WSR 15-11-011
(Securities Division)
[Filed May 7, 2015, 4:23 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 15-07-070.
Title of Rule and Other Identifying Information: The securities division is proposing to amend WAC 460-80-140 Financial statements, to correct a reference to the Federal Trade Commission's franchise disclosure rule concerning financial statements.
Hearing Location(s): Department of Financial Institutions (DFI), 150 Israel Road S.W., Tumwater, WA 98501, on June 23, 2015, at 9:30 a.m.
Date of Intended Adoption: June 24, 2015.
Submit Written Comments to: Michelle Webster, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, e-mail, fax (360) 704-6491, by June 23, 2015.
Assistance for Persons with Disabilities: Contact Carolyn Hawkey by June 16, 2015, TTY (360) 664-8126 or (360) 902-8760.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: WAC 460-80-140 contains an incorrect citation to the financial statement requirements contained in the Federal Trade Commission's franchise rule. The proposed amendment would change the citation from 16 C.F.R. § 465.5(u) to 16 C.F.R. § 436.5. The proposed amendment would better coordinate the securities division's rules with other federal and state agencies.
Reasons Supporting Proposal: The proposed amendment affects the regulation of franchise offerings. Franchise offerings are also subject to regulation by the Federal Trade Commission under federal law, and subject to regulation by other jurisdictions that have adopted the Federal Trade Commission rules. As the amendments proposed by the division would correct a reference to Federal Trade Commission rules governing financial statement requirements, the amendments under consideration would better coordinate the securities division's rules with other federal and state agencies.
Statutory Authority for Adoption: RCW 19.100.250, 19.100.040.
Statute Being Implemented: RCW 19.100.040.
Rule is necessary because of federal law, 16 C.F.R. § 436.5.
Name of Proponent: DFI, governmental.
Name of Agency Personnel Responsible for Drafting: Michelle Webster, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8736; Implementation: Scott Jarvis, Director, DFI, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8760; and Enforcement: William Beatty, Director, Securities, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8736.
No small business economic impact statement has been prepared under chapter 19.85 RCW. RCW 19.85.061 of the Regulatory Fairness Act provides that unless requested by a majority vote of the joint administrative rules [review] committee under RCW 19.85.030, an agency is not required to prepare a small business economic impact statement when adopting any rule solely for the purpose of conformity or compliance, or both, with federal statutes or regulations. The proposed updates merely seek to better coordinate the amended proposed rule with existing federal law by identifying the correct federal regulation promulgated by the Federal Trade Commission.
A cost-benefit analysis is not required under RCW 34.05.328. DFI is not an agency identified in RCW 34.05.328.
May 7, 2015
Scott Jarvis
AMENDATORY SECTION (Amending WSR 09-22-050, filed 10/29/09, effective 11/29/09)
WAC 460-80-140 Financial statements.
The Franchise Disclosure Document must include financial statements that comply with the instructions for Item 21 of the Franchise Disclosure Document, 16 C.F.R. ((§ 465.5(u))) Sec. 436.5.