WSR 15-07-070

PREPROPOSAL STATEMENT OF INQUIRY

[Filed March 17, 2015, 8:16 a.m.]

Subject of Possible Rule Making: The securities division is considering revising WAC 460-80-140 to correct a reference to the Federal Trade Commission's (FTC) franchise disclosure rule concerning financial statements.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 19.100.250, 19.100.040.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: WAC 460-80-140 contains an incorrect citation to the financial statement requirements in the FTC franchise rule. The citation to 16 C.F.R. § 465.5(u) should be changed to 16 C.F.R. § 436.5.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The amendments under consideration by the securities division affect the regulation of franchise offerings. Franchise offerings are also subject to regulation by the FTC under federal law, and subject to regulation by other jurisdictions that have adopted the FTC rules. As the amendments considered by the division would correct a reference to FTC rules, the amendments under consideration would better coordinate the securities division's rules with other federal and state agencies.

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 Michelle Webster, Esq., Department of Financial Institutions, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, phone (360) 902-8736, fax (360) 704-6491, e-mail michelle.webster@dfi.wa.gov.

March 17, 2015

William M. Beatty

Securities Administrator