§ 3 — Implementation; privilege and confidentiality; supervision; networked supervision; relationship to federal law

[ Text of section added by 2024, 312, Sec. 3 effective January 1, 2025. See 2024, 312, Sec. 7.]Section 3. (a)(1) To carry out the purposes of this chapter, the commissioner may, subject to paragraphs (1) and (2) of subsection (b):(i) enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations to improve efficiencies and reduce regulatory burden by standardizing methods or procedures and sharing resources, records or related information obtained under this chapter;(ii) use, hire, contract or employ analytical systems, methods or software to examine or investigate any person subject to this chapter;(iii) accept, from other state or federal government agencies or officials, licensing, examination or investigation reports made by such other state or federal government agencies or officials; and(iv) accept audit reports made by an independent certified public accountant or other qualified third-party auditor for an applicant or licensee and incorporate the audit report in any report of examination or investigation.(2) The commissioner may administer, interpret and enforce this chapter, promulgate rules or regulations implementing this chapter and recover the cost of administering and enforcing this chapter by imposing and collecting proportionate and equitable fees and costs associated with applications, examinations, investigations and other actions required to achieve the purpose of this chapter.(b)(1) Except as otherwise provided in paragraph (2), information or reports obtained by the commissioner from an applicant, licensee or authorized delegate and information contained in or related to an examination, investigation, operating report or condition report prepared by, on behalf of or for the use of the commissioner, financial statements, balance sheets and authorized delegate information, shall be confidential and privileged, shall not be subject to subpoena and shall not be a public record under chapter 66. For the purpose of this paragraph, records of investigation and reports of examinations shall include records of investigation and reports of examinations conducted by a financial regulatory agency of the federal government and any other state, and of any foreign government, which are considered confidential by the agency or foreign government and are in the possession of the commissioner. In a proceeding before a court, the court may issue a protective order to seal the record in appropriate circumstances to protect the confidentiality of any such record of investigation and reports, other than any such record of investigation and reports that is on file with the court or filed in connection with the court proceeding, and the court may exclude the public from any portion of the proceeding at which any such record may be disclosed. Copies of the reports of examination shall be furnished to a licensee for its use only and shall not be exhibited to any other person, organization or agency without prior written approval by the commissioner. The commissioner may, in their discretion, furnish to regulatory agencies of the federal government, other states or foreign countries and any law enforcement agency, the information, reports, inspections and statements relating to the licensees under the commissioner's supervision.(2) The commissioner may disclose information not otherwise subject to disclosure under paragraph (1): (i) to representatives of state or federal agencies who agree in writing that they will keep the information confidential; or (ii) if the commissioner finds that the release is reasonably necessary for the protection and public interest in accordance with chapter 66.(3) This subsection shall not prohibit the commissioner from disclosing to the public a list of all licensees or the aggregated financial or transactional data concerning those licensees.(4) Information contained in the records of the division that is not confidential and may be made available to the public either on the division's website, upon receipt by the division of a written request or in NMLS shall include:(i) the name, business address, telephone number and unique identifier of a licensee;(ii) the business address of a licensee's registered agent for service;(iii) the name, business address and telephone number of all authorized delegates;(iv) the terms of or a copy of any bond filed by a licensee; provided, however, that confidential information, including, but not limited to, prices and fees for such bond shall be redacted;(v) copies of any non-confidential final orders of the division relating to any violation of this chapter or regulations implementing this chapter; and(vi) imposition of an administrative fine or penalty under this chapter.(c)(1) The commissioner may conduct an examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by this chapter or by a rule adopted or order issued under this chapter as reasonably necessary or appropriate to administer and enforce this chapter, regulations implementing this chapter, and as authorized by other applicable law, including the Bank Secrecy Act and the USA Patriot Act, Pub. Law 107-56.(2) To carry out the purposes of paragraph (1), the commissioner may:(i) conduct an examination either on-site or off-site as the commissioner may reasonably require;(ii) conduct an examination in conjunction with an examination conducted by representatives of other state agencies or agencies of another state or of the federal government;(iii) accept the examination report of an agency of another state or of the federal government or a report prepared by an independent accounting firm, which on being accepted shall be considered for all purposes as an official report of the commissioner; and(iv) summon and examine under oath a key individual or employee of a licensee or authorized delegate and require the person to produce records regarding any matter related to the condition and business of the licensee or authorized delegate.(3) A licensee or authorized delegate shall provide, and the commissioner shall have full access to, all records the commissioner may reasonably require to conduct a complete examination. The records shall be provided at the location and in the format specified by the commissioner; provided, however, that the commissioner may utilize multistate record production standards and examination procedures when such standards will reasonably achieve the requirements of this paragraph.(4) Unless otherwise directed by the commissioner, a licensee shall pay all costs reasonably incurred in connection with an examination of the licensee or the licensee's authorized delegates.(d)(1) The commissioner may participate in multistate supervisory processes established between states and coordinated through the Conference of State Bank Supervisors, the Money Transmitter Regulators Association and affiliates and successors thereof for all licensees that hold licenses in the commonwealth and other states. As a participant in such multistate supervisory processes, the commissioner may:(i) cooperate, coordinate and share information with other state and federal regulators in accordance with subsection (b);(ii) enter into written cooperation, coordination or information-sharing contracts or agreements with organizations the membership of which is made up of state or federal governmental agencies; and(iii) cooperate, coordinate and share information with organizations the membership of which is made up of state or federal governmental agencies; provided, however, that the organizations shall agree in writing to maintain the confidentiality and security of the shared information in accordance with subsection (b).(2) The commissioner shall not waive, and nothing in this subsection shall constitute a waiver of, the commissioner's authority to conduct an examination or investigation or otherwise take independent action authorized by this chapter or a rule adopted or order issued under this chapter to enforce compliance with applicable state or federal law.(3) A joint examination or investigation, or acceptance of an examination or investigation report, shall not waive an examination assessment provided for in this chapter.(e)(1) In the event that state money transmission jurisdiction is conditioned on a federal law, any inconsistencies between a provision of this chapter and the federal law governing money transmission shall be governed by the applicable federal law to the extent of the inconsistency.(2) In the event of any inconsistencies between this chapter and a federal law that governs pursuant to paragraph (1), the commissioner may provide interpretive guidance that:(i) identifies the inconsistency; and(ii) identifies the appropriate means of compliance with federal law.