C.S.S.B. 1667 78(R)    BILL ANALYSIS


C.S.S.B. 1667
By: Averitt
Financial Institutions
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current law requires the savings and loan commissioner ("the
commissioner") to obtain criminal history information from the Texas
Department of Public Safety (DPS) and the Federal Bureau of Investigation
(FBI) for applicants for a mortgage broker or loan officer license.
However, this authorization does not meet the stringent federal
requirements for obtaining FBI data.  Relying solely on DPS background
checks is not sufficient because applicants may have moved here from
another state, and their criminal history from other states will not be
included in a DPS background check. C.S.S.B. 1667 enables the use of FBI
background checks in determining a person's eligibility for a mortgage
broker or loan officer license. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution.  

ANALYSIS

C.S.S.B. 1667 reenacts and amends Section 156.206(b), Finance Code, as
amended, to require all mortgage broker or loan officer license applicants
to submit fingerprint and other necessary information as part of their
application.  The bill permits the commissioner to submit the fingerprint
and other information to DPS and the FBI.  The bill designates DPS as the
recipient of criminal history record information from the FBI, and it
stipulates that such information may be released or disclosed only to a
governmental entity or as authorized by federal law.   

The bill adds Section 411.1385 to the Government Code to provide that the
commissioner is entitled to receive criminal history information from DPS
relating to applicants or holders of a mortgage broker or loan officer
license.  The bill permits criminal history information obtained by the
commissioner to be released or disclosed only as provided by Section
156.206, Finance Code. 

EFFECTIVE DATE

September 1, 2003  

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute clarifies that the commissioner is entitled to obtain
criminal history information from DPS and clarifies that the commissioner
may release or disclose criminal history information as provided by
Section 156.206, Finance Code.