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SUMMARY OF OFR
LICENSING BILL
OFR Licensing Bill
HB 7153 by
Representative Detert (Companion bill: SB 2744 by Senator Atwater)
The bill:
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Allows the Office
to modernize its licensing processes by requiring electronic filing
of forms and fees. Currently, the Office must maintain dual
processes: one for paper filings and another for electronic filings.
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Allows the Office
to use testing centers to administer the mortgage broker test. This
will allow the test to be conducted electronically at multiple
locations, several times a week versus the current once a month
process at limited locations. Last fiscal year, over 20,000
applicants took the test.
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Requires permitted
mortgage business schools to electronically report to the Office the
names of students who have successfully completed the 24-hour
pre-licensing course (i.e. - mortgage brokers & principal
representatives) and the 14-hour professional continuing education.
(The requirement to report students completing the 14-hour
professional continuing education only applies to those individuals
who have a mortgage broker license).
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Authorizes the
Commission to adopt rules for the destruction of records maintained
by licensees after the retention period has expired.
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Provides that
applications are not deemed received until all required fees and
forms are received. Authorizes disciplinary action against a
licensee/registrant if application or renewal fees are paid with bad
check.
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Amends the
definition of “branch office” under chapter 517 to conform to
uniform federal standard recently adopted by the Securities and
Exchange Commission.
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Revises
registration process under chapter 517 for Canadian Dealers and
eliminates the registration requirements for Canadian agents under
certain conditions.
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Requires
state-registered investment advisers to register via the Investment
Adviser Registration Depository (IARD). Since the IARD system came
online in 2001, forty-seven (47) states have mandated electronic
filing through the system.
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Standardizes
procedures and requirements regarding change of control of a
licensed/registered entity. Requires a new application when there
is a proposed change in control of a licensee/registrant. Defines
what constitutes “Change of Control”. Provides a waiver of the
change of control application under certain circumstances.
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Requires
licensees/registrants to file amendments with the Office correcting
any inaccurate information contained in an initial application or
amendment thereto within 30 days of the change. Amendments changing
officers, directors, owners, etc are required to be filed at least
30 days in advance of the change.
The industries affected
by the bill include mortgage brokers, businesses and lenders; consumer
finance companies; retail installment sellers; money transmitters; and
securities firms.
The effective date of
this bill was October 1, 2006, except as otherwise expressly provided in
the act.
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