Secure and Fair Enforcement Banking Act of 2023 or the SAFE Banking Act of 2023
This bill provides protections for federally regulated financial institutions that serve state-sanctioned marijuana businesses. Currently, many financial institutions do not provide services to state-sanctioned marijuana businesses due to the federal classification of marijuana as a Schedule I controlled substance.
Under the bill, a federal banking regulator may not penalize a depository institution for providing banking services to a state-sanctioned marijuana business. For example, regulators may not terminate or limit the deposit or share insurance of a depository institution solely because the institution provides financial services to a state-sanctioned marijuana business.
The bill also prohibits a federal banking regulator from requesting or ordering a depository institution to terminate a customer account unless (1) the regulator has determined that the depository institution is engaging in an unsafe or unsound practice or is violating a law or regulation, and (2) that determination is not based primarily on reputation risk.
Additionally, proceeds from a transaction involving activities of a state-sanctioned marijuana business are no longer considered proceeds from unlawful activity. (Financial institutions that handle proceeds from unlawful activity are subject to anti-money laundering laws. Violators of these laws are subject to fines and imprisonment.)
Furthermore, a financial institution, insurer, or federal agency may not be held liable or subject to asset forfeiture under federal law for providing a loan, mortgage, or other financial service to a state-sanctioned marijuana business.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2891 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 2891
To create protections for financial institutions that provide financial
services to State-sanctioned marijuana businesses and service providers
for such businesses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 26, 2023
Mr. Joyce of Ohio (for himself, Mr. Blumenauer, Mr. Davidson, Mr.
Himes, Mr. Mast, Ms. Lee of California, Mr. Reschenthaler, Ms.
Velazquez, Mrs. Chavez-DeRemer, and Mr. Correa) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committees on the Judiciary, and
Veterans' Affairs, 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 financial institutions that provide financial
services to State-sanctioned marijuana 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Secure And Fair
Enforcement Banking Act of 2023'' or the ``SAFE Banking Act of 2023''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Safe harbor for depository institutions.
Sec. 4. Protections for providing services to State-sanctioned
marijuana businesses.
Sec. 5. Protections under Federal law.
Sec. 6. Requirements for filing suspicious activity reports.
Sec. 7. Guidance and examination procedures.
Sec. 8. Banking services for hemp-related legitimate businesses and
hemp-related service providers.
Sec. 9. Treatment of income derived from a State-sanctioned marijuana
business for qualification for a federally
backed single-family mortgage loan.
Sec. 10. Requirements for deposit account termination requests and
orders.
Sec. 11. Annual diversity and inclusion report.
Sec. 12. GAO study on diversity and inclusion.
Sec. 13. GAO study on effectiveness of certain reports on finding
certain persons.
Sec. 14. Applicability to hemp-related legitimate businesses and hemp-
related service providers.
Sec. 15. Rules of construction.
SEC. 2. DEFINITIONS.
In this Act:
(1) Business of insurance.--The term ``business of
insurance'' has the meaning given the term in section 1002 of
the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481).
(2) CBD.--The term ``CBD'' means cannabidiol.
(3) Community development financial institution.--The term
``community development financial institution'' has the meaning
given the term in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C.
4702).
(4) Depository institution.--The term ``depository
institution''--
(A) means--
(i) a depository institution, as defined in
section 3(c) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(c));
(ii) a Federal credit union, as defined in
section 101 of the Federal Credit Union Act (12
U.S.C. 1752); and
(iii) a State credit union, as defined in
section 101 of the Federal Credit Union Act (12
U.S.C. 1752); and
(B) includes any minority depository institution,
as defined in section 308 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1463 note).
(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 Federal Housing
Finance Agency, the Office of the Comptroller of the Currency,
the National Credit Union Administration, the Department of the
Treasury (including the Financial Crimes Enforcement Network
and the Office of Foreign Assets Control), or any Federal
agency or department that regulates banking or financial
services, as determined by the Secretary of the Treasury.
(6) Financial product or service.--The term ``financial
product or service'' has the meaning given the term in section
1002 of the Consumer Financial Protection Act of 2010 (12
U.S.C. 5481).
(7) Financial service.--The term ``financial service''--
(A) means--
(i) a financial product or service,
regardless of whether the customer receiving
the product or service is a consumer or
commercial entity; or
(ii) a financial product or service, or any
combination of products and services, permitted
to be provided by--
(I) a national bank or a financial
subsidiary pursuant to the authority
provided under--
(aa) the paragraph
designated as the ``Seventh''
of section 5136 of the Revised
Statutes (12 U.S.C. 24); or
(bb) section 5136A of the
Revised Statutes (12 U.S.C.
24a);
(II) a Federal credit union,
pursuant to the authority provided
under the Federal Credit Union Act (12
U.S.C. 1751 et seq.); or
(III) a community development
financial institution; and
(B) includes--
(i) the business of insurance;
(ii) whether performed directly or
indirectly, the authorizing, processing,
clearing, settling, billing, transferring for
deposit, transmitting, delivering, instructing
to be delivered, reconciling, collecting, or
otherwise effectuating or facilitating the
payment of funds that are made or transferred
by any means, including by the use of credit
cards, debit cards, other payment cards, or
other access devices, accounts, original or
substitute checks, or electronic funds
transfers;
(iii) acting as a money transmitting
business that directly or indirectly makes use
of a depository institution in connection with
effectuating or facilitating a payment for a
State-sanctioned marijuana business or service
provider in compliance with section 5330 of
title 31, United States Code, and any
applicable State or Tribal law; and
(iv) acting as an armored car service for
processing and depositing with a depository
institution or a Federal reserve bank with
respect to any monetary instruments, as defined
in section 1956(c)(5) of title 18, United
States Code.
(8) Hemp.--The term ``hemp'' has the meaning given the term
in section 297A of the Agricultural Marketing Act of 1946 (7
U.S.C. 1639o).
(9) Hemp-related legitimate business.--The term ``hemp-
related legitimate business'' means a manufacturer, producer,
or any person or company that--
(A) engages in any activity described in
subparagraph (B) in conformity with the Agriculture
Improvement Act of 2018 (Public Law 115-334; 132 Stat.
4490), amendments made by that Act, and the regulations
issued to implement that Act by the Department of
Agriculture, where applicable, and the law of a State,
an Indian Tribe, or a political subdivision of a State;
and
(B) participates in any business or organized
activity that involves handling hemp, hemp-derived CBD
products, and other hemp-derived cannabinoid products,
including cultivating, producing, extracting,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing hemp, hemp-
derived CBD products, and other hemp-derived
cannabinoid products.
(10) Hemp-related service provider.--The term ``hemp-
related service provider''--
(A) means a business, organization, or other person
that--
(i) sells goods or services to a hemp-
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 hemp, hemp-derived CBD products, or
other hemp-derived cannabinoid products; and
(B) does not include a business, organization, or
other person that participates in any business or
organized activity that involves handling hemp, hemp-
derived CBD products, or other hemp-derived cannabinoid
products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing hemp, hemp-
derived CBD products, and other hemp-derived
cannabinoid products.
(11) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 102 of the
Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C.
5130).
(12) Insurer.--The term ``insurer'' has the meaning given
the term in section 313(r) of title 31, United States Code.
(13) Manufacturer.--The term ``manufacturer'' means a
person who manufactures, compounds, converts, processes,
prepares, or packages marijuana or marijuana products.
(14) Marijuana.--The term ``marijuana'' has the meaning
given the term ``marihuana'' in section 102 of the Controlled
Substances Act (21 U.S.C. 802).
(15) Marijuana product.--The term ``marijuana product''
means any article that contains marijuana, including an article
that is a concentrate, an edible, a tincture, a marijuana-
infused product, or a topical.
(16) Producer.--The term ``producer'' means a person who
plants, cultivates, harvests, or in any way facilitates the
natural growth of marijuana.
(17) Service provider.--The term ``service provider''--
(A) means a business, organization, or other person
that--
(i) sells goods or services to a State-
sanctioned marijuana 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 a State-sanctioned marijuana
business; and
(B) does not include a business, organization, or
other person that participates in any business or
organized activity that involves handling marijuana or
marijuana products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing marijuana or
marijuana products.
(18) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, and any territory or possession of the United States.
(19) State-sanctioned marijuana business.--The term
``State-sanctioned marijuana business'' means a manufacturer,
producer, or any person that--
(A) engages in any activity described in
subparagraph (B) pursuant to a law established by a
State, an Indian Tribe, or a political subdivision of a
State, as determined by such State, Indian Tribe, or
political subdivision; and
(B) participates in any business or organized
activity that involves handling marijuana or marijuana
products, including cultivating, producing,
manufacturing, selling, transporting, displaying,
dispensing, distributing, or purchasing marijuana or
marijuana products.
SEC. 3. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS.
(a) Prohibition.--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.) or take any other adverse
action against 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 State-sanctioned marijuana business or service
provider;
(2) prohibit, penalize, or otherwise discourage a
depository institution from providing financial services to--
(A) a State-sanctioned marijuana business or
service provider solely because the business or service
provider is a State-sanctioned marijuana business or
service provider; or
(B) a State, an Indian Tribe, or a political
subdivision of a State solely because that entity
exercises jurisdiction over State-sanctioned marijuana
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 State-sanctioned
marijuana business or service provider, or is an
employee, owner, or operator of a State-sanctioned
marijuana business or service provider;
(B) the account holder later becomes an employee,
owner, or operator of a State-sanctioned marijuana
business or service provider; or
(C) the depository institution was not aware, after
conducting sufficient risk-based customer due diligence
in accordance with applicable requirements, that the
account holder is an employee, owner, or operator of a
State-sanctioned marijuana business or service
provider;
(4) take any adverse or corrective supervisory action on a
loan made to--
(A) a State-sanctioned marijuana business or
service provider, solely because the business is a
State-sanctioned marijuana business or service
provider;
(B) an employee, owner, or operator of a State-
sanctioned marijuana business or service provider,
solely because the employee, owner, or operator is
employed by, owns, or operates a State-sanctioned
marijuana business or service provider, as applicable;
or
(C) an owner or operator of real estate or
equipment that is leased to a State-sanctioned
marijuana business or service provider, solely because
the owner or operator of the real estate or equipment
leased the equipment or real estate to a State-
sanctioned marijuana business or service provider, as
applicable; or
(5) prohibit or penalize a depository institution (or
entity performing a financial service for or in association
with a depository institution) for, or otherwise discourage a
depository institution (or entity performing a financial
service for or in association with a depository institution)
from, engaging in a financial service for a State-sanctioned
marijuana business or service provider solely because the
business or service provider is a State-sanctioned marijuana
business or service provider.
(b) Safe Harbor Applicable to De Novo Institutions.--Subsection (a)
shall apply to an institution applying for a depository institution
charter to the same extent as such subsection applies to a depository
institution.
SEC. 4. PROTECTIONS FOR PROVIDING SERVICES TO STATE-SANCTIONED
MARIJUANA BUSINESSES.
For the purposes of sections 1956 and 1957 of title 18, United
States Code, and all other provisions of Federal law, the proceeds from
marijuana-related activities of a State-sanctioned marijuana business
or service provider that conducts all of its marijuana-related activity
in compliance with the marijuana-related law of the State, Indian
Tribe, or political subdivision of the State shall not be considered
proceeds from an unlawful activity solely because--
(1) the transaction involves proceeds from a State-
sanctioned marijuana business or service provider; or
(2) the transaction involves proceeds from--
(A) marijuana-related activities described in
section 2(19)(B) conducted by a State-sanctioned
marijuana business; or
(B) activities described in section 2(17)(A)
conducted by a service provider.
SEC. 5. PROTECTIONS UNDER FEDERAL LAW.
(a) In General.--With respect to providing a financial service to a
State-sanctioned marijuana business (where such State-sanctioned
marijuana business operates within a State, an Indian Tribe, or a
political subdivision of a State that allows the cultivation,
production, manufacture, sale, transportation, display, dispensing,
distribution, or purchase of marijuana pursuant to a law or regulation
of such State, Indian Tribe, or political subdivision, as applicable)
or a service provider (wherever located), a depository institution, an
entity performing a financial service for or in association with a
depository institution, a community development financial institution,
or an insurer that provides a financial service to a State-sanctioned
marijuana business or service provider, and the officers, directors,
employees, and agents of that depository institution, entity, community
development financial institution, or insurer may not be held liable
pursuant to any Federal law or regulation--
(1) solely for providing such a financial service; or
(2) for further investing any income derived from such a
financial service.
(b) Protections for Federal Reserve Banks and Federal Home Loan
Banks.--With respect to providing a service to a depository institution
that provides a financial service to a State-sanctioned marijuana
business (where such State-sanctioned marijuana business operates
within a State, an Indian Tribe, or a political subdivision of a State
that allows the cultivation, production, manufacture, sale,
transportation, display, dispensing, distribution, or purchase of
marijuana pursuant to a law or regulation of such State, Indian Tribe,
or political subdivision, as applicable) or service provider (wherever
located), a Federal reserve bank or Federal Home Loan Bank, and the
officers, directors, and employees of the Federal reserve bank or
Federal Home Loan Bank, may not be held liable pursuant to any Federal
law or regulation--
(1) solely for providing such a service; or
(2) for further investing any income derived from such a
service.
(c) Protections for Insurers.--With respect to engaging in the
business of insurance within a State, an Indian Tribe, or a political
subdivision of a State that allows the cultivation, production,
manufacture, sale, transportation, display, dispensing, distribution,
or purchase of marijuana pursuant to a law or regulation of such State,
Indian Tribe, or political subdivision, as applicable, an insurer that
engages in the business of insurance with a State-sanctioned marijuana
business or service provider or that otherwise engages with a person in
a transaction permissible pursuant to a law (including regulations) of
such State, Indian Tribe, or political subdivision related to
marijuana, and the officers, directors, and employees of that insurer,
may not be held liable pursuant to any Federal law or regulation--
(1) solely for engaging in the business of insurance; or
(2) for further investing any income derived from the
business of insurance.
(d) Forfeiture.--
(1) Depository institutions and community development
financial institutions.--A depository institution or community
development financial institution that has a legal interest in
the collateral for a loan or another financial service provided
to an owner, employee, or operator of a State-sanctioned
marijuana business or service provider, or to an owner or
operator of real estate or equipment that is leased or sold to
a State-sanctioned marijuana business or service provider,
shall not be subject to criminal, civil, or administrative
forfeiture of that legal interest pursuant to any Federal law
solely for providing such loan or other financial service.
(2) Federal reserve banks and federal home loan banks.--A
Federal reserve bank or Federal Home Loan Bank that has a legal
interest in the collateral for a loan or another financial
service provided to a depository institution that provides a
financial service to a State-sanctioned marijuana business or
service provider, or to an owner or operator of real estate or
equipment that is leased or sold to a State-sanctioned
marijuana 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.
(3) Federal national mortgage association, federal home
loan mortgage corporation, and federal agencies making,
insuring, or guaranteeing mortgage loans or securities.--The
Federal National Mortgage Association, the Federal Home Loan
Mortgage Corporation, and any Federal agency that has a legal
interest in the collateral for a residential mortgage loan,
including individual units of condominiums and cooperatives,
provided that the collateral is a property designed principally
for the occupancy of 1 to 4 families and underwritten, in whole
or in part, based on income from a State-sanctioned marijuana
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, insuring,
guaranteeing, purchasing, securitizing, or guaranteeing
payments from a security based on such loan.
(4) Other parties to mortgage loans.--A nondepository
lender that makes a federally backed mortgage loan, as defined
in section 9(a), and any person who otherwise has a legal
interest in such a loan or in the collateral of the loan,
including individual units of condominiums and cooperatives,
provided that the collateral is a property designed principally
for the occupancy of 1 to 4 families and underwritten, in whole
or in part, based on income from a State-sanctioned marijuana
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, purchasing,
securitizing, accepting, and making payments related to such
federally backed mortgage loan solely because loan payments or
underwriting are based on income that is in whole or in part
from a State-sanctioned marijuana business or service provider.
(5) Definition.--In this subsection, the term
``collateral'' does not include marijuana or a marijuana
product.
SEC. 6. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY REPORTS.
Section 5318(g) of title 31, United States Code, is amended--
(1) by redesignating paragraph (11) as paragraph (12); and
(2) by inserting after paragraph (10) the following:
``(11) Requirements for state-sanctioned marijuana
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 State-sanctioned
marijuana business or service provider, the report
shall comply with appropriate guidance issued by the
Secretary of the Treasury. Not later than the end of
the 180-day period beginning on the date of enactment
of the Secure And Fair Enforcement Banking Act of 2023,
the Secretary shall amend the February 14, 2014,
guidance titled `BSA Expectations Regarding Marijuana-
Related Businesses' (FIN-2014-G001) or issue new
guidance to ensure consistency with the purpose and
intent of the Secure And Fair Enforcement Banking Act
of 2023, and the amendments made by that Act, and that
such guidance ensures that a financial institution, and
any director, officer, employee, or agent of a
financial institution, continues to report suspicious
transactions pursuant to this subsection, as
applicable, relating to State-sanctioned marijuana
businesses and service providers to preserve the
ability of the Financial Crimes Enforcement Network to
prevent and combat illicit activity.
``(B) Definitions.--In this paragraph:
``(i) Financial service; service provider;
state; state-sanctioned marijuana business.--
The terms `financial service', `service
provider', `State', and `State-sanctioned
marijuana business' have the meanings given the
terms in section 2 of the SAFE Banking Act of
2023.
``(ii) Indian country.--The term `Indian
country' has the meaning given the term in
section 1151 of title 18.
``(iii) Indian tribe.--The term `Indian
Tribe' has the meaning given the term `Indian
tribe' in section 102 of the Federally
Recognized Indian Tribe List Act of 1994 (25
U.S.C. 5130).
``(iv) Marijuana.--The term `marijuana' has
the meaning given the term `marihuana' in
section 102 of the Controlled Substances Act
(21 U.S.C. 802).''.
SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES.
(a) Uniform Guidance and Examination Procedures.--Not later than
180 days after the date of enactment of this Act, the Federal Financial
Institutions Examination Council, in consultation with the Department
of the Treasury, shall develop uniform guidance and examination
procedures for depository institutions that provide financial services
to State-sanctioned marijuana businesses and service providers.
(b) Legacy Deposits.--The guidance and examination procedures
described in subsection (a) shall permit a depository institution to
accept a deposit of currency from a State-sanctioned marijuana business
if--
(1) the business received the currency during the 90-day
period ending on the date on which the business commenced its
relationship with the depository institution;
(2) the business provided the depository institution with
records sufficient to demonstrate the source of the currency
being deposited by the business;
(3) the amount of the currency is reasonable in light of
the expected revenue of the business, as determined by the
depository institution consistent with the risk-based
procedures for ensuring compliance with the section 5318(h) of
title 31, United States Code, and any applicable regulations
implementing that section; and
(4) the depository institution complies with any other
applicable reporting requirements pursuant to subchapter II of
chapter 53 of title 31, United States Code, and any applicable
regulations implementing that subchapter.
SEC. 8. BANKING SERVICES FOR HEMP-RELATED LEGITIMATE BUSINESSES AND
HEMP-RELATED SERVICE PROVIDERS.
(a) Findings.--Congress finds that--
(1) section 12619 of the Agriculture Improvement Act of
2018 (Public Law 115-334; 132 Stat. 5018) legalized hemp by
removing it from the definition of marihuana under section 102
of the Controlled Substances Act (21 U.S.C. 802);
(2) despite the legalization of hemp, some hemp businesses
(including producers, manufacturers, and retailers) continue to
have difficulty gaining access to banking products and
services; and
(3) businesses involved in the sale of hemp-derived CBD
products are particularly affected, due to confusion about the
legal status of such products.
(b) Definition.--In this section, the term ``financial
institution''--
(1) has the meaning given the term in section 5312(a) of
title 31, United States Code; and
(2) includes a bank holding company, as defined in section
2(a) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(a)).
(c) Federal Banking Regulators' Hemp Banking Guidance.--Not later
than the end of the 90-day period beginning on the date of enactment of
this Act, each Federal banking regulator shall update guidance, as in
effect on the date of enactment of this Act, regarding providing
financial services to hemp-related legitimate businesses and hemp-
related service providers to address--
(1) compliance with obligations of financial institutions,
as of the date of enactment of this Act, under Federal laws
(including regulations) determined relevant by the Federal
banking regulator and the Department of the Treasury, including
subchapter II of chapter 53 of title 31, United States Code,
and its implementing regulation in conformity with this Act and
the regulations relating to domestic hemp production under part
990 of title 7, Code of Federal Regulations; and
(2) best practices for financial institutions to follow
when providing financial services, including processing
payments, to hemp-related legitimate businesses and hemp-
related service providers.
SEC. 9. TREATMENT OF INCOME DERIVED FROM A STATE-SANCTIONED MARIJUANA
BUSINESS FOR QUALIFICATION FOR A FEDERALLY BACKED SINGLE-
FAMILY MORTGAGE LOAN.
(a) Definition.--In this section, the term ``federally backed
mortgage loan'' means any loan secured by a first or subordinate lien
on residential real property, including individual units of
condominiums and cooperatives, designed principally for the occupancy
of 1 to 4 families that is--
(1) insured by the Federal Housing Administration under
title I or title II of the National Housing Act (12 U.S.C. 1702
et seq., 1707 et seq.);
(2) insured under section 255 of the National Housing Act
(12 U.S.C. 1715z-20);
(3) guaranteed under section 184 or 184A of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z-13a, 1715z-
13b);
(4) guaranteed, insured, or made by the Department of
Veterans Affairs;
(5) guaranteed, insured, or made by the Department of
Agriculture; or
(6) purchased or securitized by the Federal Home Loan
Mortgage Corporation or the Federal National Mortgage
Association.
(b) Treatment of Income.--
(1) In general.--Income derived from a State-sanctioned
marijuana business that operates within a State, an Indian
Tribe, or a political subdivision of a State that allows the
cultivation, production, manufacture, sale, transportation,
display, dispensing, distribution, or purchase of marijuana
pursuant to a law or regulation of the State, Indian Tribe, or
political subdivision, as applicable, or a service provider
(wherever located), shall be considered in the same manner as
any other legal income for purposes of determining eligibility
for a federally backed mortgage loan for a 1- to 4-unit
property that is the principal residence of the mortgagor.
(2) Liability.--The mortgagee or servicer of a federally
backed mortgage loan described in paragraph (1), or any Federal
agency, the Federal National Mortgage Association, or the
Federal Home Loan Mortgage Corporation, may not be held liable
pursuant to any Federal law or regulation solely for--
(A) providing, insuring, guaranteeing, purchasing,
or securitizing a mortgage to an otherwise qualified
borrower on the basis of the income described in
paragraph (1); or
(B) accepting the income described in paragraph (1)
as payment on the federally backed mortgage loan.
(c) Implementation.--Not later than 180 days after the date of
enactment of this Act--
(1) the Federal Housing Administration shall implement
subsection (b)--
(A) by notice or mortgagee letter for loans insured
under title I, title II, or section 255 of the National
Housing Act (12 U.S.C. 1702 et seq., 1707 et seq.,
1715z-20); and
(B) by lender letter for loans guaranteed under
section 184 or 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13a, 1715z-
13b);
(2) the Department of Veterans Affairs shall implement
subsection (b) by circular or handbook for loans guaranteed,
insured, or made by the Department;
(3) the Department of Agriculture shall implement
subsection (b) by bulletin for loans guaranteed or made by the
Department;
(4) the Federal Home Loan Mortgage Corporation shall
implement subsection (b) by updating its Single-Family Seller/
Servicer Guide for loans purchased or securitized by the
Corporation; and
(5) the Federal National Mortgage Association shall
implement subsection (b) by updating its Single Family Selling
Guide for loans purchased or securitized by the Association.
SEC. 10. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMINATION REQUESTS AND
ORDERS.
(a) Conditions for Termination.--
(1) In general.--An appropriate Federal banking agency may
not formally or informally request or order a depository
institution to terminate a specific customer account or group
of customer accounts (including, but not limited to, any
account of any customer that is a State-sanctioned marijuana
business or service provider) or to otherwise restrict or
discourage a depository institution from entering into or
maintaining a banking relationship with a specific customer or
group of customers (including, but not limited to, with any
customer that is a State-sanctioned marijuana business or
service provider), unless--
(A) the agency has made a written determination
that the depository institution is--
(i) engaging in an unsafe or unsound
practice; or
(ii) violating a rule, law, regulation, or
order with respect to the relationship of the
depository institution with the customer (or,
in the case of a group of customers, specific
customers within the group); and
(B) such reason is not based primarily on
reputational risk.
(2) Treatment of national security threats.--If an
appropriate Federal banking agency believes a specific customer
or group of customers is, or is acting as a conduit for, an
entity that--
(A) poses a threat to national security;
(B) is involved in terrorist financing;
(C) is an agency of the Government of Iran, North
Korea, Syria, or any country listed from time to time
on the State Sponsors of Terrorism list;
(D) is located in, or is subject to the
jurisdiction of, any country specified in subparagraph
(C); or
(E) does business with any entity described in
subparagraph (C) or (D), unless the appropriate Federal
banking agency determines that the customer or group of
customers has used due diligence to avoid doing
business with any entity described in subparagraph (C)
or (D),
such belief shall satisfy the requirement under paragraph (1).
(b) Notice Requirement.--
(1) In general.--If an appropriate Federal banking agency
formally or informally requests or orders a depository
institution to terminate a specific customer account or a group
of customer accounts, the agency shall--
(A) provide such request or order to the
institution in writing; and
(B) accompany such request or order with a written
justification for why such termination is needed,
including any specific laws or regulations the agency
believes are being violated by the customer or group of
customers, if any.
(2) Justification requirement.--A justification described
under paragraph (1)(B) may not be based solely on the
reputational risk to the depository institution.
(c) Customer Notice.--
(1) Notice required.--Except as provided under paragraph
(2) or as otherwise prohibited from being disclosed by law, if
an appropriate Federal banking agency orders a depository
institution to terminate a specific customer account or a group
of customer accounts, the depository institution shall inform
the specific customer or group of customers of the
justification for the customer's account termination described
under subsection (b).
(2) Notice prohibited.--
(A) Notice prohibited in cases of national
security.--If an appropriate Federal banking agency
requests or orders a depository institution to
terminate a specific customer account or a group of
customer accounts based on a belief that the customer
or customers pose a threat to national security, or are
otherwise described under subsection (a)(2), neither
the depository institution nor the appropriate Federal
banking agency may inform the customer or customers of
the justification for the customer's account
termination.
(B) Notice prohibited in other cases.--If an
appropriate Federal banking agency determines that the
notice required under paragraph (1) may interfere with
an authorized criminal investigation, neither the
depository institution nor the appropriate Federal
banking agency may inform the specific customer or
group of customers of the justification for the
customer's account termination.
(d) Reporting Requirement.--Each appropriate Federal banking agency
shall submit to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House of
Representatives an annual report stating--
(1) the aggregate number of specific customer accounts that
the agency requested that a depository institution terminate,
or ordered a depository institution to terminate, during the
previous year; and
(2) the legal authority on which the agency relied in
making each request and order under paragraph (1) and the
frequency on which the agency relied on each such authority.
(e) Definitions.--In this section:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' means--
(A) the appropriate Federal banking agency, as
defined under section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813); and
(B) the National Credit Union Administration, in
the case of an insured credit union.
(2) Depository institution.--The term ``depository
institution'' means--
(A) a depository institution, as defined under
section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813); and
(B) an insured credit union.
SEC. 11. ANNUAL DIVERSITY AND INCLUSION REPORT.
The Federal banking regulators shall submit to Congress an annual
report containing--
(1) information and data on the availability of access to
financial services for minority-owned, veteran-owned, women-
owned, and small State-sanctioned marijuana businesses; and
(2) any regulatory or legislative recommendations for
expanding access to financial services for minority-owned,
veteran-owned, women-owned, and small State-sanctioned
marijuana businesses and hemp-related legitimate businesses.
SEC. 12. GAO STUDY ON DIVERSITY AND INCLUSION.
(a) Study.--The Comptroller General of the United States shall
conduct a study on the barriers to marketplace entry, including in the
licensing process, and the access to financial services for potential
and existing minority-owned, veteran-owned, women-owned, and small
State-sanctioned marijuana businesses and hemp-related legitimate
businesses.
(b) Report.--Not later than 2 years after the date of enactment of
this Act, the Comptroller General of the United States shall submit to
Congress a report containing--
(1) all findings and determinations made in conducting the
study required under subsection (a); and
(2) any regulatory or legislative recommendations for
removing barriers to marketplace entry and success, including
in the licensing process, and expanding access to financial
services for potential and existing minority-owned, veteran-
owned, women-owned, and small State-sanctioned marijuana
businesses and hemp-related legitimate businesses.
SEC. 13. GAO STUDY ON EFFECTIVENESS OF CERTAIN REPORTS ON FINDING
CERTAIN PERSONS.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Comptroller General of the United States, in
consultation with the Attorney General, shall conduct a study on--
(1) the effectiveness of reports on suspicious transactions
filed pursuant to section 5318(g) of title 31, United States
Code, at finding individuals or organizations suspected or
known to be engaged with transnational criminal organizations;
and
(2) whether any engagement described in paragraph (1)
exists in a State, an Indian Tribe, or a political subdivision
of a State that allows the cultivation, production,
manufacture, sale, transportation, display, dispensing,
distribution, or purchase of marijuana.
(b) Requirements.--The study required under subsection (a) shall
examine reports on suspicious transactions--
(1) relating to marijuana-related businesses, as described
in the guidance entitled ``BSA Expectations Regarding
Marijuana-Related Businesses'', published by the Financial
Crimes Enforcement Network of the Department of the Treasury on
February 14, 2014, during the period beginning on January 1,
2014, and ending on the date of enactment of this Act; and
(2) relating to State-sanctioned marijuana businesses
during the period beginning on January 1, 2014, and ending on
the date that is 1 year after the date of enactment of this
Act.
SEC. 14. APPLICABILITY TO HEMP-RELATED LEGITIMATE BUSINESSES AND HEMP-
RELATED SERVICE PROVIDERS.
The provisions of this Act (other than sections 6 and 13) shall
apply with respect to hemp-related legitimate businesses and hemp-
related service providers in the same manner as such provisions apply
with respect to State-sanctioned marijuana businesses and service
providers.
SEC. 15. RULES OF CONSTRUCTION.
(a) No Requirement To Provide Financial Services.--Nothing in this
Act shall require a depository institution, an entity performing a
financial service for or in association with a depository institution,
a community development financial institution, or an insurer to provide
financial services to a State-sanctioned marijuana business, service
provider, or any other business.
(b) General Examination, Supervisory, and Enforcement Authority.--
Nothing in this Act may be construed in any way to limit or otherwise
restrict the general examination, supervisory, and enforcement
authority of the Federal banking regulators (including the Department
of the Treasury), provided that any supervisory or enforcement action
is not being taken solely because the provision of financial services
to a State-sanctioned marijuana business or service provider.
(c) Business of Insurance.--Nothing in this Act shall interfere
with the regulation of the business of insurance in accordance with the
Act entitled ``An Act to express the intent of the Congress with
reference to the regulation of the business of insurance'', approved
March 9, 1945 (commonly known as the ``McCarran-Ferguson Act''; 15
U.S.C. 1011 et seq.), and the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5301 et seq.).
(d) Law Enforcement Authority.--Nothing in this Act shall restrict
or limit the ability of Federal law enforcement agencies to investigate
and prosecute money-laundering crimes involving proceeds of illegal
activity other than marijuana-related activities conducted in
compliance with the law of the State, Indian Tribe, or political
subdivision of a State by a State-sanctioned marijuana business or
service provider.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Veterans' Affairs, 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.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Veterans' Affairs, 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.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Veterans' Affairs, 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.
Referred to the Subcommittee on Economic Opportunity.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line