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HOUSE DOCKET, NO. 2684 FILED ON: 1/16/2025
HOUSE . . . . . . . . . . . . . . . No. 1273
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
James M. Murphy
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act establishing uniform enforcement and confidentiality provisions relative to certain
licensees under the jurisdiction of the Division of Banks.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:James M. Murphy4th Norfolk1/16/2025 1 of 51
HOUSE DOCKET, NO. 2684 FILED ON: 1/16/2025
HOUSE . . . . . . . . . . . . . . . No. 1273
By Representative Murphy of Weymouth, a petition (accompanied by bill, House, No. 1273) of
James M. Murphy for legislation to establish uniform enforcement and confidentiality provisions
relative to certain licensees under the jurisdiction of the Division of Banks. Financial Services.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 1105 OF 2023-2024.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act establishing uniform enforcement and confidentiality provisions relative to certain
licensees under the jurisdiction of the Division of Banks.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 24D of chapter 93 of the General Laws, as appearing in the 2018
2Official Edition, is hereby amended by inserting after the word "licensee” in lines 13, 17 and 31,
3the following words:— or registrant.
4 SECTION 2. Section 24D of chapter 93 of the General Laws, as so appearing, is hereby
5further amended by inserting after the word "licensees” in line 36, the following words:— or
6registrants.
7 SECTION 3. Chapter 93 of the General Laws, as so appearing, is hereby amended by
8striking out section 24F and inserting in place thereof the following section:— 2 of 51
9 Section 24F. The commissioner, or the commissioner’s examiners or other assistants as
10the commissioner may designate, may summon a licensee or registrant, or any of its agents or
11employees, and other witnesses as necessary, and examine them relative to their transactions,
12may require the production of books and papers and, for those purposes may administer oaths.
13Whoever, without justifiable cause, fails or refuses to appear and testify or to produce books and
14papers when so required, or obstructs the commissioner or the commissioner’s representatives
15making the examination in the performance of their duties, shall be punished by a fine of not
16more than $1,000 or by imprisonment for not more than 6 months, or both. Each day a violation
17occurs or continues shall be considered a separate offense. The penalty provision of this section
18shall be in addition to, and not in lieu of, any other provision of law applicable to a licensee or
19other person for violating section 24A or any rule or regulation made thereunder.
20 SECTION 4. Chapter 93 of the General Laws, as so appearing, is hereby amended by
21adding after section 24K the following two sections:—
22 Section 24L. (a) Whenever the commissioner finds that any licensee or exempt person
23under section 24A of this chapter has violated any provision of this chapter or any rule or
24regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
25of the business of a debt collector or a third party loan servicer, the commissioner may, by order,
26in addition to any other action authorized under this chapter or any rule or regulation made
27thereunder, impose a penalty upon the person which shall not exceed $5,000 for each violation,
28up to a maximum of $100,000 for the violation plus the costs of investigation. The commissioner
29may impose a penalty which shall not exceed $5,000 for each violation of this chapter, or any
30rule or regulation adopted thereunder, by a person other than a licensee or exempt person under
31section 24A of this chapter, plus the costs of investigation. 3 of 51
32 (b) Nothing in this section shall limit the right of any individual or entity who has been
33injured as a result of any violation of this chapter by a licensee, or any person other than a
34licensee or exempt person under section 24A of this chapter, to bring an action to recover
35damages or restitution in a court of competent jurisdiction.
36 (c) Any findings or order issued by the commissioner pursuant to this section shall be
37subject to review as provided in chapter thirty A.
38 Section 24M. (a) Whenever the commissioner determines that any person has, directly or
39indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
40applicable to the conduct of the business of a debt collector or a third party loan servicer; or any
41order issued by the commissioner under this chapter or any written agreement entered between
42the licensee and the commissioner; the commissioner may serve upon the person a written notice
43of intention:
44 (1) to prohibit the person from performing in the capacity of a principal employee on
45behalf of any licensee for a period of time that the commissioner deems necessary;
46 (2) to prohibit the person from applying for or obtaining a license from the commissioner
47for a period up to 36 months following the effective date of an order issued under subsection (b)
48or (c); or
49 (3) to prohibit the person from any further participation, in any manner, in the conduct of
50the affairs of a debt collector or a third party loan servicer in Massachusetts or to prohibit the
51person from being employed by, an agent of, or operating on behalf of a licensee under this
52chapter or any other business which requires a license from the commissioner. 4 of 51
53 (b) A written notice issued under subsection (a) shall contain a written statement of the
54facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
55thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
56the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
57within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
58by a duly authorized representative, the party shall be deemed to have consented to the issuance
59of an order of prohibition in accordance with the notice.
60 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
61finds that any of the grounds specified in the notice have been established, the commissioner
62may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
63appropriate.
64 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
65person. The commissioner shall also serve a copy of the order upon the licensee of which the
66person is an employee or on whose behalf the person is performing. The order shall remain in
67effect and enforceable until it is modified, terminated, suspended, or set aside by the
68commissioner or a court of competent jurisdiction.
69 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
70an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
71part in the conduct of the affairs of a debt collector or a third party loan servicer in Massachusetts
72may not, while the order is in effect, continue or commence to perform in the capacity of a
73principal employee, or otherwise participate in any manner, if so prohibited by order of the
74commissioner, in the conduct of the affairs of: 5 of 51
75 (1) any licensee or registrant under this chapter;
76 (2) any other business which requires a license from the commissioner; and
77 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
78subsidiary thereof.
79 SECTION 5. Section 99 of chapter 140 of the General Laws, as so appearing, is hereby
80amended by striking out section 99 and inserting in place thereof the following section:—
81 Section 99. A licensee shall, when directed by the commissioner, permit the
82commissioner or the commissioner’s duly authorized representative to inspect its records and
83evidence of compliance with this chapter or any rule and regulation issued thereunder and with
84any other law, rule and regulation applicable to the conduct of its business. The commissioner
85shall preserve a full record of each examination of a licensee including a statement of its
86condition. All records of investigations and reports of examinations by the commissioner,
87including workpapers, information derived from the reports or responses to the reports, and any
88copies thereof in the possession of any licensee under the supervision of the commissioner, shall
89be confidential and privileged communications, shall not be subject to subpoena and shall not be
90a public record under clause twenty-sixth of section 7 of chapter 4. For the purpose of this
91paragraph, records of investigation and reports of examinations shall include records of
92investigation and reports of examinations conducted by a financial regulatory agency of the
93federal government and any other state, and of any foreign government which are considered
94confidential by the agency or foreign government and which are in possession of the
95commissioner. In any proceeding before a court, the court may issue a protective order to seal the
96record protecting the confidentiality of any such record, and other than any such record on file 6 of 51
97with the court or filed in connection with the court proceeding, and the court may exclude the
98public from any portion of a proceeding at which any such record may be disclosed. Copies of
99reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
100to any other person, organization or agency without prior written approval by the commissioner.
101The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
102government, of other states, or of foreign countries, and any law enforcement agency, the
103information, reports, inspections and statements relating to the licensees under the
104commissioner’s supervision.
105 The commissioner may summon licensees, companies or associations, or any of their
106agents or employees, and other witnesses as necessary, and examine them relative to their
107transactions and to the condition of their business, and for that purpose may administer oaths.
108Whoever without justifiable cause refuses to appear and testify when so required, or obstructs the
109commissioner or the commissioner’s representatives in the performance of their duties, shall be
110punished by a fine of not more than $1,000 or by imprisonment for not more than 6 months, or
111both. The penalty provision of this section shall be in addition to, and not in lieu of, any other
112provision of law applicable to a licensee or other person for violating section 96 or any rule or
113regulation made thereunder.
114 SECTION 6. Section 103 Chapter 140 of the General Laws, as so appearing, is hereby
115amended by striking out section 103, and inserting in place thereof the following three
116sections:—
117 Section 103. The commissioner may suspend or revoke any license issued pursuant to
118section ninety-six if the commissioner finds that: 7 of 51
119 (i) the licensee has violated any provision of sections ninety-six to one hundred and
120fourteen, inclusive, or any rule or regulation made by the commissioner under any provision of
121sections ninety-six to one hundred and fourteen, inclusive, or any other law applicable to the
122conduct of the business; or
123 (ii) any fact or condition exists which, if it had existed at the time of the original
124application for the license, would have warranted the commissioner in refusing to issue the
125license.
126 Except as provided in section one hundred and three A, no license shall be revoked or
127suspended except after notice and a hearing thereon pursuant to chapter thirty A.
128 A licensee may surrender a license by delivering to the commissioner written notice that
129it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
130the licensee for acts committed before the surrender.
131 No revocation, suspension or surrender of any license shall impair or affect the obligation
132of any pre-existing lawful contract between the licensee and any person.
133 The penalty provision of this section shall be in addition to, and not in lieu of, any other
134provision of law applicable to a licensee or other person for violating section ninety-six, ninety-
135seven, ninety-eight, one hundred, one hundred and one, one hundred and two, one hundred and
136four, one hundred and six, and one hundred and nine or any rule or regulation made thereunder.
137 Section 103A. (a) If the commissioner determines, after giving notice of an opportunity
138for a hearing, that a licensee has engaged or is about to engage in an act or practice constituting a
139violation of a provision of sections ninety-seven, ninety-eight, one hundred, one hundred and 8 of 51
140one, one hundred and two, one hundred and four or one hundred and nine, or any rule or
141regulation made by the commissioner under section ninety-seven or one hundred and six, or any
142other law applicable to the conduct of the business, the commissioner may order the licensee to
143cease and desist from the unlawful act or practice and take affirmative action as in his or her
144judgment will effect the purpose of sections ninety-seven, ninety-eight, one hundred, one
145hundred and one, one hundred and two, one hundred and four or one hundred and nine, or any
146rule or regulation made by the commissioner under section ninety-seven or one hundred and six,
147or any other law applicable to the conduct of the business.
148 (b) If the commissioner makes written findings of fact that the public interest will be
149irreparably harmed by delay in issuing an order under section (a) the commissioner may issue a
150temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
151commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
152been so entered, the reasons therefor, and that within 20 days after receipt of a written request
153from the licensee, the matter will be scheduled for a hearing to determine whether or not the
154temporary order shall become permanent and final. If no hearing is requested and none is
155ordered by the commissioner, the order shall remain in effect until it is modified or vacated by
156the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of
157and opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts
158and conclusions of law, vacate, modify or make permanent the order.
159 (c) No order under this section, except an order issued pursuant to subsection (b), may be
160entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
161modify an order under this section upon finding that the conditions which required the order
162have changed and that it is in the public interest to so vacate or modify. 9 of 51
163 Any order issued pursuant to this section shall be subject to review as provided in chapter
164thirty A.
165 Section 103B. The commissioner may enforce the provisions of section ninety-six
166through one hundred and fourteen A, or restrain any violations thereof, by filing a civil action in
167any court of competent jurisdiction.
168 SECTION 7. Chapter 140 of the General Laws, as so appearing, is hereby amended by
169adding after section 113 the following two sections:—
170 Section 113A. (a) Whenever the commissioner finds that any licensee or exempt person
171under section ninety-six of this chapter has violated any provision of this chapter or any rule or
172regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
173of the business of making small loans, the commissioner may, by order, in addition to any other
174action authorized under this chapter or any rule or regulation made thereunder, impose a penalty
175upon the person which shall not exceed $5,000 for each violation, up to a maximum of $100,000
176for the violation plus the costs of investigation. The commissioner may impose a penalty which
177shall not exceed $5,000 for each violation of this chapter, or any rule or regulation adopted
178thereunder, by a person other than a licensee or exempt person under section ninety-six of this
179chapter, plus the costs of investigation.
180 (b)In addition to any other action authorized under this chapter or any rule of regulation
181made thereunder, a licensee who violates the provisions of section one hundred may also be
182punished by imprisonment for not more than one year. Each day the violation occurs or
183continues shall be deemed a separate offense. Any loan made by any person so licensed in 10 of 51
184violation of section one hundred may be declared void by the supreme judicial or superior court
185in equity upon petition by the person to whom the loan was made.
186 (c) Nothing in this section shall limit the right of any individual or entity who has been
187injured as a result of any violation of this chapter by a licensee, or any person other than a
188licensee or exempt person under section ninety-six of this chapter, to bring an action to recover
189damages or restitution in a court of competent jurisdiction.
190 (d) Any findings or order issued by the commissioner pursuant to this section shall be
191subject to review as provided in chapter thirty A.
192 Section 113B. (a) Whenever the commissioner determines that any person has, directly or
193indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
194applicable to the conduct of the business of making small loans; or any order issued by the
195commissioner under this chapter or any written agreement entered between the licensee and the
196commissioner; the commissioner may serve upon the person a written notice of intention:
197 (1) to prohibit the person from performing in the capacity of a principal employee on
198behalf of any licensee for a period of time that the commissioner deems necessary;
199 (2) to prohibit the person from applying for or obtaining a license from the commissioner
200for a period up to 36 months following the effective date of an order issued under subsection (b)
201or (c); or
202 (3) to prohibit the person from any further participation, in any manner, in the conduct of
203the affairs of a business making small loans in Massachusetts or to prohibit the person from 11 of 51
204being employed by, an agent of, or operating on behalf of a licensee under this chapter or any
205other business which requires a license from the commissioner.
206 (b) A written notice issued under subsection (a) shall contain a written statement of the
207facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
208thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
209the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
210within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
211by a duly authorized representative, the party shall be deemed to have consented to the issuance
212of an order of prohibition in accordance with the notice.
213 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
214finds that any of the grounds specified in the notice have been established, the commissioner
215may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
216appropriate.
217 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
218person. The commissioner shall also serve a copy of the order upon the licensee of which the
219person is an employee or on whose behalf the person is performing. The order shall remain in
220effect and enforceable until it is modified, terminated, suspended, or set aside by the
221commissioner or a court of competent jurisdiction.
222 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
223an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
224part in the conduct of the affairs of a business making small loans in Massachusetts may not,
225while the order is in effect, continue or commence to perform in the capacity of a principal 12 of 51
226employee, or otherwise participate in any manner, if so prohibited by order of the commissioner,
227in the conduct of the affairs of:
228 (1) any licensee under this chapter;
229 (2) any other business which requires a license from the commissioner; and
230 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
231subsidiary thereof.
232 SECTION 8. Chapter 140 of the General Laws, as so appearing, is hereby amended by
233striking section 114A and inserting in place thereof the following section:—
234 Section 114A. A bank as defined in section one of chapter one hundred sixty-seven, a
235national banking association, a federally chartered credit union, a federal savings and loan
236association, a federal savings bank, or any subsidiary of the above, or any bank, trust company,
237savings bank, savings and loan association, or credit union organized under the laws of any other
238state, or any subsidiary of the above, shall not be subject to the provisions of sections ninety-six
239to one hundred fourteen, inclusive; provided, that the institutions may not take, receive, reserve
240or charge interest, expenses and other considerations for making or securing any loan subject to
241the provisions of section ninety-six in excess of those permitted by section one hundred. Any
242loan subject to the provisions of section ninety-six made by any bank as defined in section one of
243chapter one hundred sixty-seven, a national banking association, a federally-chartered credit
244union, a federal savings and loan association, a federal savings bank, or any subsidiary of the
245above, or any bank, trust company, savings bank, savings and loan association, or credit union
246organized under the laws of any other state on which charges for interest, expenses and other
247considerations exceed those permitted by section one hundred may be declared void by the 13 of 51
248supreme judicial court or superior court in equity upon petition by the person to whom the loans
249were made, and any bank as defined section one of chapter one hundred sixty-seven, a national
250banking association, a federally chartered credit union, a federal savings and loan association, a
251federal savings bank, or any subsidiary of the above, or any bank, trust company, savings bank,
252savings and loan association, or credit union organized under the laws of any other state making
253such a loan shall be subject to a fine of not more than $1,000.
254 This section shall not be construed as preventing a rate of charge for interest, expenses
255and other consideration on one or more portions of a loan in excess of the permitted maximum
256rate of charge applicable to the portion or portions, provided, that the composite rate of charge on
257the whole loan produces an amount equal to or less than that which would be produced were the
258maximum rate of charge applied to the loan. Extension, default or deferment charges shall not be
259deemed to be interest, expenses and other considerations in determining the maximum rate of
260charge that may be taken, received, reserved or charged for the loan.
261 SECTION 9. Section 4 of chapter 167F of the General Laws, as amended by section 5 of
262chapter 144 of the acts of 2012, is hereby amended by striking out the first paragraph and
263inserting in place thereof the following paragraph:—
264 Any bank as defined in section one of chapter one hundred sixty-seven, a national
265banking association, a federally-chartered credit union, a federal savings and loan association, a
266federal savings bank, or any subsidiary of the above, any bank, trust company, savings bank,
267savings and loan association, or credit union organized under the laws of any other state or any
268subsidiary of the above, may engage directly in the business of selling, issuing or registering
269checks or money orders for use primarily for personal, family, or household purposes, except all 14 of 51
270of the institutions described above may engage in the business through agents who shall not be
271deemed to be branches of the institutions. No person, other than the foregoing, shall engage in
272such business directly or indirectly unless a sworn statement setting forth the person’s name and
273address, the names and business addresses of the person’s agents, other than the financial
274institutions described above, authorized to receive money and transact such business on the
275person’s behalf is filed annually, as of a date determined by the commissioner.
276 SECTION 10. Section 4 of Chapter 167F, as so appearing, is hereby further amended by
277inserting after the fourth paragraph the following two paragraphs:—
278 The commissioner shall examine any person, to whom a certificate to engage in the
279business of selling, issuing or registering checks or money orders has been issued, as the
280commissioner deems necessary and in a manner the commissioner deems appropriate. The
281commissioner shall preserve a full record of each examination of a check seller including a
282statement of its condition. All records of investigations and reports of examinations by the
283commissioner, including workpapers, information derived from the reports or responses to the
284reports, and any copies thereof in the possession of any licensee under the supervision of the
285commissioner, shall be confidential and privileged communications, shall not be subject to
286subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
287the purpose of this paragraph, records of investigation and reports of examinations shall include
288records of investigation and reports of examinations conducted by a financial regulatory agency
289of the federal government and any other state, and of any foreign government which are
290considered confidential by the agency or foreign government and which are in possession of the
291commissioner. In any proceeding before a court, the court may issue a protective order to seal the
292record protecting the confidentiality of any such record, other than any such record on file with 15 of 51
293the court or filed in connection with the court proceeding, and the court may exclude the public
294from any portion of the proceeding at which any such record may be disclosed. Copies of the
295reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
296to any other person, organization or agency without prior written approval by the commissioner.
297The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
298government, of other states, or of foreign countries, and any law enforcement agency, the
299information, reports, inspections and statements relating to the licensees under the
300commissioner’s supervision.
301 The commissioner, or the commissioner’s examiners or other assistants as the
302commissioner may designate, may summon the directors, officers or agents of a licensee, or any
303other witnesses, and examine them relative to the affairs, transactions and condition of the
304licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
305to appear and testify when so required or obstructs the person making the examination in the
306performance of their duty, shall be punished by a fine of not more than $1,000 or by
307imprisonment for not more than one year.
308 SECTION 11. Said section 4 of chapter 167F of the General Laws, as so appearing, is
309hereby further amended by striking out the fifth paragraph.
310 SECTION 12. Chapter 167F of the General Laws, as so appearing, is hereby amended by
311adding after section 4 the following two sections:—
312 Section 4A. (a) Whenever the commissioner finds that any licensee or exempt person
313under section 4 of this chapter has violated any provision of this chapter or any rule or regulation
314adopted thereunder, or any other law of the Commonwealth applicable to the conduct of the 16 of 51
315business of selling, issuing or registering checks or money orders, the commissioner may, by
316order, in addition to any other action authorized under this chapter or any rule or regulation made
317thereunder, impose a penalty upon the person which shall not exceed $5,000 for each violation,
318up to a maximum of $100,000 for the violation plus the costs of investigation. The commissioner
319may impose a penalty which shall not exceed $5,000 for each violation of this chapter, or any
320rule or regulation adopted thereunder, by a person other than a licensee or exempt person under
321section 4 of this chapter, plus the costs of investigation.
322 (b) Nothing in this section shall limit the right of any individual or entity who has been
323injured as a result of any violation of this chapter by a licensee, or any person other than a
324licensee or exempt person under section 4 of this chapter, to bring an action to recover damages
325or restitution in a court of competent jurisdiction.
326 (c) Any findings or order issued by the commissioner pursuant to this section shall be
327subject to review as provided in chapter thirty A.
328 Section 4B. (a) Whenever the commissioner determines that any person has, directly or
329indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
330applicable to the conduct of the business of selling, issuing or registering checks or money
331orders; or any order issued by the commissioner under this chapter or any written agreement
332entered between the licensee and the commissioner; the commissioner may serve upon the
333person a written notice of intention:
334 (1) to prohibit the person from performing in the capacity of a principal employee on
335behalf of any licensee for a period of time that the commissioner deems necessary; 17 of 51
336 (2) to prohibit the person from applying for or obtaining a license from the commissioner
337for a period up to 36 months following the effective date of an order issued under subsection (b)
338or (c); or
339 (3) to prohibit the person from any further participation, in any manner, in the conduct of
340the affairs of selling, issuing or registering checks or money orders in Massachusetts or to
341prohibit the person from being employed by, an agent of, or operating on behalf of a licensee
342under this chapter or any other business which requires a license from the commissioner.
343 (b) A written notice issued under subsection (a) shall contain a written statement of the
344facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
345thereon. Such hearing shall be fixed for a date not more than 30 days after the date of service
346upon the commissioner of the request for a hearing. If the person fails to submit a request for a
347hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
348person or by a duly authorized representative, the party shall be deemed to have consented to the
349issuance of an order of prohibition in accordance with the notice.
350 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
351finds that any of the grounds specified in the notice have been established, the commissioner
352may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
353appropriate.
354 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
355person. The commissioner shall also serve a copy of the order upon the licensee of which the
356person is an employee or on whose behalf the person is performing. The order shall remain in 18 of 51
357effect and enforceable until it is modified, terminated, suspended, or set aside by the
358commissioner or a court of competent jurisdiction.
359 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
360an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
361part in the conduct of the affairs of business of selling, issuing or registering checks or money
362orders in Massachusetts may not, while the order is in effect, continue or commence to perform
363in the capacity of a principal employee, or otherwise participate in any manner, if so prohibited
364by order of the commissioner, in the conduct of the affairs of:
365 (1) any licensee under this chapter;
366 (2) any other business which requires a license from the commissioner; and
367 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
368subsidiary thereof.
369 SECTION 13. Chapter 169 of the General Laws, as so appearing, is hereby amended by
370striking out Section 1 and inserting in place thereof the following section: —
371 Section 1. This chapter shall apply to all persons who engage or are financially interested
372in the business of receiving deposits of money for the purpose of transmitting the same or
373equivalents thereof to foreign countries primarily for personal, family, or household purposes,
374except banks as defined in section one of chapter one hundred sixty-seven, a national banking
375association, a federally-chartered credit union, a federal savings and loan association, a federal
376savings bank, or any bank, trust company, savings bank, savings and loan association, or credit
377union organized under the law of any other state, or any subsidiary of the above, persons doing 19 of 51
378business under section 17 of chapter 167C, express companies having contracts with
379transportation companies for the operation of an express service upon the lines of such
380companies or express companies doing an international express business or global transportation
381companies or telegraph companies.
382 SECTION 14. Section 3 of chapter 169 of the General Laws, as amended by section 8 of
383chapter 144 of the acts of 2012, is hereby amended by striking out the eighth, thirteenth and
384fourteenth sentence.
385 SECTION 15. Section 10 of chapter 169, as so appearing, is hereby amended by inserting
386after the second paragraph the following two paragraphs:—
387 The commissioner shall preserve a full record of each examination of a licensee including
388a statement of its condition. All records of investigations and reports of examinations by the
389commissioner, including workpapers, information derived from the reports or responses to the
390reports, and any copies thereof in the possession of any licensee under the supervision of the
391commissioner, shall be confidential and privileged communications, shall not be subject to
392subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
393the purpose of this paragraph, records of investigation and reports of examinations shall include
394records of investigation and reports of examinations conducted by a financial regulatory agency
395of the federal government and any other state, and of any foreign government which are
396considered confidential by the agency or foreign government and which are in possession of the
397commissioner. In any proceeding before a court, the court may issue a protective order to seal the
398record protecting the confidentiality in appropriate circumstances to protect the confidentiality of
399any such record, other than any such record on file with the court or filed in connection with the 20 of 51
400court proceeding, and the court may exclude the public from any portion of the proceeding at
401which any such record may be disclosed. Copies of the reports of examination shall be furnished
402to a licensee for its use only and shall not be exhibited to any other person, organization or
403agency without prior written approval by the commissioner. The commissioner may, in his or her
404discretion, furnish to regulatory agencies of the federal government, of other states, or of foreign
405countries, and any law enforcement agency, the information, reports, inspections and statements
406relating to the licensees under the commissioner’s supervision.
407 The commissioner, or the commissioner’s examiners, or other assistants as the
408commissioner may designate, may summon the directors, officers or agents of a licensee, or any
409other witnesses, and examine them relative to the affairs, transactions and condition of the
410licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
411to appear and testify when so required or obstructs the person making the examination in the
412performance of their duty, shall be punished by a fine of not more than $1,000 or by
413imprisonment for not more than one year.
414 SECTION 16. Chapter 169 of the General Laws is hereby amended by striking out
415section 16, as so appearing, and inserting in place thereof, the following two sections:—
416 Section 16. (a) Whenever the commissioner finds that any licensee or exempt person
417under any provision of this chapter has violated any provision of this chapter or any rule or
418regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
419of the business of receiving deposits of money for the purpose of transmitting the same or
420equivalents thereof to foreign countries, the commissioner may, by order, in addition to any other
421action authorized under this chapter or any rule or regulation made thereunder, impose a penalty 21 of 51
422upon the person which shall not exceed $5,000 for each violation, up to a maximum of $100,000
423for the violation plus the costs of investigation. The commissioner may impose a penalty which
424shall not exceed $5,000 for each violation of this chapter, or any rule or regulation adopted
425thereunder, by a person other than a licensee or exempt person under any provision of this
426chapter, plus the costs of investigation.
427 (b)In addition to any other action authorized under this chapter or any rule of regulation
428made thereunder, whoever violates any provision of this chapter or any rule or regulation made
429hereunder by the commissioner may be punished by imprisonment for not more than one year.
430 (c) Nothing in this section shall limit the right of any individual or entity who has been
431injured as a result of any violation of this chapter by a licensee, or any person other than a
432licensee or exempt person under any provision of this chapter, to bring an action to recover
433damages or restitution in a court of competent jurisdiction.
434 (d) Any findings or order issued by the commissioner pursuant to this section shall be
435subject to review as provided in chapter thirty A.
436 Section 16. (a) Whenever the commissioner determines that any person has, directly or
437indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
438applicable to the conduct of the business of receiving deposits of money for the purpose of
439transmitting the same or equivalents thereof to foreign countries; or any order issued by the
440commissioner under this chapter or any written agreement entered between the licensee and the
441commissioner; the commissioner may serve upon the person a written notice of intention:
442 (1) to prohibit the person from performing in the capacity of a principal employee on
443behalf of any licensee for a period of time that the commissioner deems necessary; 22 of 51
444 (2) to prohibit the person from applying for or obtaining a license from the commissioner
445for a period up to 36 months following the effective date of an order issued under subsection (b)
446or (c); or
447 (3) to prohibit such person from any further participation, in any manner, in the conduct
448of the affairs of a business of receiving deposits of money for the purpose of transmitting the
449same or equivalents thereof to foreign countries in Massachusetts or to prohibit such person from
450being employed by, an agent of, or operating on behalf of a licensee under this chapter or any
451other business which requires a license from the commissioner.
452 (b) A written notice issued under subsection (a) shall contain a written statement of the
453facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
454thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
455the commissioner of such request for a hearing. If such person fails to submit a request for a
456hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
457person or by a duly authorized representative, such party shall be deemed to have consented to
458the issuance of an order of such prohibition in accordance with the notice.
459 (c) In the event of such consent under subsection (b), or if after a hearing the
460commissioner finds that any of the grounds specified in such notice have been established, the
461commissioner may issue an order of prohibition in accordance with subsection (a) as the
462commissioner finds appropriate.
463 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
464person. The commissioner shall also serve a copy of the order upon the licensee of which the
465person is an employee or on whose behalf the person is performing. The order shall remain in 23 of 51
466effect and enforceable until it is modified, terminated, suspended, or set aside by the
467commissioner or a court of competent jurisdiction.
468 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
469an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
470part in the conduct of the affairs of a business of receiving deposits of money for the purpose of
471transmitting the same or equivalents thereof to foreign countries in Massachusetts may not, while
472such order is in effect, continue or commence to perform in the capacity of a principal employee,
473or otherwise participate in any manner, if so prohibited by order of the commissioner, in the
474conduct of the affairs of:
475 (1) any licensee under this chapter;
476 (2) any other business which requires a license from the commissioner; and
477 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
478subsidiary thereof.
479 SECTION 17. Section 2 of chapter 169A of the General Laws, as so appearing, is hereby
480amended, in line 7, by striking out the word “bank.” and inserting in place thereof the words:—
481bank or any bank, trust company, savings bank, savings and loan association, or credit union
482organized under the laws of any other state, or any subsidiary of the above,.
483 SECTION 18. Section 5 of chapter 169A, as so appearing, is hereby amended by striking
484out the third and fourth sentences.
485 SECTION 19. Section 10 of chapter 169A, as so appearing, is hereby amended by adding
486the following two paragraphs:— 24 of 51
487 The commissioner shall preserve a full record of each such examination of a licensee
488including a statement of its condition. All records of investigations and reports of examinations
489by the commissioner, including workpapers, information derived from such reports or responses
490to such reports, and any copies thereof in the possession of any licensee under the supervision of
491the commissioner, shall be confidential and privileged communications, shall not be subject to
492subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
493the purpose of this paragraph, records of investigation and reports of examinations shall include
494records of investigation and reports of examinations conducted by a financial regulatory agency
495of the federal government and any other state, and of any foreign government which are
496considered confidential by such agency or foreign government and which are in possession of the
497commissioner. In any proceeding before a court, the court may issue a protective order to seal the
498record protecting the confidentiality of any such record, other than any such record on file with
499the court or filed in connection with the court proceeding, and the court may exclude the public
500from any portion of the proceeding at which any such record may be disclosed. Copies of such
501reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
502to any other person, organization or agency without prior written approval by the commissioner.
503The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
504government, of other states, or of foreign countries, and any law enforcement agency, such
505information, reports, inspections and statements relating to the licensees under the
506commissioner’s supervision.
507 The commissioner, or the commissioner’s examiners or such other assistants as the
508commissioner may designate, may summon the directors, officers or agents of a licensee, or any
509other witnesses, and examine them relative to the affairs, transactions and condition of the 25 of 51
510licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
511to appear and testify when so required or obstructs the person making such examination in the
512performance of their duty, shall be punished by a fine of not more than $1,000 or by
513imprisonment for not more than one year.
514 SECTION 20. Chapter 169A of the General Laws, as so appearing, is hereby amended by
515striking out section 13 and inserting in place thereof the following two sections: —
516 Section 13. (a) Whenever the commissioner finds that any licensee or exempt person
517under section two of this chapter has violated any provision of this chapter or any rule or
518regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
519of the business of cashing checks, drafts or money orders, the commissioner may, by order, in
520addition to any other action authorized under this chapter or any rule or regulation made
521thereunder, impose a penalty upon such person which shall not exceed $5,000 for each violation,
522up to a maximum of $100,000 for such violation plus the costs of investigation. The
523commissioner may impose a penalty which shall not exceed $5,000 for each violation of this
524chapter, or any rule or regulation adopted thereunder, by a person other than a licensee or exempt
525person under section two of this chapter, plus the costs of investigation.
526 (b) In addition to any other action authorized under this chapter or any rule of regulation
527made thereunder, whoever violates any provision of section two or any rule or regulation made
528thereunder by the commissioner may be punished by imprisonment for not more than 6 months.
529Each day a violation continues shall be deemed a separate offense. The penalty provision of this
530section shall be in addition to, and not in lieu of, any other provision of law applicable to a
531licensee or other person for violating section two or any rule or regulation made thereunder. 26 of 51
532 (c) Nothing in this section shall limit the right of any individual or entity who has been
533injured as a result of any violation of this chapter by a licensee, or any person other than a
534licensee or exempt person under section two of this chapter, to bring an action to recover
535damages or restitution in a court of competent jurisdiction.
536 (d) Any findings or order issued by the commissioner pursuant to this section shall be
537subject to review as provided in chapter thirty A.
538 Section 14. (a) Whenever the commissioner determines that any person has, directly or
539indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
540applicable to the conduct of the business of cashing checks, drafts or money orders; or any order
541issued by the commissioner under this chapter or any written agreement entered between such
542licensee and the commissioner; the commissioner may serve upon such person a written notice of
543intention:
544 (1) to prohibit such person from performing in the capacity of a principal employee on
545behalf of any licensee for a period of time that the commissioner deems necessary;
546 (2) to prohibit the person from applying for or obtaining a license from the commissioner
547for a period up to 36 months following the effective date of an order issued under subsection (b)
548or (c); or
549 (3) to prohibit such person from any further participation, in any manner, in the conduct
550of the affairs of person or entity engaged in the cashing of checks, drafts or money orders in
551Massachusetts or to prohibit such person from being employed by, an agent of, or operating on
552behalf of a licensee under this chapter or any other business which requires a license from the
553commissioner. 27 of 51
554 (b) A written notice issued under subsection (a) shall contain a written statement of the
555facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
556thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
557the commissioner of such request for a hearing. If such person fails to submit a request for a
558hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
559person or by a duly authorized representative, such party shall be deemed to have consented to
560the issuance of an order of such prohibition in accordance with the notice.
561 (c) In the event of such consent under subsection (b), or if after a hearing the
562commissioner finds that any of the grounds specified in such notice have been established, the
563commissioner may issue an order of prohibition in accordance with subsection (a) as the
564commissioner finds appropriate.
565 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
566person. The commissioner shall also serve a copy of the order upon the licensee of which the
567person is an employee or on whose behalf the person is performing. The order shall remain in
568effect and enforceable until it is modified, terminated, suspended, or set aside by the
569commissioner or a court of competent jurisdiction.
570 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
571an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
572part in the conduct of the affairs of a person or entity engaged in the cashing of checks, drafts or
573money orders in Massachusetts may not, while such order is in effect, continue or commence to
574perform in the capacity of a principal employee, or otherwise participate in any manner, if so
575prohibited by order of the commissioner, in the conduct of the affairs of: 28 of 51
576 (1) any licensee under this chapter;
577 (2) any other business which requires a license from the commissioner; and
578 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
579subsidiary thereof.
580 SECTION 21. Section 1 of chapter 255B of the General Laws, as so appearing, is hereby
581amended by striking out the definition of “Sales finance company” and inserting in place thereof
582the following definition:— "Sales finance company",. (1) a bank as defined in section one of
583chapter one hundred and sixty-seven, a national banking association, federal savings bank,
584federal savings and loan association, federal credit union, or any bank, trust company, savings
585bank, savings and loan association or credit union organized under the laws of any other state of
586the United States, or any subsidiary of the above;
587 (2) any person engaged, in whole or in part, in the business of purchasing retail
588installment contracts from one or more retail sellers; and
589 (3) a retail seller engaged, in whole or in part, in the business of holding retail installment
590contracts acquired from retail buyers. The term "sales finance company" does not include the
591pledgee of an aggregate number of such contracts to secure a bona fide loan thereon.
592 SECTION 22. Section 2 of chapter 255B, as amended by section 9 of chapter 144 of the
593acts of 2012, is hereby amended by striking out the fourth and fifth sentences.
594 SECTION 23. Section 3 of Chapter 255B, as so appearing, is hereby amended by
595inserting after the first paragraph the following two paragraphs:— 29 of 51
596 The commissioner shall preserve a full record of each such examination of a licensee
597including a statement of its condition. All records of investigations and reports of examinations
598by the commissioner, including workpapers, information derived from such reports or responses
599to such reports, and any copies thereof in the possession of any licensee under the supervision of
600the commissioner, shall be confidential and privileged communications, shall not be subject to
601subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
602the purpose of this paragraph, records of investigation and reports of examinations shall include
603records of investigation and reports of examinations conducted by a financial regulatory agency
604of the federal government and any other state, and of any foreign government which are
605considered confidential by such agency or foreign government and which are in possession of the
606commissioner. In any proceeding before a court, the court may issue a protective order to seal the
607record protecting the confidentiality of any such record, other than any such record on file with
608the court or filed in connection with the court proceeding, and the court may exclude the public
609from any portion of the proceeding at which any such record may be disclosed. Copies of such
610reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
611to any other person, organization or agency without prior written approval by the commissioner.
612The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
613government, of other states, or of foreign countries, and any law enforcement agency, such
614information, reports, inspections and statements relating to the licensees under the
615commissioner’s supervision.
616 The commissioner, or the commissioner’s examiners, or such other assistants as the
617commissioner may designate, may summon the directors, officers or agents of a licensee, or any
618other witnesses, and examine them relative to the affairs, transactions and condition of the 30 of 51
619licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
620to appear and testify when so required or obstructs the person making such examination in the
621performance of their duty, shall be punished by a fine of not more than $1000 or by
622imprisonment for not more than one year.
623 SECTION 24. Section 4 of said chapter 255B of the General Laws, as so appearing, is
624hereby amended by adding the following sentence:— Each day such violation occurs or
625continues shall be deemed a separate offense.
626 SECTION 25. Chapter 255B of the General Laws, as so appearing, is hereby amended by
627striking out section 7, and inserting in place thereof the following section:—
628 Section 7. The commissioner may suspend or revoke any license issued pursuant to this
629chapter if the commissioner finds that:
630 (i) the licensee has violated any provision of this chapter or any rule or regulation
631adopted hereunder, or any other law applicable to the conduct of its business; or
632 (ii) any fact or condition exists which, if it had existed at the time of the original
633application for such license, would have warranted the commissioner in refusing to issue such
634license.
635 Except as provided in section eight, no license shall be revoked or suspended except after
636notice and a hearing thereon pursuant to chapter thirty A.
637 A licensee may surrender a license by delivering to the commissioner written notice that
638it thereby surrenders such license, but such surrender shall not affect the civil or criminal liability
639of the licensee for acts committed before such surrender. 31 of 51
640 No revocation, suspension or surrender of any license shall impair or affect the obligation
641of any pre-existing lawful contract between the licensee and any person.
642 SECTION 26. Chapter 255B of the General Laws, as so appearing, is hereby amended by
643striking out section 8 and inserting in place thereof the following two sections: —
644 Section 8. (a) If the commissioner determines, after giving notice of and opportunity for a
645hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
646violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
647may order such licensee to cease and desist from such unlawful act or practice and take such
648affirmative action as in his or her judgment will effect the purposes of this chapter.
649 (b) If the commissioner makes written findings of fact that the public interest will be
650irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
651a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
652commissioner shall promptly notify, in writing, the licensee affected thereby that such order has
653been so entered, the reasons therefor, and that within 20 days after the receipt of a written request
654from such licensee, the matter will be scheduled for a hearing to determine whether or not such
655temporary order shall become permanent and final. If no such hearing is requested and none is
656ordered by the commissioner, the order shall remain in effect until it is modified or vacated by
657the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of
658and opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts
659and conclusions of law, vacate, modify or make permanent the order.
660 (c) No order under this section, except an order issued pursuant to subsection (b), may be
661entered without prior notice of and opportunity for a hearing. The commissioner may vacate or 32 of 51
662modify an order under this section upon finding that the conditions which required such an order
663have changed and that it is in the public interest to so vacate or modify.
664 Any order issued pursuant to this section shall be subject to review as provided in chapter
665thirty A.
666 Section 8A. The commissioner may enforce the provisions of this chapter, or restrain any
667violations thereof, by filing a civil action in any court of competent jurisdiction.
668 SECTION 27. Chapter 255B of the General Laws, as so appearing, is hereby amended by
669adding after section 25 the following two sections:—
670 Section 26. (a) Whenever the commissioner finds that any licensee or exempt person
671under section two of this chapter has violated any provision of this chapter or any rule or
672regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
673of the business of a sales finance company, the commissioner may, by order, in addition to any
674other action authorized under this chapter or any rule or regulation made thereunder, impose a
675penalty upon such person which shall not exceed $5,000 for each violation, up to a maximum of
676$100,000 for such violation plus the costs of investigation. The commissioner may impose a
677penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
678adopted thereunder, by a person other than a licensee or exempt person under section two of this
679chapter, plus the costs of investigation.
680 (b) In addition to any other action authorized under this chapter or any rule of regulation
681made thereunder, whoever violates any provision of this chapter or any rule or regulation made
682thereunder by the commissioner may also be punished by imprisonment for not more than 6
683months. The penalty provision of this section shall be in addition to, and not in lieu of, any other 33 of 51
684provision of law applicable to a licensee or other person for violating provision of this chapter or
685any rule or regulation made thereunder.
686 (c) Nothing in this section shall limit the right of any individual or entity who has been
687injured as a result of any violation of this chapter by a licensee, or any person other than a
688licensee or exempt person under section two of this chapter, to bring an action to recover
689damages or restitution in a court of competent jurisdiction.
690 (d) Any findings or order issued by the commissioner pursuant to this section shall be
691subject to review as provided in chapter thirty A.
692 Section 27. (a) Whenever the commissioner determines that any person has, directly or
693indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
694applicable to the conduct of the business of a sales finance company; or any order issued by the
695commissioner under this chapter or any written agreement entered between such licensee and the
696commissioner; the commissioner may serve upon such person a written notice of intention:
697 (1) to prohibit such person from performing in the capacity of a principal employee on
698behalf of any licensee for a period of time that the commissioner deems necessary;
699 (2) to prohibit the person from applying for or obtaining a license from the commissioner
700for a period up to 36 months following the effective date of an order issued under subsection (b)
701or (c); or
702 (3) to prohibit the person from any further participation, in any manner, in the conduct of
703the affairs of a sales finance company in Massachusetts or to prohibit the person from being 34 of 51
704employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
705business which requires a license from the commissioner.
706 (b) A written notice issued under subsection (a) shall contain a written statement of the
707facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
708thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
709the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
710within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
711by a duly authorized representative, the party shall be deemed to have consented to the issuance
712of an order of prohibition in accordance with the notice.
713 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
714finds that any of the grounds specified in such notice have been established, the commissioner
715may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
716appropriate.
717 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
718person. The commissioner shall also serve a copy of the order upon the licensee of which the
719person is an employee or on whose behalf the person is performing. The order shall remain in
720effect and enforceable until it is modified, terminated, suspended, or set aside by the
721commissioner or a court of competent jurisdiction.
722 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
723an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
724part in the conduct of the affairs of a sales finance company in Massachusetts may not, while the
725order is in effect, continue or commence to perform in the capacity of a principal employee, or 35 of 51
726otherwise participate in any manner, if so prohibited by order of the commissioner, in the
727conduct of the affairs of:
728 (1) any licensee under this chapter;
729 (2) any other business which requires a license from the commissioner; and
730 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
731subsidiary thereof.
732 SECTION 28. Chapter 255C of the General Laws, as amended by section 11 of chapter
733144 of the acts of 2012, is hereby amended by striking out section 2 and inserting in place
734thereof the following section:—
735 Section 2. No person, other than a bank as defined in section one of chapter one hundred
736sixty-seven, a national banking association, a federally-chartered credit union, a federal savings
737and loan association, a federal savings bank, or any subsidiary of the above, or a bank, a trust
738company, savings bank, savings and loan association or credit union organized under the laws of
739any other state, or any subsidiary of the above, a sales finance company, as defined in section
740one of chapter two hundred fifty-five B, and a company licensed to carry on the business of
741making small loans, shall engage in the business of premium finance agency unless licensed by
742the commissioner, as provided in section three; provided, however, that no property and casualty
743insurance agent or broker, including an insurance agent or insurance broker conducting an
744insurance premium financing agency business under a subsidiary or different company name,
745who provides premium financing only to their own customers for purposes of financing payment
746of premiums on contracts of insurance, which contracts of insurance are exclusively limited to
747commercial insurance policies, shall be required to be licensed pursuant to this section or any 36 of 51
748other section of this chapter. The commissioner may adopt, amend or repeal rules and
749regulations, which may include an adequate capitalization requirement for sales finance
750companies, to aid in the administration and enforcement of this chapter.
751 The license shall allow the holder to maintain only one office from which the business
752may be conducted, but more than one license may be issued to any person. Any change of
753location of an office of a licensee shall require the prior approval of the commissioner. The
754request for relocation shall be in writing setting forth the reason or reasons for the request, and
755shall be accompanied by a relocation investigation fee to be determined annually by the secretary
756of administration and finance under section 3B of chapter 7. If an applicant has more than one
757office, the applicant may obtain a license for each office from which the applicant intends to
758conduct the business.
759 SECTION 29. Section 4 of chapter 255C, as so appearing, is hereby amended by striking
760out the second sentence.
761 SECTION 30. Section 4 of chapter 255C is hereby further amended by adding the
762following paragraph: —
763 If a licensee intends to carry on the business at any place in addition to the address on the
764license, the licensee shall so notify the commissioner, in writing, at least 30 days prior thereto,
765and the licensee shall pay a fee for the additional location in an amount to be determined
766annually by the commissioner of administration under the provision of section three B of chapter
767seven. The license shall not be transferable or assignable and shall expire annually on a date
768determined by the commissioner. 37 of 51
769 SECTION 31. Chapter 255C of the General Laws, as so appearing, is hereby amended by
770striking out section 5, and inserting in place thereof the following three sections:—
771 Section 5. The commissioner may suspend or revoke any license issued pursuant to this
772chapter if the commissioner finds that:
773 (i) the licensee has violated any provision of this chapter or any rule or regulation
774adopted hereunder, or any other law applicable to the conduct of its business; or
775 (ii) any fact or condition exists which, if it had existed at the time of the original
776application for the license, would have warranted the commissioner in refusing to issue the
777license.
778 The commissioner shall have sufficient cause to suspend or revoke a license whenever
779the commissioner learns from the commissioner of insurance or from any other source that the
780licensee has failed to return the full amount of a return premium to the person whose insurance
781policy has been cancelled or to the person’s assignee, as required by section one hundred and
782seventy-six A of chapter one hundred and seventy-five.
783 A licensee may surrender a license by delivering to the commissioner written notice that
784it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
785the licensee for acts committed before the surrender. A revocation or suspension or surrender of
786any license shall not impair or affect the obligation of an insured under any lawful premium
787finance agreement previously acquired or held by the licensee.
788 No revocation, suspension or surrender of any license shall impair or affect the obligation
789of any pre-existing lawful contract between the licensee and any person. 38 of 51
790 Whenever the commissioner revokes or suspends a license, the commissioner shall
791forthwith execute in duplicate a written order to that effect, and shall file one copy of the order in
792the office of the secretary of state and mail one copy to the licensee. A suspension or revocation
793of a license shall not be subject to the provisions of chapter thirty A.
794 Section 5A. (a) If the commissioner determines, after giving notice of and opportunity for
795a hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
796violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner
797may order the licensee to cease and desist from the unlawful act or practice and take affirmative
798action as in his or her judgment will effect the purposes of this chapter.
799 (b) If the commissioner makes written findings of fact that the public interest will be
800irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
801a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
802commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
803been so entered, the reasons therefor, and that within 2 days after the receipt of a written request
804from the licensee, the matter will be scheduled for hearing to determine whether or not the
805temporary order shall become permanent and final. If no hearing is requested and none is ordered
806by the commissioner, the order shall remain in effect until it is modified or vacated by the
807commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and
808opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts and
809conclusions of law, vacate, modify or make permanent the order.
810 (c) No order under this section, except an order issued pursuant to subsection (b), may be
811entered without prior notice of and opportunity for a hearing. The commissioner may vacate or 39 of 51
812modify an order under this section upon finding that the conditions which required the order
813have changed and that it is in the public interest to so vacate or modify.
814 Any order issued pursuant to this section shall be subject to review as provided in chapter
815thirty A.
816 Section 5B. The commissioner may enforce the provisions of this chapter, or restrain any
817violations thereof, by filing a civil action in any court of competent jurisdiction.
818 SECTION 32. Section 6 of chapter 255C, as amended by section 14 of chapter 44 of the
819acts of 2012, is hereby amended by striking out the second paragraph and inserting in place
820thereof the following two paragraphs:—
821 The commissioner shall preserve a full record of each examination of a licensee including
822a statement of its condition. All records of investigations and reports of examinations by the
823commissioner, including workpapers, information derived from the reports or responses to the
824reports, and any copies thereof in the possession of any licensee under the supervision of the
825commissioner, shall be confidential and privileged communications, shall not be subject to
826subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For
827the purpose of this paragraph, records of investigation and reports of examinations shall include
828records of investigation and reports of examinations conducted by a financial regulatory agency
829of the federal government and any other state, and of any foreign government which are
830considered confidential by the agency or foreign government and which are in possession of the
831commissioner. In any proceeding before a court, the court may issue a protective order to seal the
832record protecting the confidentiality of any such record, other than any such record on file with
833the court or filed in connection with the court proceeding, and the court may exclude the public 40 of 51
834from any portion of the proceeding at which any such record may be disclosed. Copies of such
835reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
836to any other person, organization or agency without prior written approval by the commissioner.
837The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
838government, of other states, or of foreign countries, and any law enforcement agency, the
839information, reports, inspections and statements relating to the licensees under the
840commissioner’s supervision.
841 The commissioner, or the commissioner’s examiners or other assistants as the
842commissioner may designate, may summon the directors, officers or agents of a licensee, or any
843other witnesses, and examine them relative to the affairs, transactions and condition of the
844licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
845to appear and testify when so required or obstructs the person making the examination in the
846performance of their duty, shall be punished by a fine of not more than $1,000 or by
847imprisonment for not more than one year.
848 SECTION 33. Section 9 of chapter 255C of the General Laws, as so appearing, is hereby
849amended by striking out the first paragraph: —
850 SECTION 34. Chapter 255C of the General Laws, as so appearing, is hereby amended by
851adding after section 23 the following two sections:—
852 Section 24. (a) Whenever the commissioner finds that any licensee or exempt person
853under section two of this chapter has violated any provision of this chapter or any rule or
854regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
855of the business of a premium finance agency, the commissioner may, by order, in addition to any 41 of 51
856other action authorized under this chapter or any rule or regulation made thereunder, impose a
857penalty upon the person which shall not exceed $5,000 for each violation, up to a maximum of
858$100,000 for the violation plus the costs of investigation. The commissioner may impose a
859penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
860adopted thereunder, by a person other than a licensee or exempt person under section two of this
861chapter, plus the costs of investigation.
862 (b)In addition to any other action authorized under this chapter or any rule of regulation
863made thereunder, whoever violates any provision of this chapter, or knowingly makes any
864incorrect statement of a material fact in any application, report or statement filed pursuant to this
865chapter, or knowingly omits to state any material fact necessary to give the commissioner any
866information lawfully required, may be punished by imprisonment for not more than 6 months.
867The penalty provision of this section shall be in addition to, and not in lieu of, any other
868provision of law applicable to a licensee or other person for violating any provision of this
869chapter or any rule or regulation made thereunder.
870 (c) Nothing in this section shall limit the right of any individual or entity who has been
871injured as a result of any violation of this chapter by a licensee, or any person other than a
872licensee or exempt person under section two of this chapter, to bring an action to recover
873damages or restitution in a court of competent jurisdiction.
874 (d) Any findings or order issued by the commissioner pursuant to this section shall be
875subject to review as provided in chapter thirty A.
876 Section 25. (a) Whenever the commissioner determines that any person has, directly or
877indirectly, violated any section of this chapter or any rule or regulation adopted thereunder, 42 of 51
878applicable to the conduct of the business of a premium finance agency; or any order issued by
879the commissioner under this chapter or any written agreement entered between the licensee and
880the commissioner; the commissioner may serve upon the person a written notice of intention:
881 (1) to prohibit the person from performing in the capacity of a principal employee on
882behalf of any licensee for a period of time that the commissioner deems necessary;
883 (2) to prohibit the person from applying for or obtaining a license from the commissioner
884for a period up to 36 months following the effective date of an order issued under subsection (b)
885or (c); or
886 (3) to prohibit the person from any further participation, in any manner, in the conduct of
887the affairs of a premium finance agency in Massachusetts or to prohibit the person from being
888employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
889business which requires a license from the commissioner.
890 (b) A written notice issued under subsection (a) shall contain a written statement of the
891facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
892thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
893the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
894within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
895by a duly authorized representative, the party shall be deemed to have consented to the issuance
896of an order of prohibition in accordance with the notice.
897 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
898finds that any of the grounds specified in the notice have been established, the commissioner 43 of 51
899may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
900appropriate.
901 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
902person. The commissioner shall also serve a copy of the order upon the licensee of which the
903person is an employee or on whose behalf the person is performing. The order shall remain in
904effect and enforceable until it is modified, terminated, suspended, or set aside by the
905commissioner or a court of competent jurisdiction.
906 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
907an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
908part in the conduct of the affairs of a premium finance agency in Massachusetts may not, while
909the order is in effect, continue or commence to perform in the capacity of a principal employee,
910or otherwise participate in any manner, if so prohibited by order of the commissioner, in the
911conduct of the affairs of:
912 (1) any licensee under this chapter;
913 (2) any other business which requires a license from the commissioner; and
914 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
915subsidiary thereof.
916 SECTION 35. Section 1 of chapter 255D of the General Laws, as so appearing, is hereby
917amended by striking out the definition of “Sales finance company” in lines 98 through 105,
918inclusive, and inserting in place thereof the following definition:—
919 "Sales finance company", 44 of 51
920 (1) a bank as defined in section one of chapter one hundred and sixty-seven, or a national
921banking association or a savings and loan association, federal savings bank, federal savings and
922loan association, federal credit union, or any bank, trust company, savings bank, savings and
923loan association or credit union organized under the laws of any other state of the United States,
924or any subsidiary of the above,
925 (2) any person other than an installment seller engaged, in whole or in part, in the
926business of purchasing retail installment sale agreements or revolving credit agreements of one
927or more retail sellers. The term "sales finance company" shall not include the pledgee of an
928aggregate number of such agreements to secure a bona fide loan thereon.
929 SECTION 36. The first paragraph of section 2 of chapter 255D, as amended by section
93014 of chapter 144 of the acts of 2012, is hereby amended by striking out the fourth and fifth
931sentences.
932 SECTION 37. Section 2 of chapter 255D, as so appearing, is hereby further amended by
933striking out the ninth sentence.
934 SECTION 38. Section 3 of chapter 255D of the General Laws, as so appearing, is hereby
935amended by inserting after the first paragraph the following two paragraphs:—
936 The commissioner shall preserve a full record of each examination of a licensee including
937a statement of its condition. All records of investigations and reports of examinations by the
938commissioner, including workpapers, information derived from the reports or responses to the
939reports, and any copies thereof in the possession of any licensee under the supervision of the
940commissioner, shall be confidential and privileged communications, shall not be subject to
941subpoena and shall not be a public record under clause twenty-sixth of section 7 of chapter 4. For 45 of 51
942the purpose of this paragraph, records of investigation and reports of examinations shall include
943records of investigation and reports of examinations conducted by a financial regulatory agency
944of the federal government and any other state, and of any foreign government which are
945considered confidential by the agency or foreign government and which are in possession of the
946commissioner. In any proceeding before a court, the court may issue a protective order to seal the
947record protecting the confidentiality of any such record, other than any such record on file with
948the court or filed in connection with the court proceeding, and the court may exclude the public
949from any portion of the proceeding at which any such record may be disclosed. Copies of such
950reports of examination shall be furnished to a licensee for its use only and shall not be exhibited
951to any other person, organization or agency without prior written approval by the commissioner.
952The commissioner may, in his or her discretion, furnish to regulatory agencies of the federal
953government, of other states, or of foreign countries, and any law enforcement agency, the
954information, reports, inspections and statements relating to the licensees under the
955commissioner’s supervision.
956 The commissioner, or the commissioner’s examiners, or other assistants as the
957commissioner may designate, may summon the directors, officers or agents of a licensee, or any
958other witnesses, and examine them relative to the affairs, transactions and condition of the
959licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
960to appear and testify when so required or obstructs the person making the examination in the
961performance of their duty, shall be punished by a fine of not more than $1,000 or by
962imprisonment for not more than one year.
963 SECTION 39. Chapter 255D of the General Laws, as so appearing, is hereby amended by
964striking out section 7 as so appearing, and inserting in place thereof the following section:— 46 of 51
965 Section 7. The commissioner may suspend or revoke any license issued pursuant to this
966chapter if the commissioner finds that:
967 (i) the licensee has violated any provision of this chapter or any rule or regulation
968adopted hereunder, or any other law applicable to the conduct of its business; or
969 (ii) any fact or condition exists which, if it had existed at the time of the original
970application for the license, would have warranted the commissioner in refusing to issue the
971license.
972 Except as provided in section eight, no license shall be revoked or suspended except after
973notice and a hearing thereon pursuant to chapter thirty A.
974 A licensee may surrender a license by delivering to the commissioner written notice that
975it thereby surrenders the license, but the surrender shall not affect the civil or criminal liability of
976the licensee for acts committed before the surrender.
977 No revocation, suspension or surrender of any license shall impair or affect the obligation
978of any pre-existing lawful contract between the licensee and any person.
979 SECTION 40. Said chapter 255D of the General Laws, as so appearing, is hereby further
980amended by striking out section 8, as so appearing, an inserting in place thereof the following
981two sections:—
982 Section 8. (a) If the commissioner determines, after giving notice of and opportunity for a
983hearing, that a licensee has engaged in or is about to engage in an act or practice constituting a
984violation of a provision of this chapter or a rule, regulation or order hereunder, the commissioner 47 of 51
985may order the licensee to cease and desist from the unlawful act or practice and take affirmative
986action as in his or her judgment will effect the purposes of this chapter.
987 (b) If the commissioner makes written findings of fact that the public interest will be
988irreparably harmed by delay in issuing an order under subsection (a) the commissioner may issue
989a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the
990commissioner shall promptly notify, in writing, the licensee affected thereby that the order has
991been so entered, the reasons therefor, and that within 20 days after the receipt of a written request
992from the licensee, the matter will be scheduled for hearing to determine whether or not the
993temporary order shall become permanent and final. If no hearing is requested and none is ordered
994by the commissioner, the order shall remain in effect until it is modified or vacated by the
995commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and
996opportunity for a hearing to the licensee subject to the order, shall, by written finding of facts and
997conclusions of law, vacate, modify or make permanent the order.
998 (c) No order under this section, except an order issued pursuant to subsection (b), may be
999entered without prior notice of and opportunity for a hearing. The commissioner may vacate or
1000modify an order under this section upon finding that the conditions which required the order
1001have changed and that it is in the public interest to so vacate or modify.
1002 Any order issued pursuant to this section shall be subject to review as provided in chapter
1003thirty A.
1004 Section 8A. The commissioner may enforce the provisions of this chapter, or restrain any
1005violations thereof, by filing a civil action in any court of competent jurisdiction. 48 of 51
1006 SECTION 41. Section 30 of chapter 255D of the General Laws, as so appearing, is
1007hereby repealed.
1008 SECTION 42. Chapter 255D of the General Laws, as so appearing, is hereby amended by
1009adding after section 31 the following two sections:—
1010 Section 32. (a) Whenever the commissioner finds that any licensee or exempt person
1011under section two of this chapter has violated any provision of this chapter or any rule or
1012regulation adopted thereunder, or any other law of the Commonwealth applicable to the conduct
1013of the business of a sales finance company, the commissioner may, by order, in addition to any
1014other action authorized under this chapter or any rule or regulation made thereunder, impose a
1015penalty upon the person which shall not exceed $5,000 for each violation, up to a maximum of
1016$100,000 for the violation plus the costs of investigation. The commissioner may impose a
1017penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
1018adopted thereunder, by a person other than a licensee or exempt person under section two of this
1019chapter, plus the costs of investigation.
1020 (b)In addition to any other action authorized under this chapter or any rule of regulation
1021made thereunder, whoever violates any provision of this chapter may be punished by
1022imprisonment for not more than 6 months. The penalty provision of this section shall be in
1023addition to, and not in lieu of, any other provision of law applicable to a licensee or other person
1024for violating section two or any rule or regulation made thereunder.
1025 (c) Nothing in this section shall limit the right of any individual or entity who has been
1026injured as a result of any violation of this chapter by a licensee, or any person other than a 49 of 51
1027licensee or exempt person under section two of this chapter, to bring an action to recover
1028damages or restitution in a court of competent jurisdiction.
1029 (d) Any findings or order issued by the commissioner pursuant to this section shall be
1030subject to review as provided in chapter thirty A.
1031 Section 33. (a) Whenever the commissioner determines that any person has, directly or
1032indirectly, violated any section of this chapter or any rule or regulation adopted thereunder,
1033applicable to the conduct of the business of a sales finance company; or any order issued by the
1034commissioner under this chapter or any written agreement entered between the licensee and the
1035commissioner; the commissioner may serve upon the person a written notice of intention:
1036 (1) to prohibit the person from performing in the capacity of a principal employee on
1037behalf of any licensee for a period of time that the commissioner deems necessary;
1038 (2) to prohibit the person from applying for or obtaining a license from the commissioner
1039for a period up to 36 months following the effective date of an order issued under subsection (b)
1040or (c); or
1041 (3) to prohibit the person from any further participation, in any manner, in the conduct of
1042the affairs of a sales finance company in Massachusetts or to prohibit the person from being
1043employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
1044business which requires a license from the commissioner.
1045 (b) A written notice issued under subsection (a) shall contain a written statement of the
1046facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
1047thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon 50 of 51
1048the commissioner of the request for a hearing. If the person fails to submit a request for a hearing
1049within 20 days of service of notice under subsection (a), or otherwise fails to appear in person or
1050by a duly authorized representative, the party shall be deemed to have consented to the issuance
1051of an order of prohibition in accordance with the notice.
1052 (c) In the event of a consent under subsection (b), or if after a hearing the commissioner
1053finds that any of the grounds specified in the notice have been established, the commissioner
1054may issue an order of prohibition in accordance with subsection (a) as the commissioner finds
1055appropriate.
1056 (d) An order issued under subsection (b) or (c) shall be effective upon service upon the
1057person. The commissioner shall also serve a copy of the order upon the licensee of which the
1058person is an employee or on whose behalf the person is performing. The order shall remain in
1059effect and enforceable until it is modified, terminated, suspended, or set aside by the
1060commissioner or a court of competent jurisdiction.
1061 (e) Except as consented to in writing by the commissioner, any person who, pursuant to
1062an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
1063part in the conduct of the affairs of a sales finance company in Massachusetts may not, while the
1064order is in effect, continue or commence to perform in the capacity of a principal employee, or
1065otherwise participate in any manner, if so prohibited by order of the commissioner, in the
1066conduct of the affairs of:
1067 (1) any licensee under this chapter;
1068 (2) any other business which requires a license from the commissioner; and 51 of 51
1069 (3) any bank, as defined under section one of chapter one hundred sixty-seven, or any
1070subsidiary thereof.
1071 SECTION 43. Section 8 of chapter 255E, as so appearing, is hereby amended by adding
1072the following paragraph:--
1073 The commissioner, or the commissioner’s examiners, or other assistants as the
1074commissioner may designate, may summon the directors, officers or agents of a licensee, or any
1075other witnesses, and examine them relative to the affairs, transactions and condition of the
1076licensee, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses
1077to appear and testify when so required or obstructs the person making the examination in the
1078performance of their duty, shall be punished by a fine of not more than $1,000 or by
1079imprisonment for not more than one year.