HBA-JLV H.B. 1067 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1067 By: Averitt Financial Institutions 2/15/2001 Introduced BACKGROUND AND PURPOSE The Farm Credit System is a privately owned, nationwide financial cooperative that provides credit and closely related services to American farmers and ranchers. When the 76th Legislature enacted the Mortgage Broker License Act, it exempted certain financial institutions, insurance companies, and nonprofit organizations. The Act was intended to extend regulatory oversight to a group that previously had not been regulated. Farm Credit System institutions are subject to regulation and examination by the Federal Farm Credit Administration. House Bill 1067 exempts Farm Credit System institutions from the Mortgage Broker License Act. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1067 amends the Finance Code to exempt a Farm Credit System institution (institution) or an employee acting for the benefit of the institution, from the Mortgage Broker License Act. The bill requires the savings and loan commissioner, no later than October 1, 2001, to reimburse an employee of an institution, who on September 1, 2001, holds an active mortgage broker license, the amount of any licensing fee, renewal fee, or recovery fund fee paid by the employee for the period beginning September 1, 2001, and ending on the expiration date of the employee's license. EFFECTIVE DATE September 1, 2001.