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.
“American 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.”
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. ______