Legislation from United States of America House of Representatives

SAFE Banking Act of 2019

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SAFE Banking Act of 2019

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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.

Date: March 7, 2019

Content
Code:
116.HR.1595
Subject:
Finance and Financial Sector
Secure And Fair Enforcement Banking Act of 2019
Date: March 7, 2019 Official Title: To create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses, and for other purposes.Short title This Act may be cited as the "Secure And Fair Enforcement Banking Act of 2019" or the "SAFE Banking Act of 2019".Purpose The purpose of this Act is to increase public safety by expanding financial services to cannabis-related legitimate businesses and service providers and reducing the amount of cash at such businesses.Safe harbor for depository institutions A Federal banking regulator may not
  • (1) terminate or limit the deposit insurance or share insurance of a depository institution under the Federal Deposit Insurance Act ( et seq.), the Federal Credit Union Act ( et seq.), or take any other adverse action against a depository institution under section 8 of the Federal Deposit Insurance Act () solely because the depository institution provides or has provided financial services to a cannabis-related legitimate business or service provider;
  • (2) prohibit, penalize, or otherwise discourage a depository institution from providing financial services to a cannabis-related legitimate business or service provider or to a State, political subdivision of a State, or Indian Tribe that exercises jurisdiction over cannabis-related legitimate businesses;
  • (3) recommend, incentivize, or encourage a depository institution not to offer financial services to an account holder, or to downgrade or cancel the financial services offered to an account holder solely because
    • (A) the account holder is a cannabis-related legitimate business or service provider, or is an employee, owner, or operator of a cannabis-related legitimate business or service provider;
    • (B) the account holder later becomes an employee, owner, or operator of a cannabis-related legitimate business or service provider; or
    • (C) the depository institution was not aware that the account holder is an employee, owner, or operator of a cannabis-related legitimate business or service provider;
  • (4) take any adverse or corrective supervisory action on a loan made to
    • (A) a cannabis-related legitimate business or service provider, solely because the business is a cannabis-related legitimate business or service provider;
    • (B) an employee, owner, or operator of a cannabis-related legitimate business or service provider, solely because the employee, owner, or operator is employed by, owns, or operates a cannabis-related legitimate business or service provider, as applicable; or
    • (C) an owner or operator of real estate or equipment that is leased to a cannabis-related legitimate business or service provider, solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related legitimate business or service provider, as applicable; and
  • (5) prohibit or penalize a depository institution, or entity performing services for the depository institution, for, or otherwise discourage a depository institution, or entity performing services for the depository institution, from, authorizing, processing, clearing, settling, billing, transferring, reconciling, or collecting payments for a cannabis-related legitimate business, where such payment is made by any means, including a credit, debit, or other payment card, an account, check, or electronic funds transfer.Protections for ancillary businesses For purposes of sections 1956 and 1957 of title 18, United States Code, and all other provisions of Federal law, the proceeds from a transaction conducted by a cannabis-related legitimate business or service provider shall not be considered as proceeds from an unlawful activity solely because the transaction was conducted by a cannabis-related legitimate business or service provider, as applicable.In general With respect to providing financial services within a State, political subdivision of a State, or Indian country that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of cannabis pursuant to a law or regulation of such State, political subdivision, or Indian Tribe that has jurisdiction over the Indian country, as applicable, a depository institution that provides financial services to a cannabis-related legitimate business or service provider, and the officers, directors, and employees of that depository institution may not be held liable pursuant to any Federal law or regulation
  • (1) solely for providing such financial services; or