Title: SAFE Act of 2017
Policy area: Finance and Financial Sector

Summary:
Secure and Fair Enforcement Banking Act of 2017 or the SAFE Act of 2017
This bill prohibits a federal banking regulator from: (1) terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate marijuana-related business; (2) prohibiting or otherwise discouraging a depository institution from offering financial services to such a business; (3) recommending, incentivizing, or encouraging a depository institution not to offer financial services to an account holder solely because the account holder is affiliated with such a business; or (4) taking any adverse or corrective supervisory action on a loan made to a person solely because the person either owns such a business or owns real estate or equipment leased to such a business.
As specified by the bill, a depository institution shall not, under federal law, be liable or subject to forfeiture for providing financial services to a legitimate marijuana-related business.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2215 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2215

    To create protections for depository institutions that provide 
 financial services to cannabis-related legitimate businesses, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 27, 2017

 Mr. Perlmutter (for himself, Mr. Blumenauer, Mr. Coffman, Mr. Cohen, 
 Mr. Conyers, Mr. Correa, Mr. Courtney, Ms. DeGette, Mr. Delaney, Ms. 
 DelBene, Mr. Heck, Mr. Hunter, Ms. Jayapal, Mr. Kihuen, Ms. Lee, Mr. 
   Lewis of Minnesota, Mr. Ted Lieu of California, Ms. McCollum, Mr. 
      McGovern, Ms. Norton, Mr. Peters, Mr. Pocan, Mr. Polis, Mr. 
Rohrabacher, Mr. Schrader, Mr. Sherman, Mr. Swalwell of California, Ms. 
 Titus, and Mr. Young of Alaska) introduced the following bill; which 
was referred to the Committee on Financial Services, and in addition to 
    the Committee on the Judiciary, 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 depository institutions that provide 
 financial services to cannabis-related legitimate 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.

    This Act may be cited as the ``Secure And Fair Enforcement Banking 
Act of 2017'' or the ``SAFE Act of 2017''.

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.) 
                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 
                cannabis-related legitimate business;
                    (2) prohibit, penalize, or otherwise discourage a 
                depository institution from providing financial 
                services to a cannabis-related legitimate business or 
                to a State or political subdivision of a State that 
                exercises jurisdiction over cannabis-related legitimate 
                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 manufacturer or 
                        producer, or is the owner, operator, or 
                        employee of a cannabis-related legitimate 
                        business;
                            (B) the account holder later becomes an 
                        owner or operator of a cannabis-related 
                        legitimate business; or
                            (C) the depository institution was not 
                        aware that the account holder is the owner or 
                        operator of a cannabis-related legitimate 
                        business; and
                    (4) take any adverse or corrective supervisory 
                action on a loan made to an owner or operator of--
                            (A) a cannabis-related legitimate business, 
                        solely because the owner or operator owns or 
                        operates a cannabis-related legitimate 
                        business; or
                            (B) real estate or equipment that is leased 
                        to a cannabis-related legitimate business, 
                        solely because the owner or operator of the 
                        real estate or equipment leased the equipment 
                        or real estate to a cannabis-related legitimate 
                        business.

SEC. 3. PROTECTIONS UNDER FEDERAL LAW.

    (a) In General.--In a State or a political subdivision of a State 
that allows the cultivation, production, manufacture, sale, 
transportation, display, dispensing, distribution, or purchase of 
cannabis pursuant to a law or regulation of such State or political 
subdivision a depository institution that provides financial services 
to a cannabis-related legitimate business, 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 pursuant 
        to the law or regulation of such State or political 
        subdivision; 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 financial service provided to 
an owner or operator of a cannabis-related legitimate business, or to 
an owner or operator of real estate or equipment that is leased or sold 
to a cannabis-related legitimate business, 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. 4. RULE OF CONSTRUCTION.

    Nothing in this Act shall require a depository institution to 
provide financial services to a cannabis-related legitimate business.

SEC. 5. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY REPORTS.

    Section 5318(g) of title 31, United States Code, is amended by 
adding at the end the following:
            ``(5) Requirements for cannabis-related businesses.--A 
        financial institution or any director, officer, employee, or 
        agent of a financial institution that reports a suspicious 
        transaction pursuant to this subsection and the reason for the 
        report relates to a cannabis-related legitimate business (as 
        defined in section 6 of the Secure and Fair Enforcement Banking 
        Act of 2017), 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 Secure and Fair Enforcement Banking 
        Act of 2017 and does not inhibit the provision of financial 
        services to a cannabis-related legitimate business in a State 
        or political subdivision of a State that has allowed the 
        cultivation, production, manufacture, transportation, display, 
        dispensing, distribution, sale, or purchase of cannabis 
        pursuant to law or regulation of such State or political 
        subdivision.''.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Depository institution.--The term ``depository 
        institution'' means--
                    (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 section 101 
                of the Federal Credit Union Act (12 U.S.C. 1752).
            (2) 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 department that 
        regulates banking or financial services, as determined by the 
        Secretary of the Treasury.
            (3) Financial service.--The term ``financial service'' 
        means a financial product or service as defined in section 1002 
        of the Dodd-Frank Wall Street Reform and Consumer Protection 
        Act (12 U.S.C. 5481).
            (4) Manufacturer.--The term ``manufacturer'' means a person 
        who manufactures, compounds, converts, processes, prepares, or 
        packages cannabis or cannabis products.
            (5) Cannabis-related legitimate business.--The term 
        ``cannabis-related legitimate business'' means a manufacturer, 
        producer, or any person that--
                    (A) engages in an activity described in 
                subparagraph (B) pursuant to a law or regulation of a 
                State, political subdivision of a State, or a Tribal-
                State compact; or
                    (B) participates in any business or organized 
                activity that involves handling cannabis or cannabis 
                products, including cultivating, producing, 
                manufacturing, selling, transporting, displaying, 
                dispensing, distributing, or purchasing cannabis or 
                cannabis products.
            (6) Cannabis.--The term ``cannabis'' has the meaning given 
        the term ``marihuana'' in section 102 of the Controlled 
        Substances Act (21 U.S.C. 802).
            (7) Cannabis product.--The term ``cannabis product'' means 
        any article which contains cannabis, including an article which 
        is a concentrate, an edible, a tincture, a cannabis-infused 
        product, or a topical.
            (8) Producer.--The term ``producer'' means a person who 
        plants, cultivates, harvests, or in any way facilitates the 
        natural growth of cannabis.
            (9) 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.
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