Vote Smart's Synopsis:

Vote to pass a bill that prohibits a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate marijuana-related business.

Highlights:

• Prohibits a federal banking regulator from doing any of the following (Sec. 2):

• Terminating or limiting the deposit insurance or share insurance of a depository institution under the Federal Deposit Insurance Act, or taking 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 marijuana-related legitimate business or service provider;

• Prohibiting, penalizing, or otherwise discouraging a depository institution from providing financial services to a marijuana-related legitimate business or service provider to a state, political subdivision of a state, or Indian tribe that exercises jurisdiction over marijuana-related legitimate businesses;

• Recommending, incentivizing, or encouraging 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:

• The account holder is a marijuana-related business or service provider, or is an employee, owner, or operator of a marijuana-related business or service provider;

• The account holder later becomes an employee, owner, or operator of a marijuana-related legitimate business or service provider; or 

• The depository institution was not aware that the account holder is an employee, owner, or operator of a marijuana-related legitimate business or service provider.

• Prohibiting or penalizing a depository institution for, or otherwise discouraging a depository institution from, engaging in a financial service for a marijuana-related legitimate business or service provider; or

• Taking adverse or corrective supervisory action on a loan made to:

• A marijuana-related legitimate business or service provider solely because the business is a marijuana-related legitimate business or service provider;

• An employee, owner, or operator of a marijuana-related legitimate business or service provider, solely because the employee, owner, or operator is employed by, owns, or operates a marijuana-related legitimate business or service provider, as applicable; or

• An owner or operator of real estate or equipment that is leased to a marijuana-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 marijuana-related legitimate business or service provider, as applicable.

• Specifies that the proceeds from a transaction involving activities of a marijuana-related legitimate business or service provider are not considered proceeds from an unlawful activity solely because (Sec. 3):

• The transaction involves proceeds from a marijuana-related legitimate business or service provider; or 

• The transaction involves proceeds from either marijuana-related activities conducted by a marijuana-related legitimate business or activities conducted by a service provider such as selling goods or services to a marijuana-related legitimate business.

• Requires a federal banking regulator to issue an annual report to Congress containing (Sec. 8):

• Information and data on the availability of access to financial services for minority-owned and women-owned marijuana-related legitimate businesses; and 

• Any regulatory or legislative recommendations for expanding access to financial services for minority-owned and women-owned marijuana-related legitimate businesses. 

• Defines “federal banking regulator” as 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 Financial Crimes Enforcement Network, the Office of Foreign Asset Control, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Department of the Treasury, or any federal agency or department that regulates banking or financial services, as determined by the Secretary of the Treasury (Sec. 14).

• Defines “service provider” as (Sec. 14):

• A business, organization, or other person that either sells goods or services to a marijuana-related legitimate business, or provides any business services, including the sale or lease of real estate or any other property, legal services, other licensed services, or any other ancillary service relating to marijuana; and

• Not 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. 

• Specifies that “financial services” are defined as, but are not limited to, the following (Sec. 14):

• A financial product or service;

• The business of insurance; and 

• The authorizing, processing, clearing, settling, billing, transferring for deposit, transmitting, delivering, reconciling, collecting, or otherwise effectuating or facilitating of payments or funds, where such payments or funds are made or transferred by any means, including through credit cards, debit cards, other payments cards, other access devices, accounts, original or substitute checks, or electronic funds transfers.

Full Bill Text

Full Bill Text