Sec. 8. Banking services for hemp-related legitimate businesses and hemp-related service providers

276 words·~1 min read·/bill/118/s/2860/is/section-8

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Congress finds that— section 12619 of the Agriculture Improvement Act of 2018 (Public Law 115–334; 132 Stat. 5018) legalized hemp by removing it from the definition of marihuana under section 102 of the Controlled Substances Act (21 U.S.C. 802); despite the legalization of hemp, some hemp businesses (including producers, manufacturers, and retailers) continue to have difficulty gaining access to banking products and services; and businesses involved in the sale of hemp-derived CBD products are particularly affected, due to confusion about the legal status of such products.

In this section, the term financial institution — has the meaning given the term in section 5312(a) of title 31, United States Code; and includes a bank holding company, as defined in section 2(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)). Not later than the end of the 180-day period beginning on the date of enactment of this Act, each Federal banking regulator shall update guidance, as in effect on the date of enactment of this Act, regarding providing financial services to hemp-related legitimate businesses and hemp-related service providers to address— compliance with obligations of financial institutions, as of the date of enactment of this Act, under Federal laws (including regulations) determined relevant by the Federal banking regulator and the Department of the Treasury, including subchapter II of chapter 53 of title 31, United States Code, and its implementing regulation in conformity with this Act and the regulations relating to domestic hemp production under part 990 of title 7, Code of Federal Regulations; and best practices for financial institutions to follow when providing financial services, including processing payments, to hemp-related legitimate businesses and hemp-related service providers.

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