2023 Connecticut General Statutes › Title 36a - The Banking Law of Connecticut › Chapter 664a - Administration and Enforcement › Section 36a-17. - Investigations and examinations. Electronic data processing servicers. Subpoenas. Powers of commissioner. Production of records.

(a) The commissioner, in the commissioner's discretion and as often as the commissioner deems necessary to carry out the purposes of applicable law and the duties of the commissioner, may, subject to the provisions of section 36a-21 and the Freedom of Information Act, as defined in section 1-200: (1) Make, within or outside this state, such public or private investigations or examinations concerning any person subject to the jurisdiction of the commissioner; (2) require or permit any person to testify, produce a record or file a statement in writing, under oath, or otherwise as the commissioner determines, as to all the facts and circumstances concerning the matter to be investigated or about which an action or proceeding is pending; and (3) publish information concerning any violation of any provision of the general statutes within the jurisdiction of the commissioner or any regulation or order adopted or issued under such provision.
(b) Any Connecticut bank, Connecticut credit union or Connecticut credit union service organization which causes or has caused any electronic data processing services to be performed for such bank, credit union or credit union service organization either on or off its premises by an electronic data processing servicer shall enter into a written contract with such servicer. Such contract shall specify the duties and responsibilities of the bank, credit union or credit union service organization and such servicer and provide that such servicer shall allow the commissioner to examine such servicer's records in accordance with this subsection, if required by the commissioner. The Connecticut bank, Connecticut credit union or Connecticut credit union service organization shall promptly notify the commissioner of any material change in its electronic data processing services. In the case of a material change which triggers a notice requirement under 12 USC 1867, a Connecticut bank may satisfy the notice requirements of this subsection by providing the commissioner with a copy of the notice provided to the Federal Deposit Insurance Corporation under 12 USC 1867. The commissioner may examine the records of any electronic data processing servicer that performs electronic data processing services for a Connecticut bank, Connecticut credit union or Connecticut credit union service organization, if such services substantially impact the operations of the Connecticut bank, Connecticut credit union or Connecticut credit union service organization as determined by the commissioner, in order to (1) determine whether such servicer has the capacity to protect the customer information of such bank, credit union or credit union service organization, and (2) assess such servicer's potential for continued service. The commissioner may assess a fee of one hundred fifty dollars per day plus costs for each examiner who conducts such examination, the total cost of which the commissioner may allocate on a pro rata basis to all Connecticut banks, Connecticut credit unions and Connecticut credit union service organizations under contract with such servicer.
(c) For the purpose of any investigation, examination or proceeding under this title the commissioner may administer oaths and affirmations, take evidence, direct, order, subpoena or compel the attendance of and examine under oath all persons whose testimony may be required about the business or subject matter of any such investigation, examination or proceeding, and direct, order or subpoena such person to produce records the commissioner deems relevant or material. The commissioner may require that certified copies of any such records be provided to the commissioner at the commissioner's office. The commissioner may issue subpoenas in this state at the request of another state, provided (1) the activities concerning which the information is sought would constitute a basis for an investigation, examination or proceeding under this title had such activities occurred in this state, and (2) such other state has reciprocal legal authority to issue subpoenas in such state on behalf of the commissioner.
(d) In addition to any authority provided under this section, the commissioner shall have the authority to conduct investigations and examinations as follows:
(1) For the purposes of issuing, renewing, suspending, conditioning, revoking or terminating any license or registration issued on the system, or for any general or specific inquiry or investigation of persons engaged in a business or activity subject to licensure or registration by the commissioner on the system to determine compliance with applicable law, the commissioner may access, receive and use any records, information or evidence, including, but not limited to: (A) Criminal, civil and administrative history information; (B) personal history and experience information, including, but not limited to, independent credit reports obtained from a consumer reporting agency described in Section 603(p) of the Fair Credit Reporting Act, 15 USC 1681a; and (C) any other records, information or evidence the commissioner deems relevant to the inquiry or investigation, regardless of the location, possession, control or custody of such records, information or evidence.
(2) In conducting any examination or investigation authorized by this subsection, the commissioner may control access to any records of the person under examination or investigation. The commissioner may take possession of the records or place a person in exclusive charge of the records in the place where such records are usually kept. During the period of control, no person shall remove or attempt to remove any of the records except pursuant to a court order or with the consent of the commissioner. Unless the commissioner has reasonable grounds to believe the records of the person under examination or investigation have been, or are at risk of being, altered or destroyed for purposes of concealing a violation of applicable law, the owner of the records shall have access to the records as necessary to conduct its ordinary business affairs.
(3) In order to carry out the purposes of this subsection, the commissioner may:
(A) Retain attorneys, accountants or other professionals and specialists as examiners, auditors or investigators to conduct or assist in the conduct of examinations or investigations;
(B) Enter into agreements or relationships with other government officials or regulatory associations to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, records, information or evidence obtained under this subsection;
(C) Use, hire, contract or employ public or privately available analytical systems, methods or software to examine or investigate the person;
(D) In lieu of an examination or investigation conducted by the commissioner, accept and rely upon examination or investigation reports made by another state or federal supervisory agency, any organization affiliated with or representing such supervisory agency, or any other government official, within or outside this state. Any such examination or investigation report that is accepted and relied upon by the commission shall be considered an official examination or investigation report of the commissioner; and
(E) Accept audit reports made by an independent certified public accountant. Such reports may be considered an official examination or investigation report of the commissioner, or incorporated in the commissioner's official report of examination or investigation, or any other writing of the commissioner.
(e) Any person who is the subject of any inquiry, investigation, examination or proceeding pursuant to this section shall (1) make its records available to the commissioner in readable form; (2) provide personnel and equipment necessary, including, but not limited to, assistance in the analysis of computer-generated records; (3) provide copies or computer printouts of records when so requested; (4) make or compile reports or prepare other information as directed by the commissioner in order to carry out the purposes of this section, including accounting compilations, information lists and dates of transactions in a format prescribed by the commissioner or such other information as the commissioner deems necessary to carry out the purposes of this section; (5) furnish unrestricted access to all areas of its principal place of business or wherever records may be located; and (6) otherwise cooperate with the commissioner.
(f) The superior court for the judicial district of Hartford, upon application of the commissioner, may issue to any person refusing to obey a subpoena issued pursuant to subsection (c) of this section an order requiring that person to appear before the commissioner or any officer designated by the commissioner to produce records so ordered or to give evidence concerning the matter under investigation or in question. Failure to obey the order of the court may be punished by the court as a contempt of court.
(g) No person subject to inquiry, investigation, examination or proceeding under this section may knowingly withhold, abstract, remove, mutilate, destroy or secrete any records or information.
(h) The authority of this section shall remain in effect, whether a person acts or claims to act under any licensing, registration or other authorizing requirement of the law of this state, or claims to act without such authority.
(i) As used in this section, “records” includes, but is not limited to, books, accounts, papers, files, correspondence, memoranda, agreements, diaries, logs, notes, ledgers, journals, visual, audio, magnetic or electronic recordings, computer printouts, software, computer systems and any other documents in any form.
(P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 94-122, S. 10, 340; P.A. 95-220, S. 4–6; P.A. 98-65; P.A. 02-73, S. 3; P.A. 11-50, S. 1; P.A. 12-96, S. 4, 33; P.A. 14-7, S. 13; 14-89, S. 42; P.A. 18-173, S. 3; P.A. 21-130, S. 10.)
History: P.A. 94-122 effective January 1, 1995. (Revisor's note: P.A. 88-230, P.A. 90-98 and P.A. 93-142 authorized substitution of “judicial district of Hartford” for “judicial district of Hartford-New Britain” in public and special acts of the 1994 regular and special sessions, effective September 1, 1996); P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective July 1, 1995; P.A. 98-65 added new Subsec. (b) re electronic data processing servicers and redesignated former Subsecs. (b) to (f) as Subsecs. (c) to (g); P.A. 02-73 amended Subsec. (b) by adding references to Connecticut credit union and Connecticut credit union service organization and making conforming changes, deleted former Subsec. (f) re cost of examination and redesignated Subsec. (g) as Subsec. (f); P.A. 11-50 amended Subsec. (b) to eliminate requirement re sending copy of contract to commissioner and require notification to commissioner of any material change in electronic data processing services; P.A. 12-96 amended Subsec. (b) to add provision re a material change which triggers a notice requirement under 12 USC 1867, effective June 8, 2012, and amended Subsec. (a) to add provision re subject to Sec. 36a-21 and Freedom of Information Act, designate existing provision re investigations or examinations as Subdiv. (1), add Subdiv. (2) permitting commissioner to require or permit a person to testify, produce a record or file a statement concerning the matter to be investigated or about which an action or proceeding is pending and add Subdiv. (3) permitting commissioner to publish information concerning violations of the general statutes within commissioner's jurisdiction, and amended Subsec. (c) to permit commissioner to issue subpoenas in this state at request of another state in certain instances, effective October 1, 2012; P.A. 14-7 made a technical change in Subsec. (a), effective May 8, 2014; P.A. 14-89 made identical change as P.A. 14-7, effective June 3, 2014; P.A. 18-173 amended Subsec. (a) by adding “and as often as the commissioner deems necessary to carry out the purposes of applicable law and the duties of the commissioner”, and deleting “, as the commissioner deems necessary to carry out the duties of the commissioner,” in Subdiv. (1), amended Subsec. (b) by deleting references to books and computer systems, amended Subsec. (c) by replacing provisions re commissioner's authority for purpose of investigation, examination or proceeding with provisions re same, added new Subsec. (d) re commissioner's authority to conduct investigations and examinations, redesignated existing Subsec. (d) as Subsec. (e) and amended same by adding “inquiry,”, adding “pursuant to this section”, designating existing provisions re making records available to commissioner as Subdiv. (1), designating existing provisions re providing personnel and equipment as Subdiv. (2), designating existing provisions re copies or computer printouts of records as Subdiv. (3), adding Subdiv. (4) re making or compiling reports or preparing information as directed by commissioner, designating existing provisions re furnishing access to principal place of business as Subdiv. (5), and designating existing provision re otherwise cooperating with commissioner as Subdiv. (6), redesignated existing Subsec. (e) as Subsec. (f), added Subsec. (g) re records of person subject to inquiry, investigation, examination or proceeding, added Subsec. (h) re authority of section, redesignating existing Subsec. (f) as Subsec. (i), adding references to accounts, files, computer systems, and adding “in any form”, and made technical and conforming changes; P.A. 21-130 added references to “or registration” in Subsec. (d)(1), effective July 1, 2021.