Revision: March 21, 2024, 8:16 a.m.
Rep. Hunt, Ches. 14
January 16, 2024
2024-0157h
11/08
Amendment to HB 1243
Amend RSA 361-A:1, XXIX as inserted by section 1 of the bill by replacing it with the following:
XXIX. “Significant event” means:
(a) The filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. Section 101-110, as amended or recodified from time to time, for bankruptcy or reorganization;
(b) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors;
(c) An indictment or conviction of the licensee, any of the licensee’s principals, or any person in control of the licensee for a felony;
(d) The filing of a civil lawsuit in any court located in New Hampshire or by any resident of New Hampshire, except small claims actions, naming the licensee as a defendant that concerns the licensee’s practices under this chapter;
(e) The commencement of a proceeding to revoke or suspend the licensee’s license in a state or country in which the licensee engages in business or is licensed;
(f) Receiving notification of a license denial, cease and desist, consent agreement or order, suspension or revocation or any other formal administrative action in any state against the licensee;
(g) Receiving notification of any enforcement action or formal investigation by the attorney general of the state of New Hampshire or of any other state pursuant to any consumer protection statute, and the reasons thereof, except routine investigations of consumer complaints; or
(h) Entering into a consent agreement, settlement agreement, memorandum of understanding, or similar agreement with any regulatory body by the licensee that concerns the licensee’s practices under this chapter.
Amend RSA 361-A:5, III as inserted by section 1 of the bill by replacing it with the following:
III. The initial license term shall begin on the day the application is approved. The license shall expire on December 31 of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year. Licenses issued pursuant to this chapter shall be renewed annually. The renewal term shall be for a period of 1 year and shall begin on January 1 of each year after the initial license term and shall expire on December 31 of the year the renewal term begins.
Amend RSA 361-A:12 as inserted by section 1 of the bill by replacing it with the following:
361-A:12 Examinations and Investigations.
I. The commissioner or the commissioner's representative may, with or without notice to the licensee or any other person subject to this chapter, examine the business affairs of any licensee or any other person subject to this chapter, whether licensed or not, at any time the commissioner deems necessary, for the purpose of determining whether the licensee or other person subject to this chapter is in compliance with the laws of this chapter and any rules adopted thereunder. In determining compliance, the commissioner or the commissioner’s representative may examine relevant books, accounts, records, files, and other documents, whether electronically stored or otherwise. Upon request, the commissioner or the commissioner’s representative shall be provided with access to the licensee’s or unlicensed person’s principal place of business and additional offices, if applicable, where files, records, safes, and vaults that are relevant to the examination may be located. The commissioner or the commissioner’s representative may require the attendance of any licensee’s principal or control person and may examine him or her under oath concerning the subject matter of any examination or investigation, and may require that person to produce relevant books, accounts, papers, and records.
II. The commissioner may, in his or her discretion, accept all or part of a report of examination of another state agency or an agency of another state or of the federal government. To avoid unnecessary duplication of examinations, the commissioner may, insofar as he or she deems practicable in administering this section, cooperate with and conduct examinations in conjunction with the regulators of other states, the Federal Trade Commission, other federal regulators, or their successors in conducting examinations and investigations.
III. The department may subpoena witnesses, administer oaths, and compel, by subpoena duces tecum, the production of all books, records, files, and other documents and materials whether electronically stored or otherwise relevant to its investigation at any time in any matter over which the department has jurisdiction, control, or supervision pertaining to the provisions of this chapter.
IV. Upon request, every person being examined, and all of the officers, directors, employees, agents, and representatives of such person shall make freely available to the commissioner or the commissioner’s examiners the accounts, records, documents, files, information, assets, and matters in their possession or control that are relevant to the subject of the examination and shall facilitate the examination.
V. The expense of such examination or investigation shall be chargeable to and paid by the licensee or other person subject to this chapter being examined. No licensee shall be charged for more than one examination or investigation within a 24 month period, unless good cause exists to conduct more than one examination or investigation within a 24 month period. Under such circumstances, the expense of any examination or investigation shall continue to be chargeable to and paid by the licensee or other person subject to this chapter being examined. The examination and investigation costs shall be calculated as set forth in RSA 383:11.
VI.(a) The affairs and records of any licensee or person subject to this chapter shall be subject at any time to periodic, special, regular, or other examination by the department with or without notice. Any licensees, including those that maintain their files and business records in another state, or other person subject to this chapter, shall:
(1) Deliver to the commissioner or the commissioner’s representative a list of all New Hampshire consumers who have contracted with the licensee or with whom the licensee is otherwise engaged in business regulated under this chapter, and any other requested lists or information summarizing the business of the licensee, within 30 days of receipt of the commissioner or commissioner representative’s written request; and
(2) Deliver to the commissioner or the commissioner’s representative files selected by the commissioner or the commissioner’s representative from the lists delivered in subparagraph (a)(1), and any other files or documents requested, within 60 days of receipt of the commissioner or commissioner representative’s written request.
(b) The commissioner or commissioner representative’s written requests, as described herein, shall be sent to the licensee. Upon proof of valid delivery of such a written request, a licensee’s failure to provide the requested files or documents within the time established by this paragraph shall subject a licensee or person subject to this chapter to a fine of $50 per day for each day the files or documents are not provided. Failure to provide files or documents to the commissioner within 60 days after receipt of the request shall be sufficient cause for license revocation, suspension, or denial.
VII. The commissioner or the commissioner’s representative may investigate at any time any person that the commissioner reasonably believes is engaged in the business of a sales finance company or retail seller or participating in such business as principal, agent, broker, or otherwise; or any person that the commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, or any rule or order under this chapter.
VIII. In addition to the costs of any investigation, as set forth herein, the commissioner may recover the costs of any investigation conducted under this chapter, in addition to any other penalty provided for under this chapter.
IX. If the commissioner or examiner finds any accounts or records to be inadequate, or kept or posted in a manner not in accordance with generally accepted accounting principles, the commissioner may employ experts to reconstruct, rewrite, post, or balance the inadequate accounts or records for purposes of the examination at the expense of the person being examined, but only after the commissioner or examiner has given the licensee or person subject to this chapter written notice and a reasonable opportunity to do so.
X.(a) Before a report of examination is finalized, the examiner shall offer the licensee an opportunity to discuss the initial findings of the examination with the examiner.
(b) Upon receipt of the written report of examination, the licensee shall have 30 days or such additional reasonable period as the commissioner for good cause may allow, within which to review the report, recommend any changes, and set forth in writing the remedial course of action the licensee will pursue to correct any deficiencies outlined in the report.
(c) All reports of examination under this section shall be confidential and shall not be available for public inspection and shall not be subject to disclosure under RSA chapter 91-A. The comments and recommendations of the examiner shall also be confidential information and shall not be available for public inspection and shall not be subject to disclosure under RSA chapter 91-A.
Amend the bill by replacing section 4 with the following:
4 Effective Date. This act shall take effect January 1, 2025.