H.B. 891 was introduced in the House by Rep. Bruce Williamson (R), Monroe. This is the Department of Banking and Finance’s Housekeeping bill. The bill was assigned to the Banks & Banking Committee.
The bill contains proposed legislative changes identified internally or suggested by the industry over the course of the previous year. The major goal of these efforts is the streamlining or simplifying of existing statutes to make the Department’s regulation more efficient and/or ease the regulatory burden on financial institutions while at the same time ensuring that these institutions are safe and sound. The bill contains revisions to bank, credit union, installment lenders, money service businesses - money transmitters and sellers of payment instrument -, and mortgage lender and broker laws.
A number of changes in the bill are tied to the Department’s on-going review of its application processes to see if any improvements can be made. As a result of the Department’s review of its processes, this bill has a number of changes related to acquisitions and changes in control involving banks and bank holding companies and the related application processes.
More importantly, a number of the changes in the bill for money service businesses are related to the model law developed by the Conference of State Bank Supervisors (“CSBS”) and the money service business industry. A stated goal of the model law is to harmonize definitions and requirements between the various states as it relates to regulated activity definitions, exemptions, control requirements, and prudential standards. Another goal is to ensure consumer protection and prevent bad actors from entering the money transmission ecosystem. This bill contains certain provisions of the model law dealing with control requirements.
For a section by section breakdown of the Housekeeping bill, click here
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EVP, Chief of Staff, Government & Regulatory Relations