Title: SAFE Banking Act of 2019
Policy area: Finance and Financial Sector

Summary:
Secure and Fair Enforcement Banking Act of 2019 or the SAFE Banking Act of 2019
This bill generally prohibits a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate marijuana-related business. Specifically, the 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; (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; or (5) penalizing a depository institution for processing or collecting payments for 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 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1595 Introduced in House (IH)]

<DOC>






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. Barragan, Mr. Beyer, Mr. Blumenauer, Ms. 
Bonamici, Mr. Brendan F. Boyle of Pennsylvania, Mr. Brown of Maryland, 
Ms. Brownley of California, Mr. Carbajal, Mr. Cardenas, 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 California, 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. Garcia 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 California, Mr. 
 Lujan, 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. Velazquez, 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. Maloney 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 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 
     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; 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 reducing 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 Deposit Insurance Act (12 U.S.C. 1818) solely because 
        the depository institution provides or has provided financial 
        services to a cannabis-related legitimate business or service 
        provider;
            (2) prohibit, penalize, or otherwise discourage a 
        depository institution from providing financial services 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 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 cannabis-related 
                legitimate business or service provider, or is an 
                employee, owner, or operator of a cannabis-related 
                legitimate business or service provider;
                    (B) the account holder later becomes an employee, 
                owner, or operator of a cannabis-related legitimate 
                business or service provider; or
                    (C) the depository institution was not aware that 
                the account holder is an employee, owner, or operator 
                of a cannabis-related legitimate 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 estate 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 institution, for, 
        or otherwise discourage a depository institution, or entity 
        performing services for the depository institution, from, 
        authorizing, processing, clearing, settling, billing, 
        transferring, reconciling, or collecting 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 cannabis-related legitimate business or 
service provider shall not be considered as proceeds from an unlawful 
activity solely because the transaction was conducted by a cannabis-
related legitimate business or service provider, as applicable.

SEC. 4. PROTECTIONS UNDER FEDERAL LAW.

    (a) In General.--With respect to providing financial services 
within a State, political subdivision of a State, or Indian country 
that allows the cultivation, production, manufacture, sale, 
transportation, display, dispensing, distribution, 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 applicable, a depository institution that provides 
financial services to a cannabis-related legitimate business or service 
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 financial service provided to 
an owner or operator of a cannabis-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 institution to 
provide financial services to a cannabis-related legitimate 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:
            ``(5) Requirements for cannabis-related legitimate 
        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 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 Indian country that has 
                allowed the cultivation, production, manufacture, 
                transportation, display, 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.
                    ``(B) Definitions.--For purposes of this paragraph:
                            ``(i) Cannabis.--The term `cannabis' has 
                        the meaning given the term `marihuana' in 
                        section 102 of the Controlled Substances Act 
                        (21 U.S.C. 802).
                            ``(ii) Cannabis-related legitimate 
                        business.--The term `cannabis-related 
                        legitimate business' has the meaning given that 
                        term in section 8 of the SAFE Banking 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 `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).
                            ``(v) 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).
                            ``(vi) Service provider.--The term `service 
                        provider' has the meaning given that term in 
                        section 8 of the SAFE Banking Act of 2019.
                            ``(vii) 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.''.

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 Regulators.--The Federal banking 
regulators shall each issue guidance and examination procedures for 
depository institutions that provide financial services to cannabis-
related legitimate businesses and service providers that are consistent 
with the uniform guidance and examination procedures developed under 
subsection (a).

SEC. 8. 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, as 
                determined by such State or political subdivision; and
                    (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.
            (4) 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).
            (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 department that 
        regulates banking or financial services, as determined by the 
        Secretary of the Treasury.
            (6) 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).
            (7) Indian country.--The term ``Indian country'' 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 ``manufacturer'' means a person 
        who manufactures, compounds, 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 cannabis-
                        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 cannabis; and
                    (B) does not include a business, organization, or 
                other person that 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.
            (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.
                                 <all>