Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H1105 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 2541 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 1105
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	James M. Murphy
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act establishing uniform enforcement and confidentiality provisions relative to certain
13	13	licensees under the jurisdiction of the Division of Banks.
14	14	_______________
15	15	PETITION OF:
16	16	NAME:DISTRICT/ADDRESS :DATE ADDED:James M. Murphy4th Norfolk1/19/2023 1 of 51
17	17	HOUSE DOCKET, NO. 2541 FILED ON: 1/19/2023
18	18	HOUSE . . . . . . . . . . . . . . . No. 1105
19	19	By Representative Murphy of Weymouth, a petition (accompanied by bill, House, No. 1105) of
20	20	James M. Murphy for legislation to establish uniform enforcement and confidentiality provisions
21	21	relative to certain licensees under the jurisdiction of the Division of Banks. Financial Services.
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act establishing uniform enforcement and confidentiality provisions relative to certain
28	28	licensees under the jurisdiction of the Division of Banks.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. Section 24D of chapter 93 of the General Laws, as appearing in the 2018
32	32	2Official Edition, is hereby amended by inserting after the word "licensee” in lines 13, 17 and 31,
33	33	3the following words:— or registrant.
34	34	4 SECTION 2. Section 24D of chapter 93 of the General Laws, as so appearing, is hereby
35	35	5further amended by inserting after the word "licensees” in line 36, the following words:— or
36	36	6registrants.
37	37	7 SECTION 3. Chapter 93 of the General Laws, as so appearing, is hereby amended by
38	38	8striking out section 24F and inserting in place thereof the following section:—
39	39	9 Section 24F. The commissioner, or the commissioner’s examiners or other assistants as
40	40	10the commissioner may designate, may summon a licensee or registrant, or any of its agents or
41	41	11employees, and other witnesses as necessary, and examine them relative to their transactions, 2 of 51
42	42	12may require the production of books and papers and, for those purposes may administer oaths.
43	43	13Whoever, without justifiable cause, fails or refuses to appear and testify or to produce books and
44	44	14papers when so required, or obstructs the commissioner or the commissioner’s representatives
45	45	15making the examination in the performance of their duties, shall be punished by a fine of not
46	46	16more than $1,000 or by imprisonment for not more than 6 months, or both. Each day a violation
47	47	17occurs or continues shall be considered a separate offense. The penalty provision of this section
48	48	18shall be in addition to, and not in lieu of, any other provision of law applicable to a licensee or
49	49	19other person for violating section 24A or any rule or regulation made thereunder.
50	50	20 SECTION 4. Chapter 93 of the General Laws, as so appearing, is hereby amended by
51	51	21adding after section 24K the following two sections:—
52	52	22 Section 24L. (a) Whenever the commissioner finds that any licensee or exempt person
53	53	23under section 24A of this chapter has violated any provision of this chapter or any rule or
54	54	24regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
55	55	25of the business of a debt collector or a third party loan servicer, the commissioner may, by order,
56	56	26in addition to any other action authorized under this chapter or any rule or regulation made
57	57	27thereunder, impose a penalty upon the person which shall not exceed $5,000 for each violation,
58	58	28up to a maximum of $100,000 for the violation plus the costs of investigation. The commissioner
59	59	29may impose a penalty which shall not exceed $5,000 for each violation of this chapter, or any
60	60	30rule or regulation adopted thereunder, by a person other than a licensee or exempt person under
61	61	31section 24A of this chapter, plus the costs of investigation.
62	62	32 (b) Nothing in this section shall limit the right of any individual or entity who has been
63	63	33injured as a result of any violation of this chapter by a licensee, or any person other than a 3 of 51
64	64	34licensee or exempt person under section 24A of this chapter, to bring an action to recover
65	65	35damages or restitution in a court of competent jurisdiction.
66	66	36 (c) Any findings or order issued by the commissioner pursuant to this section shall be
67	67	37subject to review as provided in chapter thirty A.
68	68	38 Section 24M. (a) Whenever the commissioner determines that any person has, directly or
69	69	39indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
70	70	40applicable to the conduct of the business of a debt collector or a third party loan servicer; or any
71	71	41order issued by the commissioner under this chapter or any written agreement entered between
72	72	42the licensee and the commissioner; the commissioner may serve upon the person a written notice
73	73	43of intention:
74	74	44 (1) to prohibit the person from performing in the capacity of a principal employee on
75	75	45behalf of any licensee for a period of time that the commissioner deems necessary;
76	76	46 (2) to prohibit the person from applying for or obtaining a license from the commissioner
77	77	47for a period up to 36 months following the effective date of an order issued under subsection (b)
78	78	48or (c); or
79	79	49 (3) to prohibit the person from any further participation, in any manner, in the conduct of
80	80	50the affairs of a debt collector or a third party loan servicer in Massachusetts or to prohibit the
81	81	51person from being employed by, an agent of, or operating on behalf of a licensee under this
82	82	52chapter or any other business which requires a license from the commissioner.
83	83	53 (b) A written notice issued under subsection (a) shall contain a written statement of the
84	84	54facts that support the prohibition and shall give notice of an opportunity for a hearing to be held 4 of 51
85	85	55thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
86	86	56the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
87	87	57within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
88	88	58by a duly authorized representative, the party shall be deemed to have consented to the issuance
89	89	59of an order of prohibition in accordance with the notice.
90	90	60 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
91	91	61finds that any of the grounds specified in the notice have been established, the commissioner
92	92	62may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
93	93	63appropriate.
94	94	64 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
95	95	65person. The commissioner shall also serve a copy of the order upon the licensee of which the
96	96	66person is an employee or on whose behalf the person is performing. The order shall remain in
97	97	67effect and enforceable until it is modified, terminated, suspended, or set aside by the
98	98	68commissioner or a court of competent jurisdiction.
99	99	69 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
100	100	70an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
101	101	71part in the conduct of the affairs of a debt collector or a third party loan servicer in Massachusetts
102	102	72may not, while the order is in effect, continue or commence to perform in the capacity of a
103	103	73principal employee, or otherwise participate in any manner, if so prohibited by order of the
104	104	74commissioner, in the conduct of the affairs of:
105	105	75 (1) any licensee or registrant under this chapter;
106	106	76 (2) any other business which requires a license from the commissioner; and 5 of 51
107	107	77 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
108	108	78subsidiary thereof.
109	109	79 SECTION 5. Section 99 of chapter 140 of the General Laws, as so appearing, is hereby
110	110	80amended by striking out section 99 and inserting in place thereof the following section:—
111	111	81 Section 99. A licensee shall, when directed by the commissioner, permit the
112	112	82commissioner or the commissioner’s duly authorized representative to inspect its records and
113	113	83evidence of compliance with this chapter or any rule and regulation issued thereunder and with
114	114	84any other law, rule and regulation applicable to the conduct of its business. The commissioner
115	115	85shall preserve a full record of each examination of a licensee including a statement of its
116	116	86condition. All records of investigations and reports of examinations by the commissioner,
117	117	87including workpapers, information derived from the reports or responses to the reports, and any
118	118	88copies thereof in the possession of any licensee under the supervision of the commissioner, shall
119	119	89be confidential and privileged communications, shall not be subject to subpoena and shall not be
120	120	90a public record under clause twenty-sixth of section 7 of chapter 4. For the purpose of this
121	121	91paragraph, records of investigation and reports of examinations shall include records of
122	122	92investigation and reports of examinations conducted by a financial regulatory agency of the
123	123	93federal government and any other state, and of any foreign government which are considered
124	124	94confidential by the agency or foreign government and which are in possession of the
125	125	95commissioner. In any proceeding before a court, the court may issue a protective order to seal the
126	126	96record protecting the confidentiality of any such record, and other than any such record on file
127	127	97with the court or filed in connection with the court proceeding, and the court may exclude the
128	128	98public from any portion of a proceeding at which any such record may be disclosed. Copies of
129	129	99reports of examination shall be furnished to a licensee for its use only and shall not be exhibited 6 of 51
130	130	100to any other person, organization or agency without prior written approval by the commissioner.
131	131	101The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
132	132	102government, of other states, or of foreign countries, and any law enforcement agency, the
133	133	103information, reports, inspections and statements relating to the licensees under the
134	134	104commissioner’s supervision.
135	135	105 The commissioner may summon licensees, companies or associations, or any of their
136	136	106agents or employees, and other witnesses as necessary, and examine them relative to their
137	137	107transactions and to the condition of their business, and for that purpose may administer oaths.
138	138	108Whoever without justifiable cause refuses to appear and testify when so required, or obstructs the
139	139	109commissioner or the commissioner’s representatives in the performance of their duties, shall be
140	140	110punished by a fine of not more than $1,000 or by imprisonment for not more than 6 months, or
141	141	111both. The penalty provision of this section shall be in addition to, and not in lieu of, any other
142	142	112provision of law applicable to a licensee or other person for violating section 96 or any rule or
143	143	113regulation made thereunder.
144	144	114 SECTION 6. Section 103 Chapter 140 of the General Laws, as so appearing, is hereby
145	145	115amended by striking out section 103, and inserting in place thereof the following three
146	146	116sections:—
147	147	117 Section 103. The commissioner may suspend or revoke any license issued pursuant to
148	148	118section ninety-six if the commissioner finds that:
149	149	119 (i) the licensee has violated any provision of sections ninety-six to one hundred and
150	150	120fourteen, inclusive, or any rule or regulation made by the commissioner under any provision of 7 of 51
151	151	121sections ninety-six to one hundred and fourteen, inclusive, or any other law applicable to the
152	152	122conduct of the business; or
153	153	123 (ii) any fact or condition exists which, if it had existed at the time of the original
154	154	124application for the license, would have warranted the commissioner in refusing to issue the
155	155	125license.
156	156	126 Except as provided in section one hundred and three A, no license shall be revoked or
157	157	127suspended except after notice and a hearing thereon pursuant to chapter thirty A.
158	158	128 A licensee may surrender a license by delivering to the commissioner written notice that
159	159	129it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
160	160	130the licensee for acts committed before the surrender.
161	161	131 No revocation, suspension or surrender of any license shall impair or affect the obligation
162	162	132of any pre-existing lawful contract between the licensee and any person.
163	163	133 The penalty provision of this section shall be in addition to, and not in lieu of, any other
164	164	134provision of law applicable to a licensee or other person for violating section ninety-six, ninety-
165	165	135seven, ninety-eight, one hundred, one hundred and one, one hundred and two, one hundred and
166	166	136four, one hundred and six, and one hundred and nine or any rule or regulation made thereunder.
167	167	137 Section 103A. (a) If the commissioner determines, after giving notice of an opportunity
168	168	138for a hearing, that a licensee has engaged or is about to engage in an act or practice constituting a
169	169	139violation of a provision of sections ninety-seven, ninety-eight, one hundred, one hundred and
170	170	140one, one hundred and two, one hundred and four or one hundred and nine, or any rule or
171	171	141regulation made by the commissioner under section ninety-seven or one hundred and six, or any 8 of 51
172	172	142other law applicable to the conduct of the business, the commissioner may order the licensee to
173	173	143cease and desist from the unlawful act or practice and take affirmative action as in his or her
174	174	144judgment will effect the purpose of sections ninety-seven, ninety-eight, one hundred, one
175	175	145hundred and one, one hundred and two, one hundred and four or one hundred and nine, or any
176	176	146rule or regulation made by the commissioner under section ninety-seven or one hundred and six,
177	177	147or any other law applicable to the conduct of the business.
178	178	148 (b) If the commissioner makes written findings of fact that the public interest will be
179	179	149irreparably harmed by delay in issuing an order under section (a) the commissioner may issue a
180	180	150temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
181	181	151commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
182	182	152been so entered, the reasons therefor, and that within 20 days after receipt of a written request
183	183	153from the licensee, the matter will be scheduled for a hearing to determine whether or not the
184	184	154temporary order shall become permanent and final. If no hearing is requested and none is
185	185	155ordered by the commissioner, the order shall remain in effect until it is modified or vacated by
186	186	156the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of
187	187	157and opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts
188	188	158and conclusions of law, vacate, modify or make permanent the order.
189	189	159 (c) No order under this section, except an order issued pursuant to subsection (b), may be
190	190	160entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
191	191	161modify an order under this section upon finding that the conditions which required the order
192	192	162have changed and that it is in the public interest to so vacate or modify. 9 of 51
193	193	163 Any order issued pursuant to this section shall be subject to review as provided in chapter
194	194	164thirty A.
195	195	165 Section 103B. The commissioner may enforce the provisions of section ninety-six
196	196	166through one hundred and fourteen A, or restrain any violations thereof, by filing a civil action in
197	197	167any court of competent jurisdiction.
198	198	168 SECTION 7. Chapter 140 of the General Laws, as so appearing, is hereby amended by
199	199	169adding after section 113 the following two sections:—
200	200	170 Section 113A. (a) Whenever the commissioner finds that any licensee or exempt person
201	201	171under section ninety-six of this chapter has violated any provision of this chapter or any rule or
202	202	172regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
203	203	173of the business of making small loans, the commissioner may, by order, in addition to any other
204	204	174action authorized under this chapter or any rule or regulation made thereunder, impose a penalty
205	205	175upon the person which shall not exceed $5,000 for each violation, up to a maximum of $100,000
206	206	176for the violation plus the costs of investigation. The commissioner may impose a penalty which
207	207	177shall not exceed $5,000 for each violation of this chapter, or any rule or regulation adopted
208	208	178thereunder, by a person other than a licensee or exempt person under section ninety-six of this
209	209	179chapter, plus the costs of investigation.
210	210	180 (b)In addition to any other action authorized under this chapter or any rule of regulation
211	211	181made thereunder, a licensee who violates the provisions of section one hundred may also be
212	212	182punished by imprisonment for not more than one year. Each day the violation occurs or
213	213	183continues shall be deemed a separate offense. Any loan made by any person so licensed in 10 of 51
214	214	184violation of section one hundred may be declared void by the supreme judicial or superior court
215	215	185in equity upon petition by the person to whom the loan was made.
216	216	186 (c) Nothing in this section shall limit the right of any individual or entity who has been
217	217	187injured as a result of any violation of this chapter by a licensee, or any person other than a
218	218	188licensee or exempt person under section ninety-six of this chapter, to bring an action to recover
219	219	189damages or restitution in a court of competent jurisdiction.
220	220	190 (d) Any findings or order issued by the commissioner pursuant to this section shall be
221	221	191subject to review as provided in chapter thirty A.
222	222	192 Section 113B. (a) Whenever the commissioner determines that any person has, directly or
223	223	193indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
224	224	194applicable to the conduct of the business of making small loans; or any order issued by the
225	225	195commissioner under this chapter or any written agreement entered between the licensee and the
226	226	196commissioner; the commissioner may serve upon the person a written notice of intention:
227	227	197 (1) to prohibit the person from performing in the capacity of a principal employee on
228	228	198behalf of any licensee for a period of time that the commissioner deems necessary;
229	229	199 (2) to prohibit the person from applying for or obtaining a license from the commissioner
230	230	200for a period up to 36 months following the effective date of an order issued under subsection (b)
231	231	201or (c); or
232	232	202 (3) to prohibit the person from any further participation, in any manner, in the conduct of
233	233	203the affairs of a business making small loans in Massachusetts or to prohibit the person from 11 of 51
234	234	204being employed by, an agent of, or operating on behalf of a licensee under this chapter or any
235	235	205other business which requires a license from the commissioner.
236	236	206 (b) A written notice issued under subsection (a) shall contain a written statement of the
237	237	207facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
238	238	208thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
239	239	209the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
240	240	210within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
241	241	211by a duly authorized representative, the party shall be deemed to have consented to the issuance
242	242	212of an order of prohibition in accordance with the notice.
243	243	213 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
244	244	214finds that any of the grounds specified in the notice have been established, the commissioner
245	245	215may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
246	246	216appropriate.
247	247	217 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
248	248	218person. The commissioner shall also serve a copy of the order upon the licensee of which the
249	249	219person is an employee or on whose behalf the person is performing. The order shall remain in
250	250	220effect and enforceable until it is modified, terminated, suspended, or set aside by the
251	251	221commissioner or a court of competent jurisdiction.
252	252	222 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
253	253	223an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
254	254	224part in the conduct of the affairs of a business making small loans in Massachusetts may not,
255	255	225while the order is in effect, continue or commence to perform in the capacity of a principal 12 of 51
256	256	226employee, or otherwise participate in any manner, if so prohibited by order of the commissioner,
257	257	227in the conduct of the affairs of:
258	258	228 (1) any licensee under this chapter;
259	259	229 (2) any other business which requires a license from the commissioner; and
260	260	230 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
261	261	231subsidiary thereof.
262	262	232 SECTION 8. Chapter 140 of the General Laws, as so appearing, is hereby amended by
263	263	233striking section 114A and inserting in place thereof the following section:—
264	264	234 Section 114A. A bank as defined in section one of chapter one hundred sixty-seven, a
265	265	235national banking association, a federally chartered credit union, a federal savings and loan
266	266	236association, a federal savings bank, or any subsidiary of the above, or any bank, trust company,
267	267	237savings bank, savings and loan association, or credit union organized under the laws of any other
268	268	238state, or any subsidiary of the above, shall not be subject to the provisions of sections ninety-six
269	269	239to one hundred fourteen, inclusive; provided, that the institutions may not take, receive, reserve
270	270	240or charge interest, expenses and other considerations for making or securing any loan subject to
271	271	241the provisions of section ninety-six in excess of those permitted by section one hundred. Any
272	272	242loan subject to the provisions of section ninety-six made by any bank as defined in section one of
273	273	243chapter one hundred sixty-seven, a national banking association, a federally-chartered credit
274	274	244union, a federal savings and loan association, a federal savings bank, or any subsidiary of the
275	275	245above, or any bank, trust company, savings bank, savings and loan association, or credit union
276	276	246organized under the laws of any other state on which charges for interest, expenses and other
277	277	247considerations exceed those permitted by section one hundred may be declared void by the 13 of 51
278	278	248supreme judicial court or superior court in equity upon petition by the person to whom the loans
279	279	249were made, and any bank as defined section one of chapter one hundred sixty-seven, a national
280	280	250banking association, a federally chartered credit union, a federal savings and loan association, a
281	281	251federal savings bank, or any subsidiary of the above, or any bank, trust company, savings bank,
282	282	252savings and loan association, or credit union organized under the laws of any other state making
283	283	253such a loan shall be subject to a fine of not more than $1,000.
284	284	254 This section shall not be construed as preventing a rate of charge for interest, expenses
285	285	255and other consideration on one or more portions of a loan in excess of the permitted maximum
286	286	256rate of charge applicable to the portion or portions, provided, that the composite rate of charge on
287	287	257the whole loan produces an amount equal to or less than that which would be produced were the
288	288	258maximum rate of charge applied to the loan. Extension, default or deferment charges shall not be
289	289	259deemed to be interest, expenses and other considerations in determining the maximum rate of
290	290	260charge that may be taken, received, reserved or charged for the loan.
291	291	261 SECTION 9. Section 4 of chapter 167F of the General Laws, as amended by section 5 of
292	292	262chapter 144 of the acts of 2012, is hereby amended by striking out the first paragraph and
293	293	263inserting in place thereof the following paragraph:—
294	294	264 Any bank as defined in section one of chapter one hundred sixty-seven, a national
295	295	265banking association, a federally-chartered credit union, a federal savings and loan association, a
296	296	266federal savings bank, or any subsidiary of the above, any bank, trust company, savings bank,
297	297	267savings and loan association, or credit union organized under the laws of any other state or any
298	298	268subsidiary of the above, may engage directly in the business of selling, issuing or registering
299	299	269checks or money orders for use primarily for personal, family, or household purposes, except all 14 of 51
300	300	270of the institutions described above may engage in the business through agents who shall not be
301	301	271deemed to be branches of the institutions. No person, other than the foregoing, shall engage in
302	302	272such business directly or indirectly unless a sworn statement setting forth the person’s name and
303	303	273address, the names and business addresses of the person’s agents, other than the financial
304	304	274institutions described above, authorized to receive money and transact such business on the
305	305	275person’s behalf is filed annually, as of a date determined by the commissioner.
306	306	276 SECTION 10. Section 4 of Chapter 167F, as so appearing, is hereby further amended by
307	307	277inserting after the fourth paragraph the following two paragraphs:—
308	308	278 The commissioner shall examine any person, to whom a certificate to engage in the
309	309	279business of selling, issuing or registering checks or money orders has been issued, as the
310	310	280commissioner deems necessary and in a manner the commissioner deems appropriate. The
311	311	281commissioner shall preserve a full record of each examination of a check seller including a
312	312	282statement of its condition. All records of investigations and reports of examinations by the
313	313	283commissioner, including workpapers, information derived from the reports or responses to the
314	314	284reports, and any copies thereof in the possession of any licensee under the supervision of the
315	315	285commissioner, shall be confidential and privileged communications, shall not be subject to
316	316	286subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
317	317	287the purpose of this paragraph, records of investigation and reports of examinations shall include
318	318	288records of investigation and reports of examinations conducted by a financial regulatory agency
319	319	289of the federal government and any other state, and of any foreign government which are
320	320	290considered confidential by the agency or foreign government and which are in possession of the
321	321	291commissioner. In any proceeding before a court, the court may issue a protective order to seal the
322	322	292record protecting the confidentiality of any such record, other than any such record on file with 15 of 51
323	323	293the court or filed in connection with the court proceeding, and the court may exclude the public
324	324	294from any portion of the proceeding at which any such record may be disclosed. Copies of the
325	325	295reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
326	326	296to any other person, organization or agency without prior written approval by the commissioner.
327	327	297The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
328	328	298government, of other states, or of foreign countries, and any law enforcement agency, the
329	329	299information, reports, inspections and statements relating to the licensees under the
330	330	300commissioner’s supervision.
331	331	301 The commissioner, or the commissioner’s examiners or other assistants as the
332	332	302commissioner may designate, may summon the directors, officers or agents of a licensee, or any
333	333	303other witnesses, and examine them relative to the affairs, transactions and condition of the
334	334	304licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
335	335	305to appear and testify when so required or obstructs the person making the examination in the
336	336	306performance of their duty, shall be punished by a fine of not more than $1,000 or by
337	337	307imprisonment for not more than one year.
338	338	308 SECTION 11. Said section 4 of chapter 167F of the General Laws, as so appearing, is
339	339	309hereby further amended by striking out the fifth paragraph.
340	340	310 SECTION 12. Chapter 167F of the General Laws, as so appearing, is hereby amended by
341	341	311adding after section 4 the following two sections:—
342	342	312 Section 4A. (a) Whenever the commissioner finds that any licensee or exempt person
343	343	313under section 4 of this chapter has violated any provision of this chapter or any rule or regulation
344	344	314adopted thereunder, or any other law of the Commonwealth applicable to the conduct of the 16 of 51
345	345	315business of selling, issuing or registering checks or money orders, the commissioner may, by
346	346	316order, in addition to any other action authorized under this chapter or any rule or regulation made
347	347	317thereunder, impose a penalty upon the person which shall not exceed $5,000 for each violation,
348	348	318up to a maximum of $100,000 for the violation plus the costs of investigation. The commissioner
349	349	319may impose a penalty which shall not exceed $5,000 for each violation of this chapter, or any
350	350	320rule or regulation adopted thereunder, by a person other than a licensee or exempt person under
351	351	321section 4 of this chapter, plus the costs of investigation.
352	352	322 (b) Nothing in this section shall limit the right of any individual or entity who has been
353	353	323injured as a result of any violation of this chapter by a licensee, or any person other than a
354	354	324licensee or exempt person under section 4 of this chapter, to bring an action to recover damages
355	355	325or restitution in a court of competent jurisdiction.
356	356	326 (c) Any findings or order issued by the commissioner pursuant to this section shall be
357	357	327subject to review as provided in chapter thirty A.
358	358	328 Section 4B. (a) Whenever the commissioner determines that any person has, directly or
359	359	329indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
360	360	330applicable to the conduct of the business of selling, issuing or registering checks or money
361	361	331orders; or any order issued by the commissioner under this chapter or any written agreement
362	362	332entered between the licensee and the commissioner; the commissioner may serve upon the
363	363	333person a written notice of intention:
364	364	334 (1) to prohibit the person from performing in the capacity of a principal employee on
365	365	335behalf of any licensee for a period of time that the commissioner deems necessary; 17 of 51
366	366	336 (2) to prohibit the person from applying for or obtaining a license from the commissioner
367	367	337for a period up to 36 months following the effective date of an order issued under subsection (b)
368	368	338or (c); or
369	369	339 (3) to prohibit the person from any further participation, in any manner, in the conduct of
370	370	340the affairs of selling, issuing or registering checks or money orders in Massachusetts or to
371	371	341prohibit the person from being employed by, an agent of, or operating on behalf of a licensee
372	372	342under this chapter or any other business which requires a license from the commissioner.
373	373	343 (b) A written notice issued under subsection (a) shall contain a written statement of the
374	374	344facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
375	375	345thereon. Such hearing shall be fixed for a date not more than 30 days after the date of service
376	376	346upon the commissioner of the request for a hearing. If the person fails to submit a request for a
377	377	347hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
378	378	348person or by a duly authorized representative, the party shall be deemed to have consented to the
379	379	349issuance of an order of prohibition in accordance with the notice.
380	380	350 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
381	381	351finds that any of the grounds specified in the notice have been established, the commissioner
382	382	352may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
383	383	353appropriate.
384	384	354 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
385	385	355person. The commissioner shall also serve a copy of the order upon the licensee of which the
386	386	356person is an employee or on whose behalf the person is performing. The order shall remain in 18 of 51
387	387	357effect and enforceable until it is modified, terminated, suspended, or set aside by the
388	388	358commissioner or a court of competent jurisdiction.
389	389	359 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
390	390	360an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
391	391	361part in the conduct of the affairs of business of selling, issuing or registering checks or money
392	392	362orders in Massachusetts may not, while the order is in effect, continue or commence to perform
393	393	363in the capacity of a principal employee, or otherwise participate in any manner, if so prohibited
394	394	364by order of the commissioner, in the conduct of the affairs of:
395	395	365 (1) any licensee under this chapter;
396	396	366 (2) any other business which requires a license from the commissioner; and
397	397	367 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
398	398	368subsidiary thereof.
399	399	369 SECTION 13. Chapter 169 of the General Laws, as so appearing, is hereby amended by
400	400	370striking out Section 1 and inserting in place thereof the following section: —
401	401	371 Section 1. This chapter shall apply to all persons who engage or are financially interested
402	402	372in the business of receiving deposits of money for the purpose of transmitting the same or
403	403	373equivalents thereof to foreign countries primarily for personal, family, or household purposes,
404	404	374except banks as defined in section one of chapter one hundred sixty-seven, a national banking
405	405	375association, a federally-chartered credit union, a federal savings and loan association, a federal
406	406	376savings bank, or any bank, trust company, savings bank, savings and loan association, or credit
407	407	377union organized under the law of any other state, or any subsidiary of the above, persons doing 19 of 51
408	408	378business under section 17 of chapter 167C, express companies having contracts with
409	409	379transportation companies for the operation of an express service upon the lines of such
410	410	380companies or express companies doing an international express business or global transportation
411	411	381companies or telegraph companies.
412	412	382 SECTION 14. Section 3 of chapter 169 of the General Laws, as amended by section 8 of
413	413	383chapter 144 of the acts of 2012, is hereby amended by striking out the eighth, thirteenth and
414	414	384fourteenth sentence.
415	415	385 SECTION 15. Section 10 of chapter 169, as so appearing, is hereby amended by inserting
416	416	386after the second paragraph the following two paragraphs:—
417	417	387 The commissioner shall preserve a full record of each examination of a licensee including
418	418	388a statement of its condition. All records of investigations and reports of examinations by the
419	419	389commissioner, including workpapers, information derived from the reports or responses to the
420	420	390reports, and any copies thereof in the possession of any licensee under the supervision of the
421	421	391commissioner, shall be confidential and privileged communications, shall not be subject to
422	422	392subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
423	423	393the purpose of this paragraph, records of investigation and reports of examinations shall include
424	424	394records of investigation and reports of examinations conducted by a financial regulatory agency
425	425	395of the federal government and any other state, and of any foreign government which are
426	426	396considered confidential by the agency or foreign government and which are in possession of the
427	427	397commissioner. In any proceeding before a court, the court may issue a protective order to seal the
428	428	398record protecting the confidentiality in appropriate circumstances to protect the confidentiality of
429	429	399any such record, other than any such record on file with the court or filed in connection with the 20 of 51
430	430	400court proceeding, and the court may exclude the public from any portion of the proceeding at
431	431	401which any such record may be disclosed. Copies of the reports of examination shall be furnished
432	432	402to a licensee for its use only and shall not be exhibited to any other person, organization or
433	433	403agency without prior written approval by the commissioner. The commissioner may, in his or her
434	434	404discretion, furnish to regulatory agencies of the federal government, of other states, or of foreign
435	435	405countries, and any law enforcement agency, the information, reports, inspections and statements
436	436	406relating to the licensees under the commissioner’s supervision.
437	437	407 The commissioner, or the commissioner’s examiners, or other assistants as the
438	438	408commissioner may designate, may summon the directors, officers or agents of a licensee, or any
439	439	409other witnesses, and examine them relative to the affairs, transactions and condition of the
440	440	410licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
441	441	411to appear and testify when so required or obstructs the person making the examination in the
442	442	412performance of their duty, shall be punished by a fine of not more than $1,000 or by
443	443	413imprisonment for not more than one year.
444	444	414 SECTION 16. Chapter 169 of the General Laws is hereby amended by striking out
445	445	415section 16, as so appearing, and inserting in place thereof, the following two sections:—
446	446	416 Section 16. (a) Whenever the commissioner finds that any licensee or exempt person
447	447	417under any provision of this chapter has violated any provision of this chapter or any rule or
448	448	418regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
449	449	419of the business of receiving deposits of money for the purpose of transmitting the same or
450	450	420equivalents thereof to foreign countries, the commissioner may, by order, in addition to any other
451	451	421action authorized under this chapter or any rule or regulation made thereunder, impose a penalty 21 of 51
452	452	422upon the person which shall not exceed $5,000 for each violation, up to a maximum of $100,000
453	453	423for the violation plus the costs of investigation. The commissioner may impose a penalty which
454	454	424shall not exceed $5,000 for each violation of this chapter, or any rule or regulation adopted
455	455	425thereunder, by a person other than a licensee or exempt person under any provision of this
456	456	426chapter, plus the costs of investigation.
457	457	427 (b)In addition to any other action authorized under this chapter or any rule of regulation
458	458	428made thereunder, whoever violates any provision of this chapter or any rule or regulation made
459	459	429hereunder by the commissioner may be punished by imprisonment for not more than one year.
460	460	430
461	461	431 (c) Nothing in this section shall limit the right of any individual or entity who has been
462	462	432injured as a result of any violation of this chapter by a licensee, or any person other than a
463	463	433licensee or exempt person under any provision of this chapter, to bring an action to recover
464	464	434damages or restitution in a court of competent jurisdiction.
465	465	435 (d) Any findings or order issued by the commissioner pursuant to this section shall be
466	466	436subject to review as provided in chapter thirty A.
467	467	437 Section 16. (a) Whenever the commissioner determines that any person has, directly or
468	468	438indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
469	469	439applicable to the conduct of the business of receiving deposits of money for the purpose of
470	470	440transmitting the same or equivalents thereof to foreign countries; or any order issued by the
471	471	441commissioner under this chapter or any written agreement entered between the licensee and the
472	472	442commissioner; the commissioner may serve upon the person a written notice of intention: 22 of 51
473	473	443 (1) to prohibit the person from performing in the capacity of a principal employee on
474	474	444behalf of any licensee for a period of time that the commissioner deems necessary;
475	475	445 (2) to prohibit the person from applying for or obtaining a license from the commissioner
476	476	446for a period up to 36 months following the effective date of an order issued under subsection (b)
477	477	447or (c); or
478	478	448 (3) to prohibit such person from any further participation, in any manner, in the conduct
479	479	449of the affairs of a business of receiving deposits of money for the purpose of transmitting the
480	480	450same or equivalents thereof to foreign countries in Massachusetts or to prohibit such person from
481	481	451being employed by, an agent of, or operating on behalf of a licensee under this chapter or any
482	482	452other business which requires a license from the commissioner.
483	483	453 (b) A written notice issued under subsection (a) shall contain a written statement of the
484	484	454facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
485	485	455thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
486	486	456the commissioner of such request for a hearing. If such person fails to submit a request for a
487	487	457hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
488	488	458person or by a duly authorized representative, such party shall be deemed to have consented to
489	489	459the issuance of an order of such prohibition in accordance with the notice.
490	490	460 (c) In the event of such consent under subsection (b), or if after a hearing the
491	491	461commissioner finds that any of the grounds specified in such notice have been established, the
492	492	462commissioner may issue an order of prohibition in accordance with subsection (a) as the
493	493	463commissioner finds appropriate. 23 of 51
494	494	464 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
495	495	465person. The commissioner shall also serve a copy of the order upon the licensee of which the
496	496	466person is an employee or on whose behalf the person is performing. The order shall remain in
497	497	467effect and enforceable until it is modified, terminated, suspended, or set aside by the
498	498	468commissioner or a court of competent jurisdiction.
499	499	469 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
500	500	470an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
501	501	471part in the conduct of the affairs of a business of receiving deposits of money for the purpose of
502	502	472transmitting the same or equivalents thereof to foreign countries in Massachusetts may not, while
503	503	473such order is in effect, continue or commence to perform in the capacity of a principal employee,
504	504	474or otherwise participate in any manner, if so prohibited by order of the commissioner, in the
505	505	475conduct of the affairs of:
506	506	476 (1) any licensee under this chapter;
507	507	477 (2) any other business which requires a license from the commissioner; and
508	508	478 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
509	509	479subsidiary thereof.
510	510	480 SECTION 17. Section 2 of chapter 169A of the General Laws, as so appearing, is hereby
511	511	481amended, in line 7, by striking out the word “bank.” and inserting in place thereof the words:—
512	512	482bank or any bank, trust company, savings bank, savings and loan association, or credit union
513	513	483organized under the laws of any other state, or any subsidiary of the above,. 24 of 51
514	514	484 SECTION 18. Section 5 of chapter 169A, as so appearing, is hereby amended by striking
515	515	485out the third and fourth sentences.
516	516	486 SECTION 19. Section 10 of chapter 169A, as so appearing, is hereby amended by adding
517	517	487the following two paragraphs:—
518	518	488 The commissioner shall preserve a full record of each such examination of a licensee
519	519	489including a statement of its condition. All records of investigations and reports of examinations
520	520	490by the commissioner, including workpapers, information derived from such reports or responses
521	521	491to such reports, and any copies thereof in the possession of any licensee under the supervision of
522	522	492the commissioner, shall be confidential and privileged communications, shall not be subject to
523	523	493subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
524	524	494the purpose of this paragraph, records of investigation and reports of examinations shall include
525	525	495records of investigation and reports of examinations conducted by a financial regulatory agency
526	526	496of the federal government and any other state, and of any foreign government which are
527	527	497considered confidential by such agency or foreign government and which are in possession of the
528	528	498commissioner. In any proceeding before a court, the court may issue a protective order to seal the
529	529	499record protecting the confidentiality of any such record, other than any such record on file with
530	530	500the court or filed in connection with the court proceeding, and the court may exclude the public
531	531	501from any portion of the proceeding at which any such record may be disclosed. Copies of such
532	532	502reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
533	533	503to any other person, organization or agency without prior written approval by the commissioner.
534	534	504The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
535	535	505government, of other states, or of foreign countries, and any law enforcement agency, such 25 of 51
536	536	506information, reports, inspections and statements relating to the licensees under the
537	537	507commissioner’s supervision.
538	538	508 The commissioner, or the commissioner’s examiners or such other assistants as the
539	539	509commissioner may designate, may summon the directors, officers or agents of a licensee, or any
540	540	510other witnesses, and examine them relative to the affairs, transactions and condition of the
541	541	511licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
542	542	512to appear and testify when so required or obstructs the person making such examination in the
543	543	513performance of their duty, shall be punished by a fine of not more than $1,000 or by
544	544	514imprisonment for not more than one year.
545	545	515 SECTION 20. Chapter 169A of the General Laws, as so appearing, is hereby amended by
546	546	516striking out section 13 and inserting in place thereof the following two sections: —
547	547	517 Section 13. (a) Whenever the commissioner finds that any licensee or exempt person
548	548	518under section two of this chapter has violated any provision of this chapter or any rule or
549	549	519regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
550	550	520of the business of cashing checks, drafts or money orders, the commissioner may, by order, in
551	551	521addition to any other action authorized under this chapter or any rule or regulation made
552	552	522thereunder, impose a penalty upon such person which shall not exceed $5,000 for each violation,
553	553	523up to a maximum of $100,000 for such violation plus the costs of investigation. The
554	554	524commissioner may impose a penalty which shall not exceed $5,000 for each violation of this
555	555	525chapter, or any rule or regulation adopted thereunder, by a person other than a licensee or exempt
556	556	526person under section two of this chapter, plus the costs of investigation. 26 of 51
557	557	527 (b) In addition to any other action authorized under this chapter or any rule of regulation
558	558	528made thereunder, whoever violates any provision of section two or any rule or regulation made
559	559	529thereunder by the commissioner may be punished by imprisonment for not more than 6 months.
560	560	530Each day a violation continues shall be deemed a separate offense. The penalty provision of this
561	561	531section shall be in addition to, and not in lieu of, any other provision of law applicable to a
562	562	532licensee or other person for violating section two or any rule or regulation made thereunder.
563	563	533 (c) Nothing in this section shall limit the right of any individual or entity who has been
564	564	534injured as a result of any violation of this chapter by a licensee, or any person other than a
565	565	535licensee or exempt person under section two of this chapter, to bring an action to recover
566	566	536damages or restitution in a court of competent jurisdiction.
567	567	537 (d) Any findings or order issued by the commissioner pursuant to this section shall be
568	568	538subject to review as provided in chapter thirty A.
569	569	539 Section 14. (a) Whenever the commissioner determines that any person has, directly or
570	570	540indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
571	571	541applicable to the conduct of the business of cashing checks, drafts or money orders; or any order
572	572	542issued by the commissioner under this chapter or any written agreement entered between such
573	573	543licensee and the commissioner; the commissioner may serve upon such person a written notice of
574	574	544intention:
575	575	545 (1) to prohibit such person from performing in the capacity of a principal employee on
576	576	546behalf of any licensee for a period of time that the commissioner deems necessary; 27 of 51
577	577	547 (2) to prohibit the person from applying for or obtaining a license from the commissioner
578	578	548for a period up to 36 months following the effective date of an order issued under subsection (b)
579	579	549or (c); or
580	580	550 (3) to prohibit such person from any further participation, in any manner, in the conduct
581	581	551of the affairs of person or entity engaged in the cashing of checks, drafts or money orders in
582	582	552Massachusetts or to prohibit such person from being employed by, an agent of, or operating on
583	583	553behalf of a licensee under this chapter or any other business which requires a license from the
584	584	554commissioner.
585	585	555 (b) A written notice issued under subsection (a) shall contain a written statement of the
586	586	556facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
587	587	557thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
588	588	558the commissioner of such request for a hearing. If such person fails to submit a request for a
589	589	559hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
590	590	560person or by a duly authorized representative, such party shall be deemed to have consented to
591	591	561the issuance of an order of such prohibition in accordance with the notice.
592	592	562 (c) In the event of such consent under subsection (b), or if after a hearing the
593	593	563commissioner finds that any of the grounds specified in such notice have been established, the
594	594	564commissioner may issue an order of prohibition in accordance with subsection (a) as the
595	595	565commissioner finds appropriate.
596	596	566 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
597	597	567person. The commissioner shall also serve a copy of the order upon the licensee of which the
598	598	568person is an employee or on whose behalf the person is performing. The order shall remain in 28 of 51
599	599	569effect and enforceable until it is modified, terminated, suspended, or set aside by the
600	600	570commissioner or a court of competent jurisdiction.
601	601	571 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
602	602	572an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
603	603	573part in the conduct of the affairs of a person or entity engaged in the cashing of checks, drafts or
604	604	574money orders in Massachusetts may not, while such order is in effect, continue or commence to
605	605	575perform in the capacity of a principal employee, or otherwise participate in any manner, if so
606	606	576prohibited by order of the commissioner, in the conduct of the affairs of:
607	607	577 (1) any licensee under this chapter;
608	608	578 (2) any other business which requires a license from the commissioner; and
609	609	579 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
610	610	580subsidiary thereof.
611	611	581 SECTION 21. Section 1 of chapter 255B of the General Laws, as so appearing, is hereby
612	612	582amended by striking out the definition of “Sales finance company” and inserting in place thereof
613	613	583the following definition:— "Sales finance company",. (1) a bank as defined in section one of
614	614	584chapter one hundred and sixty-seven, a national banking association, federal savings bank,
615	615	585federal savings and loan association, federal credit union, or any bank, trust company, savings
616	616	586bank, savings and loan association or credit union organized under the laws of any other state of
617	617	587the United States, or any subsidiary of the above;
618	618	588 (2) any person engaged, in whole or in part, in the business of purchasing retail
619	619	589installment contracts from one or more retail sellers; and 29 of 51
620	620	590 (3) a retail seller engaged, in whole or in part, in the business of holding retail installment
621	621	591contracts acquired from retail buyers. The term "sales finance company" does not include the
622	622	592pledgee of an aggregate number of such contracts to secure a bona fide loan thereon.
623	623	593 SECTION 22. Section 2 of chapter 255B, as amended by section 9 of chapter 144 of the
624	624	594acts of 2012, is hereby amended by striking out the fourth and fifth sentences.
625	625	595 SECTION 23. Section 3 of Chapter 255B, as so appearing, is hereby amended by
626	626	596inserting after the first paragraph the following two paragraphs:—
627	627	597 The commissioner shall preserve a full record of each such examination of a licensee
628	628	598including a statement of its condition. All records of investigations and reports of examinations
629	629	599by the commissioner, including workpapers, information derived from such reports or responses
630	630	600to such reports, and any copies thereof in the possession of any licensee under the supervision of
631	631	601the commissioner, shall be confidential and privileged communications, shall not be subject to
632	632	602subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
633	633	603the purpose of this paragraph, records of investigation and reports of examinations shall include
634	634	604records of investigation and reports of examinations conducted by a financial regulatory agency
635	635	605of the federal government and any other state, and of any foreign government which are
636	636	606considered confidential by such agency or foreign government and which are in possession of the
637	637	607commissioner. In any proceeding before a court, the court may issue a protective order to seal the
638	638	608record protecting the confidentiality of any such record, other than any such record on file with
639	639	609the court or filed in connection with the court proceeding, and the court may exclude the public
640	640	610from any portion of the proceeding at which any such record may be disclosed. Copies of such
641	641	611reports of examination shall be furnished to a licensee for its use only and shall not be exhibited 30 of 51
642	642	612to any other person, organization or agency without prior written approval by the commissioner.
643	643	613The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
644	644	614government, of other states, or of foreign countries, and any law enforcement agency, such
645	645	615information, reports, inspections and statements relating to the licensees under the
646	646	616commissioner’s supervision.
647	647	617 The commissioner, or the commissioner’s examiners, or such other assistants as the
648	648	618commissioner may designate, may summon the directors, officers or agents of a licensee, or any
649	649	619other witnesses, and examine them relative to the affairs, transactions and condition of the
650	650	620licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
651	651	621to appear and testify when so required or obstructs the person making such examination in the
652	652	622performance of their duty, shall be punished by a fine of not more than $1000 or by
653	653	623imprisonment for not more than one year.
654	654	624 SECTION 24. Section 4 of said chapter 255B of the General Laws, as so appearing, is
655	655	625hereby amended by adding the following sentence:— Each day such violation occurs or
656	656	626continues shall be deemed a separate offense.
657	657	627 SECTION 25. Chapter 255B of the General Laws, as so appearing, is hereby amended by
658	658	628striking out section 7, and inserting in place thereof the following section:—
659	659	629 Section 7. The commissioner may suspend or revoke any license issued pursuant to this
660	660	630chapter if the commissioner finds that:
661	661	631 (i) the licensee has violated any provision of this chapter or any rule or regulation
662	662	632adopted hereunder, or any other law applicable to the conduct of its business; or 31 of 51
663	663	633 (ii) any fact or condition exists which, if it had existed at the time of the original
664	664	634application for such license, would have warranted the commissioner in refusing to issue such
665	665	635license.
666	666	636 Except as provided in section eight, no license shall be revoked or suspended except after
667	667	637notice and a hearing thereon pursuant to chapter thirty A.
668	668	638 A licensee may surrender a license by delivering to the commissioner written notice that
669	669	639it thereby surrenders such license, but such surrender shall not affect the civil or criminal liability
670	670	640of the licensee for acts committed before such surrender.
671	671	641 No revocation, suspension or surrender of any license shall impair or affect the obligation
672	672	642of any pre-existing lawful contract between the licensee and any person.
673	673	643 SECTION 26. Chapter 255B of the General Laws, as so appearing, is hereby amended by
674	674	644striking out section 8 and inserting in place thereof the following two sections: —
675	675	645 Section 8. (a) If the commissioner determines, after giving notice of and opportunity for a
676	676	646hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
677	677	647violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
678	678	648may order such licensee to cease and desist from such unlawful act or practice and take such
679	679	649affirmative action as in his or her judgment will effect the purposes of this chapter.
680	680	650 (b) If the commissioner makes written findings of fact that the public interest will be
681	681	651irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
682	682	652a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
683	683	653commissioner shall promptly notify, in writing, the licensee affected thereby that such order has 32 of 51
684	684	654been so entered, the reasons therefor, and that within 20 days after the receipt of a written request
685	685	655from such licensee, the matter will be scheduled for a hearing to determine whether or not such
686	686	656temporary order shall become permanent and final. If no such hearing is requested and none is
687	687	657ordered by the commissioner, the order shall remain in effect until it is modified or vacated by
688	688	658the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of
689	689	659and opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts
690	690	660and conclusions of law, vacate, modify or make permanent the order.
691	691	661 (c) No order under this section, except an order issued pursuant to subsection (b), may be
692	692	662entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
693	693	663modify an order under this section upon finding that the conditions which required such an order
694	694	664have changed and that it is in the public interest to so vacate or modify.
695	695	665 Any order issued pursuant to this section shall be subject to review as provided in chapter
696	696	666thirty A.
697	697	667 Section 8A. The commissioner may enforce the provisions of this chapter, or restrain any
698	698	668violations thereof, by filing a civil action in any court of competent jurisdiction.
699	699	669 SECTION 27. Chapter 255B of the General Laws, as so appearing, is hereby amended by
700	700	670adding after section 25 the following two sections:—
701	701	671 Section 26. (a) Whenever the commissioner finds that any licensee or exempt person
702	702	672under section two of this chapter has violated any provision of this chapter or any rule or
703	703	673regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
704	704	674of the business of a sales finance company, the commissioner may, by order, in addition to any
705	705	675other action authorized under this chapter or any rule or regulation made thereunder, impose a 33 of 51
706	706	676penalty upon such person which shall not exceed $5,000 for each violation, up to a maximum of
707	707	677$100,000 for such violation plus the costs of investigation. The commissioner may impose a
708	708	678penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
709	709	679adopted thereunder, by a person other than a licensee or exempt person under section two of this
710	710	680chapter, plus the costs of investigation.
711	711	681 (b) In addition to any other action authorized under this chapter or any rule of regulation
712	712	682made thereunder, whoever violates any provision of this chapter or any rule or regulation made
713	713	683thereunder by the commissioner may also be punished by imprisonment for not more than 6
714	714	684months. The penalty provision of this section shall be in addition to, and not in lieu of, any other
715	715	685provision of law applicable to a licensee or other person for violating provision of this chapter or
716	716	686any rule or regulation made thereunder.
717	717	687 (c) Nothing in this section shall limit the right of any individual or entity who has been
718	718	688injured as a result of any violation of this chapter by a licensee, or any person other than a
719	719	689licensee or exempt person under section two of this chapter, to bring an action to recover
720	720	690damages or restitution in a court of competent jurisdiction.
721	721	691 (d) Any findings or order issued by the commissioner pursuant to this section shall be
722	722	692subject to review as provided in chapter thirty A.
723	723	693 Section 27. (a) Whenever the commissioner determines that any person has, directly or
724	724	694indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
725	725	695applicable to the conduct of the business of a sales finance company; or any order issued by the
726	726	696commissioner under this chapter or any written agreement entered between such licensee and the
727	727	697commissioner; the commissioner may serve upon such person a written notice of intention: 34 of 51
728	728	698 (1) to prohibit such person from performing in the capacity of a principal employee on
729	729	699behalf of any licensee for a period of time that the commissioner deems necessary;
730	730	700 (2) to prohibit the person from applying for or obtaining a license from the commissioner
731	731	701for a period up to 36 months following the effective date of an order issued under subsection (b)
732	732	702or (c); or
733	733	703 (3) to prohibit the person from any further participation, in any manner, in the conduct of
734	734	704the affairs of a sales finance company in Massachusetts or to prohibit the person from being
735	735	705employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
736	736	706business which requires a license from the commissioner.
737	737	707 (b) A written notice issued under subsection (a) shall contain a written statement of the
738	738	708facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
739	739	709thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
740	740	710the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
741	741	711within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
742	742	712by a duly authorized representative, the party shall be deemed to have consented to the issuance
743	743	713of an order of prohibition in accordance with the notice.
744	744	714 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
745	745	715finds that any of the grounds specified in such notice have been established, the commissioner
746	746	716may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
747	747	717appropriate.
748	748	718 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
749	749	719person. The commissioner shall also serve a copy of the order upon the licensee of which the 35 of 51
750	750	720person is an employee or on whose behalf the person is performing. The order shall remain in
751	751	721effect and enforceable until it is modified, terminated, suspended, or set aside by the
752	752	722commissioner or a court of competent jurisdiction.
753	753	723 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
754	754	724an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
755	755	725part in the conduct of the affairs of a sales finance company in Massachusetts may not, while the
756	756	726order is in effect, continue or commence to perform in the capacity of a principal employee, or
757	757	727otherwise participate in any manner, if so prohibited by order of the commissioner, in the
758	758	728conduct of the affairs of:
759	759	729 (1) any licensee under this chapter;
760	760	730 (2) any other business which requires a license from the commissioner; and
761	761	731 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
762	762	732subsidiary thereof.
763	763	733 SECTION 28. Chapter 255C of the General Laws, as amended by section 11 of chapter
764	764	734144 of the acts of 2012, is hereby amended by striking out section 2 and inserting in place
765	765	735thereof the following section:—
766	766	736 Section 2. No person, other than a bank as defined in section one of chapter one hundred
767	767	737sixty-seven, a national banking association, a federally-chartered credit union, a federal savings
768	768	738and loan association, a federal savings bank, or any subsidiary of the above, or a bank, a trust
769	769	739company, savings bank, savings and loan association or credit union organized under the laws of
770	770	740any other state, or any subsidiary of the above, a sales finance company, as defined in section 36 of 51
771	771	741one of chapter two hundred fifty-five B, and a company licensed to carry on the business of
772	772	742making small loans, shall engage in the business of premium finance agency unless licensed by
773	773	743the commissioner, as provided in section three; provided, however, that no property and casualty
774	774	744insurance agent or broker, including an insurance agent or insurance broker conducting an
775	775	745insurance premium financing agency business under a subsidiary or different company name,
776	776	746who provides premium financing only to their own customers for purposes of financing payment
777	777	747of premiums on contracts of insurance, which contracts of insurance are exclusively limited to
778	778	748commercial insurance policies, shall be required to be licensed pursuant to this section or any
779	779	749other section of this chapter. The commissioner may adopt, amend or repeal rules and
780	780	750regulations, which may include an adequate capitalization requirement for sales finance
781	781	751companies, to aid in the administration and enforcement of this chapter.
782	782	752 The license shall allow the holder to maintain only one office from which the business
783	783	753may be conducted, but more than one license may be issued to any person. Any change of
784	784	754location of an office of a licensee shall require the prior approval of the commissioner. The
785	785	755request for relocation shall be in writing setting forth the reason or reasons for the request, and
786	786	756shall be accompanied by a relocation investigation fee to be determined annually by the secretary
787	787	757of administration and finance under section 3B of chapter 7. If an applicant has more than one
788	788	758office, the applicant may obtain a license for each office from which the applicant intends to
789	789	759conduct the business.
790	790	760 SECTION 29. Section 4 of chapter 255C, as so appearing, is hereby amended by striking
791	791	761out the second sentence. 37 of 51
792	792	762 SECTION 30. Section 4 of chapter 255C is hereby further amended by adding the
793	793	763following paragraph: —
794	794	764 If a licensee intends to carry on the business at any place in addition to the address on the
795	795	765license, the licensee shall so notify the commissioner, in writing, at least 30 days prior thereto,
796	796	766and the licensee shall pay a fee for the additional location in an amount to be determined
797	797	767annually by the commissioner of administration under the provision of section three B of chapter
798	798	768seven. The license shall not be transferable or assignable and shall expire annually on a date
799	799	769determined by the commissioner.
800	800	770 SECTION 31. Chapter 255C of the General Laws, as so appearing, is hereby amended by
801	801	771striking out section 5, and inserting in place thereof the following three sections:—
802	802	772 Section 5. The commissioner may suspend or revoke any license issued pursuant to this
803	803	773chapter if the commissioner finds that:
804	804	774 (i) the licensee has violated any provision of this chapter or any rule or regulation
805	805	775adopted hereunder, or any other law applicable to the conduct of its business; or
806	806	776 (ii) any fact or condition exists which, if it had existed at the time of the original
807	807	777application for the license, would have warranted the commissioner in refusing to issue the
808	808	778license.
809	809	779 The commissioner shall have sufficient cause to suspend or revoke a license whenever
810	810	780the commissioner learns from the commissioner of insurance or from any other source that the
811	811	781licensee has failed to return the full amount of a return premium to the person whose insurance 38 of 51
812	812	782policy has been cancelled or to the person’s assignee, as required by section one hundred and
813	813	783seventy-six A of chapter one hundred and seventy-five.
814	814	784 A licensee may surrender a license by delivering to the commissioner written notice that
815	815	785it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
816	816	786the licensee for acts committed before the surrender. A revocation or suspension or surrender of
817	817	787any license shall not impair or affect the obligation of an insured under any lawful premium
818	818	788finance agreement previously acquired or held by the licensee.
819	819	789 No revocation, suspension or surrender of any license shall impair or affect the obligation
820	820	790of any pre-existing lawful contract between the licensee and any person.
821	821	791 Whenever the commissioner revokes or suspends a license, the commissioner shall
822	822	792forthwith execute in duplicate a written order to that effect, and shall file one copy of the order in
823	823	793the office of the secretary of state and mail one copy to the licensee. A suspension or revocation
824	824	794of a license shall not be subject to the provisions of chapter thirty A.
825	825	795 Section 5A. (a) If the commissioner determines, after giving notice of and opportunity for
826	826	796a hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
827	827	797violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
828	828	798may order the licensee to cease and desist from the unlawful act or practice and take affirmative
829	829	799action as in his or her judgment will effect the purposes of this chapter.
830	830	800 (b) If the commissioner makes written findings of fact that the public interest will be
831	831	801irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
832	832	802a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
833	833	803commissioner shall promptly notify, in writing, the licensee affected thereby that the order has 39 of 51
834	834	804been so entered, the reasons therefor, and that within 2 days after the receipt of a written request
835	835	805from the licensee, the matter will be scheduled for hearing to determine whether or not the
836	836	806temporary order shall become permanent and final. If no hearing is requested and none is ordered
837	837	807by the commissioner, the order shall remain in effect until it is modified or vacated by the
838	838	808commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and
839	839	809opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts and
840	840	810conclusions of law, vacate, modify or make permanent the order.
841	841	811 (c) No order under this section, except an order issued pursuant to subsection (b), may be
842	842	812entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
843	843	813modify an order under this section upon finding that the conditions which required the order
844	844	814have changed and that it is in the public interest to so vacate or modify.
845	845	815 Any order issued pursuant to this section shall be subject to review as provided in chapter
846	846	816thirty A.
847	847	817 Section 5B. The commissioner may enforce the provisions of this chapter, or restrain any
848	848	818violations thereof, by filing a civil action in any court of competent jurisdiction.
849	849	819 SECTION 32. Section 6 of chapter 255C, as amended by section 14 of chapter 44 of the
850	850	820acts of 2012, is hereby amended by striking out the second paragraph and inserting in place
851	851	821thereof the following two paragraphs:—
852	852	822 The commissioner shall preserve a full record of each examination of a licensee including
853	853	823a statement of its condition. All records of investigations and reports of examinations by the
854	854	824commissioner, including workpapers, information derived from the reports or responses to the
855	855	825reports, and any copies thereof in the possession of any licensee under the supervision of the 40 of 51
856	856	826commissioner, shall be confidential and privileged communications, shall not be subject to
857	857	827subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
858	858	828the purpose of this paragraph, records of investigation and reports of examinations shall include
859	859	829records of investigation and reports of examinations conducted by a financial regulatory agency
860	860	830of the federal government and any other state, and of any foreign government which are
861	861	831considered confidential by the agency or foreign government and which are in possession of the
862	862	832commissioner. In any proceeding before a court, the court may issue a protective order to seal the
863	863	833record protecting the confidentiality of any such record, other than any such record on file with
864	864	834the court or filed in connection with the court proceeding, and the court may exclude the public
865	865	835from any portion of the proceeding at which any such record may be disclosed. Copies of such
866	866	836reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
867	867	837to any other person, organization or agency without prior written approval by the commissioner.
868	868	838The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
869	869	839government, of other states, or of foreign countries, and any law enforcement agency, the
870	870	840information, reports, inspections and statements relating to the licensees under the
871	871	841commissioner’s supervision.
872	872	842 The commissioner, or the commissioner’s examiners or other assistants as the
873	873	843commissioner may designate, may summon the directors, officers or agents of a licensee, or any
874	874	844other witnesses, and examine them relative to the affairs, transactions and condition of the
875	875	845licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
876	876	846to appear and testify when so required or obstructs the person making the examination in the
877	877	847performance of their duty, shall be punished by a fine of not more than $1,000 or by
878	878	848imprisonment for not more than one year. 41 of 51
879	879	849 SECTION 33. Section 9 of chapter 255C of the General Laws, as so appearing, is hereby
880	880	850amended by striking out the first paragraph: —
881	881	851 SECTION 34. Chapter 255C of the General Laws, as so appearing, is hereby amended by
882	882	852adding after section 23 the following two sections:—
883	883	853 Section 24. (a) Whenever the commissioner finds that any licensee or exempt person
884	884	854under section two of this chapter has violated any provision of this chapter or any rule or
885	885	855regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
886	886	856of the business of a premium finance agency, the commissioner may, by order, in addition to any
887	887	857other action authorized under this chapter or any rule or regulation made thereunder, impose a
888	888	858penalty upon the person which shall not exceed $5,000 for each violation, up to a maximum of
889	889	859$100,000 for the violation plus the costs of investigation. The commissioner may impose a
890	890	860penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
891	891	861adopted thereunder, by a person other than a licensee or exempt person under section two of this
892	892	862chapter, plus the costs of investigation.
893	893	863 (b)In addition to any other action authorized under this chapter or any rule of regulation
894	894	864made thereunder, whoever violates any provision of this chapter, or knowingly makes any
895	895	865incorrect statement of a material fact in any application, report or statement filed pursuant to this
896	896	866chapter, or knowingly omits to state any material fact necessary to give the commissioner any
897	897	867information lawfully required, may be punished by imprisonment for not more than 6 months.
898	898	868The penalty provision of this section shall be in addition to, and not in lieu of, any other
899	899	869provision of law applicable to a licensee or other person for violating any provision of this
900	900	870chapter or any rule or regulation made thereunder. 42 of 51
901	901	871 (c) Nothing in this section shall limit the right of any individual or entity who has been
902	902	872injured as a result of any violation of this chapter by a licensee, or any person other than a
903	903	873licensee or exempt person under section two of this chapter, to bring an action to recover
904	904	874damages or restitution in a court of competent jurisdiction.
905	905	875 (d) Any findings or order issued by the commissioner pursuant to this section shall be
906	906	876subject to review as provided in chapter thirty A.
907	907	877 Section 25. (a) Whenever the commissioner determines that any person has, directly or
908	908	878indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
909	909	879applicable to the conduct of the business of a premium finance agency; or any order issued by
910	910	880the commissioner under this chapter or any written agreement entered between the licensee and
911	911	881the commissioner; the commissioner may serve upon the person a written notice of intention:
912	912	882 (1) to prohibit the person from performing in the capacity of a principal employee on
913	913	883behalf of any licensee for a period of time that the commissioner deems necessary;
914	914	884 (2) to prohibit the person from applying for or obtaining a license from the commissioner
915	915	885for a period up to 36 months following the effective date of an order issued under subsection (b)
916	916	886or (c); or
917	917	887 (3) to prohibit the person from any further participation, in any manner, in the conduct of
918	918	888the affairs of a premium finance agency in Massachusetts or to prohibit the person from being
919	919	889employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
920	920	890business which requires a license from the commissioner. 43 of 51
921	921	891 (b) A written notice issued under subsection (a) shall contain a written statement of the
922	922	892facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
923	923	893thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
924	924	894the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
925	925	895within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
926	926	896by a duly authorized representative, the party shall be deemed to have consented to the issuance
927	927	897of an order of prohibition in accordance with the notice.
928	928	898 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
929	929	899finds that any of the grounds specified in the notice have been established, the commissioner
930	930	900may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
931	931	901appropriate.
932	932	902 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
933	933	903person. The commissioner shall also serve a copy of the order upon the licensee of which the
934	934	904person is an employee or on whose behalf the person is performing. The order shall remain in
935	935	905effect and enforceable until it is modified, terminated, suspended, or set aside by the
936	936	906commissioner or a court of competent jurisdiction.
937	937	907 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
938	938	908an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
939	939	909part in the conduct of the affairs of a premium finance agency in Massachusetts may not, while
940	940	910the order is in effect, continue or commence to perform in the capacity of a principal employee,
941	941	911or otherwise participate in any manner, if so prohibited by order of the commissioner, in the
942	942	912conduct of the affairs of: 44 of 51
943	943	913 (1) any licensee under this chapter;
944	944	914 (2) any other business which requires a license from the commissioner; and
945	945	915 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
946	946	916subsidiary thereof.
947	947	917 SECTION 35. Section 1 of chapter 255D of the General Laws, as so appearing, is hereby
948	948	918amended by striking out the definition of “Sales finance company” in lines 98 through 105,
949	949	919inclusive, and inserting in place thereof the following definition:—
950	950	920 "Sales finance company",
951	951	921 (1) a bank as defined in section one of chapter one hundred and sixty-seven, or a national
952	952	922banking association or a savings and loan association, federal savings bank, federal savings and
953	953	923loan association, federal credit union, or any bank, trust company, savings bank, savings and
954	954	924loan association or credit union organized under the laws of any other state of the United States,
955	955	925or any subsidiary of the above,
956	956	926 (2) any person other than an installment seller engaged, in whole or in part, in the
957	957	927business of purchasing retail installment sale agreements or revolving credit agreements of one
958	958	928or more retail sellers. The term "sales finance company" shall not include the pledgee of an
959	959	929aggregate number of such agreements to secure a bona fide loan thereon.
960	960	930 SECTION 36. The first paragraph of section 2 of chapter 255D, as amended by section
961	961	93114 of chapter 144 of the acts of 2012, is hereby amended by striking out the fourth and fifth
962	962	932sentences. 45 of 51
963	963	933 SECTION 37. Section 2 of chapter 255D, as so appearing, is hereby further amended by
964	964	934striking out the ninth sentence.
965	965	935 SECTION 38. Section 3 of chapter 255D of the General Laws, as so appearing, is hereby
966	966	936amended by inserting after the first paragraph the following two paragraphs:—
967	967	937 The commissioner shall preserve a full record of each examination of a licensee including
968	968	938a statement of its condition. All records of investigations and reports of examinations by the
969	969	939commissioner, including workpapers, information derived from the reports or responses to the
970	970	940reports, and any copies thereof in the possession of any licensee under the supervision of the
971	971	941commissioner, shall be confidential and privileged communications, shall not be subject to
972	972	942subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
973	973	943the purpose of this paragraph, records of investigation and reports of examinations shall include
974	974	944records of investigation and reports of examinations conducted by a financial regulatory agency
975	975	945of the federal government and any other state, and of any foreign government which are
976	976	946considered confidential by the agency or foreign government and which are in possession of the
977	977	947commissioner. In any proceeding before a court, the court may issue a protective order to seal the
978	978	948record protecting the confidentiality of any such record, other than any such record on file with
979	979	949the court or filed in connection with the court proceeding, and the court may exclude the public
980	980	950from any portion of the proceeding at which any such record may be disclosed. Copies of such
981	981	951reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
982	982	952to any other person, organization or agency without prior written approval by the commissioner.
983	983	953The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
984	984	954government, of other states, or of foreign countries, and any law enforcement agency, the 46 of 51
985	985	955information, reports, inspections and statements relating to the licensees under the
986	986	956commissioner’s supervision.
987	987	957 The commissioner, or the commissioner’s examiners, or other assistants as the
988	988	958commissioner may designate, may summon the directors, officers or agents of a licensee, or any
989	989	959other witnesses, and examine them relative to the affairs, transactions and condition of the
990	990	960licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
991	991	961to appear and testify when so required or obstructs the person making the examination in the
992	992	962performance of their duty, shall be punished by a fine of not more than $1,000 or by
993	993	963imprisonment for not more than one year.
994	994	964 SECTION 39. Chapter 255D of the General Laws, as so appearing, is hereby amended by
995	995	965striking out section 7 as so appearing, and inserting in place thereof the following section:—
996	996	966 Section 7. The commissioner may suspend or revoke any license issued pursuant to this
997	997	967chapter if the commissioner finds that:
998	998	968 (i) the licensee has violated any provision of this chapter or any rule or regulation
999	999	969adopted hereunder, or any other law applicable to the conduct of its business; or
1000	1000	970 (ii) any fact or condition exists which, if it had existed at the time of the original
1001	1001	971application for the license, would have warranted the commissioner in refusing to issue the
1002	1002	972license.
1003	1003	973 Except as provided in section eight, no license shall be revoked or suspended except after
1004	1004	974notice and a hearing thereon pursuant to chapter thirty A. 47 of 51
1005	1005	975 A licensee may surrender a license by delivering to the commissioner written notice that
1006	1006	976it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
1007	1007	977the licensee for acts committed before the surrender.
1008	1008	978 No revocation, suspension or surrender of any license shall impair or affect the obligation
1009	1009	979of any pre-existing lawful contract between the licensee and any person.
1010	1010	980 SECTION 40. Said chapter 255D of the General Laws, as so appearing, is hereby further
1011	1011	981amended by striking out section 8, as so appearing, an inserting in place thereof the following
1012	1012	982two sections:—
1013	1013	983 Section 8. (a) If the commissioner determines, after giving notice of and opportunity for a
1014	1014	984hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
1015	1015	985violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
1016	1016	986may order the licensee to cease and desist from the unlawful act or practice and take affirmative
1017	1017	987action as in his or her judgment will effect the purposes of this chapter.
1018	1018	988 (b) If the commissioner makes written findings of fact that the public interest will be
1019	1019	989irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
1020	1020	990a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
1021	1021	991commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
1022	1022	992been so entered, the reasons therefor, and that within 20 days after the receipt of a written request
1023	1023	993from the licensee, the matter will be scheduled for hearing to determine whether or not the
1024	1024	994temporary order shall become permanent and final. If no hearing is requested and none is ordered
1025	1025	995by the commissioner, the order shall remain in effect until it is modified or vacated by the
1026	1026	996commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and 48 of 51
1027	1027	997opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts and
1028	1028	998conclusions of law, vacate, modify or make permanent the order.
1029	1029	999 (c) No order under this section, except an order issued pursuant to subsection (b), may be
1030	1030	1000entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
1031	1031	1001modify an order under this section upon finding that the conditions which required the order
1032	1032	1002have changed and that it is in the public interest to so vacate or modify.
1033	1033	1003 Any order issued pursuant to this section shall be subject to review as provided in chapter
1034	1034	1004thirty A.
1035	1035	1005 Section 8A. The commissioner may enforce the provisions of this chapter, or restrain any
1036	1036	1006violations thereof, by filing a civil action in any court of competent jurisdiction.
1037	1037	1007 SECTION 41. Section 30 of chapter 255D of the General Laws, as so appearing, is
1038	1038	1008hereby repealed.
1039	1039	1009 SECTION 42. Chapter 255D of the General Laws, as so appearing, is hereby amended by
1040	1040	1010adding after section 31 the following two sections:—
1041	1041	1011 Section 32. (a) Whenever the commissioner finds that any licensee or exempt person
1042	1042	1012under section two of this chapter has violated any provision of this chapter or any rule or
1043	1043	1013regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
1044	1044	1014of the business of a sales finance company, the commissioner may, by order, in addition to any
1045	1045	1015other action authorized under this chapter or any rule or regulation made thereunder, impose a
1046	1046	1016penalty upon the person which shall not exceed $5,000 for each violation, up to a maximum of
1047	1047	1017$100,000 for the violation plus the costs of investigation. The commissioner may impose a 49 of 51
1048	1048	1018penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
1049	1049	1019adopted thereunder, by a person other than a licensee or exempt person under section two of this
1050	1050	1020chapter, plus the costs of investigation.
1051	1051	1021 (b)In addition to any other action authorized under this chapter or any rule of regulation
1052	1052	1022made thereunder, whoever violates any provision of this chapter may be punished by
1053	1053	1023imprisonment for not more than 6 months. The penalty provision of this section shall be in
1054	1054	1024addition to, and not in lieu of, any other provision of law applicable to a licensee or other person
1055	1055	1025for violating section two or any rule or regulation made thereunder.
1056	1056	1026 (c) Nothing in this section shall limit the right of any individual or entity who has been
1057	1057	1027injured as a result of any violation of this chapter by a licensee, or any person other than a
1058	1058	1028licensee or exempt person under section two of this chapter, to bring an action to recover
1059	1059	1029damages or restitution in a court of competent jurisdiction.
1060	1060	1030 (d) Any findings or order issued by the commissioner pursuant to this section shall be
1061	1061	1031subject to review as provided in chapter thirty A.
1062	1062	1032 Section 33. (a) Whenever the commissioner determines that any person has, directly or
1063	1063	1033indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
1064	1064	1034applicable to the conduct of the business of a sales finance company; or any order issued by the
1065	1065	1035commissioner under this chapter or any written agreement entered between the licensee and the
1066	1066	1036commissioner; the commissioner may serve upon the person a written notice of intention:
1067	1067	1037 (1) to prohibit the person from performing in the capacity of a principal employee on
1068	1068	1038behalf of any licensee for a period of time that the commissioner deems necessary; 50 of 51
1069	1069	1039 (2) to prohibit the person from applying for or obtaining a license from the commissioner
1070	1070	1040for a period up to 36 months following the effective date of an order issued under subsection (b)
1071	1071	1041or (c); or
1072	1072	1042 (3) to prohibit the person from any further participation, in any manner, in the conduct of
1073	1073	1043the affairs of a sales finance company in Massachusetts or to prohibit the person from being
1074	1074	1044employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
1075	1075	1045business which requires a license from the commissioner.
1076	1076	1046 (b) A written notice issued under subsection (a) shall contain a written statement of the
1077	1077	1047facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
1078	1078	1048thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
1079	1079	1049the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
1080	1080	1050within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
1081	1081	1051by a duly authorized representative, the party shall be deemed to have consented to the issuance
1082	1082	1052of an order of prohibition in accordance with the notice.
1083	1083	1053 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
1084	1084	1054finds that any of the grounds specified in the notice have been established, the commissioner
1085	1085	1055may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
1086	1086	1056appropriate.
1087	1087	1057 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
1088	1088	1058person. The commissioner shall also serve a copy of the order upon the licensee of which the
1089	1089	1059person is an employee or on whose behalf the person is performing. The order shall remain in 51 of 51
1090	1090	1060effect and enforceable until it is modified, terminated, suspended, or set aside by the
1091	1091	1061commissioner or a court of competent jurisdiction.
1092	1092	1062 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
1093	1093	1063an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
1094	1094	1064part in the conduct of the affairs of a sales finance company in Massachusetts may not, while the
1095	1095	1065order is in effect, continue or commence to perform in the capacity of a principal employee, or
1096	1096	1066otherwise participate in any manner, if so prohibited by order of the commissioner, in the
1097	1097	1067conduct of the affairs of:
1098	1098	1068 (1) any licensee under this chapter;
1099	1099	1069 (2) any other business which requires a license from the commissioner; and
1100	1100	1070 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
1101	1101	1071subsidiary thereof.
1102	1102	1072 SECTION 43. Section 8 of chapter 255E, as so appearing, is hereby amended by adding
1103	1103	1073the following paragraph:--
1104	1104	1074 The commissioner, or the commissioner’s examiners, or other assistants as the
1105	1105	1075commissioner may designate, may summon the directors, officers or agents of a licensee, or any
1106	1106	1076other witnesses, and examine them relative to the affairs, transactions and condition of the
1107	1107	1077licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
1108	1108	1078to appear and testify when so required or obstructs the person making the examination in the
1109	1109	1079performance of their duty, shall be punished by a fine of not more than $1,000 or by
1110	1110	1080imprisonment for not more than one year.