[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.
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