MA
Massachusetts House Bill H1273

Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1273 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 1 of 1
22 HOUSE DOCKET, NO. 2684 FILED ON: 1/16/2025
33 HOUSE . . . . . . . . . . . . . . . No. 1273
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 James M. Murphy
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act establishing uniform enforcement and confidentiality provisions relative to certain
1313 licensees under the jurisdiction of the Division of Banks.
1414 _______________
1515 PETITION OF:
1616 NAME:DISTRICT/ADDRESS :DATE ADDED:James M. Murphy4th Norfolk1/16/2025 1 of 51
1717 HOUSE DOCKET, NO. 2684 FILED ON: 1/16/2025
1818 HOUSE . . . . . . . . . . . . . . . No. 1273
1919 By Representative Murphy of Weymouth, a petition (accompanied by bill, House, No. 1273) of
2020 James M. Murphy for legislation to establish uniform enforcement and confidentiality provisions
2121 relative to certain licensees under the jurisdiction of the Division of Banks. Financial Services.
2222 [SIMILAR MATTER FILED IN PREVIOUS SESSION
2323 SEE HOUSE, NO. 1105 OF 2023-2024.]
2424 The Commonwealth of Massachusetts
2525 _______________
2626 In the One Hundred and Ninety-Fourth General Court
2727 (2025-2026)
2828 _______________
2929 An Act establishing uniform enforcement and confidentiality provisions relative to certain
3030 licensees under the jurisdiction of the Division of Banks.
3131 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3232 of the same, as follows:
3333 1 SECTION 1. Section 24D of chapter 93 of the General Laws, as appearing in the 2018
3434 2Official Edition, is hereby amended by inserting after the word "licensee” in lines 13, 17 and 31,
3535 3the following words:— or registrant.
3636 4 SECTION 2. Section 24D of chapter 93 of the General Laws, as so appearing, is hereby
3737 5further amended by inserting after the word "licensees” in line 36, the following words:— or
3838 6registrants.
3939 7 SECTION 3. Chapter 93 of the General Laws, as so appearing, is hereby amended by
4040 8striking out section 24F and inserting in place thereof the following section:— 2 of 51
4141 9 Section 24F. The commissioner, or the commissioner’s examiners or other assistants as
4242 10the commissioner may designate, may summon a licensee or registrant, or any of its agents or
4343 11employees, and other witnesses as necessary, and examine them relative to their transactions,
4444 12may require the production of books and papers and, for those purposes may administer oaths.
4545 13Whoever, without justifiable cause, fails or refuses to appear and testify or to produce books and
4646 14papers when so required, or obstructs the commissioner or the commissioner’s representatives
4747 15making the examination in the performance of their duties, shall be punished by a fine of not
4848 16more than $1,000 or by imprisonment for not more than 6 months, or both. Each day a violation
4949 17occurs or continues shall be considered a separate offense. The penalty provision of this section
5050 18shall be in addition to, and not in lieu of, any other provision of law applicable to a licensee or
5151 19other person for violating section 24A or any rule or regulation made thereunder.
5252 20 SECTION 4. Chapter 93 of the General Laws, as so appearing, is hereby amended by
5353 21adding after section 24K the following two sections:—
5454 22 Section 24L. (a) Whenever the commissioner finds that any licensee or exempt person
5555 23under section 24A of this chapter has violated any provision of this chapter or any rule or
5656 24regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
5757 25of the business of a debt collector or a third party loan servicer, the commissioner may, by order,
5858 26in addition to any other action authorized under this chapter or any rule or regulation made
5959 27thereunder, impose a penalty upon the person which shall not exceed $5,000 for each violation,
6060 28up to a maximum of $100,000 for the violation plus the costs of investigation. The commissioner
6161 29may impose a penalty which shall not exceed $5,000 for each violation of this chapter, or any
6262 30rule or regulation adopted thereunder, by a person other than a licensee or exempt person under
6363 31section 24A of this chapter, plus the costs of investigation. 3 of 51
6464 32 (b) Nothing in this section shall limit the right of any individual or entity who has been
6565 33injured as a result of any violation of this chapter by a licensee, or any person other than a
6666 34licensee or exempt person under section 24A of this chapter, to bring an action to recover
6767 35damages or restitution in a court of competent jurisdiction.
6868 36 (c) Any findings or order issued by the commissioner pursuant to this section shall be
6969 37subject to review as provided in chapter thirty A.
7070 38 Section 24M. (a) Whenever the commissioner determines that any person has, directly or
7171 39indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
7272 40applicable to the conduct of the business of a debt collector or a third party loan servicer; or any
7373 41order issued by the commissioner under this chapter or any written agreement entered between
7474 42the licensee and the commissioner; the commissioner may serve upon the person a written notice
7575 43of intention:
7676 44 (1) to prohibit the person from performing in the capacity of a principal employee on
7777 45behalf of any licensee for a period of time that the commissioner deems necessary;
7878 46 (2) to prohibit the person from applying for or obtaining a license from the commissioner
7979 47for a period up to 36 months following the effective date of an order issued under subsection (b)
8080 48or (c); or
8181 49 (3) to prohibit the person from any further participation, in any manner, in the conduct of
8282 50the affairs of a debt collector or a third party loan servicer in Massachusetts or to prohibit the
8383 51person from being employed by, an agent of, or operating on behalf of a licensee under this
8484 52chapter or any other business which requires a license from the commissioner. 4 of 51
8585 53 (b) A written notice issued under subsection (a) shall contain a written statement of the
8686 54facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
8787 55thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
8888 56the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
8989 57within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
9090 58by a duly authorized representative, the party shall be deemed to have consented to the issuance
9191 59of an order of prohibition in accordance with the notice.
9292 60 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
9393 61finds that any of the grounds specified in the notice have been established, the commissioner
9494 62may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
9595 63appropriate.
9696 64 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
9797 65person. The commissioner shall also serve a copy of the order upon the licensee of which the
9898 66person is an employee or on whose behalf the person is performing. The order shall remain in
9999 67effect and enforceable until it is modified, terminated, suspended, or set aside by the
100100 68commissioner or a court of competent jurisdiction.
101101 69 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
102102 70an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
103103 71part in the conduct of the affairs of a debt collector or a third party loan servicer in Massachusetts
104104 72may not, while the order is in effect, continue or commence to perform in the capacity of a
105105 73principal employee, or otherwise participate in any manner, if so prohibited by order of the
106106 74commissioner, in the conduct of the affairs of: 5 of 51
107107 75 (1) any licensee or registrant under this chapter;
108108 76 (2) any other business which requires a license from the commissioner; and
109109 77 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
110110 78subsidiary thereof.
111111 79 SECTION 5. Section 99 of chapter 140 of the General Laws, as so appearing, is hereby
112112 80amended by striking out section 99 and inserting in place thereof the following section:—
113113 81 Section 99. A licensee shall, when directed by the commissioner, permit the
114114 82commissioner or the commissioner’s duly authorized representative to inspect its records and
115115 83evidence of compliance with this chapter or any rule and regulation issued thereunder and with
116116 84any other law, rule and regulation applicable to the conduct of its business. The commissioner
117117 85shall preserve a full record of each examination of a licensee including a statement of its
118118 86condition. All records of investigations and reports of examinations by the commissioner,
119119 87including workpapers, information derived from the reports or responses to the reports, and any
120120 88copies thereof in the possession of any licensee under the supervision of the commissioner, shall
121121 89be confidential and privileged communications, shall not be subject to subpoena and shall not be
122122 90a public record under clause twenty-sixth of section 7 of chapter 4. For the purpose of this
123123 91paragraph, records of investigation and reports of examinations shall include records of
124124 92investigation and reports of examinations conducted by a financial regulatory agency of the
125125 93federal government and any other state, and of any foreign government which are considered
126126 94confidential by the agency or foreign government and which are in possession of the
127127 95commissioner. In any proceeding before a court, the court may issue a protective order to seal the
128128 96record protecting the confidentiality of any such record, and other than any such record on file 6 of 51
129129 97with the court or filed in connection with the court proceeding, and the court may exclude the
130130 98public from any portion of a proceeding at which any such record may be disclosed. Copies of
131131 99reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
132132 100to any other person, organization or agency without prior written approval by the commissioner.
133133 101The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
134134 102government, of other states, or of foreign countries, and any law enforcement agency, the
135135 103information, reports, inspections and statements relating to the licensees under the
136136 104commissioner’s supervision.
137137 105 The commissioner may summon licensees, companies or associations, or any of their
138138 106agents or employees, and other witnesses as necessary, and examine them relative to their
139139 107transactions and to the condition of their business, and for that purpose may administer oaths.
140140 108Whoever without justifiable cause refuses to appear and testify when so required, or obstructs the
141141 109commissioner or the commissioner’s representatives in the performance of their duties, shall be
142142 110punished by a fine of not more than $1,000 or by imprisonment for not more than 6 months, or
143143 111both. The penalty provision of this section shall be in addition to, and not in lieu of, any other
144144 112provision of law applicable to a licensee or other person for violating section 96 or any rule or
145145 113regulation made thereunder.
146146 114 SECTION 6. Section 103 Chapter 140 of the General Laws, as so appearing, is hereby
147147 115amended by striking out section 103, and inserting in place thereof the following three
148148 116sections:—
149149 117 Section 103. The commissioner may suspend or revoke any license issued pursuant to
150150 118section ninety-six if the commissioner finds that: 7 of 51
151151 119 (i) the licensee has violated any provision of sections ninety-six to one hundred and
152152 120fourteen, inclusive, or any rule or regulation made by the commissioner under any provision of
153153 121sections ninety-six to one hundred and fourteen, inclusive, or any other law applicable to the
154154 122conduct of the business; or
155155 123 (ii) any fact or condition exists which, if it had existed at the time of the original
156156 124application for the license, would have warranted the commissioner in refusing to issue the
157157 125license.
158158 126 Except as provided in section one hundred and three A, no license shall be revoked or
159159 127suspended except after notice and a hearing thereon pursuant to chapter thirty A.
160160 128 A licensee may surrender a license by delivering to the commissioner written notice that
161161 129it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
162162 130the licensee for acts committed before the surrender.
163163 131 No revocation, suspension or surrender of any license shall impair or affect the obligation
164164 132of any pre-existing lawful contract between the licensee and any person.
165165 133 The penalty provision of this section shall be in addition to, and not in lieu of, any other
166166 134provision of law applicable to a licensee or other person for violating section ninety-six, ninety-
167167 135seven, ninety-eight, one hundred, one hundred and one, one hundred and two, one hundred and
168168 136four, one hundred and six, and one hundred and nine or any rule or regulation made thereunder.
169169 137 Section 103A. (a) If the commissioner determines, after giving notice of an opportunity
170170 138for a hearing, that a licensee has engaged or is about to engage in an act or practice constituting a
171171 139violation of a provision of sections ninety-seven, ninety-eight, one hundred, one hundred and 8 of 51
172172 140one, one hundred and two, one hundred and four or one hundred and nine, or any rule or
173173 141regulation made by the commissioner under section ninety-seven or one hundred and six, or any
174174 142other law applicable to the conduct of the business, the commissioner may order the licensee to
175175 143cease and desist from the unlawful act or practice and take affirmative action as in his or her
176176 144judgment will effect the purpose of sections ninety-seven, ninety-eight, one hundred, one
177177 145hundred and one, one hundred and two, one hundred and four or one hundred and nine, or any
178178 146rule or regulation made by the commissioner under section ninety-seven or one hundred and six,
179179 147or any other law applicable to the conduct of the business.
180180 148 (b) If the commissioner makes written findings of fact that the public interest will be
181181 149irreparably harmed by delay in issuing an order under section (a) the commissioner may issue a
182182 150temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
183183 151commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
184184 152been so entered, the reasons therefor, and that within 20 days after receipt of a written request
185185 153from the licensee, the matter will be scheduled for a hearing to determine whether or not the
186186 154temporary order shall become permanent and final. If no hearing is requested and none is
187187 155ordered by the commissioner, the order shall remain in effect until it is modified or vacated by
188188 156the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of
189189 157and opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts
190190 158and conclusions of law, vacate, modify or make permanent the order.
191191 159 (c) No order under this section, except an order issued pursuant to subsection (b), may be
192192 160entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
193193 161modify an order under this section upon finding that the conditions which required the order
194194 162have changed and that it is in the public interest to so vacate or modify. 9 of 51
195195 163 Any order issued pursuant to this section shall be subject to review as provided in chapter
196196 164thirty A.
197197 165 Section 103B. The commissioner may enforce the provisions of section ninety-six
198198 166through one hundred and fourteen A, or restrain any violations thereof, by filing a civil action in
199199 167any court of competent jurisdiction.
200200 168 SECTION 7. Chapter 140 of the General Laws, as so appearing, is hereby amended by
201201 169adding after section 113 the following two sections:—
202202 170 Section 113A. (a) Whenever the commissioner finds that any licensee or exempt person
203203 171under section ninety-six of this chapter has violated any provision of this chapter or any rule or
204204 172regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
205205 173of the business of making small loans, the commissioner may, by order, in addition to any other
206206 174action authorized under this chapter or any rule or regulation made thereunder, impose a penalty
207207 175upon the person which shall not exceed $5,000 for each violation, up to a maximum of $100,000
208208 176for the violation plus the costs of investigation. The commissioner may impose a penalty which
209209 177shall not exceed $5,000 for each violation of this chapter, or any rule or regulation adopted
210210 178thereunder, by a person other than a licensee or exempt person under section ninety-six of this
211211 179chapter, plus the costs of investigation.
212212 180 (b)In addition to any other action authorized under this chapter or any rule of regulation
213213 181made thereunder, a licensee who violates the provisions of section one hundred may also be
214214 182punished by imprisonment for not more than one year. Each day the violation occurs or
215215 183continues shall be deemed a separate offense. Any loan made by any person so licensed in 10 of 51
216216 184violation of section one hundred may be declared void by the supreme judicial or superior court
217217 185in equity upon petition by the person to whom the loan was made.
218218 186 (c) Nothing in this section shall limit the right of any individual or entity who has been
219219 187injured as a result of any violation of this chapter by a licensee, or any person other than a
220220 188licensee or exempt person under section ninety-six of this chapter, to bring an action to recover
221221 189damages or restitution in a court of competent jurisdiction.
222222 190 (d) Any findings or order issued by the commissioner pursuant to this section shall be
223223 191subject to review as provided in chapter thirty A.
224224 192 Section 113B. (a) Whenever the commissioner determines that any person has, directly or
225225 193indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
226226 194applicable to the conduct of the business of making small loans; or any order issued by the
227227 195commissioner under this chapter or any written agreement entered between the licensee and the
228228 196commissioner; the commissioner may serve upon the person a written notice of intention:
229229 197 (1) to prohibit the person from performing in the capacity of a principal employee on
230230 198behalf of any licensee for a period of time that the commissioner deems necessary;
231231 199 (2) to prohibit the person from applying for or obtaining a license from the commissioner
232232 200for a period up to 36 months following the effective date of an order issued under subsection (b)
233233 201or (c); or
234234 202 (3) to prohibit the person from any further participation, in any manner, in the conduct of
235235 203the affairs of a business making small loans in Massachusetts or to prohibit the person from 11 of 51
236236 204being employed by, an agent of, or operating on behalf of a licensee under this chapter or any
237237 205other business which requires a license from the commissioner.
238238 206 (b) A written notice issued under subsection (a) shall contain a written statement of the
239239 207facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
240240 208thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
241241 209the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
242242 210within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
243243 211by a duly authorized representative, the party shall be deemed to have consented to the issuance
244244 212of an order of prohibition in accordance with the notice.
245245 213 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
246246 214finds that any of the grounds specified in the notice have been established, the commissioner
247247 215may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
248248 216appropriate.
249249 217 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
250250 218person. The commissioner shall also serve a copy of the order upon the licensee of which the
251251 219person is an employee or on whose behalf the person is performing. The order shall remain in
252252 220effect and enforceable until it is modified, terminated, suspended, or set aside by the
253253 221commissioner or a court of competent jurisdiction.
254254 222 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
255255 223an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
256256 224part in the conduct of the affairs of a business making small loans in Massachusetts may not,
257257 225while the order is in effect, continue or commence to perform in the capacity of a principal 12 of 51
258258 226employee, or otherwise participate in any manner, if so prohibited by order of the commissioner,
259259 227in the conduct of the affairs of:
260260 228 (1) any licensee under this chapter;
261261 229 (2) any other business which requires a license from the commissioner; and
262262 230 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
263263 231subsidiary thereof.
264264 232 SECTION 8. Chapter 140 of the General Laws, as so appearing, is hereby amended by
265265 233striking section 114A and inserting in place thereof the following section:—
266266 234 Section 114A. A bank as defined in section one of chapter one hundred sixty-seven, a
267267 235national banking association, a federally chartered credit union, a federal savings and loan
268268 236association, a federal savings bank, or any subsidiary of the above, or any bank, trust company,
269269 237savings bank, savings and loan association, or credit union organized under the laws of any other
270270 238state, or any subsidiary of the above, shall not be subject to the provisions of sections ninety-six
271271 239to one hundred fourteen, inclusive; provided, that the institutions may not take, receive, reserve
272272 240or charge interest, expenses and other considerations for making or securing any loan subject to
273273 241the provisions of section ninety-six in excess of those permitted by section one hundred. Any
274274 242loan subject to the provisions of section ninety-six made by any bank as defined in section one of
275275 243chapter one hundred sixty-seven, a national banking association, a federally-chartered credit
276276 244union, a federal savings and loan association, a federal savings bank, or any subsidiary of the
277277 245above, or any bank, trust company, savings bank, savings and loan association, or credit union
278278 246organized under the laws of any other state on which charges for interest, expenses and other
279279 247considerations exceed those permitted by section one hundred may be declared void by the 13 of 51
280280 248supreme judicial court or superior court in equity upon petition by the person to whom the loans
281281 249were made, and any bank as defined section one of chapter one hundred sixty-seven, a national
282282 250banking association, a federally chartered credit union, a federal savings and loan association, a
283283 251federal savings bank, or any subsidiary of the above, or any bank, trust company, savings bank,
284284 252savings and loan association, or credit union organized under the laws of any other state making
285285 253such a loan shall be subject to a fine of not more than $1,000.
286286 254 This section shall not be construed as preventing a rate of charge for interest, expenses
287287 255and other consideration on one or more portions of a loan in excess of the permitted maximum
288288 256rate of charge applicable to the portion or portions, provided, that the composite rate of charge on
289289 257the whole loan produces an amount equal to or less than that which would be produced were the
290290 258maximum rate of charge applied to the loan. Extension, default or deferment charges shall not be
291291 259deemed to be interest, expenses and other considerations in determining the maximum rate of
292292 260charge that may be taken, received, reserved or charged for the loan.
293293 261 SECTION 9. Section 4 of chapter 167F of the General Laws, as amended by section 5 of
294294 262chapter 144 of the acts of 2012, is hereby amended by striking out the first paragraph and
295295 263inserting in place thereof the following paragraph:—
296296 264 Any bank as defined in section one of chapter one hundred sixty-seven, a national
297297 265banking association, a federally-chartered credit union, a federal savings and loan association, a
298298 266federal savings bank, or any subsidiary of the above, any bank, trust company, savings bank,
299299 267savings and loan association, or credit union organized under the laws of any other state or any
300300 268subsidiary of the above, may engage directly in the business of selling, issuing or registering
301301 269checks or money orders for use primarily for personal, family, or household purposes, except all 14 of 51
302302 270of the institutions described above may engage in the business through agents who shall not be
303303 271deemed to be branches of the institutions. No person, other than the foregoing, shall engage in
304304 272such business directly or indirectly unless a sworn statement setting forth the person’s name and
305305 273address, the names and business addresses of the person’s agents, other than the financial
306306 274institutions described above, authorized to receive money and transact such business on the
307307 275person’s behalf is filed annually, as of a date determined by the commissioner.
308308 276 SECTION 10. Section 4 of Chapter 167F, as so appearing, is hereby further amended by
309309 277inserting after the fourth paragraph the following two paragraphs:—
310310 278 The commissioner shall examine any person, to whom a certificate to engage in the
311311 279business of selling, issuing or registering checks or money orders has been issued, as the
312312 280commissioner deems necessary and in a manner the commissioner deems appropriate. The
313313 281commissioner shall preserve a full record of each examination of a check seller including a
314314 282statement of its condition. All records of investigations and reports of examinations by the
315315 283commissioner, including workpapers, information derived from the reports or responses to the
316316 284reports, and any copies thereof in the possession of any licensee under the supervision of the
317317 285commissioner, shall be confidential and privileged communications, shall not be subject to
318318 286subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
319319 287the purpose of this paragraph, records of investigation and reports of examinations shall include
320320 288records of investigation and reports of examinations conducted by a financial regulatory agency
321321 289of the federal government and any other state, and of any foreign government which are
322322 290considered confidential by the agency or foreign government and which are in possession of the
323323 291commissioner. In any proceeding before a court, the court may issue a protective order to seal the
324324 292record protecting the confidentiality of any such record, other than any such record on file with 15 of 51
325325 293the court or filed in connection with the court proceeding, and the court may exclude the public
326326 294from any portion of the proceeding at which any such record may be disclosed. Copies of the
327327 295reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
328328 296to any other person, organization or agency without prior written approval by the commissioner.
329329 297The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
330330 298government, of other states, or of foreign countries, and any law enforcement agency, the
331331 299information, reports, inspections and statements relating to the licensees under the
332332 300commissioner’s supervision.
333333 301 The commissioner, or the commissioner’s examiners or other assistants as the
334334 302commissioner may designate, may summon the directors, officers or agents of a licensee, or any
335335 303other witnesses, and examine them relative to the affairs, transactions and condition of the
336336 304licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
337337 305to appear and testify when so required or obstructs the person making the examination in the
338338 306performance of their duty, shall be punished by a fine of not more than $1,000 or by
339339 307imprisonment for not more than one year.
340340 308 SECTION 11. Said section 4 of chapter 167F of the General Laws, as so appearing, is
341341 309hereby further amended by striking out the fifth paragraph.
342342 310 SECTION 12. Chapter 167F of the General Laws, as so appearing, is hereby amended by
343343 311adding after section 4 the following two sections:—
344344 312 Section 4A. (a) Whenever the commissioner finds that any licensee or exempt person
345345 313under section 4 of this chapter has violated any provision of this chapter or any rule or regulation
346346 314adopted thereunder, or any other law of the Commonwealth applicable to the conduct of the 16 of 51
347347 315business of selling, issuing or registering checks or money orders, the commissioner may, by
348348 316order, in addition to any other action authorized under this chapter or any rule or regulation made
349349 317thereunder, impose a penalty upon the person which shall not exceed $5,000 for each violation,
350350 318up to a maximum of $100,000 for the violation plus the costs of investigation. The commissioner
351351 319may impose a penalty which shall not exceed $5,000 for each violation of this chapter, or any
352352 320rule or regulation adopted thereunder, by a person other than a licensee or exempt person under
353353 321section 4 of this chapter, plus the costs of investigation.
354354 322 (b) Nothing in this section shall limit the right of any individual or entity who has been
355355 323injured as a result of any violation of this chapter by a licensee, or any person other than a
356356 324licensee or exempt person under section 4 of this chapter, to bring an action to recover damages
357357 325or restitution in a court of competent jurisdiction.
358358 326 (c) Any findings or order issued by the commissioner pursuant to this section shall be
359359 327subject to review as provided in chapter thirty A.
360360 328 Section 4B. (a) Whenever the commissioner determines that any person has, directly or
361361 329indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
362362 330applicable to the conduct of the business of selling, issuing or registering checks or money
363363 331orders; or any order issued by the commissioner under this chapter or any written agreement
364364 332entered between the licensee and the commissioner; the commissioner may serve upon the
365365 333person a written notice of intention:
366366 334 (1) to prohibit the person from performing in the capacity of a principal employee on
367367 335behalf of any licensee for a period of time that the commissioner deems necessary; 17 of 51
368368 336 (2) to prohibit the person from applying for or obtaining a license from the commissioner
369369 337for a period up to 36 months following the effective date of an order issued under subsection (b)
370370 338or (c); or
371371 339 (3) to prohibit the person from any further participation, in any manner, in the conduct of
372372 340the affairs of selling, issuing or registering checks or money orders in Massachusetts or to
373373 341prohibit the person from being employed by, an agent of, or operating on behalf of a licensee
374374 342under this chapter or any other business which requires a license from the commissioner.
375375 343 (b) A written notice issued under subsection (a) shall contain a written statement of the
376376 344facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
377377 345thereon. Such hearing shall be fixed for a date not more than 30 days after the date of service
378378 346upon the commissioner of the request for a hearing. If the person fails to submit a request for a
379379 347hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
380380 348person or by a duly authorized representative, the party shall be deemed to have consented to the
381381 349issuance of an order of prohibition in accordance with the notice.
382382 350 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
383383 351finds that any of the grounds specified in the notice have been established, the commissioner
384384 352may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
385385 353appropriate.
386386 354 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
387387 355person. The commissioner shall also serve a copy of the order upon the licensee of which the
388388 356person is an employee or on whose behalf the person is performing. The order shall remain in 18 of 51
389389 357effect and enforceable until it is modified, terminated, suspended, or set aside by the
390390 358commissioner or a court of competent jurisdiction.
391391 359 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
392392 360an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
393393 361part in the conduct of the affairs of business of selling, issuing or registering checks or money
394394 362orders in Massachusetts may not, while the order is in effect, continue or commence to perform
395395 363in the capacity of a principal employee, or otherwise participate in any manner, if so prohibited
396396 364by order of the commissioner, in the conduct of the affairs of:
397397 365 (1) any licensee under this chapter;
398398 366 (2) any other business which requires a license from the commissioner; and
399399 367 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
400400 368subsidiary thereof.
401401 369 SECTION 13. Chapter 169 of the General Laws, as so appearing, is hereby amended by
402402 370striking out Section 1 and inserting in place thereof the following section: —
403403 371 Section 1. This chapter shall apply to all persons who engage or are financially interested
404404 372in the business of receiving deposits of money for the purpose of transmitting the same or
405405 373equivalents thereof to foreign countries primarily for personal, family, or household purposes,
406406 374except banks as defined in section one of chapter one hundred sixty-seven, a national banking
407407 375association, a federally-chartered credit union, a federal savings and loan association, a federal
408408 376savings bank, or any bank, trust company, savings bank, savings and loan association, or credit
409409 377union organized under the law of any other state, or any subsidiary of the above, persons doing 19 of 51
410410 378business under section 17 of chapter 167C, express companies having contracts with
411411 379transportation companies for the operation of an express service upon the lines of such
412412 380companies or express companies doing an international express business or global transportation
413413 381companies or telegraph companies.
414414 382 SECTION 14. Section 3 of chapter 169 of the General Laws, as amended by section 8 of
415415 383chapter 144 of the acts of 2012, is hereby amended by striking out the eighth, thirteenth and
416416 384fourteenth sentence.
417417 385 SECTION 15. Section 10 of chapter 169, as so appearing, is hereby amended by inserting
418418 386after the second paragraph the following two paragraphs:—
419419 387 The commissioner shall preserve a full record of each examination of a licensee including
420420 388a statement of its condition. All records of investigations and reports of examinations by the
421421 389commissioner, including workpapers, information derived from the reports or responses to the
422422 390reports, and any copies thereof in the possession of any licensee under the supervision of the
423423 391commissioner, shall be confidential and privileged communications, shall not be subject to
424424 392subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
425425 393the purpose of this paragraph, records of investigation and reports of examinations shall include
426426 394records of investigation and reports of examinations conducted by a financial regulatory agency
427427 395of the federal government and any other state, and of any foreign government which are
428428 396considered confidential by the agency or foreign government and which are in possession of the
429429 397commissioner. In any proceeding before a court, the court may issue a protective order to seal the
430430 398record protecting the confidentiality in appropriate circumstances to protect the confidentiality of
431431 399any such record, other than any such record on file with the court or filed in connection with the 20 of 51
432432 400court proceeding, and the court may exclude the public from any portion of the proceeding at
433433 401which any such record may be disclosed. Copies of the reports of examination shall be furnished
434434 402to a licensee for its use only and shall not be exhibited to any other person, organization or
435435 403agency without prior written approval by the commissioner. The commissioner may, in his or her
436436 404discretion, furnish to regulatory agencies of the federal government, of other states, or of foreign
437437 405countries, and any law enforcement agency, the information, reports, inspections and statements
438438 406relating to the licensees under the commissioner’s supervision.
439439 407 The commissioner, or the commissioner’s examiners, or other assistants as the
440440 408commissioner may designate, may summon the directors, officers or agents of a licensee, or any
441441 409other witnesses, and examine them relative to the affairs, transactions and condition of the
442442 410licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
443443 411to appear and testify when so required or obstructs the person making the examination in the
444444 412performance of their duty, shall be punished by a fine of not more than $1,000 or by
445445 413imprisonment for not more than one year.
446446 414 SECTION 16. Chapter 169 of the General Laws is hereby amended by striking out
447447 415section 16, as so appearing, and inserting in place thereof, the following two sections:—
448448 416 Section 16. (a) Whenever the commissioner finds that any licensee or exempt person
449449 417under any provision of this chapter has violated any provision of this chapter or any rule or
450450 418regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
451451 419of the business of receiving deposits of money for the purpose of transmitting the same or
452452 420equivalents thereof to foreign countries, the commissioner may, by order, in addition to any other
453453 421action authorized under this chapter or any rule or regulation made thereunder, impose a penalty 21 of 51
454454 422upon the person which shall not exceed $5,000 for each violation, up to a maximum of $100,000
455455 423for the violation plus the costs of investigation. The commissioner may impose a penalty which
456456 424shall not exceed $5,000 for each violation of this chapter, or any rule or regulation adopted
457457 425thereunder, by a person other than a licensee or exempt person under any provision of this
458458 426chapter, plus the costs of investigation.
459459 427 (b)In addition to any other action authorized under this chapter or any rule of regulation
460460 428made thereunder, whoever violates any provision of this chapter or any rule or regulation made
461461 429hereunder by the commissioner may be punished by imprisonment for not more than one year.
462462 430 (c) Nothing in this section shall limit the right of any individual or entity who has been
463463 431injured as a result of any violation of this chapter by a licensee, or any person other than a
464464 432licensee or exempt person under any provision of this chapter, to bring an action to recover
465465 433damages or restitution in a court of competent jurisdiction.
466466 434 (d) Any findings or order issued by the commissioner pursuant to this section shall be
467467 435subject to review as provided in chapter thirty A.
468468 436 Section 16. (a) Whenever the commissioner determines that any person has, directly or
469469 437indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
470470 438applicable to the conduct of the business of receiving deposits of money for the purpose of
471471 439transmitting the same or equivalents thereof to foreign countries; or any order issued by the
472472 440commissioner under this chapter or any written agreement entered between the licensee and the
473473 441commissioner; the commissioner may serve upon the person a written notice of intention:
474474 442 (1) to prohibit the person from performing in the capacity of a principal employee on
475475 443behalf of any licensee for a period of time that the commissioner deems necessary; 22 of 51
476476 444 (2) to prohibit the person from applying for or obtaining a license from the commissioner
477477 445for a period up to 36 months following the effective date of an order issued under subsection (b)
478478 446or (c); or
479479 447 (3) to prohibit such person from any further participation, in any manner, in the conduct
480480 448of the affairs of a business of receiving deposits of money for the purpose of transmitting the
481481 449same or equivalents thereof to foreign countries in Massachusetts or to prohibit such person from
482482 450being employed by, an agent of, or operating on behalf of a licensee under this chapter or any
483483 451other business which requires a license from the commissioner.
484484 452 (b) A written notice issued under subsection (a) shall contain a written statement of the
485485 453facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
486486 454thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
487487 455the commissioner of such request for a hearing. If such person fails to submit a request for a
488488 456hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
489489 457person or by a duly authorized representative, such party shall be deemed to have consented to
490490 458the issuance of an order of such prohibition in accordance with the notice.
491491 459 (c) In the event of such consent under subsection (b), or if after a hearing the
492492 460commissioner finds that any of the grounds specified in such notice have been established, the
493493 461commissioner may issue an order of prohibition in accordance with subsection (a) as the
494494 462commissioner finds appropriate.
495495 463 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
496496 464person. The commissioner shall also serve a copy of the order upon the licensee of which the
497497 465person is an employee or on whose behalf the person is performing. The order shall remain in 23 of 51
498498 466effect and enforceable until it is modified, terminated, suspended, or set aside by the
499499 467commissioner or a court of competent jurisdiction.
500500 468 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
501501 469an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
502502 470part in the conduct of the affairs of a business of receiving deposits of money for the purpose of
503503 471transmitting the same or equivalents thereof to foreign countries in Massachusetts may not, while
504504 472such order is in effect, continue or commence to perform in the capacity of a principal employee,
505505 473or otherwise participate in any manner, if so prohibited by order of the commissioner, in the
506506 474conduct of the affairs of:
507507 475 (1) any licensee under this chapter;
508508 476 (2) any other business which requires a license from the commissioner; and
509509 477 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
510510 478subsidiary thereof.
511511 479 SECTION 17. Section 2 of chapter 169A of the General Laws, as so appearing, is hereby
512512 480amended, in line 7, by striking out the word “bank.” and inserting in place thereof the words:—
513513 481bank or any bank, trust company, savings bank, savings and loan association, or credit union
514514 482organized under the laws of any other state, or any subsidiary of the above,.
515515 483 SECTION 18. Section 5 of chapter 169A, as so appearing, is hereby amended by striking
516516 484out the third and fourth sentences.
517517 485 SECTION 19. Section 10 of chapter 169A, as so appearing, is hereby amended by adding
518518 486the following two paragraphs:— 24 of 51
519519 487 The commissioner shall preserve a full record of each such examination of a licensee
520520 488including a statement of its condition. All records of investigations and reports of examinations
521521 489by the commissioner, including workpapers, information derived from such reports or responses
522522 490to such reports, and any copies thereof in the possession of any licensee under the supervision of
523523 491the commissioner, shall be confidential and privileged communications, shall not be subject to
524524 492subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
525525 493the purpose of this paragraph, records of investigation and reports of examinations shall include
526526 494records of investigation and reports of examinations conducted by a financial regulatory agency
527527 495of the federal government and any other state, and of any foreign government which are
528528 496considered confidential by such agency or foreign government and which are in possession of the
529529 497commissioner. In any proceeding before a court, the court may issue a protective order to seal the
530530 498record protecting the confidentiality of any such record, other than any such record on file with
531531 499the court or filed in connection with the court proceeding, and the court may exclude the public
532532 500from any portion of the proceeding at which any such record may be disclosed. Copies of such
533533 501reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
534534 502to any other person, organization or agency without prior written approval by the commissioner.
535535 503The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
536536 504government, of other states, or of foreign countries, and any law enforcement agency, such
537537 505information, reports, inspections and statements relating to the licensees under the
538538 506commissioner’s supervision.
539539 507 The commissioner, or the commissioner’s examiners or such other assistants as the
540540 508commissioner may designate, may summon the directors, officers or agents of a licensee, or any
541541 509other witnesses, and examine them relative to the affairs, transactions and condition of the 25 of 51
542542 510licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
543543 511to appear and testify when so required or obstructs the person making such examination in the
544544 512performance of their duty, shall be punished by a fine of not more than $1,000 or by
545545 513imprisonment for not more than one year.
546546 514 SECTION 20. Chapter 169A of the General Laws, as so appearing, is hereby amended by
547547 515striking out section 13 and inserting in place thereof the following two sections: —
548548 516 Section 13. (a) Whenever the commissioner finds that any licensee or exempt person
549549 517under section two of this chapter has violated any provision of this chapter or any rule or
550550 518regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
551551 519of the business of cashing checks, drafts or money orders, the commissioner may, by order, in
552552 520addition to any other action authorized under this chapter or any rule or regulation made
553553 521thereunder, impose a penalty upon such person which shall not exceed $5,000 for each violation,
554554 522up to a maximum of $100,000 for such violation plus the costs of investigation. The
555555 523commissioner may impose a penalty which shall not exceed $5,000 for each violation of this
556556 524chapter, or any rule or regulation adopted thereunder, by a person other than a licensee or exempt
557557 525person under section two of this chapter, plus the costs of investigation.
558558 526 (b) In addition to any other action authorized under this chapter or any rule of regulation
559559 527made thereunder, whoever violates any provision of section two or any rule or regulation made
560560 528thereunder by the commissioner may be punished by imprisonment for not more than 6 months.
561561 529Each day a violation continues shall be deemed a separate offense. The penalty provision of this
562562 530section shall be in addition to, and not in lieu of, any other provision of law applicable to a
563563 531licensee or other person for violating section two or any rule or regulation made thereunder. 26 of 51
564564 532 (c) Nothing in this section shall limit the right of any individual or entity who has been
565565 533injured as a result of any violation of this chapter by a licensee, or any person other than a
566566 534licensee or exempt person under section two of this chapter, to bring an action to recover
567567 535damages or restitution in a court of competent jurisdiction.
568568 536 (d) Any findings or order issued by the commissioner pursuant to this section shall be
569569 537subject to review as provided in chapter thirty A.
570570 538 Section 14. (a) Whenever the commissioner determines that any person has, directly or
571571 539indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
572572 540applicable to the conduct of the business of cashing checks, drafts or money orders; or any order
573573 541issued by the commissioner under this chapter or any written agreement entered between such
574574 542licensee and the commissioner; the commissioner may serve upon such person a written notice of
575575 543intention:
576576 544 (1) to prohibit such person from performing in the capacity of a principal employee on
577577 545behalf of any licensee for a period of time that the commissioner deems necessary;
578578 546 (2) to prohibit the person from applying for or obtaining a license from the commissioner
579579 547for a period up to 36 months following the effective date of an order issued under subsection (b)
580580 548or (c); or
581581 549 (3) to prohibit such person from any further participation, in any manner, in the conduct
582582 550of the affairs of person or entity engaged in the cashing of checks, drafts or money orders in
583583 551Massachusetts or to prohibit such person from being employed by, an agent of, or operating on
584584 552behalf of a licensee under this chapter or any other business which requires a license from the
585585 553commissioner. 27 of 51
586586 554 (b) A written notice issued under subsection (a) shall contain a written statement of the
587587 555facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
588588 556thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
589589 557the commissioner of such request for a hearing. If such person fails to submit a request for a
590590 558hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
591591 559person or by a duly authorized representative, such party shall be deemed to have consented to
592592 560the issuance of an order of such prohibition in accordance with the notice.
593593 561 (c) In the event of such consent under subsection (b), or if after a hearing the
594594 562commissioner finds that any of the grounds specified in such notice have been established, the
595595 563commissioner may issue an order of prohibition in accordance with subsection (a) as the
596596 564commissioner finds appropriate.
597597 565 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
598598 566person. The commissioner shall also serve a copy of the order upon the licensee of which the
599599 567person is an employee or on whose behalf the person is performing. The order shall remain in
600600 568effect and enforceable until it is modified, terminated, suspended, or set aside by the
601601 569commissioner or a court of competent jurisdiction.
602602 570 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
603603 571an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
604604 572part in the conduct of the affairs of a person or entity engaged in the cashing of checks, drafts or
605605 573money orders in Massachusetts may not, while such order is in effect, continue or commence to
606606 574perform in the capacity of a principal employee, or otherwise participate in any manner, if so
607607 575prohibited by order of the commissioner, in the conduct of the affairs of: 28 of 51
608608 576 (1) any licensee under this chapter;
609609 577 (2) any other business which requires a license from the commissioner; and
610610 578 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
611611 579subsidiary thereof.
612612 580 SECTION 21. Section 1 of chapter 255B of the General Laws, as so appearing, is hereby
613613 581amended by striking out the definition of “Sales finance company” and inserting in place thereof
614614 582the following definition:— "Sales finance company",. (1) a bank as defined in section one of
615615 583chapter one hundred and sixty-seven, a national banking association, federal savings bank,
616616 584federal savings and loan association, federal credit union, or any bank, trust company, savings
617617 585bank, savings and loan association or credit union organized under the laws of any other state of
618618 586the United States, or any subsidiary of the above;
619619 587 (2) any person engaged, in whole or in part, in the business of purchasing retail
620620 588installment contracts from one or more retail sellers; and
621621 589 (3) a retail seller engaged, in whole or in part, in the business of holding retail installment
622622 590contracts acquired from retail buyers. The term "sales finance company" does not include the
623623 591pledgee of an aggregate number of such contracts to secure a bona fide loan thereon.
624624 592 SECTION 22. Section 2 of chapter 255B, as amended by section 9 of chapter 144 of the
625625 593acts of 2012, is hereby amended by striking out the fourth and fifth sentences.
626626 594 SECTION 23. Section 3 of Chapter 255B, as so appearing, is hereby amended by
627627 595inserting after the first paragraph the following two paragraphs:— 29 of 51
628628 596 The commissioner shall preserve a full record of each such examination of a licensee
629629 597including a statement of its condition. All records of investigations and reports of examinations
630630 598by the commissioner, including workpapers, information derived from such reports or responses
631631 599to such reports, and any copies thereof in the possession of any licensee under the supervision of
632632 600the commissioner, shall be confidential and privileged communications, shall not be subject to
633633 601subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
634634 602the purpose of this paragraph, records of investigation and reports of examinations shall include
635635 603records of investigation and reports of examinations conducted by a financial regulatory agency
636636 604of the federal government and any other state, and of any foreign government which are
637637 605considered confidential by such agency or foreign government and which are in possession of the
638638 606commissioner. In any proceeding before a court, the court may issue a protective order to seal the
639639 607record protecting the confidentiality of any such record, other than any such record on file with
640640 608the court or filed in connection with the court proceeding, and the court may exclude the public
641641 609from any portion of the proceeding at which any such record may be disclosed. Copies of such
642642 610reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
643643 611to any other person, organization or agency without prior written approval by the commissioner.
644644 612The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
645645 613government, of other states, or of foreign countries, and any law enforcement agency, such
646646 614information, reports, inspections and statements relating to the licensees under the
647647 615commissioner’s supervision.
648648 616 The commissioner, or the commissioner’s examiners, or such other assistants as the
649649 617commissioner may designate, may summon the directors, officers or agents of a licensee, or any
650650 618other witnesses, and examine them relative to the affairs, transactions and condition of the 30 of 51
651651 619licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
652652 620to appear and testify when so required or obstructs the person making such examination in the
653653 621performance of their duty, shall be punished by a fine of not more than $1000 or by
654654 622imprisonment for not more than one year.
655655 623 SECTION 24. Section 4 of said chapter 255B of the General Laws, as so appearing, is
656656 624hereby amended by adding the following sentence:— Each day such violation occurs or
657657 625continues shall be deemed a separate offense.
658658 626 SECTION 25. Chapter 255B of the General Laws, as so appearing, is hereby amended by
659659 627striking out section 7, and inserting in place thereof the following section:—
660660 628 Section 7. The commissioner may suspend or revoke any license issued pursuant to this
661661 629chapter if the commissioner finds that:
662662 630 (i) the licensee has violated any provision of this chapter or any rule or regulation
663663 631adopted hereunder, or any other law applicable to the conduct of its business; or
664664 632 (ii) any fact or condition exists which, if it had existed at the time of the original
665665 633application for such license, would have warranted the commissioner in refusing to issue such
666666 634license.
667667 635 Except as provided in section eight, no license shall be revoked or suspended except after
668668 636notice and a hearing thereon pursuant to chapter thirty A.
669669 637 A licensee may surrender a license by delivering to the commissioner written notice that
670670 638it thereby surrenders such license, but such surrender shall not affect the civil or criminal liability
671671 639of the licensee for acts committed before such surrender. 31 of 51
672672 640 No revocation, suspension or surrender of any license shall impair or affect the obligation
673673 641of any pre-existing lawful contract between the licensee and any person.
674674 642 SECTION 26. Chapter 255B of the General Laws, as so appearing, is hereby amended by
675675 643striking out section 8 and inserting in place thereof the following two sections: —
676676 644 Section 8. (a) If the commissioner determines, after giving notice of and opportunity for a
677677 645hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
678678 646violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
679679 647may order such licensee to cease and desist from such unlawful act or practice and take such
680680 648affirmative action as in his or her judgment will effect the purposes of this chapter.
681681 649 (b) If the commissioner makes written findings of fact that the public interest will be
682682 650irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
683683 651a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
684684 652commissioner shall promptly notify, in writing, the licensee affected thereby that such order has
685685 653been so entered, the reasons therefor, and that within 20 days after the receipt of a written request
686686 654from such licensee, the matter will be scheduled for a hearing to determine whether or not such
687687 655temporary order shall become permanent and final. If no such hearing is requested and none is
688688 656ordered by the commissioner, the order shall remain in effect until it is modified or vacated by
689689 657the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of
690690 658and opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts
691691 659and conclusions of law, vacate, modify or make permanent the order.
692692 660 (c) No order under this section, except an order issued pursuant to subsection (b), may be
693693 661entered without prior notice of and opportunity for a hearing. The commissioner may vacate or 32 of 51
694694 662modify an order under this section upon finding that the conditions which required such an order
695695 663have changed and that it is in the public interest to so vacate or modify.
696696 664 Any order issued pursuant to this section shall be subject to review as provided in chapter
697697 665thirty A.
698698 666 Section 8A. The commissioner may enforce the provisions of this chapter, or restrain any
699699 667violations thereof, by filing a civil action in any court of competent jurisdiction.
700700 668 SECTION 27. Chapter 255B of the General Laws, as so appearing, is hereby amended by
701701 669adding after section 25 the following two sections:—
702702 670 Section 26. (a) Whenever the commissioner finds that any licensee or exempt person
703703 671under section two of this chapter has violated any provision of this chapter or any rule or
704704 672regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
705705 673of the business of a sales finance company, the commissioner may, by order, in addition to any
706706 674other action authorized under this chapter or any rule or regulation made thereunder, impose a
707707 675penalty upon such person which shall not exceed $5,000 for each violation, up to a maximum of
708708 676$100,000 for such violation plus the costs of investigation. The commissioner may impose a
709709 677penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
710710 678adopted thereunder, by a person other than a licensee or exempt person under section two of this
711711 679chapter, plus the costs of investigation.
712712 680 (b) In addition to any other action authorized under this chapter or any rule of regulation
713713 681made thereunder, whoever violates any provision of this chapter or any rule or regulation made
714714 682thereunder by the commissioner may also be punished by imprisonment for not more than 6
715715 683months. The penalty provision of this section shall be in addition to, and not in lieu of, any other 33 of 51
716716 684provision of law applicable to a licensee or other person for violating provision of this chapter or
717717 685any rule or regulation made thereunder.
718718 686 (c) Nothing in this section shall limit the right of any individual or entity who has been
719719 687injured as a result of any violation of this chapter by a licensee, or any person other than a
720720 688licensee or exempt person under section two of this chapter, to bring an action to recover
721721 689damages or restitution in a court of competent jurisdiction.
722722 690 (d) Any findings or order issued by the commissioner pursuant to this section shall be
723723 691subject to review as provided in chapter thirty A.
724724 692 Section 27. (a) Whenever the commissioner determines that any person has, directly or
725725 693indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
726726 694applicable to the conduct of the business of a sales finance company; or any order issued by the
727727 695commissioner under this chapter or any written agreement entered between such licensee and the
728728 696commissioner; the commissioner may serve upon such person a written notice of intention:
729729 697 (1) to prohibit such person from performing in the capacity of a principal employee on
730730 698behalf of any licensee for a period of time that the commissioner deems necessary;
731731 699 (2) to prohibit the person from applying for or obtaining a license from the commissioner
732732 700for a period up to 36 months following the effective date of an order issued under subsection (b)
733733 701or (c); or
734734 702 (3) to prohibit the person from any further participation, in any manner, in the conduct of
735735 703the affairs of a sales finance company in Massachusetts or to prohibit the person from being 34 of 51
736736 704employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
737737 705business which requires a license from the commissioner.
738738 706 (b) A written notice issued under subsection (a) shall contain a written statement of the
739739 707facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
740740 708thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
741741 709the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
742742 710within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
743743 711by a duly authorized representative, the party shall be deemed to have consented to the issuance
744744 712of an order of prohibition in accordance with the notice.
745745 713 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
746746 714finds that any of the grounds specified in such notice have been established, the commissioner
747747 715may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
748748 716appropriate.
749749 717 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
750750 718person. The commissioner shall also serve a copy of the order upon the licensee of which the
751751 719person is an employee or on whose behalf the person is performing. The order shall remain in
752752 720effect and enforceable until it is modified, terminated, suspended, or set aside by the
753753 721commissioner or a court of competent jurisdiction.
754754 722 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
755755 723an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
756756 724part in the conduct of the affairs of a sales finance company in Massachusetts may not, while the
757757 725order is in effect, continue or commence to perform in the capacity of a principal employee, or 35 of 51
758758 726otherwise participate in any manner, if so prohibited by order of the commissioner, in the
759759 727conduct of the affairs of:
760760 728 (1) any licensee under this chapter;
761761 729 (2) any other business which requires a license from the commissioner; and
762762 730 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
763763 731subsidiary thereof.
764764 732 SECTION 28. Chapter 255C of the General Laws, as amended by section 11 of chapter
765765 733144 of the acts of 2012, is hereby amended by striking out section 2 and inserting in place
766766 734thereof the following section:—
767767 735 Section 2. No person, other than a bank as defined in section one of chapter one hundred
768768 736sixty-seven, a national banking association, a federally-chartered credit union, a federal savings
769769 737and loan association, a federal savings bank, or any subsidiary of the above, or a bank, a trust
770770 738company, savings bank, savings and loan association or credit union organized under the laws of
771771 739any other state, or any subsidiary of the above, a sales finance company, as defined in section
772772 740one of chapter two hundred fifty-five B, and a company licensed to carry on the business of
773773 741making small loans, shall engage in the business of premium finance agency unless licensed by
774774 742the commissioner, as provided in section three; provided, however, that no property and casualty
775775 743insurance agent or broker, including an insurance agent or insurance broker conducting an
776776 744insurance premium financing agency business under a subsidiary or different company name,
777777 745who provides premium financing only to their own customers for purposes of financing payment
778778 746of premiums on contracts of insurance, which contracts of insurance are exclusively limited to
779779 747commercial insurance policies, shall be required to be licensed pursuant to this section or any 36 of 51
780780 748other section of this chapter. The commissioner may adopt, amend or repeal rules and
781781 749regulations, which may include an adequate capitalization requirement for sales finance
782782 750companies, to aid in the administration and enforcement of this chapter.
783783 751 The license shall allow the holder to maintain only one office from which the business
784784 752may be conducted, but more than one license may be issued to any person. Any change of
785785 753location of an office of a licensee shall require the prior approval of the commissioner. The
786786 754request for relocation shall be in writing setting forth the reason or reasons for the request, and
787787 755shall be accompanied by a relocation investigation fee to be determined annually by the secretary
788788 756of administration and finance under section 3B of chapter 7. If an applicant has more than one
789789 757office, the applicant may obtain a license for each office from which the applicant intends to
790790 758conduct the business.
791791 759 SECTION 29. Section 4 of chapter 255C, as so appearing, is hereby amended by striking
792792 760out the second sentence.
793793 761 SECTION 30. Section 4 of chapter 255C is hereby further amended by adding the
794794 762following paragraph: —
795795 763 If a licensee intends to carry on the business at any place in addition to the address on the
796796 764license, the licensee shall so notify the commissioner, in writing, at least 30 days prior thereto,
797797 765and the licensee shall pay a fee for the additional location in an amount to be determined
798798 766annually by the commissioner of administration under the provision of section three B of chapter
799799 767seven. The license shall not be transferable or assignable and shall expire annually on a date
800800 768determined by the commissioner. 37 of 51
801801 769 SECTION 31. Chapter 255C of the General Laws, as so appearing, is hereby amended by
802802 770striking out section 5, and inserting in place thereof the following three sections:—
803803 771 Section 5. The commissioner may suspend or revoke any license issued pursuant to this
804804 772chapter if the commissioner finds that:
805805 773 (i) the licensee has violated any provision of this chapter or any rule or regulation
806806 774adopted hereunder, or any other law applicable to the conduct of its business; or
807807 775 (ii) any fact or condition exists which, if it had existed at the time of the original
808808 776application for the license, would have warranted the commissioner in refusing to issue the
809809 777license.
810810 778 The commissioner shall have sufficient cause to suspend or revoke a license whenever
811811 779the commissioner learns from the commissioner of insurance or from any other source that the
812812 780licensee has failed to return the full amount of a return premium to the person whose insurance
813813 781policy has been cancelled or to the person’s assignee, as required by section one hundred and
814814 782seventy-six A of chapter one hundred and seventy-five.
815815 783 A licensee may surrender a license by delivering to the commissioner written notice that
816816 784it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
817817 785the licensee for acts committed before the surrender. A revocation or suspension or surrender of
818818 786any license shall not impair or affect the obligation of an insured under any lawful premium
819819 787finance agreement previously acquired or held by the licensee.
820820 788 No revocation, suspension or surrender of any license shall impair or affect the obligation
821821 789of any pre-existing lawful contract between the licensee and any person. 38 of 51
822822 790 Whenever the commissioner revokes or suspends a license, the commissioner shall
823823 791forthwith execute in duplicate a written order to that effect, and shall file one copy of the order in
824824 792the office of the secretary of state and mail one copy to the licensee. A suspension or revocation
825825 793of a license shall not be subject to the provisions of chapter thirty A.
826826 794 Section 5A. (a) If the commissioner determines, after giving notice of and opportunity for
827827 795a hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
828828 796violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
829829 797may order the licensee to cease and desist from the unlawful act or practice and take affirmative
830830 798action as in his or her judgment will effect the purposes of this chapter.
831831 799 (b) If the commissioner makes written findings of fact that the public interest will be
832832 800irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
833833 801a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
834834 802commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
835835 803been so entered, the reasons therefor, and that within 2 days after the receipt of a written request
836836 804from the licensee, the matter will be scheduled for hearing to determine whether or not the
837837 805temporary order shall become permanent and final. If no hearing is requested and none is ordered
838838 806by the commissioner, the order shall remain in effect until it is modified or vacated by the
839839 807commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and
840840 808opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts and
841841 809conclusions of law, vacate, modify or make permanent the order.
842842 810 (c) No order under this section, except an order issued pursuant to subsection (b), may be
843843 811entered without prior notice of and opportunity for a hearing. The commissioner may vacate or 39 of 51
844844 812modify an order under this section upon finding that the conditions which required the order
845845 813have changed and that it is in the public interest to so vacate or modify.
846846 814 Any order issued pursuant to this section shall be subject to review as provided in chapter
847847 815thirty A.
848848 816 Section 5B. The commissioner may enforce the provisions of this chapter, or restrain any
849849 817violations thereof, by filing a civil action in any court of competent jurisdiction.
850850 818 SECTION 32. Section 6 of chapter 255C, as amended by section 14 of chapter 44 of the
851851 819acts of 2012, is hereby amended by striking out the second paragraph and inserting in place
852852 820thereof the following two paragraphs:—
853853 821 The commissioner shall preserve a full record of each examination of a licensee including
854854 822a statement of its condition. All records of investigations and reports of examinations by the
855855 823commissioner, including workpapers, information derived from the reports or responses to the
856856 824reports, and any copies thereof in the possession of any licensee under the supervision of the
857857 825commissioner, shall be confidential and privileged communications, shall not be subject to
858858 826subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
859859 827the purpose of this paragraph, records of investigation and reports of examinations shall include
860860 828records of investigation and reports of examinations conducted by a financial regulatory agency
861861 829of the federal government and any other state, and of any foreign government which are
862862 830considered confidential by the agency or foreign government and which are in possession of the
863863 831commissioner. In any proceeding before a court, the court may issue a protective order to seal the
864864 832record protecting the confidentiality of any such record, other than any such record on file with
865865 833the court or filed in connection with the court proceeding, and the court may exclude the public 40 of 51
866866 834from any portion of the proceeding at which any such record may be disclosed. Copies of such
867867 835reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
868868 836to any other person, organization or agency without prior written approval by the commissioner.
869869 837The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
870870 838government, of other states, or of foreign countries, and any law enforcement agency, the
871871 839information, reports, inspections and statements relating to the licensees under the
872872 840commissioner’s supervision.
873873 841 The commissioner, or the commissioner’s examiners or other assistants as the
874874 842commissioner may designate, may summon the directors, officers or agents of a licensee, or any
875875 843other witnesses, and examine them relative to the affairs, transactions and condition of the
876876 844licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
877877 845to appear and testify when so required or obstructs the person making the examination in the
878878 846performance of their duty, shall be punished by a fine of not more than $1,000 or by
879879 847imprisonment for not more than one year.
880880 848 SECTION 33. Section 9 of chapter 255C of the General Laws, as so appearing, is hereby
881881 849amended by striking out the first paragraph: —
882882 850 SECTION 34. Chapter 255C of the General Laws, as so appearing, is hereby amended by
883883 851adding after section 23 the following two sections:—
884884 852 Section 24. (a) Whenever the commissioner finds that any licensee or exempt person
885885 853under section two of this chapter has violated any provision of this chapter or any rule or
886886 854regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
887887 855of the business of a premium finance agency, the commissioner may, by order, in addition to any 41 of 51
888888 856other action authorized under this chapter or any rule or regulation made thereunder, impose a
889889 857penalty upon the person which shall not exceed $5,000 for each violation, up to a maximum of
890890 858$100,000 for the violation plus the costs of investigation. The commissioner may impose a
891891 859penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
892892 860adopted thereunder, by a person other than a licensee or exempt person under section two of this
893893 861chapter, plus the costs of investigation.
894894 862 (b)In addition to any other action authorized under this chapter or any rule of regulation
895895 863made thereunder, whoever violates any provision of this chapter, or knowingly makes any
896896 864incorrect statement of a material fact in any application, report or statement filed pursuant to this
897897 865chapter, or knowingly omits to state any material fact necessary to give the commissioner any
898898 866information lawfully required, may be punished by imprisonment for not more than 6 months.
899899 867The penalty provision of this section shall be in addition to, and not in lieu of, any other
900900 868provision of law applicable to a licensee or other person for violating any provision of this
901901 869chapter or any rule or regulation made thereunder.
902902 870 (c) Nothing in this section shall limit the right of any individual or entity who has been
903903 871injured as a result of any violation of this chapter by a licensee, or any person other than a
904904 872licensee or exempt person under section two of this chapter, to bring an action to recover
905905 873damages or restitution in a court of competent jurisdiction.
906906 874 (d) Any findings or order issued by the commissioner pursuant to this section shall be
907907 875subject to review as provided in chapter thirty A.
908908 876 Section 25. (a) Whenever the commissioner determines that any person has, directly or
909909 877indirectly, violated any section of this chapter or any rule or regulation adopted thereunder, 42 of 51
910910 878applicable to the conduct of the business of a premium finance agency; or any order issued by
911911 879the commissioner under this chapter or any written agreement entered between the licensee and
912912 880the commissioner; the commissioner may serve upon the person a written notice of intention:
913913 881 (1) to prohibit the person from performing in the capacity of a principal employee on
914914 882behalf of any licensee for a period of time that the commissioner deems necessary;
915915 883 (2) to prohibit the person from applying for or obtaining a license from the commissioner
916916 884for a period up to 36 months following the effective date of an order issued under subsection (b)
917917 885or (c); or
918918 886 (3) to prohibit the person from any further participation, in any manner, in the conduct of
919919 887the affairs of a premium finance agency in Massachusetts or to prohibit the person from being
920920 888employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
921921 889business which requires a license from the commissioner.
922922 890 (b) A written notice issued under subsection (a) shall contain a written statement of the
923923 891facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
924924 892thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
925925 893the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
926926 894within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
927927 895by a duly authorized representative, the party shall be deemed to have consented to the issuance
928928 896of an order of prohibition in accordance with the notice.
929929 897 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
930930 898finds that any of the grounds specified in the notice have been established, the commissioner 43 of 51
931931 899may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
932932 900appropriate.
933933 901 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
934934 902person. The commissioner shall also serve a copy of the order upon the licensee of which the
935935 903person is an employee or on whose behalf the person is performing. The order shall remain in
936936 904effect and enforceable until it is modified, terminated, suspended, or set aside by the
937937 905commissioner or a court of competent jurisdiction.
938938 906 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
939939 907an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
940940 908part in the conduct of the affairs of a premium finance agency in Massachusetts may not, while
941941 909the order is in effect, continue or commence to perform in the capacity of a principal employee,
942942 910or otherwise participate in any manner, if so prohibited by order of the commissioner, in the
943943 911conduct of the affairs of:
944944 912 (1) any licensee under this chapter;
945945 913 (2) any other business which requires a license from the commissioner; and
946946 914 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
947947 915subsidiary thereof.
948948 916 SECTION 35. Section 1 of chapter 255D of the General Laws, as so appearing, is hereby
949949 917amended by striking out the definition of “Sales finance company” in lines 98 through 105,
950950 918inclusive, and inserting in place thereof the following definition:—
951951 919 "Sales finance company", 44 of 51
952952 920 (1) a bank as defined in section one of chapter one hundred and sixty-seven, or a national
953953 921banking association or a savings and loan association, federal savings bank, federal savings and
954954 922loan association, federal credit union, or any bank, trust company, savings bank, savings and
955955 923loan association or credit union organized under the laws of any other state of the United States,
956956 924or any subsidiary of the above,
957957 925 (2) any person other than an installment seller engaged, in whole or in part, in the
958958 926business of purchasing retail installment sale agreements or revolving credit agreements of one
959959 927or more retail sellers. The term "sales finance company" shall not include the pledgee of an
960960 928aggregate number of such agreements to secure a bona fide loan thereon.
961961 929 SECTION 36. The first paragraph of section 2 of chapter 255D, as amended by section
962962 93014 of chapter 144 of the acts of 2012, is hereby amended by striking out the fourth and fifth
963963 931sentences.
964964 932 SECTION 37. Section 2 of chapter 255D, as so appearing, is hereby further amended by
965965 933striking out the ninth sentence.
966966 934 SECTION 38. Section 3 of chapter 255D of the General Laws, as so appearing, is hereby
967967 935amended by inserting after the first paragraph the following two paragraphs:—
968968 936 The commissioner shall preserve a full record of each examination of a licensee including
969969 937a statement of its condition. All records of investigations and reports of examinations by the
970970 938commissioner, including workpapers, information derived from the reports or responses to the
971971 939reports, and any copies thereof in the possession of any licensee under the supervision of the
972972 940commissioner, shall be confidential and privileged communications, shall not be subject to
973973 941subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For 45 of 51
974974 942the purpose of this paragraph, records of investigation and reports of examinations shall include
975975 943records of investigation and reports of examinations conducted by a financial regulatory agency
976976 944of the federal government and any other state, and of any foreign government which are
977977 945considered confidential by the agency or foreign government and which are in possession of the
978978 946commissioner. In any proceeding before a court, the court may issue a protective order to seal the
979979 947record protecting the confidentiality of any such record, other than any such record on file with
980980 948the court or filed in connection with the court proceeding, and the court may exclude the public
981981 949from any portion of the proceeding at which any such record may be disclosed. Copies of such
982982 950reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
983983 951to any other person, organization or agency without prior written approval by the commissioner.
984984 952The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
985985 953government, of other states, or of foreign countries, and any law enforcement agency, the
986986 954information, reports, inspections and statements relating to the licensees under the
987987 955commissioner’s supervision.
988988 956 The commissioner, or the commissioner’s examiners, or other assistants as the
989989 957commissioner may designate, may summon the directors, officers or agents of a licensee, or any
990990 958other witnesses, and examine them relative to the affairs, transactions and condition of the
991991 959licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
992992 960to appear and testify when so required or obstructs the person making the examination in the
993993 961performance of their duty, shall be punished by a fine of not more than $1,000 or by
994994 962imprisonment for not more than one year.
995995 963 SECTION 39. Chapter 255D of the General Laws, as so appearing, is hereby amended by
996996 964striking out section 7 as so appearing, and inserting in place thereof the following section:— 46 of 51
997997 965 Section 7. The commissioner may suspend or revoke any license issued pursuant to this
998998 966chapter if the commissioner finds that:
999999 967 (i) the licensee has violated any provision of this chapter or any rule or regulation
10001000 968adopted hereunder, or any other law applicable to the conduct of its business; or
10011001 969 (ii) any fact or condition exists which, if it had existed at the time of the original
10021002 970application for the license, would have warranted the commissioner in refusing to issue the
10031003 971license.
10041004 972 Except as provided in section eight, no license shall be revoked or suspended except after
10051005 973notice and a hearing thereon pursuant to chapter thirty A.
10061006 974 A licensee may surrender a license by delivering to the commissioner written notice that
10071007 975it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
10081008 976the licensee for acts committed before the surrender.
10091009 977 No revocation, suspension or surrender of any license shall impair or affect the obligation
10101010 978of any pre-existing lawful contract between the licensee and any person.
10111011 979 SECTION 40. Said chapter 255D of the General Laws, as so appearing, is hereby further
10121012 980amended by striking out section 8, as so appearing, an inserting in place thereof the following
10131013 981two sections:—
10141014 982 Section 8. (a) If the commissioner determines, after giving notice of and opportunity for a
10151015 983hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
10161016 984violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner 47 of 51
10171017 985may order the licensee to cease and desist from the unlawful act or practice and take affirmative
10181018 986action as in his or her judgment will effect the purposes of this chapter.
10191019 987 (b) If the commissioner makes written findings of fact that the public interest will be
10201020 988irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
10211021 989a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
10221022 990commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
10231023 991been so entered, the reasons therefor, and that within 20 days after the receipt of a written request
10241024 992from the licensee, the matter will be scheduled for hearing to determine whether or not the
10251025 993temporary order shall become permanent and final. If no hearing is requested and none is ordered
10261026 994by the commissioner, the order shall remain in effect until it is modified or vacated by the
10271027 995commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and
10281028 996opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts and
10291029 997conclusions of law, vacate, modify or make permanent the order.
10301030 998 (c) No order under this section, except an order issued pursuant to subsection (b), may be
10311031 999entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
10321032 1000modify an order under this section upon finding that the conditions which required the order
10331033 1001have changed and that it is in the public interest to so vacate or modify.
10341034 1002 Any order issued pursuant to this section shall be subject to review as provided in chapter
10351035 1003thirty A.
10361036 1004 Section 8A. The commissioner may enforce the provisions of this chapter, or restrain any
10371037 1005violations thereof, by filing a civil action in any court of competent jurisdiction. 48 of 51
10381038 1006 SECTION 41. Section 30 of chapter 255D of the General Laws, as so appearing, is
10391039 1007hereby repealed.
10401040 1008 SECTION 42. Chapter 255D of the General Laws, as so appearing, is hereby amended by
10411041 1009adding after section 31 the following two sections:—
10421042 1010 Section 32. (a) Whenever the commissioner finds that any licensee or exempt person
10431043 1011under section two of this chapter has violated any provision of this chapter or any rule or
10441044 1012regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
10451045 1013of the business of a sales finance company, the commissioner may, by order, in addition to any
10461046 1014other action authorized under this chapter or any rule or regulation made thereunder, impose a
10471047 1015penalty upon the person which shall not exceed $5,000 for each violation, up to a maximum of
10481048 1016$100,000 for the violation plus the costs of investigation. The commissioner may impose a
10491049 1017penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
10501050 1018adopted thereunder, by a person other than a licensee or exempt person under section two of this
10511051 1019chapter, plus the costs of investigation.
10521052 1020 (b)In addition to any other action authorized under this chapter or any rule of regulation
10531053 1021made thereunder, whoever violates any provision of this chapter may be punished by
10541054 1022imprisonment for not more than 6 months. The penalty provision of this section shall be in
10551055 1023addition to, and not in lieu of, any other provision of law applicable to a licensee or other person
10561056 1024for violating section two or any rule or regulation made thereunder.
10571057 1025 (c) Nothing in this section shall limit the right of any individual or entity who has been
10581058 1026injured as a result of any violation of this chapter by a licensee, or any person other than a 49 of 51
10591059 1027licensee or exempt person under section two of this chapter, to bring an action to recover
10601060 1028damages or restitution in a court of competent jurisdiction.
10611061 1029 (d) Any findings or order issued by the commissioner pursuant to this section shall be
10621062 1030subject to review as provided in chapter thirty A.
10631063 1031 Section 33. (a) Whenever the commissioner determines that any person has, directly or
10641064 1032indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
10651065 1033applicable to the conduct of the business of a sales finance company; or any order issued by the
10661066 1034commissioner under this chapter or any written agreement entered between the licensee and the
10671067 1035commissioner; the commissioner may serve upon the person a written notice of intention:
10681068 1036 (1) to prohibit the person from performing in the capacity of a principal employee on
10691069 1037behalf of any licensee for a period of time that the commissioner deems necessary;
10701070 1038 (2) to prohibit the person from applying for or obtaining a license from the commissioner
10711071 1039for a period up to 36 months following the effective date of an order issued under subsection (b)
10721072 1040or (c); or
10731073 1041 (3) to prohibit the person from any further participation, in any manner, in the conduct of
10741074 1042the affairs of a sales finance company in Massachusetts or to prohibit the person from being
10751075 1043employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
10761076 1044business which requires a license from the commissioner.
10771077 1045 (b) A written notice issued under subsection (a) shall contain a written statement of the
10781078 1046facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
10791079 1047thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon 50 of 51
10801080 1048the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
10811081 1049within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
10821082 1050by a duly authorized representative, the party shall be deemed to have consented to the issuance
10831083 1051of an order of prohibition in accordance with the notice.
10841084 1052 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
10851085 1053finds that any of the grounds specified in the notice have been established, the commissioner
10861086 1054may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
10871087 1055appropriate.
10881088 1056 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
10891089 1057person. The commissioner shall also serve a copy of the order upon the licensee of which the
10901090 1058person is an employee or on whose behalf the person is performing. The order shall remain in
10911091 1059effect and enforceable until it is modified, terminated, suspended, or set aside by the
10921092 1060commissioner or a court of competent jurisdiction.
10931093 1061 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
10941094 1062an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
10951095 1063part in the conduct of the affairs of a sales finance company in Massachusetts may not, while the
10961096 1064order is in effect, continue or commence to perform in the capacity of a principal employee, or
10971097 1065otherwise participate in any manner, if so prohibited by order of the commissioner, in the
10981098 1066conduct of the affairs of:
10991099 1067 (1) any licensee under this chapter;
11001100 1068 (2) any other business which requires a license from the commissioner; and 51 of 51
11011101 1069 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
11021102 1070subsidiary thereof.
11031103 1071 SECTION 43. Section 8 of chapter 255E, as so appearing, is hereby amended by adding
11041104 1072the following paragraph:--
11051105 1073 The commissioner, or the commissioner’s examiners, or other assistants as the
11061106 1074commissioner may designate, may summon the directors, officers or agents of a licensee, or any
11071107 1075other witnesses, and examine them relative to the affairs, transactions and condition of the
11081108 1076licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
11091109 1077to appear and testify when so required or obstructs the person making the examination in the
11101110 1078performance of their duty, shall be punished by a fine of not more than $1,000 or by
11111111 1079imprisonment for not more than one year.