Rep. Williams’ “Licensing Efficiency” Bill Unanimously Passes Committee

WASHINGTON, D.C. – On Wednesday afternoon, the House Financial Services Committee passed Congressman Roger Williams' (R-Texas) bill, the State Licensing Efficiency Act of 2015 (H.R.2643), by a vote of 57- 0.

H.R.2643, which would give states more control to conduct required background checks on state-regulated non-bank financial services industries, now heads to the floor of the U.S. House of Representatives where it will be voted on by the entire chamber after lawmakers return to Washington in September.

"This is proof that in Washington it is still possible to find common ground on common sense solutions to everyday problems," said Williams. "This bill, which is one step closer to becoming law, is part of my larger goal in letting the states pick up where the federal government falls short."

Specifically, the State Licensing Efficiency Act of 2015 will expand the states' ability to use a federally accepted registry, the Nationwide Multistate Licensing System and Registry (NMLS), to expedite existing background check processes.

The NMLS has been used to oversee the mortgage industry since 2008, but the FBI has prevented state-regulators from using this more streamlined process to license other financial service providers without congressional action.

Williams' bill has the support of the Conference of State Bank Supervisors.

"By authorizing NMLS to receive criminal background data for financial services beyond the mortgage industry, this legislation enhances consumer protection, reduces regulatory burden and ensures state regulators have the tools we need for effective supervision," said Charles G. Cooper, Banking Commissioner, Texas Department of Banking and CSBS Chairman-Elect. "I thank Congressman Williams for introducing this legislation and urge Congress to pass it swiftly."

Original cosponsors of Williams' bill include U.S. Representatives: Stephen Fincher (R-Tenn.), Michael Capuano (D-Mass.), Gwen Moore (D-Wis.), Randy Neugebauer (R-Texas), Keith Ellison (D-Minn.), Bill Huizenga (R-Mich.), Frank Lucas (R-Okla.) and Gregory Meeks (D-NY).

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