Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 140 of the General Laws is hereby amended by striking out section 97, as appearing in the 1994 Official Edition, and inserting in place thereof the following section:-

Section 97. The commissioner may prescribe from time to time such rules and regulations as he deems necessary and proper for carrying out the provisions of sections ninety-six to one hundred and fourteen, inclusive, relative to the business carried on by licensees and by loan companies and associations established by special charter including, but not limited to, the granting of licenses and the renewal thereof, the conduct of examinations and investigations and the keeping of records by a licensee. Such rules and regulations may contain such classifications, differentiations or other provisions and may provide for such adjustments and exceptions for a class of transactions as, in the judgment of said commissioner, are necessary or proper to carry out the provisions of said sections ninety-six to one hundred and fourteen, inclusive, to prevent circumvention or evasion thereof or to facilitate compliance therewith. Said commissioner shall, at least once a year and more often if he deems it necessary, examine the affairs of a licensee, company or associations and, for said purpose, shall have free access to the premises and all business records thereof. Said commissioner shall assess appropriate fees, as determined annually by the commissioner of administration pursuant to section three B of chapter seven, upon the said licensee, company or association established by special charter for any such examination, including expenses for necessary travel outside the commonwealth for the purpose of conducting such examinations. Said commissioner may cause a number of examinations of any such business records to be made by an accountant whom he may select and the cost of any such examination shall be paid by the person so examined.

A licensee, company or association established by special charter shall keep and use such business records in such form and at such location as said commissioner shall, by regulation, determine which shall enable said commissioner to ascertain the condition of the business of any such licensees, companies or associations and whether they are complying with the provisions of sections ninety-six to one hundred and fourteen, inclusive, and any rules and regulations promulgated thereunder by said commissioner and any other law, rule or regulation applicable to the conduct of the business for which it is licensed under said sections ninety-six to one hundred and fourteen, inclusive. Such regulations may contain provisions for the suspension or revocation of licenses for violations thereof and for such records to be recorded, copied or reproduced by photographic, photostatic, microfilm, microcard, miniature photographic, electronic, including, but not limited to, optical imaging or other process which accurately reproduces or forms a durable medium for reproducing the original record or document or in any other form or manner authorized by said commissioner; provided, however, that nothing in this section shall be construed to permit any such licensee to destroy original records or documents. Each such licensee, company or association shall preserve all such business records for as long a period as said commissioner shall prescribe by regulation. Notwithstanding the provisions of any general or special law or the Massachusetts Rules of Civil Procedure to the contrary, service of a subpoena for business records upon a licensee, company or association, delivered to an office of such licensee, company or association located within the commonwealth, shall be deemed to have been served at the location, whether within or outside the commonwealth, where the original business records are kept or maintained.

SECTION 2. Said chapter 140 is hereby further amended by striking out section 98, as so appearing, and inserting in place thereof the following section:-

Section 98. Each person required by sections ninety-six to one hundred and fourteen, inclusive, to be under the supervision of the commissioner shall annually, on or before the fifteenth day of April, file a report with said commissioner containing such information as said commissioner may require concerning the business and operations during the preceding calendar year at each licensed place of business conducted by a licensee within the commonwealth. Any person neglecting to file such report or failing to amend such report within fifteen days after notice from said commissioner directing the same shall, unless such neglect or failure is due to justifiable cause and not due to wilful neglect, pay to the commonwealth fifty dollars for each day during which such neglect or failure continues.

SECTION 3. Chapter 255B of the General Laws is hereby amended by striking out section 3, as so appearing, and inserting in place thereof the following section:-

Section 3. The commissioner may prescribe from time to time such rules and regulations as he deems necessary and proper for carrying out the provisions of this chapter including, but not limited to, the granting of licenses and the renewal thereof, the conduct of examinations and investigations and the keeping of records by a licensee. Such rules and regulations may contain such classifications, differentiations or other provisions, and may provide for such adjustments and exceptions for a class of transactions as, in the judgment of said commissioner, are necessary or proper to carry out the purposes of this chapter to prevent circumvention or evasion thereof or to facilitate compliance therewith. Said commissioner may, when he deems it to be in the public interest, examine the affairs of a licensee and, for said purpose, shall have free access to the premises and all business records of such licensee, may require the attendance of and examine under oath any person and shall have the power to compel the production of all such business records. Said commissioner shall assess appropriate fees, as determined annually by the commissioner of administration pursuant to section three B of chapter seven, upon the licensee for any such examination, including expenses for necessary travel outside the commonwealth for the purpose of conducting such examinations. Said commissioner of banks may cause a number of examinations of any such business records to be made by an accountant whom he may select and the cost of any such examination shall be paid by the licensee whose records are so examined.

A licensee shall keep and use such business records in such form and at such location as said commissioner shall, by regulation, determine which shall enable said commissioner to determine whether such licensee is complying with the provisions of this chapter and any applicable rules and regulations and any other law, rule or regulation applicable to the conduct of the business for which it is licensed under this chapter. Such regulations may contain provisions for the suspension or revocation of licenses for violations hereof and for such records to be recorded, copied or reproduced by photographic, photostatic, microfilm, microcard, miniature photographic, electronic, including, but not limited to, optical imaging or other process which accurately reproduces or forms a durable medium for reproducing the original record or document or in any other form or manner authorized by the commissioner; provided, however, that nothing in this section shall be construed to permit any such licensee to destroy original records or documents. Each such licensee shall preserve all such business records for as long a period as said commissioner shall prescribe by regulation. Notwithstanding the provisions of any general or special law or the Massachusetts Rules of Civil Procedure to the contrary, service of a subpoena for business records upon a licensee, delivered to an office of such licensee located within the commonwealth, shall be deemed to have been served at the location, whether within or outside the commonwealth, where such original business records and documents are kept or maintained.

Each licensee shall annually, on or before April fifteenth, file a report with said commissioner containing such information as said commissioner may require concerning its business and operations during the preceding calendar year at each licensed place of business conducted by a licensee within the commonwealth. Any licensee neglecting to file such annual report or failing to amend the same within fifteen days after notice from the commissioner directing the same shall, unless such neglect or failure is due to justifiable cause and not to wilful neglect, pay to the commonwealth fifty dollars for each day during which such neglect or failure continues.

SECTION 4. Chapter 255C of the General Laws is hereby amended by striking out sections 6 and 7, as so appearing, and inserting in place thereof the following section:-

Section 6. The commissioner may prescribe from time to time such rules and regulations as he deems necessary and proper for carrying out the provisions of this chapter including, but not limited to, the granting of licenses and the renewal thereof, the conduct of examinations and investigations and the keeping of records by a licensee. Such rules ad regulations may contain such classifications, differentiations or other provisions and may provide for such adjustments and exceptions for a class of transactions as, in the judgment of said commissioner, are necessary and proper to carry out the purposes of this chapter, to prevent circumvention or evasion thereof or to facilitate compliance therewith. Said commissioner may, when he deems it to be in the public interest, examine the affairs of a licensee and, for said purpose, shall have free access to the premises and all business records of such licensee, may require the attendance of and examine under oath any person and shall have the power to compel the production of all such business records. Said commissioner shall assess appropriate fees, as determined annually by the commissioner of administration pursuant to section three B of chapter seven, upon the licensee for any such examination, including expenses for necessary travel outside the commonwealth for the purpose of conducting such examinations. Said commissioner may cause a number of examinations of any such business records to be made by an accountant whom he may select and the cost of any such examination shall be paid by the licensee whose records are so examined.

All reports of examinations and investigations and all correspondence and memoranda concerning or arising out of such examinations and investigations, including any duly authenticated copy or copies thereof in the possession of a licensee or the division of banks and loan agencies shall be confidential communications and shall not be made public unless said commissioner determines it to be in the public interest, in which event he may publish or authorize the publication of a copy of any such report or other material referred to in this section or any part thereof in such manner and to such extent as he may deem proper. A violation of this chapter shall also be a violation of chapter ninety-three A.

A licensee shall keep and use such business records in such form and at such location as said commissioner shall, by regulation, determine which shall enable said commissioner to determine whether such licensee is complying with the provisions of this chapter and any rules or regulations promulgated hereunder by said commissioner and any other law, rule or regulation applicable to the conduct of the business for which it is licensed under this chapter. Such regulations may contain provisions for the suspension or revocation of licenses for violations hereof and for such records to be recorded, copied or reproduced by photographic, photostatic, microfilm, microcard, miniature photographic, electronic, including, but not limited to, optical imaging or other process which accurately reproduces or forms a durable medium for reproducing the original record or document or in any other form or manner authorized by said commissioner; provided, however, that nothing in this section shall be construed to permit any such licensee to destroy original records or documents. Each such licensee shall preserve all such business records for as long a period as the commissioner shall prescribe by regulation. Notwithstanding the provisions of any general or special law or the Massachusetts Rules of Civil Procedure to the contrary, service of a subpoena for business records upon a licensee, delivered to an office of such licensee located within the commonwealth, shall be deemed to have been served at the location, whether within or outside the commonwealth, where the original records or documents are kept or maintained.

Each licensee shall annually, on or before April fifteenth, file a report with said commissioner containing such information as said commissioner may require concerning the business and operations during the preceding calendar year at each licensed place of business conducted by a licensee within the commonwealth. Any licensee neglecting to file such annual report or failing to amend the same within fifteen days of notice from said commissioner directing the same shall, unless such neglect or failure is due to justifiable cause and not to wilful neglect, pay to the commonwealth fifty dollars for each day during which such neglect or failure continues.

SECTION 5. Section ten of said chapter two hundred and fifty-five C is hereby repealed.

SECTION 6. Chapter 255D of the General Laws is hereby amended by striking out section 3, as so appearing, and inserting in place thereof the following section:-

Section 3. The commissioner may prescribe from time to time such rules and regulations as he deems necessary and proper for carrying out the provisions of this chapter including, but not limited to, the granting of licenses and the renewal thereof, the conduct of examinations and investigations and the keeping of records by a licensee. Such rules and regulations may contain such classifications, differentiations or other provisions and may provide for such adjustments and exceptions for a class of transactions as in the judgment of said commissioner are necessary and proper to carry out the provisions of this chapter, to prevent circumvention or evasion thereof or to facilitate compliance therewith. Said commissioner may, whenever he deems it to be in the public interest, examine the affairs of a licensee and, for said purpose, shall have free access to the premises and all business records of such licensee, may require the attendance of and examine under oath any person and shall have the power to compel the production of all such business records. Said commissioner shall assess appropriate fees, as determined annually by the commissioner of administration pursuant to section three B of chapter seven, upon the licensee for any such examination, including expenses for necessary travel outside the commonwealth for the purpose of conducting such examinations. Said commissioner of banks may cause a number of examinations of any such business records to be made by an accountant whom he may select and the cost of any such examination shall be paid by the licensee whose records are so examined.

A licensee shall keep and use such business records, in such form and at such location as said commissioner shall, by regulation, determine, which shall enable the commissioner to determine whether such licensee is complying with the provisions of this chapter and any rules or regulations promulgated hereunder by said commissioner and any other law, rule or regulation applicable to the conduct of the business for which it is licensed under this chapter. Such regulations may contain provisions for the suspension or revocation of licenses for violations hereof and for such records to be recorded, copied or reproduced by photographic, photostatic, microfilm, microcard, miniature photographic, electronic, including, but not limited to, optical imaging, or other process which accurately reproduces or forms a durable medium for reproducing the original record or document or in any other form, or manner authorized by the commissioner; provided, however, that nothing in this section shall be construed to permit any such licensee to destroy original records or documents. Each such licensee shall preserve all such business records for as long a period as the commissioner shall prescribe by regulation. Notwithstanding the provisions of any general or special law or the Massachusetts Rules of Civil Procedure to the contrary, service of a subpoena for business records upon a licensee, delivered to an office of such licensee located within the commonwealth, shall be deemed to have been service at the location, whether within or outside the commonwealth, where the original business records or documents are kept or maintained.

Each licensee shall annually, on or before April fifteenth, file a report with the commissioner containing such information as said commissioner may require concerning the business and operations during the preceding calendar year at each licensed place of business conducted by a licensee within the commonwealth. Any licensee neglecting to make such annual report or failing to amend the same within fifteen days of notice from the commissioner directing the same shall, unless such neglect or failure is due to justifiable cause and not due to wilful neglect, pay to the commonwealth fifty dollars for each day during which such neglect or failure continues.

SECTION 7. Chapter 255E of the General Laws is hereby amended by striking out section 8, as so appearing, and inserting in place thereof the following section:-

Section 8. Each licensee shall annually, on or before the fifteenth day of April, file a report with the commissioner containing such information as said commissioner may require concerning the business and operations during the preceding calendar year at each licensed place of business conducted by a licensee in the commonwealth. A licensee neglecting to file such report or failing to amend the same within fifteen days of notice from said commissioner directing the same shall, unless such neglect or failure is due to justifiable cause and not due to wilful neglect, pay to the commonwealth fifty dollars for each day during which such neglect or failure continues.

A licensee shall keep and use such business records in such form and at such location as said commissioner shall, by regulation, determine, which shall enable said commissioner to determine whether such licensee is complying with the provisions of this chapter and any rules or regulations promulgated hereunder by said commissioner and any other law, rule or regulation applicable to the conduct of the business for which it is licensed under this chapter. Such regulations may contain provisions for the suspension or revocation of licenses for violations hereof and for such records to be recorded, copied or reproduced by photographic, photostatic, microfilm, microcard, miniature photographic, electronic, including, but not limited to, optical imaging, or other process which accurately reproduces or forms a durable medium for reproducing the original record or document or in any other form or manner authorized by the commissioner; provided, however, that nothing in this section shall be construed to permit any such licensee to destroy original records or documents. Each such licensee shall preserve all such business records for as long a period as the commissioner shall prescribe by regulation. Notwithstanding the provisions of any general or special law or the Massachusetts Rules of Civil Procedure to the contrary, service of a subpoena for business records upon a licensee, delivered to an office of such licensee located within the commonwealth shall be deemed to have been served at the location, whether within or outside the commonwealth, where the original business records or documents are kept or maintained.

Each licensee shall, when directed by said commissioner, permit said commissioner or his duly authorized representative to inspect its relevant records and evidence of compliance with the provisions of this chapter or any rule or regulation issued hereunder and with any other law, rule or regulation applicable to the conduct of the business for which it is licensed under this chapter. For the purposes of such inspection, said commissioner or his representative shall have access to the offices and place of business, books, accounts, papers, records and files of all such licensees. Said commissioner, and any person designated by him, may require the attendance and testimony of any person whom he deems necessary relative to the conduct and operation of such business. The total cost for any such inspection, which shall be paid by the licensee within thirty days after the receipt of an invoice therefor, shall be in accordance with fees determined annually by the commissioner of administration pursuant to section three B of chapter seven, including expenses for necessary travel outside the commonwealth for the purposes of conducting such inspections.