I 
116TH CONGRESS 
1ST SESSION H. R. 1595 
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. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 7, 2019 
Mr. PERLMUTTER (for himself, Mr. HECK, Mr. STIVERS, Mr. DAVIDSON of 
Ohio, Mr. AGUILAR, Ms. BARRAGA´N, Mr. BEYER, Mr. BLUMENAUER, Ms. 
BONAMICI, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. BROWN of 
Maryland, Ms. BROWNLEY of California, Mr. CARBAJAL, Mr. CA´RDENAS, 
Mr. CARTWRIGHT, Ms. CASTOR
of Florida, Mr. CICILLINE, Mr. 
CISNEROS, Ms. CLARK of Massachusetts, Ms. CLARKE of New York, Mr. 
COHEN, Mr. COOPER, Mr. CORREA, Mr. COURTNEY, Mr. COX of Cali-
fornia, Mr. CRIST, Mr. CROW, Mrs. DAVIS of California, Mr. DEFAZIO, 
Ms. DEGETTE, Ms. DELAURO, Ms. DELBENE, Mr. DESAULNIER, Ms. 
ESHOO, Mr. ESPAILLAT, Mr. FOSTER, Ms. FUDGE, Ms. GABBARD, Mr. 
GALLEGO, Mr. GARCI´A of Illinois, Mr. GOMEZ, Mr. GONZALEZ of Texas, 
Mr. HASTINGS, Ms. HILL of California, Mr. HORSFORD, Mr. HUFFMAN, 
Ms. JACKSON LEE, Ms. JAYAPAL, Mr. JOHNSON of Georgia, Mr. 
KHANNA, Mr. KILMER, Mrs. KIRKPATRICK, Mr. KRISHNAMOORTHI, Mr. 
LAWSON of Florida, Ms. LEE of California, Mrs. LEE of Nevada, Mr. 
LEVIN of Michigan, Mr. LEVIN of California, Mr. TED LIEU of Cali-
fornia, Mr. LUJA´N, Ms. MATSUI, Ms. MCCOLLUM, Mr. MCGOVERN, Mr. 
MEEKS, Mr. NEGUSE, Ms. NORTON, Mr. PANETTA, Mr. PAPPAS, Ms. 
PINGREE, Ms. PORTER, Mr. QUIGLEY, Mr. RASKIN, Mr. RUSH, Mr. 
RYAN, Mr. ROUDA, Ms. SCHAKOWSKY, Mr. SCHRADER, Mr. SHERMAN, 
Mr. SIRES, Mr. SMITH of Washington, Mr. SOTO, Ms. SPEIER, Mr. 
SWALWELL of California, Ms. TITUS, Mrs. TORRES of California, Mr. 
VARGAS, Ms. VELA´ZQUEZ, Mrs. WATSON COLEMAN, Mr. WELCH, Ms. 
WILD, Mr. YARMUTH, Mr. RODNEY DAVIS of Illinois, Mr. HUNTER, Mr. 
JOYCE
of Ohio, Mr. NEWHOUSE, Mr. YOUNG, Mr. HIMES, Mr. 
LOEBSACK, Ms. LOFGREN, Mr. LOWENTHAL, Mrs. CAROLYN B. MALO-
NEY of New York, Mr. SEAN PATRICK MALONEY of New York, Mr. 
TAKANO, Mr. THOMPSON of California, Mr. GAETZ, Mr. RIGGLEMAN, Mr. 
DAVID SCOTT of Georgia, Ms. WATERS, and Ms. SCHRIER) introduced 
the following bill; which was referred to the Committee on Financial Serv-
ices, and in addition to the Committee on the Judiciary, for a period to 
be subsequently determined by the Speaker, in each case for consider-
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ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To create protections for depository institutions that provide 
financial services to cannabis-related legitimate busi-
nesses and service providers for such businesses, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; PURPOSE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Secure And Fair Enforcement Banking Act of 2019’’ or 
the ‘‘SAFE Banking Act of 2019’’. 
(b) PURPOSE.—The purpose of this Act is to increase 
public safety by expanding financial services to cannabis- 
related legitimate businesses and service providers and re-
ducing the amount of cash at such businesses. 
SEC. 2. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS. 
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.), the Federal Credit Union Act (12 U.S.C. 1751 
et seq.), or take any other adverse action against a 
depository institution under section 8 of the Federal 
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Deposit Insurance Act (12 U.S.C. 1818) solely be-
cause the depository institution provides or has pro-
vided financial services to a cannabis-related legiti-
mate business or service provider; 
(2) prohibit, penalize, or otherwise discourage a 
depository institution from providing financial serv-
ices to a cannabis-related legitimate business or 
service provider or to a State, political subdivision of 
a State, or Indian Tribe that exercises jurisdiction 
over cannabis-related legitimate businesses; 
(3) recommend, incentivize, or encourage a de-
pository institution not to offer financial services to 
an account holder, or to downgrade or cancel the fi-
nancial services offered to an account holder solely 
because— 
(A) the account holder is a cannabis-re-
lated legitimate business or service provider, or 
is an employee, owner, or operator of a can-
nabis-related legitimate business or service pro-
vider; 
(B) the account holder later becomes an 
employee, owner, or operator of a cannabis-re-
lated legitimate business or service provider; or 
(C) the depository institution was not 
aware that the account holder is an employee, 
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owner, or operator of a cannabis-related legiti-
mate business or service provider; 
(4) take any adverse or corrective supervisory 
action on a loan made to— 
(A) a cannabis-related legitimate business 
or service provider, solely because the business 
is a cannabis-related legitimate business or 
service provider; 
(B) an employee, owner, or operator of a 
cannabis-related legitimate business or service 
provider, solely because the employee, owner, or 
operator is employed by, owns, or operates a 
cannabis-related legitimate business or service 
provider, as applicable; or 
(C) an owner or operator of real estate or 
equipment that is leased to a cannabis-related 
legitimate business or service provider, solely 
because the owner or operator of the real estate 
or equipment leased the equipment or real es-
tate to a cannabis-related legitimate business or 
service provider, as applicable; and 
(5) prohibit or penalize a depository institution, 
or entity performing services for the depository insti-
tution, for, or otherwise discourage a depository in-
stitution, or entity performing services for the depos-
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itory institution, from, authorizing, processing, clear-
ing, settling, billing, transferring, reconciling, or col-
lecting payments for a cannabis-related legitimate 
business, where such payment is made by any 
means, including a credit, debit, or other payment 
card, an account, check, or electronic funds transfer. 
SEC. 3. PROTECTIONS FOR ANCILLARY BUSINESSES. 
For purposes of sections 1956 and 1957 of title 18, 
United States Code, and all other provisions of Federal 
law, the proceeds from a transaction conducted by a can-
nabis-related legitimate business or service provider shall 
not be considered as proceeds from an unlawful activity 
solely because the transaction was conducted by a can-
nabis-related legitimate business or service provider, as 
applicable. 
SEC. 4. PROTECTIONS UNDER FEDERAL LAW. 
(a) IN GENERAL.—With respect to providing finan-
cial services within a State, political subdivision of a State, 
or Indian country that allows the cultivation, production, 
manufacture, sale, transportation, display, dispensing, dis-
tribution, or purchase of cannabis pursuant to a law or 
regulation of such State, political subdivision, or Indian 
Tribe that has jurisdiction over the Indian country, as ap-
plicable, a depository institution that provides financial 
services to a cannabis-related legitimate business or serv-
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ice provider, and the officers, directors, and employees of 
that depository institution may not be held liable pursuant 
to any Federal law or regulation— 
(1) solely for providing such financial services; 
or 
(2) for further investing any income derived 
from such financial services. 
(b) FORFEITURE.—A depository institution that has 
a legal interest in the collateral for a loan or another fi-
nancial service provided to an owner or operator of a can-
nabis-related legitimate business or service provider, or to 
an owner or operator of real estate or equipment that is 
leased or sold to a cannabis-related legitimate 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. 
SEC. 5. RULE OF CONSTRUCTION. 
Nothing in this Act shall require a depository institu-
tion to provide financial services to a cannabis-related le-
gitimate business or service provider. 
SEC. 6. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY 
REPORTS. 
Section 5318(g) of title 31, United States Code, is 
amended by adding at the end the following: 
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‘‘(5) REQUIREMENTS FOR CANNABIS-RELATED 
LEGITIMATE BUSINESSES.— 
‘‘(A) IN GENERAL.—With respect to a fi-
nancial institution or any director, officer, em-
ployee, or agent of a financial institution that 
reports a suspicious transaction pursuant to 
this subsection, if the reason for the report re-
lates to a cannabis-related legitimate business 
or service provider, the report shall comply with 
appropriate guidance issued by the Financial 
Crimes Enforcement Network. The Secretary 
shall ensure that the guidance is consistent with 
the purpose and intent of the SAFE Banking 
Act of 2019 and does not significantly inhibit 
the provision of financial services to a cannabis- 
related legitimate business or service provider in 
a State, political subdivision of a State, or In-
dian country that has allowed the cultivation, 
production, manufacture, transportation, dis-
play, dispensing, distribution, sale, or purchase 
of cannabis pursuant to law or regulation of 
such State, political subdivision, or Indian 
Tribe that has jurisdiction over the Indian 
country. 
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‘‘(B) DEFINITIONS.—For purposes of this 
paragraph: 
‘‘(i) CANNABIS.—The term ‘cannabis’ 
has the meaning given the term ‘mari-
huana’ in section 102 of the Controlled 
Substances Act (21 U.S.C. 802). 
‘‘(ii) CANNABIS-RELATED LEGITIMATE 
BUSINESS.—The term ‘cannabis-related le-
gitimate business’ has the meaning given 
that term in section 8 of the SAFE Bank-
ing Act of 2019. 
‘‘(iii) INDIAN
COUNTRY.—The term 
‘Indian country’ has the meaning given 
that term in section 1151 of title 18. 
‘‘(iv) INDIAN TRIBE.—The term ‘In-
dian Tribe’ has the meaning given that 
term in section 102 of the Federally Rec-
ognized Indian Tribe List Act of 1994 (25 
U.S.C. 479a). 
‘‘(v) FINANCIAL SERVICE.—The term 
‘financial service’ means a financial prod-
uct or service as defined in section 1002 of 
the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (12 U.S.C. 
5481). 
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‘‘(vi) SERVICE PROVIDER.—The term 
‘service provider’ has the meaning given 
that term in section 8 of the SAFE Bank-
ing Act of 2019. 
‘‘(vii) 
STATE.—The 
term 
‘State’ 
means each of the several States, the Dis-
trict of Columbia, Puerto Rico, and any 
territory or possession of the United 
States.’’. 
SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Financial Institutions 
Examination Council shall develop uniform guidance and 
examination procedures for depository institutions that 
provide financial services to cannabis-related legitimate 
businesses and service providers. 
(b) ISSUANCE
BY
FEDERAL
BANKING
REGU-
LATORS.—The Federal banking regulators shall each issue 
guidance and examination procedures for depository insti-
tutions that provide financial services to cannabis-related 
legitimate businesses and service providers that are con-
sistent with the uniform guidance and examination proce-
dures developed under subsection (a). 
SEC. 8. DEFINITIONS. 
In this Act: 
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(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 which contains cannabis, 
including an article which is a concentrate, an edi-
ble, a tincture, a cannabis-infused product, or a top-
ical. 
(3) CANNABIS-RELATED
LEGITIMATE
BUSI-
NESS.—The term ‘‘cannabis-related legitimate busi-
ness’’ means a manufacturer, producer, or any per-
son or company that— 
(A) engages in any activity described in 
subparagraph (B) pursuant to a law established 
by a State or a political subdivision of a State, 
as determined by such State or political subdivi-
sion; and 
(B) participates in any business or orga-
nized activity that involves handling cannabis or 
cannabis products, including cultivating, pro-
ducing, manufacturing, selling, transporting, 
displaying, dispensing, distributing, or pur-
chasing cannabis or cannabis products. 
(4) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ means— 
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(A) a depository institution as defined in 
section 3(c) of the Federal Deposit Insurance 
Act (12 U.S.C. 1813(c)); 
(B) a Federal credit union as defined in 
section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752); or 
(C) a State credit union as defined in sec-
tion 101 of the Federal Credit Union Act (12 
U.S.C. 1752). 
(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 Office of 
the Comptroller of the Currency, the National Credit 
Union Administration, or any Federal agency or de-
partment that regulates banking or financial serv-
ices, as determined by the Secretary of the Treas-
ury. 
(6) FINANCIAL SERVICE.—The term ‘‘financial 
service’’ means a financial product or service as de-
fined in section 1002 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (12 U.S.C. 
5481). 
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(7) INDIAN COUNTRY.—The term ‘‘Indian coun-
try’’ has the meaning given that term in section 
1151 of title 18. 
(8) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 
has the meaning given that term in section 102 of 
the Federally Recognized Indian Tribe List Act of 
1994 (25 U.S.C. 479a). 
(9) MANUFACTURER.—The term ‘‘manufac-
turer’’ means a person who manufactures, com-
pounds, converts, processes, prepares, or packages 
cannabis or cannabis products. 
(10) PRODUCER.—The term ‘‘producer’’ means 
a person who plants, cultivates, harvests, or in any 
way facilitates the natural growth of cannabis. 
(11) SERVICE PROVIDER.—The term ‘‘service 
provider’’— 
(A) means a business, organization, or 
other person that— 
(i) sells goods or services to a can-
nabis-related legitimate business; or 
(ii) provides any business services, in-
cluding the sale or lease of real or any 
other property, legal or other licensed serv-
ices, or any other ancillary service, relating 
to cannabis; and 
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(B) does not include a business, organiza-
tion, or other person that participates in any 
business or organized activity that involves han-
dling cannabis or cannabis products, including 
cultivating, producing, manufacturing, selling, 
transporting, displaying, dispensing, distrib-
uting, or purchasing cannabis or cannabis prod-
ucts. 
(12) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, Puerto 
Rico, and any territory or possession of the United 
States. 
Æ 
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