Original Notice.

     Preproposal statement of inquiry was filed as WSR 10-01-003.

     Title of Rule and Other Identifying Information: The securities division is proposing to amend the franchise broker registration rules set forth in chapter 460-82 WAC to codify current Franchise Policy Statement 06, which concerns franchise broker license effective periods, and to update the books and records requirements set forth in WAC 460-82-200.

     Hearing Location(s): State of Washington, Department of Financial Institutions, 150 Israel Road S.W., Room 319, Tumwater, WA 98501, on April 27, 2010, at 2:00 p.m.

     Date of Intended Adoption: April 28, 2010.

     Submit Written Comments to: Faith L. Anderson, Associate General Counsel, Department of Financial Institutions, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, e-mail faith.anderson@dfi.wa.gov, fax (360) 704-6480, by April 27, 2010.

     Assistance for Persons with Disabilities: Contact Carolyn Hawkey, P.O. Box 9033, Olympia, WA 98507-9033, by April 21, 2010, TTY (360) 664-8126 or (360) 902-8824.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The division proposes to codify current Franchise Policy Statement 06, which concerns the effective date for franchise broker licenses, as new WAC 460-82-050. In addition, the division proposes to streamline and update the books and records requirements in WAC 460-82-200.

     Reasons Supporting Proposal: The amendments to chapter 460-82 WAC proposed by the division should be adopted to streamline and update the rules contained therein and to codify the content of Franchise Policy Statement 06.

     Statutory Authority for Adoption: RCW 19.100.250.

     Statute Being Implemented: Chapter 19.100 RCW.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Department of financial institutions, governmental.

     Name of Agency Personnel Responsible for Drafting: Faith L. Anderson, 150 Israel Road S.W., Olympia, WA 98501, (360) 725-7825; Implementation: Scott Jarvis, 150 Israel Road S.W., Olympia, WA 98501, (360) 902-8700; and Enforcement: Suzanne E. Sarason, 150 Israel Road S.W., Olympia, WA 98501, (360) 902-8760.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. If any costs are borne by businesses in connection with the proposed rules, these costs will be no more than minor. As such, the agency is not required to prepare a small business economic impact statement under RCW 19.85.030.

     A cost-benefit analysis is not required under RCW 34.05.328. The department of financial institutions is not one of the agencies listed in RCW 34.05.328.

March 18, 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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