1-1     By:  Carona                                            S.B. No. 585
 1-2           (In the Senate - Filed February 7, 2001; February 8, 2001,
 1-3     read first time and referred to Committee on Business and Commerce;
 1-4     March 1, 2001, reported favorably by the following vote:  Yeas 6,
 1-5     Nays 0; March 1, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to exemption of certain persons from the license
 1-9     requirements imposed under the Mortgage Broker License Act.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 156.202, Finance Code, is amended to read
1-12     as follows:
1-13           Sec. 156.202.  EXEMPTIONS.  This chapter does not apply to:
1-14                 (1)  any of the following entities or an employee of
1-15     any of the following entities provided the employee is acting for
1-16     the benefit of the employer:
1-17                       (A)  a bank, savings bank, or savings and loan
1-18     association, or a subsidiary or an affiliate of a bank, savings
1-19     bank, or savings and loan association;
1-20                       (B)  a state or federal credit union;
1-21                       (C)  an insurance company licensed or authorized
1-22     to do business in this state under the Insurance Code;
1-23                       (D)  a mortgage banker;  [or]
1-24                       (E)  an organization that qualifies for an
1-25     exemption from state franchise and sales tax as a 501(c)(3)
1-26     organization; or
1-27                       (F)  a Farm Credit System institution;
1-28                 (2)  an individual who makes a mortgage loan from the
1-29     individual's own funds to a spouse, former spouse, or persons in
1-30     the lineal line of consanguinity of the individual lending the
1-31     money;
1-32                 (3)  an owner of real property who makes a mortgage
1-33     loan to a purchaser of the property for all or part of the purchase
1-34     price of the real estate against which the mortgage is secured; or
1-35                 (4)  an individual who:
1-36                       (A)  makes a mortgage loan from the individual's
1-37     own funds;
1-38                       (B)  is not an authorized lender under Chapter
1-39     342, Finance Code; and
1-40                       (C)  does not regularly engage in the business of
1-41     making or brokering mortgage loans.
1-42           SECTION 2.  Not later than October 1, 2001, the savings and
1-43     loan commissioner shall reimburse an employee of a Farm Credit
1-44     System institution who on the effective date of this Act holds a
1-45     license issued under Chapter 156, Finance Code, the amount of any
1-46     licensing fee, renewal fee, or recovery fund fee paid by the
1-47     employee under that chapter that is attributable to the period
1-48     beginning on the effective date of this Act and ending on the
1-49     expiration date of the employee's license.
1-50           SECTION 3.  This Act takes effect September 1, 2001.
1-51                                  * * * * *