Title: SAFE Banking Act
Policy area: Finance and Financial Sector

Summary:
Secure and Fair Enforcement Banking Act or the SAFE Banking Act
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 or sold 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 a loan or other financial services to a legitimate marijuana-related business.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1152 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1152

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2017

Mr. Merkley (for himself, Mr. Paul, Mr. Bennet, Mr. Wyden, Ms. Warren, 
Mrs. Murray, Ms. Cortez Masto, Mr. Schatz, and Mr. Gardner) introduced 
the following bill; which was read twice and referred to the Committee 
                 on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
    To create protections for depository institutions that provide 
   financial services to cannabis-related 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'' or the ``SAFE Banking Act''.

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 Indian tribe that exercises jurisdiction 
                over cannabis-related legitimate businesses;
                    (3) recommend, incentivize, or encourage a 
                depository institution not to offer financial services 
                to the owner, operator, or an individual that is an 
                account holder of a cannabis-related legitimate 
                business, or downgrade or cancel financial services 
                offered to an account holder of a cannabis-related 
                legitimate business solely because--
                            (A) the account holder later becomes a 
                        cannabis-related legitimate business; or
                            (B) 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 to an owner or operator of--
                            (A) a cannabis-related legitimate business 
                        solely because the business owner or operator 
                        is a cannabis-related business without express 
                        statutory authority, as in effect on the day 
                        before the date of enactment of this Act; or
                            (B) real estate or equipment that is leased 
                        or sold to a cannabis-related legitimate 
                        business solely because the owner or operator 
                        of the real estate or equipment leased or sold 
                        the equipment or real estate to a cannabis-
                        related legitimate business.

SEC. 3. PROTECTIONS UNDER FEDERAL LAW.

    (a) In General.--In a State, political subdivision of a State, or 
Indian country that allows the cultivation, production, manufacturing, 
transportation, display, dispensing, distribution, sale, or purchase of 
cannabis pursuant to a law (including regulations) of the State, 
political subdivision of the State, or the Indian tribe that has 
jurisdiction over the Indian country, as applicable, a depository 
institution and the officers, director, and employees of the depository 
institution that provides financial services to a cannabis-related 
legitimate business may not be held liable pursuant to any Federal law 
(including regulations)--
            (1) solely for providing the financial services pursuant to 
        the law (including regulations) of the State, political 
        subdivision of the State, or Indian tribe; or
            (2) for further investing any income derived from the 
        financial services.
    (b) Forfeiture.--A depository institution that has a legal interest 
in the collateral for a loan made 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 the loan or other financial services solely 
because the collateral is owned by a cannabis-related business.

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) Definitions.--In this paragraph--
                            ``(i) the term `cannabis' has the meaning 
                        given the term `marihuana' in section 102 of 
                        the Controlled Substances Act (21 U.S.C. 802);
                            ``(ii) the term `cannabis-related 
                        legitimate business' has the meaning given the 
                        term in section 6 of the SAFE Banking Act;
                            ``(iii) 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);
                            ``(iv) the term `Indian country' has the 
                        meaning given the term in section 1151 of title 
                        18; and
                            ``(v) the term `Indian tribe' has the 
                        meaning given the term in section 102 of the 
                        Federally Recognized Indian Tribe List Act of 
                        1994 (25 U.S.C. 479a).
                    ``(B) Reporting of suspicious transactions.--A 
                financial institution or any director, officer, 
                employee, or agent of a financial institution that 
                reports a suspicious activity related to a transaction 
                by a cannabis-related legitimate business 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 and does not inhibit the 
                provision of financial services to a cannabis-related 
                legitimate business in a State, political subdivision 
                of a State, or Indian country that has allowed the 
                cultivation, production, manufacturing, transportation, 
                display, dispensing, distribution, sale, or purchase of 
                cannabis, or any other conduct relating to cannabis, 
                pursuant to law or regulation of the State, the 
                political subdivision of the State, or Indian tribe 
                that has jurisdiction over the Indian country.''.

SEC. 6. DEFINITIONS.

    In this Act:
            (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 edible, a tincture, a cannabis-infused 
        product, or a topical.
            (3) Cannabis-related legitimate business.--The term 
        ``cannabis-related legitimate business'' means a manufacturer, 
        producer, or any person 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; and
                    (B)(i) 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; or
                    (ii) provides--
                            (I) any financial service, including 
                        retirement plans or exchange traded funds, 
                        relating to cannabis; or
                            (II) 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 cannabis.
            (4) Company.--The term ``company'' means a partnership, 
        corporation, association, (incorporated or unincorporated), 
        trust, estate, cooperative organization, State, or any other 
        entity.
            (5) 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).
            (6) 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.
            (7) 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).
            (8) Indian country.--The term ``Indian country'' has the 
        meaning given the term in section 1151 of title 18, United 
        States Code.
            (9) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 102 of the Federally 
        Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a).
            (10) Manufacturer.--The term ``manufacturer'' means a 
        person or company who manufactures, compounds, converts, 
        processes, prepares, or packages cannabis or cannabis products.
            (11) Producer.--The term ``producer'' means a person or 
        company who plants, cultivates, harvests, or in any way 
        facilitates the natural growth of cannabis.
            (12) State.--The term ``State'' means each of the several 
        States, the District of Columbia, Puerto Rico, any territory or 
        possession of the United States.
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