Maine Legislature, Session 124, LD 1326
Committee: Insurance and Financial Services
Sponsors: LOVEJOY, COHEN, HUNT
Amends: 9-A MRSA §2, 32 MRSA §6173, 32 MRSA §6174-B, 32 MRSA §11031

MAINE STATE LEGISLATURE 
The following document is provided by the 
LAW AND LEGISLATIVE DIGITAL LIBRARY 
at the Maine State Law and Legislative Reference Library 
http://legislature.maine.gov/lawlib 
Reproduced from scanned originals with text recognition applied 
(searchable text may contain some errors and/or omissions) 
(~ 
/ 
~~. 
!/ [.1 i/;~i1 Q/f,iiE}fH"':'" 
Lr;: ~ w 'o.t{OT!lHf i 
124th MAl E LEGISLATURE 
. FIRST REGULAR SESSIOt~-2009 
Legislative Document 
No. 1326 
H.P.930 
House of Representatives, March 31,2009 
AnAdToAmend the Laws Governing Licensed Financial Service 
Providers 
. 
. 
Submitted by the Department ofProfessiortal and Financial Regulation pursuant to Joint 
Rule 204. 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
pIinted. 
Presented by Representative LOVEJOY of Portland. 
Cosponsored by Senator PERR Y of Penobs'cot and 
'17/~ 1J7. 71lfLC~{ 
MILLICENT M. MacFARLAND 
Clerk 
. Representatives: COHEN of Portland, HUNT of Buxton, SMITH ofMonmouih. 
Printed on recydcd pnpt!1' 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 9-A MRSA §2-302, sub-§l-A, as enacted by PL 2005, c. 164, §2, IS 
amended to read: 
I-A. At the time of application for a license to make supervised loans and on an 
ongoing basis during the term of any such license, the applicant shall apply· to the 
administrator for registration of all loan officers employed or retained by the applicant. 
Applications must be filed iIi a manner prescribed by the administrator, must include the 
names, addI:esses and work locations of the loan officers and such additional information 
as is reasonably requested by the administrator and must be accompanied by an 
application fee of up to $20 for each loan office( up to a maximum Of ~ 
$400 in total. 
An applicant's registration of a loan officer within 90 days of the date that registration 
would otherwise be required does not constitute a violation ofthis subsection. 
Sec. 2. 
9-A MRSA §2-302, sub-§7, as enacted by PL 2005, c. 274, §2, IS 
amended to read: 
7. The administrator may adopt rules requiring that applicants, applicants' paI1ners, 
officers or directors and employees of applicants satisfy initial and continuing educational 
. 17 
requirements. The reasonable costs of meeting such educational requirements must be 
assessed to applicants. Providers of initial and continuing education courses of study 
shall submit each course to the administrator for approval, and each submission must be 
accompanied by a $100 fee. 
Rules adopted pursuant to this subsection are routine 
technical rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Sec. 3. 9-A MRS A §10-201,.as repealed and replaced by PL 2005, c. 683, Pt. B, 
§4, is amended to read: 
. 
§10-201. Licensing and biennial relicensing 
A person desiring to engage or continue in business in this State as a loan broker shall 
apply to the administrator for a license under this aI1icle on or before January 31 st of each 
even-numbered year. The application must be in a form prescribed by the administrator. 
The administrator may refuse the application if it contains erroneous or incomplete 
information. At the time of application and on an ongoing basis during the tenn of any 
such license, the applicant shall apply to the administrator for registration of all loan 
officers employed or retained by the applicant. An application for registration as a loan 
officer must be filed in a manner prescribed by the administrator and include the name, 
address and work location of the loan officer and such additional information as is 
reasonably requested by the administrator. An applicant's registration of a loan officer. 
within 90 days of the date that registration would otherwise be required does not 
constitute a violation. of this section. 
A license may not be issued unless the 
administrator, upon investigation, finds that the financial responsibilitY, character and 
fitness of the applicant and, where applicable, its paI1ners, officers or directors and the 
character and fitness of its loan officers, waITant belief that the business will be operated 
honestly and fairly within the purposes of this Title. The administrator may adopt rules 
requiring that applicants, applicants' partners, officers or directors and employees of 
) 
) 
) 
() 
( 
, 
",--j 
~ 
) 
,~" 
applicants satisfy initial and continuing educational requirements. The reasonable costs 
of meeting such educational requirements are assessed to applicants. Providers of initial 
and continuing education courses of study shall submit each course to the administrator, 
for approval, and each submission must be accompanied by a $100 fee. Rules adopted 
pursuant to this section' are routine technical niles pursuant to Title 5, chapter 375, 
subchapter 2-A. 
The initial application for a license as a loan broker must include a fee of $400 $600. 
The biennial relicensing application mllst include a fee of ~ 
$300. Initial applicants 
and biennial relicensing applicants must pay an additional fee of up to $20 for registration' 
of each loan officer, up to a maximum of ~ 
$400 in total. Notwithstanding other 
remedies available under this Title, applications received after theaue date are subject to 
an additional fee of $1 00. 
A I icensee may conduct business on Iy at or from a place of business for which the 
licensee holds a license and not under any other name than that on the license. A license 
fee of $300 is imposed for a license issued for a place of business other than that of the 
first licensed location of the licensee. A biennial relicensing application for each such 
branch location must include a fee of $150. 
' 
A I icensed loan broker may conduct business only through a loan officer who 
, possesses a current, valid registration. A loan officer must be registered at the loan 
officer's' principal I icensed work location and may" then work fi'om aily licensed location, 
of the loan broker. 
The registration of a loan officer is valid only when that person is 
employed or retained and supervised by a licensed loan broker. When a loan officer 
ceases to be employed by a licensed loan broker, the loan broker shall promptly notify the 
administrator in writing. 
Sec. 4. 32 MRSA §6173, sub-§2-A is enacted to read: 
2-A. Separate registration reQuired. A separate registration is required for each 
place of business. 
An application fee of $250 must accompany an application for 
registration for a place 'of business other than that of the first registered location of the 
registrant. 
Se~. 5. 32 MRSA §6174-B, sub-§2, as enacted by PL 2007, c. 36, §9, is amended 
to read: 
2. 
Consumer education. 
A debt management service provider shall offer a 
consumer education program approved by the administrator. 
Providers of consumer 
education programs shall submit each such program to the administrator for approval, and 
each sllch submission must be accompanied by a $100 fee. Adebt management ~ervice 
provider may charge consumers a reasonable fee for the program not to exceed $50. 
Sec. 6. 32 MRSA §11031, sub-§2, as amended by PL 1999, c. 184, §24, IS 
fmiher amended to read: 
2. Licenses. Licenses granted by the superintendent under this section are for a 
period of 2 years and expire on July 31 st or at stich other times as the superintendent may 
. 11 
designate. Each license may be renewed biennially as long as the superintendent regards 
the business as responsible and safe, but in all cases terminate unless renewed by the 
expiration date. Each license must plainly state the name and business address of the 
licensee and be posted in a conspicuous place in the office where the business is 
transacted. The fee for each biennial license is $44{} $600 .. When the unexpired 'license 
term of an applicant is or will be less than one year at a time of licensure, the license fee 
may not exceed 112 the biennial license fee. If a licensee desires to ,carry on business in 
more than one place, the licensee shall procure a branch office license for each additi~:mal 
place where the business is to be conducted. The fee for each biennial branch office 
license is ~ 
$300. 
Notwithstanding other remedies, available under this chapter, 
applications received after the due date are subject to an additionaHee of $100 . 
Sec. 7. 32 MRS A §11051, as corrected by RR 1995, c; I, §27 and affected by §28 ' 
and amended by PL 1999, c. 547, Pt. B, §78 and affected by §80 and amended by PL 
2007, c. 273, Pt. B, § § 5 and 6 and affected by c. 695, Pt. A, §4 7, is further amended to 
read: 
§il051. Investigation, suspension and revocation of licenses 
The Bureau ·of Consumer Credit Protection may examine or investigate the records 
and practices of a licensee any person the superintendent believes has engaged in conduct 
governed by this chapter in accordance with Title 9-A, section, 6-106, may review and 
approve collection letters proposed for use in this State and may charge for expenses 
incurred pursuant to Title 9-A, section 6-106, subsection 6. The superintendent may file 
a complaint with the DistrictCourt to suspend or revoke a license issued pursuant to this 
chapter, if, after investigation or hearing, or both, the superintendent has reason to believe 
that the licensee has violated any provisions of this chapter or any administrative rules 
issued pursuant to this chapter, or has failed to maintain its financial condition sufficient 
to qualify for a license on an original application. 
SUMMARY 
The purpose of this bill is to more equ'itably allocate regulatory costs of the 
Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection among licensed 'entities by increasing the cap on loan officer registration fees, 
permitting recovery of costs of certifying educational courses for providers, increasing 
loan broker license fees, establishing loan broker and debt management branch office 
licenses and increasing debt collector license fees. 
. 
. 
"-) 
,) 
),