SAFE Banking Act of 2019

Bill: 116-hr-1595
Sponsor: Rep. Perlmutter, Ed [D-CO-7]
Introduced: 2019-03-07 in the House
Policy area: Finance and Financial Sector
Subjects: Asia
Bank accounts, deposits, capital
Banking and financial institutions regulation
Business records
Congressional oversight
Credit and credit markets
Criminal investigation, prosecution, interrogation
Criminal justice information and records
Drug trafficking and controlled substances
Drug, alcohol, tobacco use
Financial services and investments
Fraud offenses and financial crimes
Government information and archives
Government studies and investigations
Iran
Middle East
Minority and disadvantaged businesses
North Korea
Syria
Terrorism
Women in business

Summary:
action_date: 2019-03-07
text: 

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. 

action_date: 2019-06-05
text: 

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 engaging in a financial service for such a business.
 
As specified by the bill, a depository institution or a Federal Reserve bank 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. 
 
The Government Accountability Office must report on (1) access to financial services for minority-owned and women-owned marijuana-related businesses; and (2) the effectiveness of suspicious-transaction reports at finding engagement with organized criminal activity in jurisdictions that allow the cultivation, sale, or distribution of marijuana.

action_date: 2019-09-25
text: 

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- or hemp-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- or hemp-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 engaging in a financial service for such a business.
 
As specified by the bill, a depository institution, a Federal Reserve bank, or an insurer shall not, under federal law, be liable or subject to forfeiture for providing a loan or other financial services to a legitimate marijuana- or hemp-related business. 
 
The bill specifies that a federal banking agency may not request or order a depository institution to terminate a customer account unless (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk. Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism.
 
The Government Accountability Office must report on (1) access to financial services for minority-owned and women-owned marijuana- or hemp-related businesses; and (2) the effectiveness of suspicious-transaction reports at finding engagement with organized criminal activity in jurisdictions that allow the cultivation, sale, or distribution of marijuana.


Legislative actions:
action_date: 2019-09-26
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2019-09-25
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2019-09-25
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 321 - 103 (Roll no. 544). (text: CR H7962-7964)
action_date: 2019-09-25
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 321 - 103 (Roll no. 544).(text: CR H7962-7964)
action_date: 2019-09-25
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 1595.
action_date: 2019-09-25
text: Considered under suspension of the rules. (consideration: CR H7962-7974)
action_date: 2019-09-25
text: Mr. Perlmutter moved to suspend the rules and pass the bill, as amended.
action_date: 2019-06-05
text: Placed on the Union Calendar, Calendar No. 78.
action_date: 2019-06-05
text: Committee on the Judiciary discharged.
action_date: 2019-06-05
text: Committee on the Judiciary discharged.
action_date: 2019-06-05
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 116-104, Part I.
action_date: 2019-06-05
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 116-104, Part I.
action_date: 2019-04-08
text: Referred to the Subcommittee on Crime, Terrorism, and Homeland Security.
action_date: 2019-03-28
text: Ordered to be Reported (Amended) by the Yeas and Nays: 45 - 15.
action_date: 2019-03-28
text: Committee Consideration and Mark-up Session Held.
action_date: 2019-03-27
text: Committee Consideration and Mark-up Session Held.
action_date: 2019-03-26
text: Committee Consideration and Mark-up Session Held.
action_date: 2019-03-07
text: 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.
action_date: 2019-03-07
text: 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.
action_date: 2019-03-07
text: Introduced in House
action_date: 2019-03-07
text: Introduced in House