Text of Senate Amendment 4360

Text of Senate Amendment 4360

Congressional Record, Volume 172 Issue 42 (Thursday, March 5, 2026) [Congressional Record Volume 172, Number 42 (Thursday, March 5, 2026)] [Senate] [Pages S897-S898] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] SA 4360. Mr. MERKLEY submitted an amendment intended to be proposed by him to the bill H.R. 6644, a bill to increase the supply of housing in America, and for other purposes; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. TREATMENT OF INCOME DERIVED FROM A STATE-SANCTIONED MARIJUANA BUSINESS FOR QUALIFICATION FOR A FEDERALLY BACKED SINGLE-FAMILY MORTGAGE LOAN; PROTECTIONS AGAINST FORFEITURE. (a) Definitions.--In this section: (1) Federally backed mortgage loan.--The term ``federally backed mortgage loan'' means any loan secured by a first or subordinate lien on residential real property, including individual units of condominiums and cooperatives, designed principally for the occupancy of 1 to 4 families that is-- (A) insured by the Federal Housing Administration under title I or title II of the National Housing Act (12 U.S.C. 1702 et seq., 1707 et seq.); (B) insured under section 255 of the National Housing Act (12 U.S.C. 1715z-20); (C) guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a, 1715z-13b); (D) guaranteed, insured, or made by the Department of Veterans Affairs; (E) guaranteed, insured, or made by the Department of Agriculture; or (F) purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (2) 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). (3) Manufacturer.--The term ``manufacturer'' means a person who manufactures, compounds, converts, processes, prepares, or packages marijuana or marijuana products. (4) Marijuana.--The term ``marijuana'' has the meaning given the term ``marihuana'' in section 102 of the Controlled Substances Act (21 U.S.C. 802). (5) 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. [[Page S898]] (6) Producer.--The term ``producer'' means a person who plants, cultivates, harvests, or in any way facilitates the natural growth of marijuana. (7) 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. (8) 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. (9) 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. (b) Treatment of Income.-- (1) In general.--Income derived from a State-sanctioned marijuana business that operates within a State, an Indian Tribe, or a political subdivision of a State that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of marijuana pursuant to a law or regulation of the State, Indian Tribe, or political subdivision, as applicable, or a service provider (wherever located), shall be considered in the same manner as any other legal income for purposes of determining eligibility for a federally backed mortgage loan for a 1- to 4-unit property that is the principal residence of the mortgagor. (2) Liability.--The mortgagee or servicer of a federally backed mortgage loan described in paragraph (1), or any Federal agency, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation, may not be held liable pursuant to any Federal law or regulation solely for-- (A) providing, insuring, guaranteeing, purchasing, or securitizing a mortgage to an otherwise qualified borrower on the basis of the income described in paragraph (1); or (B) accepting the income described in paragraph (1) as payment on the federally backed mortgage loan. (c) Implementation.--Not later than 180 days after the date of enactment of this Act-- (1) the Federal Housing Administration shall implement subsection (b)-- (A) by notice or mortgagee letter for loans insured under title I, title II, or section 255 of the National Housing Act (12 U.S.C. 1702 et seq., 1707 et seq., 1715z-20); and (B) by lender letter for loans guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a, 1715z-13b); (2) the Department of Veterans Affairs shall implement subsection (b) by circular or handbook for loans guaranteed, insured, or made by the Department; (3) the Department of Agriculture shall implement subsection (b) by bulletin for loans guaranteed or made by the Department; (4) the Federal Home Loan Mortgage Corporation shall implement subsection (b) by updating its Single-Family Seller/Servicer Guide for loans purchased or securitized by the Corporation; and (5) the Federal National Mortgage Association shall implement subsection (b) by updating its Single Family Selling Guide for loans purchased or securitized by the Association. (d) Protections Under Federal Law Relating to Forfeiture.-- (1) Definition.--In this subsection, the term ``collateral'' does not include marijuana or a marijuana product. (2) Federal national mortgage association, federal home loan mortgage corporation, and federal agencies making, insuring, or guaranteeing mortgage loans or securities.--The Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and any Federal agency that has a legal interest in the collateral for a residential mortgage loan, including individual units of condominiums and cooperatives, provided that the collateral is a property designed principally for the occupancy of 1 to 4 families and underwritten, in whole or in part, based on income from a State-sanctioned marijuana business or service provider, shall not be subject to criminal, civil, or administrative forfeiture of that legal interest pursuant to any Federal law for providing, insuring, guaranteeing, purchasing, securitizing, or guaranteeing payments from a security based on such loan. (3) Other parties to mortgage loans.--A nondepository lender that makes a federally backed mortgage loan and any person who otherwise has a legal interest in such a loan or in the collateral of the loan, including individual units of condominiums and cooperatives, provided that the collateral is a property designed principally for the occupancy of 1 to 4 families and underwritten, in whole or in part, based on income from a State-sanctioned marijuana business or service provider, shall not be subject to criminal, civil, or administrative forfeiture of that legal interest pursuant to any Federal law for providing, purchasing, securitizing, accepting, and making payments related to such federally backed mortgage loan solely because loan payments or underwriting are based on income that is in whole or in part from a State-sanctioned marijuana business or service provider. ______