WSR 10-01-003

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF

FINANCIAL INSTITUTIONS
(Securities Division)

[ Filed December 2, 2009, 2:29 p.m. ]

Subject of Possible Rule Making: The securities division is soliciting comments on the possible amendment of the franchise broker rules set forth in chapter 460-82 WAC.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 19.100.250.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: In 1991 the securities division issued two policy statements concerning franchise broker registration. The division is now considering amending chapter 460-82 WAC to incorporate the subject matter of those policy statements into codified rules. The division is also considering other possible updates, amendments, and additions to chapter 460-82 WAC.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The Federal Trade Commission (FTC) regulates the sale of franchises as do some other states. The FTC does not, however, require the registration of franchise brokers. States may seek to coordinate their franchise rules through the adoption of the model franchise rules promulgated by the North American Securities Administrators Association, Inc. in the 2008 Franchise Registration and Disclosure Guidelines available at http://www.nasaa.org/industry___regulatory_resources/

uniform_forms/3697.cfm. These rules do not, however, address franchise broker registration.

Process for Developing New Rule: The division is soliciting comments from interested persons and will adopt rules only after the consideration of public comments.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Faith L. Anderson, Department of Financial Institutions, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, phone (360) 725-7825, fax (360) 704-6480, e-mail fanderson@dfi.wa.gov.

December 2, 2009

Michael E. Stevenson

Director of Securities

Washington State Code Reviser's Office