SRC-CTC, CTC S.B. 585 77(R)BILL ANALYSIS


Senate Research CenterS.B. 585
By: Carona
Business & Commerce
5/22/2001
Enrolled


DIGEST AND PURPOSE 

Currently, the federal Farm Credit Act of 1971 preempts state laws from
restricting or impairing the ability of Farm Credit System institutions
from performing the functions for which they were established. The 76th
Texas Legislature passed the Mortgage Brokers Licensing Act (MBLA) to
extend regulatory oversight to a certain group and exempted several
organizations that are already subject to federal regulations, but failed
to exempt Farm Credit System institutions.  S.B. 585 adds a Farm Credit
System institution to the list of entities or employees of entities to
which MBLA does not apply. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 156.202, Finance Code, to add a Farm Credit
System institution to the list of entities or employees of entities,
providing that the employee is acting for the benefit of the employer, to
which this chapter does not apply. 

SECTION 2.  Requires the savings and loan commissioner, not later than
October 1, 2001, to reimburse an employee of a Farm Credit System
institution who, on the effective date of this Act, holds a license issued
under Chapter 156, Finance Code, the amount of any licensing fee, renewal
fee, or recovery fund fee paid by the employee under that chapter that is
attributable to a certain time period. 

SECTION 3.  Effective date: September 1, 2001.