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Rand Paul Pushes Hemp Banking Amendment

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Federal authorities would no longer be able to punish banks that work with businesses that grow, process and sell hemp products under an amendment up for consideration in the U.S. Senate this week.

The measure, submitted on Tuesday by Sen. Rand Paul (R-KY), seeks to include the protections for hemp banking in the large-scale Farm Bill, which is currently on the Senate floor. The legislation, as currently drafted, already includes provisions that would legalize the cultivation of the non-psychoactive marijuana cousin.

Paul’s fellow home-state senator, Majority Leader Mitch McConnell, has been the leading force for hemp legalization in Congress this year.

โ€œAmerican consumers are buying hemp but thanks to heavy-handed regulation, the only option at scale is importing hemp from foreign producers,” he said in a Senate floor speech on Wednesday. “Enough is enough.โ€

Watch Mitch McConnell Push Hemp Legalization On The Senate Floor

It is unclear if Paul’s amendment will receive a floor vote.

See the full text of the new hemp banking amendment below:

                    ______
                                 
  SA 3198. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to provide for the reform and continuation of 
agricultural and other programs of the Department of Agriculture 
through fiscal year 2023, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end of subtitle F of title XI, add the following:

     SEC. 11618. SECURE AND FAIR BANKING ENFORCEMENT.

       (a) 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 (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 hemp-related legitimate business;
       (2) prohibit, penalize, or otherwise discourage a 
     depository institution from providing financial services to a 
     hemp-related legitimate business or to a State or Indian 
     tribe that exercises jurisdiction over hemp-related 
     legitimate businesses;
       (3) recommend, incentivize, or encourage a depository 
     institution not to offer financial services to the owner, 
     operator, or an individual that is an account holder of a 
     hemp-related legitimate business, or downgrade or cancel 
     financial services offered to an account holder of a hemp-
     related legitimate business solely because--
       (A) the account holder later becomes a hemp-related 
     legitimate business; or
       (B) the depository institution was not aware that the 
     account holder is the owner or operator of a hemp-related 
     legitimate business; and
       (4) take any adverse or corrective supervisory action on a 
     loan to an owner or operator of--
       (A) a hemp-related legitimate business solely because the 
     business owner or operator is a hemp-related business without 
     express statutory authority, as in effect on the day before 
     the date of enactment of this Act; or
       (B) real estate or equipment that is leased or sold to a 
     hemp-related legitimate business solely because the owner or 
     operator of the real estate or equipment leased or sold the 
     equipment or real estate to a hemp-related legitimate 
     business.
       (b) Protections Under Federal Law.--
       (1) In general.--In a State, political subdivision of a 
     State, or Indian country that allows the cultivation, 
     production, manufacturing, transportation, display, 
     dispensing, distribution, sale, or purchase of hemp pursuant 
     to a law (including regulations) of the State, political 
     subdivision of the State, or the Indian tribe that has 
     jurisdiction over the Indian country, as applicable, a 
     depository institution and the officers, director, and 
     employees of the depository institution that provides 
     financial services to a hemp-related legitimate business may 
     not be held liable pursuant to any Federal law (including 
     regulations)--
       (A) solely for providing the financial services pursuant to 
     the law (including regulations) of the State, political 
     subdivision of the State, or Indian tribe; or
       (B) for further investing any income derived from the 
     financial services.
       (2) Forfeiture.--A depository institution that has a legal 
     interest in the collateral for a loan made to an owner or 
     operator of a hemp-related legitimate business, or to an 
     owner or operator of real estate or equipment that is leased 
     or sold to a hemp-related legitimate business, shall not be 
     subject to criminal, civil, or administrative forfeiture of 
     that legal interest pursuant to any Federal law for providing 
     the loan or other financial services solely because the 
     collateral is owned by a hemp-related business.
       (c) Rule of Construction.--Nothing in this section shall 
     require a depository institution to provide financial 
     services to a hemp-related legitimate business.
       (d) Requirements for Filing Suspicious Activity Reports.--
     Section 5318(g) of title 31, United States Code, is amended 
     by adding at the end the following:
       ``(5) Requirements for hemp-related businesses.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `financial service' means a financial 
     product or service, as defined in section 1002 of the Dodd-
     Frank Wall Street Reform and Consumer Protection Act (12 
     U.S.C. 5481);
       ``(ii) the term `hemp' has the meaning given the term in 
     section 10111 of the Agriculture and Nutrition Act of 2018;
       ``(iii) the term `hemp-related legitimate business' has the 
     meaning given the term in section 11618(e) of the Agriculture 
     and Nutrition Act of 2018;
       ``(iv) the term `Indian country' has the meaning given the 
     term in section 1151 of title 18; and
       ``(v) the term `Indian tribe' has the meaning given the 
     term in section 102 of the Federally Recognized Indian Tribe 
     List Act of 1994 (25 U.S.C. 479a).
       ``(B) Reporting of suspicious transactions.--A financial 
     institution or any director, officer, employee, or agent of a 
     financial institution that reports a suspicious activity 
     related to a transaction by a hemp-related legitimate 
     business shall comply with appropriate guidance issued by the 
     Financial Crimes Enforcement Network. The Secretary shall 
     ensure that the guidance is consistent with the purpose and 
     intent of this paragraph and does not inhibit the provision 
     of financial services to a hemp-related legitimate business 
     in a State, political subdivision of a State, or Indian 
     country that has allowed the cultivation, production, 
     manufacturing, transportation, display, dispensing, 
     distribution, sale, or purchase of hemp, or any other conduct 
     relating to hemp, pursuant to law or regulation of the State, 
     the political subdivision of the State, or Indian tribe that 
     has jurisdiction over the Indian country.''.
       (e) Definitions.--In this section:
       (1) Company.--The term ``company'' means a partnership, 
     corporation, association, (incorporated or unincorporated), 
     trust, estate, cooperative organization, State, or any other 
     entity.
       (2) Depository institution.--The term ``depository 
     institution'' means--
       (A) a depository institution as defined in section 3(c) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
       (B) a Federal credit union as defined in section 101 of the 
     Federal Credit Union Act (12 U.S.C. 1752); or
       (C) a State credit union as defined in section 101 of the 
     Federal Credit Union Act (12 U.S.C. 1752).
       (3) 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 
     Office of the Comptroller of the Currency, the National 
     Credit Union Administration, or any Federal agency or 
     department that regulates banking or financial services, as 
     determined by the Secretary of the Treasury.
       (4) Financial service.--The term ``financial service'' 
     means a financial product or service, as defined in section 
     1002 of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act (12 U.S.C. 5481).
       (5) Hemp.--The term ``hemp'' has the meaning given the term 
     in section 10111.
       (6) Hemp product.--The term ``hemp product'' means any 
     article which contains hemp, including an article which is a 
     concentrate, an edible, a tincture, a hemp-infused product, 
     or a topical.
       (7) 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) 
     pursuant to a law established by a State or a political 
     subdivision of a State; and
       (B)(i) participates in any business or organized activity 
     that involves handling hemp or hemp products, including 
     cultivating, producing, manufacturing, selling, transporting, 
     displaying, dispensing, distributing, or purchasing hemp or 
     hemp products; or
       (ii) provides--
       (I) any financial service, including retirement plans or 
     exchange traded funds, relating to hemp; or
       (II) 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.
       (8) Indian country.--The term ``Indian country'' has the 
     meaning given the term in section 1151 of title 18, United 
     States Code.
       (9) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 102 of the Federally 
     Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a).
       (10) Manufacturer.--The term ``manufacturer'' means a 
     person or company who manufactures, compounds, converts, 
     processes, prepares, or packages hemp or hemp products.
       (11) Producer.--The term ``producer'' means a person or 
     company who plants, cultivates, harvests, or in any way 
     facilitates the natural growth of hemp.
       (12) State.--The term ``State'' means each of the several 
     States, the District of Columbia, Puerto Rico, any territory 
     or possession of the United States.
                                 ______
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Tom Angell is the editor of Marijuana Moment. A 20-year veteran in the cannabis law reform movement, he covers the policy and politics of marijuana. Separately, he founded the nonprofit Marijuana Majority. Previously he reported for Marijuana.com and MassRoots, and handled media relations and campaigns for Law Enforcement Against Prohibition and Students for Sensible Drug Policy.

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