#aafth ,,congress #ast ,session ,h4 ,r4 #aeie ,,an ,,act ,to create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses1 and for other purposes4 #a4 ,short title2 purpose 7a7 ,short title ,this ,act may be cited as the ,secure ,and ,fair ,enforcement ,banking ,act of #bjai or the ,,safe ,banking ,act of #bjai4 7b7 ,purpose ,the purpose of this ,act is to increase public safety by ensuring access to financial services to cannabis-related legitimate businesses and service providers and reducing the amount of cash at such businesses4 #b4 ,safe harbor for depository institutions 7a7 ,in general ,a ,federal banking regulator may not-- 7#a7 terminate or limit the deposit insurance or share insurance of a depository institution under the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq471 the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agea et seq471 or take any other adverse action against a depository institution under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7 solely because the depository institution provides or has provided financial services to a cannabis-related legitimate business or service provider2 7#b7 prohibit1 penalize1 or otherwise discourage a depository institution from providing financial services to a cannabis-related legitimate business or service provider or to a ,state1 political subdivision of a ,state1 or ,indian ,tribe that exercises jurisdiction over cannabis-related legitimate businesses2 7#c7 recommend1 incentivize1 or encourage a depository institution not to offer financial services to an account holder1 or to downgrade or cancel the financial services offered to an account holder solely because-- 7,a7 the account holder is a cannabis-related legitimate business or service provider1 or is an employee1 owner1 or operator of a cannabis-related legitimate business or service provider2 7,b7 the account holder later becomes an employee1 owner1 or operator of a cannabis-related legitimate business or service provider2 or 7,c7 the depository institution was not aware that the account holder is an employee1 owner1 or operator of a cannabis-related legitimate business or service provider2 7#d7 take any adverse or corrective supervisory action on a loan made to-- 7,a7 a cannabis-related legitimate business or service provider1 solely because the business is a cannabis-related legitimate business or service provider2 7,b7 an employee1 owner1 or operator of a cannabis-related legitimate business or service provider1 solely because the employee1 owner1 or operator is employed by1 owns1 or operates a cannabis-related legitimate business or service provider1 as applicable2 or 7,c7 an owner or operator of real estate or equipment that is leased to a cannabis-related legitimate business or service provider1 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 provider1 as applicable2 or 7#e7 prohibit or penalize a depository institution 7or entity performing a financial service for or in association with a depository institution7 for1 or otherwise discourage a depository institution 7or entity performing a financial service for or in association with a depository institution7 from1 engaging in a financial service for a cannabis-related legitimate business or service provider4 7b7 ,safe harbor applicable to de novo institutions ,subsection 7a7 shall apply to an institution applying for a depository institution charter to the same extent as such subsection applies to a depository institution4 #c4 ,protections for ancillary businesses ,for the purposes of sections #aief and #aieg of title #ah1 ,united ,states ,code1 and all other provisions of ,federal law1 the proceeds from a transaction involving activities of a cannabis-related legitimate business or service provider shall not be considered proceeds from an unlawful activity solely because-- 7#a7 the transaction involves proceeds from a cannabis-related legitimate business or service provider2 or 7#b7 the transaction involves proceeds from-- 7,a7 cannabis-related activities described in section #ad7d77;,b7 conducted by a cannabis-related legitimate business2 or 7,b7 activities described in section #ad7ac77;,a7 conducted by a service provider4 #d4 ,protections under ,federal law 7a7 ,in general ,with respect to providing a financial service to a cannabis-related legitimate business or service provider within a ,state1 political subdivision of a ,state1 or ,indian country that allows the cultivation1 production1 manufacture1 sale1 transportation1 display1 dispensing1 distribution1 or purchase of cannabis pursuant to a law or regulation of such ,state1 political subdivision1 or ,indian ,tribe that has jurisdiction over the ,indian country1 as applicable1 a depository institution1 entity performing a financial service for or in association with a depository institution1 or insurer that provides a financial service to a cannabis-related legitimate business or service provider1 and the officers1 directors1 and employees of that depository institution1 entity1 or insurer may not be held liable pursuant to any ,federal law or regulation-- 7#a7 solely for providing such a financial service2 or 7#b7 for further investing any income derived from such a financial service4 7b7 ,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 cannabis-related legitimate business or service provider 7where such financial service is provided within a ,state1 political subdivision of a ,state1 or ,indian country that allows the cultivation1 production1 manufacture1 sale1 transportation1 display1 dispensing1 distribution1 or purchase of cannabis pursuant to a law or regulation of such ,state1 political subdivision1 or ,indian ,tribe that has jurisdiction over the ,indian country1 as applicable71 a ,federal reserve bank or ,federal ,home ,loan ,bank1 and the officers1 directors1 and employees of the ,federal reserve bank or ,federal ,home ,loan ,bank1 may not be held liable pursuant to any ,federal law or regulation-- 7#a7 solely for providing such a service2 or 7#b7 for further investing any income derived from such a service4 7c7 ,protections for insurers ,with respect to engaging in the business of insurance within a ,state1 political subdivision of a ,state1 or ,indian country that allows the cultivation1 production1 manufacture1 sale1 transportation1 display1 dispensing1 distribution1 or purchase of cannabis pursuant to a law or regulation of such ,state1 political subdivision1 or ,indian ,tribe that has jurisdiction over the ,indian country1 as applicable1 an insurer that engages in the business of insurance with a cannabis-related legitimate business or service provider or who otherwise engages with a person in a transaction permissible under ,state law related to cannabis1 and the officers1 directors1 and employees of that insurer may not be held liable pursuant to any ,federal law or regulation-- 7#a7 solely for engaging in the business of insurance2 or 7#b7 for further investing any income derived from the business of insurance4 7d7 ,forfeiture 7#a7 ,depository institutions ,a depository institution that has a legal interest in the collateral for a loan or another financial service provided to an owner1 employee1 or operator of a cannabis-related legitimate business or service provider1 or to an owner or operator of real estate or equipment that is leased or sold to a cannabis-related legitimate business or service provider1 shall not be subject to criminal1 civil1 or administrative forfeiture of that legal interest pursuant to any ,federal law for providing such loan or other financial service4 7#b7 ,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 cannabis-related legitimate business or service provider1 or to an owner or operator of real estate or equipment that is leased or sold to a cannabis-related legitimate business or service provider1 shall not be subject to criminal1 civil1 or administrative forfeiture of that legal interest pursuant to any ,federal law for providing such loan or other financial service4 #e4 ,rules of construction 7a7 ,no requirement ,to provide financial services ,nothing in this ,act shall require a depository institution1 entity performing a financial service for or in association with a depository institution1 or insurer to provide financial services to a cannabis-related legitimate business1 service provider1 or any other business4 7b7 ,general examination1 supervisory1 and enforcement authority ,nothing in this ,act may be construed in any way as limiting or otherwise restricting the general examination1 supervisory1 and enforcement authority of the ,federal banking regulators1 provided that the basis for any supervisory or enforcement action is not the provision of financial services to a cannabis-related legitimate business or service provider4 #f4 ,requirements for filing suspicious activity reports ,section #ecah7;g7 of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7#e7 ,requirements for cannabis-related legitimate businesses 7,a7 ,in general ,with respect to a financial institution or any director1 officer1 employee1 or agent of a financial institution that reports a suspicious transaction pursuant to this subsection1 if the reason for the report relates to a cannabis-related legitimate business or service provider1 the report shall comply with appropriate guidance issued by the ,financial ,crimes ,enforcement ,network4 ,the ,secretary shall ensure that the guidance is consistent with the purpose and intent of the ,,safe ,banking ,act of #bjai and does not significantly inhibit the provision of financial services to a cannabis-related legitimate business or service provider in a ,state1 political subdivision of a ,state1 or ,indian country that has allowed the cultivation1 production1 manufacture1 transportation1 display1 dispensing1 distribution1 sale1 or purchase of cannabis pursuant to law or regulation of such ,state1 political subdivision1 or ,indian ,tribe that has jurisdiction over the ,indian country4 7,b7 ,definitions ,for purposes of this paragraph3 7i7 ,cannabis ,the term cannabis has the meaning given the term marihuana in section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb74 7ii7 ,cannabis-related legitimate business ,the term cannabis-related legitimate business has the meaning given that term in section #ad of the ,,safe ,banking ,act of #bjai4 7iii7 ,indian country ,the term ,indian country has the meaning given that term in section #aaea of title #ah4 7iv7 ,indian ,tribe ,the term ,indian ,tribe has the meaning given that term in section #ajb of the ,federally ,recognized ,indian ,tribe ,list ,act of #aiid 7#be ,u4,s4,c4 #dgi;a74 7v7 ,financial service ,the term financial service has the meaning given that term in section #ad of the ,,safe ,banking ,act of #bjai4 7vi7 ,service provider ,the term service provider has the meaning given that term in section #ad of the ,,safe ,banking ,act of #bjai4 7vii7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 ,puerto ,rico1 and any territory or possession of the ,united ,states4 4 #g4 ,guidance and examination procedures ,not later than #ahj days after the date of enactment of this ,act1 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 providers4 #h4 ,annual diversity and inclusion report ,the ,federal banking regulators shall issue an annual report to ,congress containing-- 7#a7 information and data on the availability of access to financial services for minority-owned and women-owned cannabis-related legitimate businesses2 and 7#b7 any regulatory or legislative recommendations for expanding access to financial services for minority-owned and women-owned cannabis-related legitimate businesses4 #i4 ,,gao study on diversity and inclusion 7a7 ,study ,the ,comptroller ,general of the ,united ,states shall carry out a study on the barriers to marketplace entry1 including in the licensing process1 and the access to financial services for potential and existing minority-owned and women-owned cannabis-related legitimate businesses4 7b7 ,report ,the ,comptroller ,general shall issue a report to the ,congress-- 7#a7 containing all findings and determinations made in carrying out the study required under subsection 7a72 and 7#b7 containing any regulatory or legislative recommendations for removing barriers to marketplace entry1 including in the licensing process1 and expanding access to financial services for potential and existing minority-owned and women-owned cannabis-related legitimate businesses4 #aj4 ,,gao study on effectiveness of certain reports on finding certain persons ,not later than #b years after the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall carry out a study on the effectiveness of reports on suspicious transactions filed pursuant to section #ecah7;g7 of title #ca1 ,united ,states ,code1 at finding individuals or organizations suspected or known to be engaged with transnational criminal organizations and whether any such engagement exists in a ,state1 political subdivision1 or ,indian ,tribe that has jurisdiction over ,indian country that allows the cultivation1 production1 manufacture1 sale1 transportation1 display1 dispensing1 distribution1 or purchase of cannabis4 ,the study shall examine reports on suspicious transactions as follows3 7#a7 ,during the period of #bjad until the date of the enactment of this ,act1 reports relating to marijuana-related businesses4 7#b7 ,during the #a-year period after date of the enactment of this ,act1 reports relating to cannabis-related legitimate businesses4 #aa4 ,banking services for hemp businesses 7a7 ,findings ,the ,congress finds that-- 7#a7 the ,agriculture ,improvement ,act of #bjah 7,public ,law #aae-ccd7 legalized hemp by removing it from the definition of marihuana under the ,controlled ,substances ,act2 7#b7 despite the legalization of hemp1 some hemp businesses 7including producers1 manufacturers1 and retailers7 continue to have difficulty gaining access to banking products and services2 and 7#c7 businesses involved in the sale of hemp-derived cannabidiol 7,,cbd7 products are particularly affected1 due to confusion about their legal status4 7b7 ,federal banking regulator hemp banking guidance ,not later than the end of the #ij-;day period beginning on the date of enactment of this ,act1 the ,federal banking regulators shall jointly issue guidance to financial institutions-- 7#a7 confirming the legality of hemp1 hemp-derived ,,cbd products1 and other hemp-derived cannabinoid products1 and the legality of engaging in financial services with businesses selling hemp1 hemp-derived ,,cbd products1 and other hemp-derived cannabinoid products1 after the enactment of the ,agriculture ,improvement ,act of #bjah2 and 7#b7 to provide recommended best practices for financial institutions to follow when providing financial services and merchant processing services to businesses involved in the sale of hemp1 hemp-derived ,,cbd products1 and other hemp-derived cannabinoid products4 7c7 ,financial institution defined ,in this section1 the term financial institution means any person providing financial services4 #ab4 ,application of safe harbors to hemp and ,,cbd products 7a7 ,in general ,except as provided under subsection 7b71 the provisions of this ,act 7other than sections #f and #aj7 shall apply to hemp 7including hemp-derived cannabidiol and other hemp-derived cannabinoid products7 in the same manner as such provisions apply to cannabis4 7b7 ,rule of application ,in applying the provisions of this ,act described under subsection 7a7 to hemp1 the definition of cannabis-related legitimate business shall be treated as excluding any requirement to engage in activity pursuant to the law of a ,state or political subdivision thereof4 7c7 ,hemp defined ,in this section1 the term hemp has the meaning given that term under section #big;,a of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afcio74 #ac4 ,requirements for deposit account termination requests and orders 7a7 ,termination requests or orders must be valid 7#a7 ,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 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 unless-- 7,a7 the agency has a valid reason for such request or order2 and 7,b7 such reason is not based solely on reputation risk4 7#b7 ,treatment of national security threats ,if an appropriate ,federal banking agency believes a specific customer or group of customers is1 or is acting as a conduit for1 an entity which-- 7,a7 poses a threat to national security2 7,b7 is involved in terrorist financing2 7,c7 is an agency of the ,government of ,iran1 ,north ,korea1 ,syria1 or any country listed from time to time on the ,state ,sponsors of ,terrorism list2 7,d7 is located in1 or is subject to the jurisdiction of1 any country specified in subparagraph 7,c72 or 7,e7 does business with any entity described in subparagraph 7,c7 or 7,d71 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 7,c7 or 7,d71 such belief shall satisfy the requirement under paragraph 7#a74 7b7 ,notice requirement 7#a7 ,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 accounts1 the agency shall-- 7,a7 provide such request or order to the institution in writing2 and 7,b7 accompany such request or order with a written justification for why such termination is needed1 including any specific laws or regulations the agency believes are being violated by the customer or group of customers1 if any4 7#b7 ,justification requirement ,a justification described under paragraph 7#a77;,b7 may not be based solely on the reputation risk to the depository institution4 7c7 ,customer notice 7#a7 ,notice required ,except as provided under paragraph 7#b7 or as otherwise prohibited from being disclosed by law1 if an appropriate ,federal banking agency orders a depository institution to terminate a specific customer account or a group of customer accounts1 the depository institution shall inform the specific customer or group of customers of the justification for the customer's account termination described under subsection 7b74 7#b7 ,notice prohibited 7,a7 ,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 security1 or are otherwise described under subsection 7a77#b71 neither the depository institution nor the appropriate ,federal banking agency may inform the customer or customers of the justification for the customer's account termination4 7,b7 ,notice prohibited in other cases ,if an appropriate ,federal banking agency determines that the notice required under paragraph 7#a7 may interfere with an authorized criminal investigation1 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 termination4 7d7 ,reporting requirement ,each appropriate ,federal banking agency shall issue an annual report to the ,congress stating-- 7#a7 the aggregate number of specific customer accounts that the agency requested or ordered a depository institution to terminate during the previous year2 and 7#b7 the legal authority on which the agency relied in making such requests and orders and the frequency on which the agency relied on each such authority4 7e7 ,definitions ,for purposes of this section3 7#a7 ,appropriate ,federal banking agency ,the term appropriate ,federal banking agency means-- 7,a7 the appropriate ,federal banking agency1 as defined under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 the ,national ,credit ,union ,administration1 in the case of an insured credit union4 7#b7 ,depository institution ,the term depository institution means-- 7,a7 a depository institution1 as defined under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 an insured credit union4 #ad4 ,definitions ,in this ,act3 7#a7 ,business of insurance ,the term business of insurance has the meaning given such term in section #ajjb of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #edha74 7#b7 ,cannabis ,the term cannabis has the meaning given the term marihuana in section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb74 7#c7 ,cannabis product ,the term cannabis product means any article which contains cannabis1 including an article which is a concentrate1 an edible1 a tincture1 a cannabis-infused product1 or a topical4 7#d7 ,cannabis-related legitimate business ,the term cannabis-related legitimate business means a manufacturer1 producer1 or any person or company that-- 7,a7 engages in any activity described in subparagraph 7,b7 pursuant to a law established by a ,state or a political subdivision of a ,state1 as determined by such ,state or political subdivision2 and 7,b7 participates in any business or organized activity that involves handling cannabis or cannabis products1 including cultivating1 producing1 manufacturing1 selling1 transporting1 displaying1 dispensing1 distributing1 or purchasing cannabis or cannabis products4 7#e7 ,depository institution ,the term depository institution means-- 7,a7 a depository institution as defined in section #c7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7;c772 7,b7 a ,federal credit union as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb72 or 7,c7 a ,state credit union as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#f7 ,federal banking regulator ,the term ,federal banking regulator means each of the ,board of ,governors of the ,federal ,reserve ,system1 the ,bureau of ,consumer ,financial ,protection1 the ,federal ,deposit ,insurance ,corporation1 the ,federal ,housing ,finance ,agency1 the ,financial ,crimes ,enforcement ,network1 the ,office of ,foreign ,asset ,control1 the ,office of the ,comptroller of the ,currency1 the ,national ,credit ,union ,administration1 the ,department of the ,treasury1 or any ,federal agency or department that regulates banking or financial services1 as determined by the ,secretary of the ,treasury4 7#g7 ,financial service ,the term financial service-- 7,a7 means a financial product or service1 as defined in section #ajjb of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #edha72 7,b7 includes the business of insurance2 7,c7 includes1 whether performed directly or indirectly1 the authorizing1 processing1 clearing1 settling1 billing1 transferring for deposit1 transmitting1 delivering1 instructing to be delivered1 reconciling1 collecting1 or otherwise effectuating or facilitating of payments or funds1 where such payments or funds are made or transferred by any means1 including by the use of credit cards1 debit cards1 other payment cards1 or other access devices1 accounts1 original or substitute checks1 or electronic funds transfers2 7,d7 includes acting as a money transmitting business which directly or indirectly makes use of a depository institution in connection with effectuating or facilitating a payment for a cannabis-related legitimate business or service provider in compliance with section #eccj of title #ca1 ,united ,states ,code1 and any applicable ,state law2 and 7,e7 includes 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 7as defined under section #aief7;c77#e7 of title #ah1 ,united ,states ,code4 7#h7 ,indian country ,the term ,indian country has the meaning given that term in section #aaea of title #ah4 7#i7 ,indian ,tribe ,the term ,indian ,tribe has the meaning given that term in section #ajb of the ,federally ,recognized ,indian ,tribe ,list ,act of #aiid 7#be ,u4,s4,c4 #dgi;a74 7#aj7 ,insurer ,the term insurer has the meaning given that term under section #cac7r7 of title #ca1 ,united ,states ,code4 7#aa7 ,manufacturer ,the term manufacturer means a person who manufactures1 compounds1 converts1 processes1 prepares1 or packages cannabis or cannabis products4 7#ab7 ,producer ,the term producer means a person who plants1 cultivates1 harvests1 or in any way facilitates the natural growth of cannabis4 7#ac7 ,service provider ,the term service provider-- 7,a7 means a business1 organization1 or other person that-- 7i7 sells goods or services to a cannabis-related legitimate business2 or 7ii7 provides any business services1 including the sale or lease of real or any other property1 legal or other licensed services1 or any other ancillary service1 relating to cannabis2 and 7,b7 does not include a business1 organization1 or other person that participates in any business or organized activity that involves handling cannabis or cannabis products1 including cultivating1 producing1 manufacturing1 selling1 transporting1 displaying1 dispensing1 distributing1 or purchasing cannabis or cannabis products4 7#ad7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 ,puerto ,rico1 and any territory or possession of the ,united ,states4 #ae4 ,discretionary surplus funds ,section #g7;a77#c77;,a7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bhi7;a77#c77;,a77 is amended by striking #f1hbe1jjj1jjj and inserting #f1hba1jjj1jjj4 #af4 ,determination of ,budgetary ,effects ,the budgetary effects of this ,act1 for the purpose of complying with the ,statutory ,pay-,as-,you-,go ,act of #bjaj1 shall be determined by reference to the latest statement titled 8,budgetary ,effects of ,,paygo ,legislation0 for this ,act1 submitted for printing in the ,congressional ,record by the ,chairman of the ,house ,budget ,committee1 provided that such statement has been submitted prior to the vote on passage4 ,passed the ,house of ,representatives ,september #be1 #bjai4;,clerk4