Massachusetts House Bill H1105 Latest Draft

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