I 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. VELA´ZQUEZ, 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’ Af- fairs, 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 busi- nesses and service providers for such businesses, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 2891 IH SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1 (a) SHORT TITLE.—This Act may be cited as the 2 ‘‘Secure And Fair Enforcement Banking Act of 2023’’ or 3 the ‘‘SAFE Banking Act of 2023’’. 4 (b) TABLE OF CONTENTS.—The table of contents for 5 this Act is as follows: 6 Sec. 1. Short title; table of contents. Sec. 2. Definitions. Sec. 3. Safe harbor for depository institutions. Sec. 4. Protections for providing services to State-sanctioned marijuana busi- nesses. Sec. 5. Protections under Federal law. Sec. 6. Requirements for filing suspicious activity reports. Sec. 7. Guidance and examination procedures. Sec. 8. Banking services for hemp-related legitimate businesses and hemp-re- lated service providers. Sec. 9. Treatment of income derived from a State-sanctioned marijuana busi- ness for qualification for a federally backed single-family mort- gage loan. Sec. 10. Requirements for deposit account termination requests and orders. Sec. 11. Annual diversity and inclusion report. Sec. 12. GAO study on diversity and inclusion. Sec. 13. GAO study on effectiveness of certain reports on finding certain per- sons. Sec. 14. Applicability to hemp-related legitimate businesses and hemp-related service providers. Sec. 15. Rules of construction. SEC. 2. DEFINITIONS. 7 In this Act: 8 (1) BUSINESS OF INSURANCE.—The term 9 ‘‘business of insurance’’ has the meaning given the 10 term in section 1002 of the Consumer Financial 11 Protection Act of 2010 (12 U.S.C. 5481). 12 (2) CBD.—The term ‘‘CBD’’ means 13 cannabidiol. 14 (3) COMMUNITY DEVELOPMENT FINANCIAL IN- 15 STITUTION.—The term ‘‘community development fi- 16 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 2891 IH nancial institution’’ has the meaning given the term 1 in section 103 of the Community Development 2 Banking and Financial Institutions Act of 1994 (12 3 U.S.C. 4702). 4 (4) DEPOSITORY INSTITUTION.—The term ‘‘de- 5 pository institution’’— 6 (A) means— 7 (i) a depository institution, as defined 8 in section 3(c) of the Federal Deposit In- 9 surance Act (12 U.S.C. 1813(c)); 10 (ii) a Federal credit union, as defined 11 in section 101 of the Federal Credit Union 12 Act (12 U.S.C. 1752); and 13 (iii) a State credit union, as defined in 14 section 101 of the Federal Credit Union 15 Act (12 U.S.C. 1752); and 16 (B) includes any minority depository insti- 17 tution, as defined in section 308 of the Finan- 18 cial Institutions Reform, Recovery, and En- 19 forcement Act of 1989 (12 U.S.C. 1463 note). 20 (5) FEDERAL BANKING REGULATOR.—The 21 term ‘‘Federal banking regulator’’ means each of the 22 Board of Governors of the Federal Reserve System, 23 the Bureau of Consumer Financial Protection, the 24 Federal Deposit Insurance Corporation, the Federal 25 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 2891 IH Housing Finance Agency, the Office of the Comp- 1 troller of the Currency, the National Credit Union 2 Administration, the Department of the Treasury (in- 3 cluding the Financial Crimes Enforcement Network 4 and the Office of Foreign Assets Control), or any 5 Federal agency or department that regulates bank- 6 ing or financial services, as determined by the Sec- 7 retary of the Treasury. 8 (6) FINANCIAL PRODUCT OR SERVICE.—The 9 term ‘‘financial product or service’’ has the meaning 10 given the term in section 1002 of the Consumer Fi- 11 nancial Protection Act of 2010 (12 U.S.C. 5481). 12 (7) FINANCIAL SERVICE.—The term ‘‘financial 13 service’’— 14 (A) means— 15 (i) a financial product or service, re- 16 gardless of whether the customer receiving 17 the product or service is a consumer or 18 commercial entity; or 19 (ii) a financial product or service, or 20 any combination of products and services, 21 permitted to be provided by— 22 (I) a national bank or a financial 23 subsidiary pursuant to the authority 24 provided under— 25 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 2891 IH (aa) the paragraph des- 1 ignated as the ‘‘Seventh’’ of sec- 2 tion 5136 of the Revised Statutes 3 (12 U.S.C. 24); or 4 (bb) section 5136A of the 5 Revised Statutes (12 U.S.C. 6 24a); 7 (II) a Federal credit union, pur- 8 suant to the authority provided under 9 the Federal Credit Union Act (12 10 U.S.C. 1751 et seq.); or 11 (III) a community development 12 financial institution; and 13 (B) includes— 14 (i) the business of insurance; 15 (ii) whether performed directly or in- 16 directly, the authorizing, processing, clear- 17 ing, settling, billing, transferring for de- 18 posit, transmitting, delivering, instructing 19 to be delivered, reconciling, collecting, or 20 otherwise effectuating or facilitating the 21 payment of funds that are made or trans- 22 ferred by any means, including by the use 23 of credit cards, debit cards, other payment 24 cards, or other access devices, accounts, 25 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 2891 IH original or substitute checks, or electronic 1 funds transfers; 2 (iii) acting as a money transmitting 3 business that directly or indirectly makes 4 use of a depository institution in connec- 5 tion with effectuating or facilitating a pay- 6 ment for a State-sanctioned marijuana 7 business or service provider in compliance 8 with section 5330 of title 31, United 9 States Code, and any applicable State or 10 Tribal law; and 11 (iv) acting as an armored car service 12 for processing and depositing with a depos- 13 itory institution or a Federal reserve bank 14 with respect to any monetary instruments, 15 as defined in section 1956(c)(5) of title 18, 16 United States Code. 17 (8) HEMP.—The term ‘‘hemp’’ has the meaning 18 given the term in section 297A of the Agricultural 19 Marketing Act of 1946 (7 U.S.C. 1639o). 20 (9) HEMP-RELATED LEGITIMATE BUSINESS.— 21 The term ‘‘hemp-related legitimate business’’ means 22 a manufacturer, producer, or any person or company 23 that— 24 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •HR 2891 IH (A) engages in any activity described in 1 subparagraph (B) in conformity with the Agri- 2 culture Improvement Act of 2018 (Public Law 3 115–334; 132 Stat. 4490), amendments made 4 by that Act, and the regulations issued to im- 5 plement that Act by the Department of Agri- 6 culture, where applicable, and the law of a 7 State, an Indian Tribe, or a political subdivision 8 of a State; and 9 (B) participates in any business or orga- 10 nized activity that involves handling hemp, 11 hemp-derived CBD products, and other hemp- 12 derived cannabinoid products, including culti- 13 vating, producing, extracting, manufacturing, 14 selling, transporting, displaying, dispensing, dis- 15 tributing, or purchasing hemp, hemp-derived 16 CBD products, and other hemp-derived 17 cannabinoid products. 18 (10) HEMP-RELATED SERVICE PROVIDER.—The 19 term ‘‘hemp-related service provider’’— 20 (A) means a business, organization, or 21 other person that— 22 (i) sells goods or services to a hemp- 23 related legitimate business; or 24 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •HR 2891 IH (ii) provides any business services, in- 1 cluding the sale or lease of real or any 2 other property, legal or other licensed serv- 3 ices, or any other ancillary service, relating 4 to hemp, hemp-derived CBD products, or 5 other hemp-derived cannabinoid products; 6 and 7 (B) does not include a business, organiza- 8 tion, or other person that participates in any 9 business or organized activity that involves han- 10 dling hemp, hemp-derived CBD products, or 11 other hemp-derived cannabinoid products, in- 12 cluding cultivating, producing, manufacturing, 13 selling, transporting, displaying, dispensing, dis- 14 tributing, or purchasing hemp, hemp-derived 15 CBD products, and other hemp-derived 16 cannabinoid products. 17 (11) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 18 has the meaning given the term ‘‘Indian tribe’’ in 19 section 102 of the Federally Recognized Indian 20 Tribe List Act of 1994 (25 U.S.C. 5130). 21 (12) INSURER.—The term ‘‘insurer’’ has the 22 meaning given the term in section 313(r) of title 31, 23 United States Code. 24 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •HR 2891 IH (13) MANUFACTURER.—The term ‘‘manufac- 1 turer’’ means a person who manufactures, com- 2 pounds, converts, processes, prepares, or packages 3 marijuana or marijuana products. 4 (14) MARIJUANA.—The term ‘‘marijuana’’ has 5 the meaning given the term ‘‘marihuana’’ in section 6 102 of the Controlled Substances Act (21 U.S.C. 7 802). 8 (15) MARIJUANA PRODUCT.—The term ‘‘mari- 9 juana product’’ means any article that contains 10 marijuana, including an article that is a concentrate, 11 an edible, a tincture, a marijuana-infused product, 12 or a topical. 13 (16) PRODUCER.—The term ‘‘producer’’ means 14 a person who plants, cultivates, harvests, or in any 15 way facilitates the natural growth of marijuana. 16 (17) SERVICE PROVIDER.—The term ‘‘service 17 provider’’— 18 (A) means a business, organization, or 19 other person that— 20 (i) sells goods or services to a State- 21 sanctioned marijuana business; or 22 (ii) provides any business services, in- 23 cluding the sale or lease of real or any 24 other property, legal or other licensed serv- 25 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •HR 2891 IH ices, or any other ancillary service, relating 1 to a State-sanctioned marijuana business; 2 and 3 (B) does not include a business, organiza- 4 tion, or other person that participates in any 5 business or organized activity that involves han- 6 dling marijuana or marijuana products, includ- 7 ing cultivating, producing, manufacturing, sell- 8 ing, transporting, displaying, dispensing, dis- 9 tributing, or purchasing marijuana or mari- 10 juana products. 11 (18) STATE.—The term ‘‘State’’ means each of 12 the several States, the District of Columbia, the 13 Commonwealth of Puerto Rico, and any territory or 14 possession of the United States. 15 (19) STATE-SANCTIONED MARIJUANA BUSI- 16 NESS.—The term ‘‘State-sanctioned marijuana busi- 17 ness’’ means a manufacturer, producer, or any per- 18 son that— 19 (A) engages in any activity described in 20 subparagraph (B) pursuant to a law established 21 by a State, an Indian Tribe, or a political sub- 22 division of a State, as determined by such 23 State, Indian Tribe, or political subdivision; and 24 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •HR 2891 IH (B) participates in any business or orga- 1 nized activity that involves handling marijuana 2 or marijuana products, including cultivating, 3 producing, manufacturing, selling, transporting, 4 displaying, dispensing, distributing, or pur- 5 chasing marijuana or marijuana products. 6 SEC. 3. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS. 7 (a) PROHIBITION.—A Federal banking regulator may 8 not— 9 (1) terminate or limit the deposit insurance or 10 share insurance of a depository institution under the 11 Federal Deposit Insurance Act (12 U.S.C. 1811 et 12 seq.) or the Federal Credit Union Act (12 U.S.C. 13 1751 et seq.) or take any other adverse action 14 against a depository institution under the Federal 15 Deposit Insurance Act (12 U.S.C. 1811 et seq.) or 16 the Federal Credit Union Act (12 U.S.C. 1751 et 17 seq.) solely because the depository institution pro- 18 vides or has provided financial services to a State- 19 sanctioned marijuana business or service provider; 20 (2) prohibit, penalize, or otherwise discourage a 21 depository institution from providing financial serv- 22 ices to— 23 (A) a State-sanctioned marijuana business 24 or service provider solely because the business 25 VerDate Sep 11 2014 23:24 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2891.IH H2891 pbinns on DSKJLVW7X2PROD with $$_JOB 12 •HR 2891 IH or service provider is a State-sanctioned mari- 1 juana business or service provider; or 2 (B) a State, an Indian Tribe, or a political 3 subdivision of a State solely because that entity 4 exercises jurisdiction over State-sanctioned 5 marijuana businesses; 6 (3) recommend, incentivize, or encourage a de- 7 pository institution not to offer financial services to 8 an account holder, or to downgrade or cancel the fi- 9 nancial services offered to an account holder, solely 10 because— 11 (A) the account holder is a State-sanc- 12 tioned marijuana business or service provider, 13 or is an employee, owner, or operator of a 14 State-sanctioned marijuana business or service 15 provider; 16 (B) the account holder later becomes an 17 employee, owner, or operator of a State-sanc- 18 tioned marijuana business or service provider; 1 [Text truncated for display. 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