AB150: Bill Text

AB150, s. 6796 Section 6796. 552.23 (1) of the statutes is amended to read:

AB150,2209,3 552.23 (1) If the target company is an insurance company subject to regulation by the commissioner of insurance, a banking corporation subject to regulation by the commissioner of banking, a savings bank or savings and loan association subject to regulation by the commissioner of savings and loan, or a public service corporation or a company subject to regulation by the public service commission, or the department of transportation or the office of the commissioner of railroads, the commissioner department of financial institutions shall promptly furnish a copy of the registration statement filed under this chapter to the regulatory agency having supervision of the target company. Any hearing under this chapter involving any such target company shall be held jointly with the regulatory agency having supervision, and any determination following the hearing shall be made jointly with that regulatory agency.

AB150, s. 6797 Section 6797. 553.03 (3) of the statutes is amended to read:

AB150,2209,6 553.03 (3) "Commissioner" " Department" means the commissioner of securities department of financial institutions.

AB150, s. 6798 Section 6798. 553.03 (5m) (a) of the statutes is amended to read:

AB150,2209,10 553.03 (5m) (a) The purchase or agreement to purchase goods at a bona fide wholesale price. The commissioner department may issue rules defining wholesale transactions exempt under this paragraph.

AB150, s. 6799 Section 6799. 553.03 (5m) (d) of the statutes is amended to read:

AB150,2209,13 553.03 (5m) (d) Any other consideration which the commissioner department by rule excludes from "franchise fee".

AB150, s. 6800 Section 6800. 553.03 (9) of the statutes is amended to read:

AB150,2209,17 553.03 (9) "Order" means every direction or determination of the commissioner department designated an order and made in writing over the signature and seal of by the commissioner department, except a rule as defined under s. 227.01 (13).

AB150, s. 6801 Section 6801. 553.22 (1) (intro.) of the statutes is amended to read:

AB150,2209,22 553.22 (1) Exemption. (intro.) A franchisor may obtain an exemption for one year from registering an offer to sell or a sale of a franchise under s. 553.21 if the franchisor satisfies all of the following conditions other than any condition waived by the commissioner department:

AB150, s. 6802 Section 6802. 553.22 (1) (c) of the statutes is amended to read:

AB150,2210,3 553.22 (1) (c) Discloses in writing the information prescribed by rule of the commissioner department to each prospective franchisee at least 10 business days prior to the execution by the prospective franchisee of any binding franchise or other agreement or at least 10 business days prior to the receipt of any consideration, whichever first occurs.

AB150, s. 6803 Section 6803. 553.22 (1) (d) of the statutes is amended to read:

AB150,2210,10 553.22 (1) (d) Files with the commissioner department at least 10 days before any offer or sale of a franchise in this state that relies on the exemption under this subsection a notice consisting of a copy of the information to be distributed to each prospective franchisee under par. (c), together with the consent to service of process as specified in s. 553.27 (10), the fee prescribed by rule of the commissioner department and any additional information required under s. 553.24 (6).

AB150, s. 6804 Section 6804. 553.22 (2) of the statutes is amended to read:

AB150,2210,17 553.22 (2) Effective date. The commissioner department may, by order, disallow the exemption within 10 days after the date on which the information required under sub. (1) is filed or, if additional information is required under s. 553.24 (6), within 10 days after the date on which that information is filed. If the commissioner department does not disallow the exemption within the applicable time period, the exemption takes effect on the day after the time period expires.

AB150, s. 6805 Section 6805. 553.22 (3) (intro.) of the statutes is amended to read:

AB150,2210,24 553.22 (3) Extension. (intro.) The exemption under sub. (1) may be extended for additional one-year periods if the franchisor files all of the following with the commissioner department before the one-year exemption period, or an extension of the exemption period, expires or before a date set by the commissioner department if the commissioner department permits the franchisor to file for an extension after the expiration of the franchisor's previous exemption period:

AB150, s. 6806 Section 6806. 553.22 (3) (a) of the statutes is amended to read:

AB150,2211,5 553.22 (3) (a) A copy of either the franchisor's current offering circular prepared in the form required by rule of the commissioner department under s. 553.27 (4) for offering circulars used in connection with a registered franchise or the franchisor's current disclosure document prepared in the form required by 16 CFR 436.

AB150, s. 6807 Section 6807. 553.22 (3) (d) of the statutes is amended to read:

AB150,2211,7 553.22 (3) (d) The fee prescribed by rule of the commissioner department.

AB150, s. 6808 Section 6808. 553.235 (2) (b) of the statutes is amended to read:

AB150,2211,10 553.235 (2) (b) The commissioner department may, by rule or order, withdraw or further condition the availability of the exemption under sub. (1).

AB150, s. 6809 Section 6809. 553.24 (1) of the statutes is amended to read:

AB150,2211,14 553.24 (1) The commissioner department may by order deny or revoke any exemption under s. 553.22, 553.23, 553.235 or 553.25 with respect to the offer or sale of a franchise for any of the grounds specified in s. 553.28 (1).

AB150, s. 6810 Section 6810. 553.24 (2) of the statutes is amended to read:

AB150,2211,19 553.24 (2) If the public interest and the protection of investors so require, the commissioner department may, by order, summarily deny or revoke any exemption under s. 553.22, 553.23, 553.235 or 553.25 with respect to the offer or sale of a franchise.

AB150, s. 6811 Section 6811. 553.24 (4) (intro.) of the statutes is amended to read:

AB150,2211,23 553.24 (4) (intro.) A person who offers or sells a franchise pursuant to an exemption under s. 553.22, 553.23, 553.235 or 553.25 after the exemption is denied or revoked by an order of the commissioner department does not violate s. 553.21 if:

AB150, s. 6812 Section 6812. 553.24 (6) of the statutes is amended to read:

AB150,2212,8 553.24 (6) Within 10 days after the filing date of the information required under s. 553.22 or an application for an exemption under s. 553.25, the commissioner department may require that additional information be filed if the commissioner department determines that the information is reasonably necessary to establish an exemption under s. 553.22 or 553.25. If the commissioner department requires additional information, the exemption is not effective until 10 days after the additional information is filed with the commissioner department, unless a shorter period is permitted by the commissioner department.

AB150, s. 6813 Section 6813. 553.25 of the statutes is amended to read:

AB150,2212,13 553.25 (title) Exemption by commissioner department. The commissioner department may by rule or order exempt from registration under s. 553.21 any offer or sale of a franchise if registration is not necessary or appropriate in the public interest or for the protection of investors.

AB150, s. 6814 Section 6814. 553.26 (intro.) of the statutes is amended to read:

AB150,2212,17 553.26 Application for registration. (intro.) The application for registration of an offer shall be filed with the commissioner department and shall contain the following:

AB150, s. 6815 Section 6815. 553.26 (4) of the statutes is amended to read:

AB150,2212,21 553.26 (4) Such information concerning the identity and business experience of persons affiliated with the franchisor, as the commissioner department may by rule prescribe.

AB150, s. 6816 Section 6816. 553.26 (7) (intro.) of the statutes is amended to read:

AB150,2212,25 553.26 (7) (intro.) A recent financial statement of the franchisor, together with a statement of any material changes in the financial condition of the franchisor from the date thereof. The commissioner department may by rule or order prescribe:

AB150, s. 6817 Section 6817. 553.26 (18) of the statutes is amended to read:

AB150,2213,3 553.26 (18) A statement of the number of franchises presently operating and proposed to be sold, as may be required by rule of the commissioner department.

AB150, s. 6818 Section 6818. 553.26 (20) of the statutes is amended to read:

AB150,2213,6 553.26 (20) Other information related to the application as the commissioner department may reasonably require.

AB150, s. 6819 Section 6819. 553.27 (2) of the statutes is amended to read:

AB150,2213,17 553.27 (2) If the commissioner department finds that the applicant has failed to demonstrate that adequate financial arrangements have been made to fulfill obligations to provide real estate, improvements, equipment, inventory, training or other items included in the offering, the commissioner department may by rule or order require the escrow of franchise fees and other funds paid by the franchisee or subfranchisor until no later than the time of opening of the franchise business, or, at the option of the franchisor, the furnishing of a surety bond as provided by rule of the commissioner department, if the commissioner department finds that such requirement is necessary and appropriate to protect prospective franchisees or subfranchisors.

AB150, s. 6820 Section 6820. 553.27 (3) of the statutes is amended to read:

AB150,2213,25 553.27 (3) The application for registration shall be accompanied by a proposed offering prospectus, which shall contain the material information set forth in the application for registration, as specified by rule of the commissioner department, and such additional disclosures as the commissioner department may require. The prospectus shall recite in bold type of not less than 10-point type that registration does not constitute approval recommendation or indorsement by the commissioner department.

AB150, s. 6821 Section 6821. 553.27 (4) of the statutes is amended to read:

AB150,2214,7 553.27 (4) No franchise subject to registration under this chapter may be sold in this state unless a copy of the offering circular in the form prescribed by rule of the commissioner department is provided to the prospective franchisee at least 10 business days prior to the execution by the prospective franchisee of any binding franchise or other agreement or at least 10 business days prior to the receipt of any consideration, whichever first occurs.

AB150, s. 6822 Section 6822. 553.27 (6) of the statutes is amended to read:

AB150,2214,16 553.27 (6) The commissioner department may accept and act upon the opinions, appraisals and reports of any engineers, appraisers or other experts which may be presented by an applicant or any interested party, on any question of fact concerning or affecting the franchises proposed to be offered and sold. In lieu of, or in addition to, such opinions, appraisals and reports, the commissioner department may have any or all matters concerning or affecting such franchises investigated, appraised, passed upon and certified to the commissioner department by engineers, appraisers or other experts selected by the commissioner department.

AB150, s. 6823 Section 6823. 553.27 (7) of the statutes is amended to read:

AB150,2214,22 553.27 (7) Any document filed under this chapter or ch. 551 may be incorporated by reference in a subsequent application filed under this chapter if it was filed within 2 years prior to the filing of such application, or is otherwise available in the files of the commissioner department, to the extent that the document is currently accurate.

AB150, s. 6824 Section 6824. 553.27 (8) of the statutes is amended to read:

AB150,2215,3 553.27 (8) The registration statement shall consist of a circular containing those items required by s. 553.26 to be disclosed to investors together with other documents which the commissioner department by rule prescribes.

AB150, s. 6825 Section 6825. 553.27 (9) of the statutes is amended to read:

AB150,2215,13 553.27 (9) Neither the fact that an application for registration under this chapter has been filed, nor the fact that such registration has become effective constitutes a finding by the commissioner department that any document filed under this chapter is true, complete or not misleading. Neither any such fact nor the fact that an exemption is available for a transaction means that the commissioner department has passed in any way upon the merits or qualifications of, or recommended or given approval to, any person, franchise or transaction. No person may make or cause to be made to any prospective purchaser or offeree any representation inconsistent with this subsection.

AB150, s. 6826 Section 6826. 553.27 (10) of the statutes is amended to read:

AB150,2216,6 553.27 (10) Every applicant for registration of an offer to sell franchises under this chapter shall file with the commissioner department, in such form as the commissioner department by rule prescribes, an irrevocable consent appointing the commissioner or the commissioner's successor in office department to be the applicant's attorney to receive service of any lawful process in any civil action against the applicant or the applicant's successor, executor or administrator, which arises under this chapter or any rule or order under this chapter after the consent has been filed, with the same force and validity as if served personally on the person filing the consent. A person who has filed a consent in connection with a previous registration under this chapter need not file another. Service may be made by leaving a copy of the process in the office of the commissioner department but it is not effective unless the plaintiff, who may be the commissioner department in an action instituted by the commissioner department, forthwith sends notice of the service and a copy of the process by registered or certified mail to the defendant or respondent at his or her last address on file with the commissioner department, and the plaintiff's affidavit of compliance with this subsection is filed in the case on or before the return day of the process, if any, or within such further time as the court allows.

AB150, s. 6827 Section 6827. 553.27 (11) (a) of the statutes is amended to read:

AB150,2216,14 553.27 (11) (a) A registrant may withdraw a registration statement, registration renewal statement or an amendment to the registration statement, and an applicant may withdraw an application for registration or an amendment to the application, if the registrant or applicant files with the commissioner department a written request for withdrawal. Except as provided in par. (b), withdrawal is effective at 12 midnight of the day on which the withdrawal request is filed with the commissioner department.

AB150, s. 6828 Section 6828. 553.27 (11) (b) of the statutes is amended to read:

AB150,2216,20 553.27 (11) (b) Withdrawal is effective at the time and upon the conditions set by the commissioner department by order if a proceeding to deny effectiveness to, or to postpone, suspend or revoke effectiveness of, the registration statement is pending when the request for withdrawal is filed or is begun within 30 days after the request for withdrawal is filed.

AB150, s. 6829 Section 6829. 553.28 (1) (intro.) of the statutes is amended to read:

AB150,2216,24 553.28 (1) (intro.) The commissioner department may issue an order denying effectiveness to, or postponing, suspending or revoking effectiveness of, any registration statement if the commissioner department finds any of the following:

AB150, s. 6830 Section 6830. 553.28 (1) (a) of the statutes is amended to read:

AB150,2217,2 553.28 (1) (a) That there has been a failure to comply with this chapter or the rules of the commissioner department pertaining thereto.

AB150, s. 6831 Section 6831. 553.28 (1) (e) of the statutes is amended to read:

AB150,2217,7 553.28 (1) (e) That the applicant or registrant has failed to pay the proper filing fee; but the commissioner department may enter only a denial order under this paragraph and the commissioner department shall vacate any such order when the deficiency has been corrected.

AB150, s. 6832 Section 6832. 553.28 (2) of the statutes is amended to read:

AB150,2217,11 553.28 (2) If the public interest and the protection of investors so require, the commissioner department may by order summarily deny, postpone, suspend or revoke the effectiveness of the registration.

AB150, s. 6833 Section 6833. 553.28 (3) of the statutes is amended to read:

AB150,2217,16 553.28 (3) The commissioner department may vacate or modify an order entered under s. 553.24 or this section if the commissioner department finds that the conditions which prompted its entry have changed or that it is otherwise in the public interest to do so.

AB150, s. 6834 Section 6834. 553.29 (1) (a) of the statutes is amended to read:

AB150,2217,22 553.29 (1) (a) Except as provided in par. (b), if no order under s. 553.24, 553.28 or 553.60 is in effect, registration of the offer of franchises becomes effective at 12 midnight of the 15th business day after the filing of the application for registration or the last amendment thereto, or at such earlier time as the commissioner department determines.

AB150, s. 6835 Section 6835. 553.29 (1) (b) of the statutes is amended to read:

AB150,2218,4 553.29 (1) (b) If the commissioner department requires the submission of additional information under s. 553.26 (20) before the registration of the offer of franchises becomes effective under par. (a) and if no order under s. 553.24, 553.28 or 553.60 is in effect, the registration becomes effective at 12 midnight of the 15th business day after the additional information is filed with the commissioner department, or at such earlier time as the commissioner department determines.

AB150, s. 6836 Section 6836. 553.29 (2) of the statutes is amended to read:

AB150,2218,8 553.29 (2) A franchise offering shall be duly registered for a period of one year from the effective date of the registration, unless the commissioner department by order or rule specifies a different period.

AB150, s. 6837 Section 6837. 553.29 (3) of the statutes is amended to read:

AB150,2218,12 553.29 (3) Registration of franchises shall be by order of the commissioner department, but the failure to issue an order shall not delay the effectiveness of a registration statement meeting the requirements of s. 553.26.

AB150, s. 6838 Section 6838. 553.30 (1) of the statutes is amended to read:

AB150,2218,21 553.30 (1) The registration statement may be renewed for additional periods of one year each, unless the commissioner department by rule or order specifies a different period, by submitting to the commissioner department a registration renewal statement no later than 15 business days prior to the expiration of the registration unless such period is waived by order of the commissioner department. If no order under this chapter is in effect, renewal of the registration statement becomes effective on the day on which the prior registration statement expires or at such earlier time as the commissioner department determines.

AB150, s. 6839 Section 6839. 553.30 (2) of the statutes is amended to read:

AB150,2218,25 553.30 (2) The registration renewal statement shall be in the form and content prescribed by the commissioner department, and shall be accompanied by 2 copies of the proposed offering prospectus.