Effective Date of Rule: Thirty-one days after filing.

     Purpose: The securities division is adopting amendments to its franchise broker rules set forth in chapter 460-82 WAC to codify current Franchise Policy Statement 06, which concerns the effective date for franchise broker licenses, as new section WAC 460-82-050 and to streamline and update the books and records requirements in WAC 460-82-200. The text of chapter 460-82 WAC marked to show the amendments is filed with this notice.

     Citation of Existing Rules Affected by this Order: Amending WAC 460-82-200.

     Statutory Authority for Adoption: Chapter 19.100 RCW.

     Other Authority: RCW 19.100.250.

      Adopted under notice filed as WSR 10-07-095 on March 19, 2010.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 1, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 1, Amended 1, Repealed 0.

     Date Adopted: April 29, 2010.

Scott Jarvis

Director

OTS-3102.1

NEW SECTION
WAC 460-82-050   Franchise broker license effective period.   Each franchise broker license issued pursuant to RCW 19.100.140 is effective for the calendar year and shall expire on the last day of the year.

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     (1) Records of ((original entry containing the)) each sale of a franchise((, to whom sold,)) including:

     (a) The name and address of the franchisee;

     (b) The aggregate purchase price((, the amount paid down, the installment payments, if any,));

     (c) Records of any payments collected by the franchise broker in connection with the offer or sale of a franchise;

     (d) The terms of payment;

     (e) A receipt signed by the purchaser confirming delivery of the Franchise Disclosure Document in accordance with WAC 460-80-300;

     (f) The commission paid to the broker((,));

     (g) The amount ((dispersed)) disbursed for advertising and other amounts to be funded ((to)) by the franchisor.

     (2) ((An individual registration card for each franchisee, his name and address, aggregate amount to be paid, terms of the payment, a copy of the receipt signed by the purchaser that he had received a copy of the offering circular and that it had been received ten business days before the sale.

     (3))) Every franchise broker shall keep a copy of all advertising used by the broker in the sale of ((said)) franchises, including but not limited to the internet, radio, newspaper, T.V. media, letters, brochures, etc.

     (((4))) (3) Every franchise broker shall preserve for a period of not less than six years from the closing of any franchise account, all records, books and memorandums that relate to the ((franchisee)) offer or sale of franchises.

[Statutory Authority: RCW 19.100.250. 92-02-054, § 460-82-200, filed 12/30/91, effective 1/30/92; Order 11, § 460-82-200, filed 3/3/72.]

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