CLIMB Act

(m) Safe harbor for cannabis-Related legitimate businesses and service providers

(1) Definitions. In this subsection:

(A) Cannabis. The term cannabis has the meaning given the term marihuana in section 102 of the Controlled Substances Act (21 U.S.C. 802).

(B) Cannabis product. The term cannabis product means any article that contains cannabis, including an article that is a concentrate, an edible, a tincture, a cannabis-infused product, or a topical.

(C) Cannabis-related legitimate business. The term cannabis-related legitimate business means an issuer that—

(i) initiates, engages, or participates in any business or organized activity that involves cannabis or cannabis products, including cultivating, warehousing, producing, manufacturing, processing, selling, transporting, displaying, dispensing, distributing, or purchasing cannabis or cannabis products; and

(ii) engages in the activity described in clause (i) pursuant to a law established by a State or a political subdivision of a State, as determined by that State or political subdivision.

(D) Market participant. The term market participant means any broker, dealer, underwriter, clearing agency or clearinghouse, securities depository, credit rating agency, alternative trading system, investment adviser, self-regulatory organization, or transfer agent.

(E) Service provider. The term service provider means—

(i) an issuer that—

(I) sells or otherwise provides goods or services to a cannabis-related legitimate business; or

(II) provides any business service relating to cannabis or a cannabis product, including—

(aa) legal, compliance, or accounting services;

(bb) sale, leasing, or renting of real estate or equipment;

(cc) provision of parts, substances, or testing services needed to produce cannabis in compliance with the laws and regulations in the applicable State;

(dd) advertising or marketing services;

(ee) management consulting services;

(ff) information technology, software, or communications services; and

(gg) packaging, transportation, or other logistics services; and

(ii) is not a cannabis-related legitimate business.

(F) State. The term State means each of the several States, the District of Columbia, each of the territories of the United States, and each Indian Tribe.

(2) Safe harbor. Notwithstanding section 32 of this Act, the Controlled Substances Act (21 U.S.C. 801 et seq.), or any other Federal law, it shall not be unlawful for a national securities exchange registered pursuant to subsection (a) or any market participant to take the following actions in connection with the securities of a cannabis-related legitimate business or a service provider:

(A) To have listed, list, or intend to list such securities.

(B) To permit the trading of such securities on a national securities exchange.

(C) To facilitate the offering, listing, or trading of such securities on a national securities exchange.