HBA-JLV S.B. 585 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 585
By: Carona
Financial Institutions
3/16/2001
Engrossed



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.  Senate Bill 585 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

Senate Bill 585 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.