[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4942 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 4942
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 SENATE OF THE UNITED STATES
June 24, 2026
Mr. Merkley (for himself, Ms. Murkowski, Ms. Warren, and Mr. Daines)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
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 2026'' or the ``SAFE Banking Act of 2026''.
(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 U