SRC-AMY C.S.S.B. 1667 78(R)    BILL ANALYSIS


Senate Research CenterC.S.S.B. 1667
By: Averitt
Business & Commerce
4/9/2003
Committee Report (Substituted)

DIGEST AND PURPOSE 

H.B. 1493, 77th Legislature, sought to correct deficiencies in the
Mortgage Broker License Act (MLBA) to authorize access to Federal Bureau
of Investigations (FBI) criminal history records on all individuals
applying for a mortgage broker license.  The FBI has stringent
restrictions on who can access such information.  The Texas Savings and
Loan Department's sunset language is unacceptable to the FBI. The Texas
Savings and Loan Department has expressed that access to FBI criminal
history records on applicants is essential to protect consumers and to
enforce compliance with MLBA.  C.S.S.B. 1667 requires each applicant to be
fingerprinted and submit fingerprints, and other necessary information,
with the application and authorizes the savings and loan commissioner to
submit the fingerprints to the FBI. This bill provides that the Department
of Public Safety is the recipient of the results of the record check.
C.S.S.B 1667 also establishes guidelines for obtaining criminal history
record information on applicant for, or holder of, a mortgage broker or
loan officer license, and limits the dissemination of such information to
governmental entities or, as authorized by federal law, executive order,
or rule. 

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 and reenacts Section 156.206(b), Finance Code, as
follows: 

(b) Requires the savings and loan commissioner (commissioner) to obtain
criminal history record information on an applicant that is maintained by
the Department of Public Safety (DPS) and to obtain criminal history
record information from, rather than on an applicant maintained by, the
Federal Bureau of Investigation (FBI) on each applicant for a mortgage
broker or loan officer license under this chapter.  Requires each
applicant to be fingerprinted and to submit fingerprints and other
necessary information with the application.  Authorizes the commissioner
to submit the fingerprints to the FBI, and provides that DPS is designated
to be the recipient of the results of the record check. Deletes redundant
wording. 

SECTION 2.  Amends Section 156.206, Finance Code, by adding Subsection (d)
to authorize criminal history information obtained from the FBI to be
disseminated only to governmental entities or, as authorized by federal
law, executive order, or rule, notwithstanding Subsection (c). 

SECTION 3.  Amends Chapter 411F, Government Code, by adding Section
411.1385, as follows: 

Sec. 411.1385.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION: SAVINGS AND
LOAN COMMISSIONER.  (a) Authorizes the commissioner to obtain from DPS,
criminal history record information maintained by DPS that relates to a
person who is an applicant for, or holder of, a mortgage broker or loan
officer license issued under Chapter 156 (Mortgage Brokers), Finance Code. 

(b) Prohibits criminal history record information obtained by the
commissioner under Subsection (a) from being released or disclosed except
under certain  circumstances. 

(c) Authorizes criminal history information obtained from the FBI to be
disseminated only to governmental entities or, as authorized by federal
law, executive order, or rule, notwithstanding Subsection (b). 

SECTION 4.  Effective date: September 1, 2003.


SUMMARY OF COMMITTEE CHANGES

Differs from the original in the relating clause by including access to
criminal history record information. 

Differs from the original in SECTION 1 by reenacting Section 156.206(b),
Finance Code. 

Differs from the original by adding new SECTIONS 2 and 3 and redesignating
the original SECTION 2 as SECTION 4.