 
              MARIJUANA BUSINESSES.

    For the purposes of sections 1956 and 1957 of title 18, United 
States Code, and all other provisions of Federal law, the proceeds from 
marijuana-related activities of a State-sanctioned marijuana business 
or service provider that conducts all of its marijuana-related activity 
in compliance with the marijuana-related law of the State, Indian 
Tribe, or political subdivision of the State shall not be considered 
proceeds from an unlawful activity solely because--
            (1) the transaction involves proceeds from a State-
        sanctioned marijuana business or service provider; or
            (2) the transaction involves proceeds from--
                    (A) marijuana-related activities described in 
                section 2(19)(B) conducted by a State-sanctioned 
                marijuana business; or
                    (B) activities described in section 2(17)(A) 
                conducted by a service provider.

SEC. 5. PROTECTIONS UNDER FEDERAL LAW.

    (a) In General.--With respect to providing a financial service to a 
State-sanctioned marijuana business (where such State-sanctioned 
marijuana business operates within a State, an Indian Tribe, or a 
political subdivision of a State that allows the cultivation, 
production, manufacture, sale, transportation, display, dispensing, 
distribution, or purchase of marijuana pursuant to a law or regulation 
of such State, Indian Tribe, or political subdivision, as applicable) 
or a service provider (wherever located), a depository institution, an 
entity performing a financial service for or in association with a 
depository institution, a community development financial institution, 
or an insurer that provides a financial service to a State-sanctioned 
marijuana business or service provider, and the officers, directors, 
employees, and agents of that depository institution, entity, community 
development financial institution, or insurer may not be held liable 
pursuant to any Federal law or regulation--
            (1) solely for providing such a financial service; or
            (2) for further investing any income derived from such a 
        financial service.
    (b) Protections for Federal Reserve Banks and Federal Home Loan 
Banks.--With respect to providing a service to a depository institution 
that provides a financial service to a State-sanctioned marijuana 
business (where such State-sanctioned marijuana business operates 
within a State, an Indian Tribe, or a political subdivision of a State 
that allows the cultivation, production, manufacture, sale, 
transportation, display, dispensing, distribution, or purchase of 
marijuana pursuant to a law or regulation of such State, Indian Tribe, 
or political subdivision, as applicable) or service provider (wherever 
located), a Federal reserve bank or Federal Home Loan Bank, and the 
officers, directors, and employees of the Federal reserve bank or 
Federal Home Loan Bank, may not be held liable pursuant to any Federal 
law or regulation--
            (1) solely for providing such a service; or
            (2) for further investing any income derived from such a 
        service.
    (c) Protections for Insurers.--With respect to engaging in the 
business of insurance within a State, an Indian Tribe, or a political 
subdivision of a State that allows the cultivation, production, 
manufacture, sale, transportation, display, dispensing, distribution, 
or purchase of marijuana pursuant to a law or regulation of such State, 
Indian Tribe, or political subdivision, as applicable, an insurer that 
engages in the business of insurance with a State-sanctioned marijuana 
business or service provider or that otherwise engages with a person in 
a transaction permissible pursuant to a law (including regulations) of 
such State, Indian Tribe, or political subdivision related to 
marijuana, and the officers, directors, and employees of that insurer, 
may not be held liable pursuant to any Federal law or regulation--
            (1) solely for engaging in the business of insurance; or
            (2) for further investing any income derived from the 
        business of insurance.
    (d) Forfeiture.--
            (1) Depository institutions and community development 
        financial institutions.--A depository institution or community 
        development financial institution that has a legal interest in 
        the collateral for a loan or another financial service provided 
        to an owner, employee, or operator of a State-sanctioned 
        marijuana business or service provider, or to an owner or 
        operator of real estate or equipment that is leased or sold to 
        a State-sanctioned marijuana business or service provider, 
        shall not be subject to criminal, civil, or administrative 
        forfeiture of that legal interest pursuant to any Federal law 
        solely for providing such loan or other financial service.
            (2) Federal reserve banks and federal home loan banks.--A 
        Federal reserve bank or Federal Home Loan Bank that has a legal 
        interest in the collateral for a loan or another financial 
        service provided to a depository institution that provides a 
        financial service to a State-sanctioned marijuana business or 
        service provider, or to an owner or operator of real estate or 
        equipment that is leased or sold to a State-sanctioned 
        marijuana business or service provider, shall not be subject to 
        criminal, civil, or administrative forfeiture of that legal 
        interest pursuant to any Federal law for providing such loan or 
        other financial service.
            (3) Federal national mortgage association, federal home 
        loan mortgage corporation, and federal agencies making, 
        insuring, or guaranteeing mortgage loans or securities.--The 
        Federal National Mortgage Association, the Federal Home Loan 
        Mortgage Corporation, and any Federal agency that has a legal 
        interest in the collateral for a residential mortgage loan, 
        including individual units of condominiums and cooperatives, 
        provided that the collateral is a property designed principally 
        for the occupancy of 1 to 4 families and underwritten, in whole 
        or in part, based on income from a State-sanctioned marijuana 
        business or service provider, shall not be subject to criminal, 
        civil, or administrative forfeiture of that legal interest 
        pursuant to any Federal law for providing, insuring, 
        guaranteeing, purchasing, securitizing, or guaranteeing 
        payments from a security based on such loan.
            (4) Other parties to mortgage loans.--A nondepository 
        lender that makes a federally backed mortgage loan, as defined 
        in section 9(a), and any person who otherwise has a legal 
        interest in such a loan or in the collateral of the loan, 
        including individual units of condominiums and cooperatives, 
        provided that the collateral is a property designed principally 
        for the occupancy of 1 to 4 families and underwritten, in whole 
        or in part, based on income from a State-sanctioned marijuana 
        business or service provider, shall not be subject to criminal, 
        civil, or administrative forfeiture of that legal interest 
        pursuant to any Federal law for providing, purchasing, 
        securitizing, accepting, and making payments related to such 
        federally backed mortgage loan solely because loan payments or 
        underwriting are based on income that is in whole or in part 
        from a State-sanctioned marijuana business or service provider.
            (5) Definition.--In this subsection, the term 
        ``collateral'' does not include marijuana or a marijuana 
        product.

SEC. 6. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY REPORTS.

    Section 5318(g) of title 31, United States Code, is amended--
            (1) by redesignating paragraph (11) as paragraph (12); and
            (2) by inserting after paragraph (10) the following:
            ``(11) Requirements for state-sanctioned marijuana 
        businesses.--
                    ``(A) In general.--With respect to a financial 
                institution, or any director, officer, employee, or 
                agent of a financial institution, that reports a 
                suspicious transaction pursuant to this subsection, if 
                the reason for the report relates to a State-sanctioned 
                marijuana business or service provider, the report 
                shall comply with appropriate guidance issued by the 
                Secretary of the Treasury. Not later than the end of 
                the 180-day period beginning on the date of enactment 
                of the Secure And Fair Enforcement Banking Act of 2023, 
                the Secretary shall amend the February 14, 2014, 
                guidance titled `BSA Expectations Regarding Marijuana-
                Related Businesses' (FIN-2014-G001) or issue new 
                guidance to ensure consistency with the purpose and 
                intent of the Secure And Fair Enforcement Banking Act 
                of 2023, and the amendments made by that Act, and that 
                such guidance ensures that a financial institution, and 
                any director, officer, employee, or agent of a 
                financial institution, continues to report suspicious 
                transactions pursuant to this subsection, as 
                applicable, relating to State-sanctioned marijuana 
                businesses and service providers to preserve the 
                ability of the Financial Crimes Enforcement Network to 
                prevent and combat illicit activity.
                    ``(B) Definitions.--In this paragraph:
                            ``(i) Financial service; service provider; 
                        state; state-sanctioned marijuana business.--
                        The terms `financial service', `service 
                        provider', `State', and `State-sanctioned 
                        marijuana business' have the meanings given the 
                        terms in section 2 of the SAFE Banking Act of 
                        2023.
                            ``(ii) Indian country.--The term `Indian 
                        country' has the meaning given the term in 
                        section 1151 of title 18.
                            ``(iii) 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).
                            ``(iv) Marijuana.--The term `marijuana' has 
                        the meaning given the term `marihuana' in 
                        section 102 of the Controlled Substances Act 
                        (21 U.S.C. 802).''.

SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES.

    (a) Uniform Guidance and Examination Procedures.--Not later than 
180 days after the date of enactment of this Act, the Federal Financial 
Institutions Examination Council, in consultation with the Department 
of the Treasury, shall develop uniform guidance and examination 
procedures for depository institutions that provide financial services 
to State-sanctioned marijuana businesses and service providers.
    (b) Legacy Deposits.--The guidance and examination procedures 
described in subsection (a) shall permit a depository institution to 
accept a deposit of currency from a State-sanctioned marijuana business 
if--
            (1) the business received the currency during the 90-day 
        period ending on the date on which the business commenced its 
        relationship with the depository institution;
            (2) the business provided the depository institution with 
        records sufficient to demonstrate the source of the currency 
        being deposited by the business;
            (3) the amount of the currency is reasonable in light of 
        the expected revenue of the business, as determined by the 
        depository institution consistent with the risk-based 
        procedures for ensuring compliance with the section 5318(h) of 
        title 31, United States Code, and any applicable regulations 
        implementing that section; and
            (4) the depository institution complies with any other 
        applicable reporting requirements pursuant to subchapter II of 
        chapter 53 of title 31, United States Code, and any applicable 
        regulations implementing that subchapter.

SEC. 8. BANKING SERVICES FOR HEMP-RELATED LEGITIMATE BUSINESSES AND 
              HEMP-RELATED SERVICE PROVIDERS.

    (a) Findings.--Congress finds that--
            (1) section 12619 of the Agriculture Improvement Act of 
        2018 (Public Law 115-334; 132 Stat. 5018) legalized hemp by 
        removing it from the definition of marihuana under section 102 
        of the Controlled Substances Act (21 U.S.C. 802);
            (2) despite the legalization of hemp, some hemp businesses 
        (including producers, manufacturers, and retailers) continue to 
        have difficulty gaining access to banking products and 
        services; and
            (3) businesses involved in the sale of hemp-derived CBD 
        products are particularly affected, due to confusion about the 
        legal status of such products.
    (b) Definition.--In this section, the term ``financial 
institution''--
            (1) has the meaning given the term in section 5312(a) of 
        title 31, United States Code; and
            (2) includes a bank holding company, as defined in section 
        2(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 
        1841(a)).
    (c) Federal Banking Regulators' Hemp Banking Guidance.--Not later 
than the end of the 90-day period beginning on the date of enactment of 
this Act, each Federal banking regulator shall update guidance, as in 
effect on the date of enactment of this Act, regarding providing 
financial services to hemp-related legitimate businesses and hemp-
related service providers to address--
            (1) compliance with obligations of financial institutions, 
        as of the date of enactment of this Act, under Federal laws 
        (including regulations) determined relevant by the Federal 
        banking regulator and the Department of the Treasury, including 
        subchapter II of chapter 53 of title 31, United States Code, 
        and its implementing regulation in conformity with this Act and 
        the regulations relating to domestic hemp production under part 
        990 of title 7, Code of Federal Regulations; and
            (2) best practices for financial institutions to follow 
        when providing financial services, including processing 
        payments, to hemp-related legitimate businesses and hemp-
        related service providers.

SEC. 9. TREATMENT OF INCOME DERIVED FROM A STATE-SANCTIONED MARIJUANA 
              BUSINESS FOR QUALIFICATION FOR A FEDERALLY BACKED SINGLE-
              FAMILY MORTGAGE LOAN.

    (a) Definition.--In this section, the term ``federally backed 
mortgage loan'' means any loan secured by a first or subordinate lien 
on residential real property, including individual units of 
condominiums and cooperatives, designed principally for the occupancy 
of 1 to 4 families that is--
            (1) insured by the Federal Housing Administration under 
        title I or title II of the National Housing Act (12 U.S.C. 1702 
        et seq., 1707 et seq.);
            (2) insured under section 255 of the National Housing Act 
        (12 U.S.C. 1715z-20);
            (3) guaranteed under section 184 or 184A of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1715z-13a, 1715z-
        13b);
            (4) guaranteed, insured, or made by the Department of 
        Veterans Affairs;
            (5) guaranteed, insured, or made by the Department of 
        Agriculture; or
            (6) purchased or securitized by the Federal Home Loan 
        Mortgage Corporation or the Federal National Mortgage 
        Association.
    (b) Treatment of Income.--
            (1) In general.--Income derived from a State-sanctioned 
        marijuana business that operates within a State, an Indian 
        Tribe, or a political subdivision of a State that allows the 
        cultivation, production, manufacture, sale, transportation, 
        display, dispensing, distribution, or purchase of marijuana 
        pursuant to a law or regulation of the State, Indian Tribe, or 
        political subdivision, as applicable, or a service provider 
        (wherever located), shall be considered in the same manner as 
        any other legal income for purposes of determining eligibility 
        for a federally backed mortgage loan for a 1- to 4-unit 
        property that is the principal residence of the mortgagor.
            (2) Liability.--The mortgagee or servicer of a federally 
        backed mortgage loan described in paragraph (1), or any Federal 
        agency, the Federal National Mortgage Association, or the 
        Federal Home Loan Mortgage Corporation, may not be held liable 
        pursuant to any Federal law or regulation solely for--
                    (A) providing, insuring, guaranteeing, purchasing, 
                or securitizing a mortgage to an otherwise qualified 
                borrower on the basis of the income described in 
                paragraph (1); or
                    (B) accepting the income described in paragraph (1) 
                as payment on the federally backed mortgage loan.
    (c) Implementation.--Not later than 180 days after the date of 
enactment of this Act--
            (1) the Federal Housing Administration shall implement 
        subsection (b)--
                    (A) by notice or mortgagee letter for loans insured 
                under title I, title II, or section 255 of the National 
                Housing Act (12 U.S.C. 1702 et seq., 1707 et seq., 
                1715z-20); and
                    (B) by lender letter for loans guaranteed under 
                section 184 or 184A of the Housing and Community 
                Development Act of 1992 (12 U.S.C. 1715z-13a, 1715z-
                13b);
            (2) the Department of Veterans Affairs shall implement 
        subsection (b) by circular or handbook for loans guaranteed, 
        insured, or made by the Department;
            (3) the Department of Agriculture shall implement 
        subsection (b) by bulletin for loans guaranteed or made by the 
        Department;
            (4) the Federal Home Loan Mortgage Corporation shall 
        implement subsection (b) by updating its Single-Family Seller/
        Servicer Guide for loans purchased or securitized by the 
        Corporation; and
            (5) the Federal National Mortgage Association shall 
        implement subsection (b) by updating its Single Family Selling 
        Guide for loans purchased or securitized by the Association.

SEC. 10. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMINATION REQUESTS AND 
              ORDERS.

    (a) Conditions for Termination.--
            (1) In general.--An appropriate Federal banking agency may 
        not formally or informally request or order a depository 
        institution to terminate a specific customer account or group 
        of customer accounts (including, but not limited to, any 
        account of any customer that is a State-sanctioned marijuana 
        business or service provider) or to otherwise restrict or 
        discourage a depository institution from entering into or 
        maintaining a banking relationship with a specific customer or 
        group of customers (including, but not limited to, with any 
        customer that is a State-sanctioned marijuana business or 
        service provider), unless--
                    (A) the agency has made a written determination 
                that the depository institution is--
                            (i) engaging in an unsafe or unsound 
                        practice; or
                            (ii) violating a rule, law, regulation, or 
                        order with respect to the relationship of the 
                        depository institution with the customer (or, 
                        in the case of a group of customers, specific 
                        customers within the group); and
                    (B) such reason is not based primarily on 
                reputational risk.
            (2) Treatment of national security threats.--If an 
        appropriate Federal banking agency believes a specific customer 
        or group of customers is, or is acting as a conduit for, an 
        entity that--
                    (A) poses a threat to national security;
                    (B) is involved in terrorist financing;
                    (C) is an agency of the Government of Iran, North 
                Korea, Syria, or any country listed from time to time 
                on the State Sponsors of Terrorism list;
                    (D) is located in, or is subject to the 
                jurisdiction of, any country specified in subparagraph 
                (C); or
                    (E) does business with any entity described in 
                subparagraph (C) or (D), unless the appropriate Federal 
                banking agency determines that the customer or group of 
                customers has used due diligence to avoid doing 
                business with any entity described in subparagraph (C) 
                or (D),
        such belief shall satisfy the requirement under paragraph (1).
    (b) Notice Requirement.--
            (1) In general.--If an appropriate Federal banking agency 
        formally or informally requests or orders a depository 
        institution to terminate a specific customer account or a group 
        of customer accounts, the agency shall--
                    (A) provide such request or order to the 
                institution in writing; and
                    (B) accompany such request or order with a written 
                justification for why such termination is needed, 
                including any specific laws or regulations the agency 
                believes are being violated by the customer or group of 
                customers, if any.
            (2) Justification requirement.--A justification described 
        under paragraph (1)(B) may not be based solely on the 
        reputational risk to the depository institution.
    (c) Customer Notice.--
            (1) Notice required.--Except as provided under paragraph 
        (2) or as otherwise prohibited from being disclosed by law, if 
        an appropriate Federal banking agency orders a depository 
        institution to terminate a specific customer account or a group 
        of customer accounts, the depository institution shall inform 
        the specific customer or group of customers of the 
        justification for the customer's account termination described 
        under subsection (b).
            (2) Notice prohibited.--
                    (A) Notice prohibited in cases of national 
                security.--If an appropriate Federal banking agency 
                requests or orders a depository institution to 
                terminate a specific customer account or a group of 
                customer accounts based on a belief that the customer 
                or customers pose a threat to national security, or are 
                otherwise described under subsection (a)(2), neither 
                the depository institution nor the appropriate Federal 
                banking agency may inform the customer or customers of 
                the justification for the customer's account 
                termination.
                    (B) Notice prohibited in other cases.--If an 
                appropriate Federal banking agency determines that the 
                notice required under paragraph (1) may interfere with 
                an authorized criminal investigation, neither the 
                depository institution nor the appropriate Federal 
                banking agency may inform the specific customer or 
                group of customers of the justification for the 
                customer's account termination.
    (d) Reporting Requirement.--Each appropriate Federal banking agency 
shall submit to the Committee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Financial Services of the House of 
Representatives an annual report stating--
            (1) the aggregate number of specific customer accounts that 
        the agency requested that a depository institution terminate, 
        or ordered a depository institution to terminate, during the 
        previous year; and
            (2) the legal authority on which the agency relied in 
        making each request and order under paragraph (1) and the 
        frequency on which the agency relied on each such authority.
    (e) Definitions.--In this section:
            (1) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' means--
                    (A) the appropriate Federal banking agency, as 
                defined under section 3 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1813); and
                    (B) the National Credit Union Administration, in 
                the case of an insured credit union.
            (2) Depository institution.--The term ``depository 
        institution'' means--
                    (A) a depository institution, as defined under 
                section 3 of the Federal Deposit Insurance Act (12 
                U.S.C. 1813); and
                    (B) an insured credit union.

SEC. 11. ANNUAL DIVERSITY AND INCLUSION REPORT.

    The Federal banking regulators shall submit to Congress an annual 
report containing--
            (1) information and data on the availability of access to 
        financial services for minority-owned, veteran-owned, women-
        owned, and small State-sanctioned marijuana businesses; and
            (2) any regulatory or legislative recommendations for 
        expanding access to financial services for minority-owned, 
        veteran-owned, women-owned, and small State-sanctioned 
        marijuana businesses and hemp-related legitimate businesses.

SEC. 12. GAO STUDY ON DIVERSITY AND INCLUSION.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on the barriers to marketplace entry, including in the 
licensing process, and the access to financial services for potential 
and existing minority-owned, veteran-owned, women-owned, and small 
State-sanctioned marijuana businesses and hemp-related legitimate 
businesses.
    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, the Comptroller General of the United States shall submit to 
Congress a report containing--
            (1) all findings and determinations made in conducting the 
        study required under subsection (a); and
            (2) any regulatory or legislative recommendations for 
        removing barriers to marketplace entry and success, including 
        in the licensing process, and expanding access to financial 
        services for potential and existing minority-owned, veteran-
        owned, women-owned, and small State-sanctioned marijuana 
        businesses and hemp-related legitimate businesses.

SEC. 13. GAO STUDY ON EFFECTIVENESS OF CERTAIN REPORTS ON FINDING 
              CERTAIN PERSONS.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Comptroller General of the United States, in 
consultation with the Attorney General, shall conduct a study on--
            (1) the effectiveness of reports on suspicious transactions 
        filed pursuant to section 5318(g) of title 31, United States 
        Code, at finding individuals or organizations suspected or 
        known to be engaged with transnational criminal organizations; 
        and
            (2) whether any engagement described in paragraph (1) 
        exists in a State, an Indian Tribe, or a political subdivision 
        of a State that allows the cultivation, production, 
        manufacture, sale, transportation, display, dispensing, 
        distribution, or purchase of marijuana.
    (b) Requirements.--The study required under subsection (a) shall 
examine reports on suspicious transactions--
            (1) relating to marijuana-related businesses, as described 
        in the guidance entitled ``BSA Expectations Regarding 
        Marijuana-Related Businesses'', published by the Financial 
        Crimes Enforcement Network of the Department of the Treasury on 
        February 14, 2014, during the period beginning on January 1, 
        2014, and ending on the date of enactment of this Act; and
            (2) relating to State-sanctioned marijuana businesses 
        during the period beginning on January 1, 2014, and ending on 
        the date that is 1 year after the date of enactment of this 
        Act.

SEC. 14. APPLICABILITY TO HEMP-RELATED LEGITIMATE BUSINESSES AND HEMP-
              RELATED SERVICE PROVIDERS.

    The provisions of this Act (other than sections 6 and 13) shall 
apply with respect to hemp-related legitimate businesses and hemp-
related service providers in the same manner as such provisions apply 
with respect to State-sanctioned marijuana businesses and service 
providers.

SEC. 15. RULES OF CONSTRUCTION.

    (a) No Requirement To Provide Financial Services.--Nothing in this 
Act shall require a depository institution, an entity performing a 
financial service for or in association with a depository institution, 
a community development financial institution, or an insurer to provide 
financial services to a State-sanctioned marijuana business, service 
provider, or any other business.
    (b) General Examination, Supervisory, and Enforcement Authority.--
Nothing in this Act may be construed in any way to limit or otherwise 
restrict the general examination, supervisory, and enforcement 
authority of the Federal banking regulators (including the Department 
of the Treasury), provided that any supervisory or enforcement action 
is not being taken solely because the provision of financial services 
to a State-sanctioned marijuana business or service provider.
    (c) Business of Insurance.--Nothing in this Act shall interfere 
with the regulation of the business of insurance in accordance with the 
Act entitled ``An Act to express the intent of the Congress with 
reference to the regulation of the business of insurance'', approved 
March 9, 1945 (commonly known as the ``McCarran-Ferguson Act''; 15 
U.S.C. 1011 et seq.), and the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (12 U.S.C. 5301 et seq.).
    (d) Law Enforcement Authority.--Nothing in this Act shall restrict 
or limit the ability of Federal law enforcement agencies to investigate 
and prosecute money-laundering crimes involving proceeds of illegal 
activity other than marijuana-related activities conducted in 
compliance with the law of the State, Indian Tribe, or political 
subdivision of a State by a State-sanctioned marijuana business or 
service provider.
                                 &lt;all&gt;
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