Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. The General Laws are hereby amended by striking out chapter 169, as appearing in the 1990 Official Edition, and inserting in place thereof the following chapter:- `tuc CHAPTER 169. RECEIPTS OF DEPOSITS FOR TRANSMITTAL TO FOREIGN COUNTRIES.
Section 1. This chapter shall apply to all persons who engage or are financially interested in the business of receiving deposits of money for the purpose of transmitting the same or equivalents thereof to foreign countries, except banks chartered by the commonwealth, banks chartered by the federal government or another state of the United States and authorized to do banking business in the commonwealth, persons doing business under sections thirty-eight to forty-three, inclusive, of chapter one hundred and sixty-seven, express companies having contracts with transportation companies for the operation of an express service upon the lines of such companies or express companies doing an international express business or global transportation companies or telegraph companies.
Section 2. Every person subject to section one, before engaging or becoming financially interested or continuing to engage or be financially interested in the business of receiving deposits of money for the purpose of transmitting the same or equivalents thereof to foreign countries, shall make, execute and deliver to the state treasurer a bond in a sum equal to twice the average weekly amount of money or equivalents thereof transmitted to foreign countries by such person, as determined by the commissioner of banks, hereinafter called the commissioner, but in no event shall the sum of the bond be less than fifty thousand dollars; provided, however, that a person carrying on business at more than one location need post only one such bond which shall be in the sum of fifty thousand dollars or twice the average total weekly amount of money or equivalents thereof transmitted to foreign countries from all locations, whichever is greater; and, provided further, that the sum of such bond shall be increased on order of the commissioner at any time to such amount as shall be shown by examination to be necessary. Such bond shall be conditioned upon the faithful holding and transmission of any money or equivalents thereof which shall have been delivered to such person for transmission to a foreign country and, in the event of the insolvency or bankruptcy of the principal, upon the payment of the full amount of such bond to the assignee, receiver or trustee of the principal, as the case may require, for the benefit of such persons as shall have delivered money or equivalents thereof to said principal for the purpose of transmitting the same to a foreign country.
Section 3. Except as otherwise expressly provided herein, the provisions of this section shall apply to the bonds required by section two. Each such bond shall be executed by the person of whom it is required, as principal, and a surety company, approved by the commissioner, as surety. In lieu of the aforesaid surety, the person may deposit and the state treasurer shall accept as security for the fulfillment of the provisions of the bond, money, bonds of the United States, of the commonwealth or of any municipality thereof or, if approved by the commissioner, other bonds, certificates of deposit issued by a savings bank, cooperative bank, credit union, trust company, federal savings bank, federal savings and loan association, federal credit union or national bank, or savings accounts in such institutions. The money or securities so deposited shall be held upon the conditions specified in the bond. If securities be deposited in lieu of an approved surety and be accepted, the state treasurer shall require the depositor to maintain such deposit at a value equal to the amount fixed as the penalty of the bond and he may, in his discretion, permit the substitution of securities for money, or of money for securities, in whole or in part, or of money or securities for an approved surety, or of a bond for money or securities deposited or the withdrawal of securities deposited and the substitution of others of equal value in their place and, if the total value of the securities becomes substantially impaired, he shall require the deposit of money or additional securities sufficient to cover the impairment in value. No bond required by section two shall be accepted until it has been first examined and approved by the commissioner and the state treasurer and, upon such approval by the state treasurer, it shall be filed in his office. Upon notice of such approval by the state treasurer, the commissioner shall issue a license authorizing said person to carry on the business of receiving deposits of money for the purpose of transmitting the same or equivalents thereof to foreign countries. Such license shall be for a period of one year from July first. No person shall engage or become financially interested or continue to engage or be financially interested in the aforesaid business without such authority. The fee for such license shall be determined annually by the commissioner of administration under the provisions of section three B of chapter seven. The license shall not be transferred or assigned. It shall not authorize the transaction of business at any place other than that described in the license, except with the written approval of the commissioner. Immediately upon the receipt of the license issued by the commissioner, the licensee named therein shall cause the license to be posted and at all times conspicuously displayed in the place of business for which it is issued, so that all persons visiting such place may readily see the same. It shall be unlawful for any licensee to post the license or permit the license to be posted upon premises other than those described therein or those to which it has been transferred with the written approval of the commissioner, or knowingly to deface or destroy any such license. The money and securities deposited with the state treasurer as herein provided and the money which in case of breach of the bond shall be paid by any licensee or surety thereon, shall constitute a trust fund for the benefit of such persons as shall deposit money with the licensee for transmission as aforesaid and such beneficiaries shall be entitled to an absolute preference as to such money or securities over all general creditors of the licensee. The license shall be revocable at all times by the commissioner for cause shown and in the event of such revocation or a surrender of the license, no refund shall be made in respect to any license fee paid. Every license shall be surrendered to the commissioner within twenty-four hours after written notice to the holder that the license has been revoked. In case of revocation or surrender of, or failure to renew, a license, the money and securities and the bond, if there be one, shall continue to be held by the state treasurer for a period of one year from the date of such revocation, surrender or failure to renew and until the expiration of sixty days after final judgment in any action or suit commenced prior to the end of said period, unless otherwise directed by the order or judgment of a court of competent jurisdiction.
Section 4. The state treasurer shall keep a record, which shall be open to public inspection, of such bonds filed with him with the names and places of business of the principals and the name of any surety company, and the name of the officer before whom the bond was executed or acknowledged and any money or securities deposited in lieu of an approved surety as provided in section three.
Section 5. An action to recover on such bond may be brought by an aggrieved party in the superior court department of the trial court.
Section 6. The application for a license shall be in writing and on a form prescribed by the commissioner which shall contain the name and complete address where the business of such applicant is located and, if the applicant is a partnership, association, corporation or other business organization, the names and addresses of each member, director and principal officer thereof. Further such application shall include a description of the activities of the applicant, in such detail and for such periods as the commissioner may require, and such further information as the commissioner may require. Each application for a license shall be accompanied by an investigation fee to be determined annually by the commissioner of administration under the provisions of section three B of chapter seven. Said commissioner may reject an application for a license or an application for a renewal of a license if he finds that the financial responsibility, character, reputation, integrity and general fitness of the applicant and the members thereof if such applicant is a partnership or association, and of the officers and directors if the applicant is a corporation are not such as to warrant belief that the business will be operated in accordance with law and in the public interest. Each license shall state the name and address of the licensee and the city or town of the place where such business is to be carried on. If a licensee intends to carry on a business at more than one location, such licensee shall procure a license for each location where such business shall be conducted. Any change of location of a place of business of a licensee shall require prior written approval of the commissioner. Such request for relocation shall be in writing setting forth the reason for such request and shall be accompanied by a relocation investigation fee to be determined annually by the commissioner of administration under the provisions of said section three B of said chapter seven.
Section 7. The commissioner may, from time to time, prescribe such rules and regulations as may be necessary to carry out the provisions of this chapter. Such rules and regulations may contain such classifications, differentiations or other provisions and may provide for such adjustments and exceptions for any class of transaction as in the judgment of the commissioner may be necessary to carry out the provisions of this chapter.
Section 8. All money received for transmission to a foreign country by any licensee shall be forwarded to the person to whom the same is directed within seven days following receipt thereof. Receipts given for deposits of money received for transmission to a foreign country shall be on forms approved by the commissioner.
Section 9. Licensees shall, annually, within thirty days after the last business day in December and at such other times as the commissioner may specify, make a return to said commissioner in such form as said commissioner may prescribe, signed and sworn to by such officer or person as said commissioner may designate, which form shall disclose the condition of such licensee as of the close of business on the last day of December or such other day as the commissioner may prescribe.
A licensee who fails to make such annual report or fails to amend such report within fifteen days of notice from the commissioner to so amend such report shall, unless such failure is for good cause, pay to the commonwealth five dollars for each day which such neglect or failure continues.
Section 10. A licensee shall keep such books, accounts and records as will enable the commissioner to determine whether such licensee is in compliance with the provisions of this chapter and rules and regulations made pursuant thereto and any other law, rule and regulation applicable to the conduct of such business. A licensee shall preserve such books, accounts and records for a period of at least three years. Preservation of such books, accounts and records by photographic reproduction thereof or record in photographic form shall constitute compliance with the requirements of this section. The books, accounts and records of every licensee shall be kept and audited in such manner and form as the commissioner may prescribe.
A licensee shall, when directed by the commissioner, permit the commissioner or his duly authorized representative to inspect its records and evidence of compliance with this chapter or any rule or regulation issued thereunder and with any other law, rule and regulation applicable to the conduct of its business. For the purposes of such inspection, the commissioner or his representative shall have access to the offices and place of business, books, accounts, papers, records and files of licensee. The commissioner and any person designated by him may require the attendance and testimony of all persons as he may deem necessary relative to the inspection of such business. The total cost for any such inspection, which shall be paid by the licensee within thirty days after the receipt of invoice therefor, shall be determined by the commissioner of administration under the provisions of section three B of chapter seven.
Section 11. The commissioner, if he has reason to believe that a person other than a licensee has violated any of the provisions of this chapter, shall be authorized to make such investigations as he shall deem necessary and may examine such other person and shall compel the production of all relevant books, records, accounts and documents.
Section 12. The commissioner may suspend or revoke any license issued pursuant to this chapter if he finds that: (a) the licensee has violated any provision of this chapter or any rule or regulation adopted hereunder or any other law applicable to the conduct of such business; or (b) any fact or condition exists which, if it had existed at the time of the original application for such license, would have warranted the commissioner to refuse to issue such license.
Except as provided in section thirteen, no license shall be revoked or suspended except after notice and hearing pursuant to chapter thirty A.
A licensee may surrender any license by delivering to the commissioner written notice thereof and such surrender shall not affect the civil or criminal liability of such licensee for acts committed before the effective date of such surrender. No revocation, suspension or surrender of any license shall impair or affect the obligation of any pre-existing contract between the licensee and any other person.
Section 13. (a) If the commissioner determines, after notice and opportunity for a hearing, that a licensee has engaged in or is about to engage in any act or practice constituting a violation of any provision of this chapter or any rule, regulation or order pursuant hereto, said commissioner may order such licensee to cease and desist from such unlawful act or practice and take such affirmative steps as may be necessary to carry out the provisions of this chapter.
(b) If the commissioner makes written findings that the public interest will be irreparably harmed by delay in issuing an order under subsection (a), he may issue a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the commissioner shall promptly notify the licensee affected thereby, in writing, that such order has been so entered, the reasons therefor, and that within twenty days after the receipt of a written request from such licensee, the matter will be scheduled for hearing to determine whether or not such temporary order shall become permanent and final. If no such hearing is requested and none is ordered by the commissioner, the order shall remain in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice and opportunity for a hearing to the licensee subject to said order, shall, by written finding of facts and conclusions of law, vacate or modify such order including making such order permanent.
(c) No order under this section, except a temporary order issued pursuant to subsection (b), shall be entered without prior notice and opportunity for a hearing. The commissioner may vacate or modify an order under this section upon finding that the conditions which required such an order have changed and that it is in the public interest to so vacate or modify such order.
An order issued pursuant to this section shall be subject to review as provided in chapter thirty A.
Section 14. If, after examination, it appears that a licensee is insolvent or that its capital is impaired or that its condition is such as to render the continuance of its business hazardous to the public or to those having funds in its custody, the commissioner shall apply or, if a licensee appears to have exceeded his powers or failed to comply with any provision of law, the commissioner may apply to the supreme judicial court to restrain such licensee from further proceeding with its business and to make such further order or decree as the court deems necessary. The court may appoint one or more receivers to take possession of the property and effects of such licensee, subject to such directions as may from time to time be prescribed by the court.
Section 15. The commissioner may enforce the provisions of this chapter or restrain violations thereof by filing a civil action in the superior court department of the trial court.
Section 16. Whoever violates any provision of this chapter or any rule or regulation made hereunder by the commissioner shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both.
SECTION 2. Notwithstanding the provisions of any general or special law to the contrary, all licenses issued prior to the effective date of this act pursuant to chapter one hundred and sixty-nine of the General Laws and in effect on the effective date of this act and licenses issued pursuant to said chapter one hundred and sixty-nine on or after the effective date of this act shall expire on June thirtieth following the date of issuance of such license.