AB150,2217,2218 553.29 (1) (a) Except as provided in par. (b), if no order under s. 553.24, 553.28
19or 553.60 is in effect, registration of the offer of franchises becomes effective at 12
20midnight of the 15th business day after the filing of the application for registration
21or the last amendment thereto, or at such earlier time as the commissioner
22department determines.
AB150, s. 6835 23Section 6835. 553.29 (1) (b) of the statutes is amended to read:
AB150,2218,424 553.29 (1) (b) If the commissioner department requires the submission of
25additional information under s. 553.26 (20) before the registration of the offer of

1franchises becomes effective under par. (a) and if no order under s. 553.24, 553.28 or
2553.60 is in effect, the registration becomes effective at 12 midnight of the 15th
3business day after the additional information is filed with the commissioner
4department, or at such earlier time as the commissioner department determines.
AB150, s. 6836 5Section 6836. 553.29 (2) of the statutes is amended to read:
AB150,2218,86 553.29 (2) A franchise offering shall be duly registered for a period of one year
7from the effective date of the registration, unless the commissioner department by
8order or rule specifies a different period.
AB150, s. 6837 9Section 6837. 553.29 (3) of the statutes is amended to read:
AB150,2218,1210 553.29 (3) Registration of franchises shall be by order of the commissioner
11department, but the failure to issue an order shall not delay the effectiveness of a
12registration statement meeting the requirements of s. 553.26.
AB150, s. 6838 13Section 6838. 553.30 (1) of the statutes is amended to read:
AB150,2218,2114 553.30 (1) The registration statement may be renewed for additional periods
15of one year each, unless the commissioner department by rule or order specifies a
16different period, by submitting to the commissioner department a registration
17renewal statement no later than 15 business days prior to the expiration of the
18registration unless such period is waived by order of the commissioner department.
19If no order under this chapter is in effect, renewal of the registration statement
20becomes effective on the day on which the prior registration statement expires or at
21such earlier time as the commissioner department determines.
AB150, s. 6839 22Section 6839. 553.30 (2) of the statutes is amended to read:
AB150,2218,2523 553.30 (2) The registration renewal statement shall be in the form and content
24prescribed by the commissioner department, and shall be accompanied by 2 copies
25of the proposed offering prospectus.
AB150, s. 6840
1Section 6840. 553.31 (1) of the statutes is amended to read:
AB150,2219,92 553.31 (1) Except as provided in sub. (3), a franchisor shall within 30 days after
3the happening of any material event affecting a registered franchise notify the
4commissioner department in writing, by an application to amend the registration
5statement, of any material change in the information contained in the application
6as originally submitted, amended or renewed. The commissioner department may
7by rule further define what shall be considered a material change for such purposes,
8and the circumstances under which a revised offering prospectus must accompany
9such application.
AB150, s. 6841 10Section 6841. 553.31 (2) of the statutes is amended to read:
AB150,2219,1411 553.31 (2) An amendment to an application filed after the effective date of the
12registration of the sale of franchises, if the amendment is approved by the
13commissioner department, is effective on the date the commissioner department
14determines, having due regard for the public interest or the protection of franchisees.
AB150, s. 6842 15Section 6842. 553.41 (1) of the statutes is amended to read:
AB150,2219,2216 553.41 (1) No person may make or cause to be made, in any document filed with
17the commissioner department or in any proceeding under this chapter, any
18statement which is, at the time and in the light of the circumstances under which it
19is made, false or misleading in any material respect or, in connection with any
20statement required to be made under s. 553.31 (1), omit to state a material fact
21necessary in order to make the statement made, in the light of the circumstances
22under which they are made, not misleading.
AB150, s. 6843 23Section 6843. 553.41 (2) of the statutes is amended to read:
AB150,2219,2524 553.41 (2) No person may violate any order of the commissioner department
25or condition therein of which the person has notice.
AB150, s. 6844
1Section 6844. 553.41 (5) of the statutes is amended to read:
AB150,2220,92 553.41 (5) No person may wilfully represent to any prospective purchaser or
3seller of a franchise in this state that the filing of a franchise registration application
4or the registration of a franchise constitutes a finding by the commissioner
5department that any document filed under this chapter is true, complete, and not
6misleading, or in relation to an exemption or exception, that the commissioner
7department has passed in any way upon the merits of any franchise or wilfully
8represent in a similar manner that a franchise is registered or exempted when in
9fact, such is not the case.
AB150, s. 6845 10Section 6845. 553.51 (4) of the statutes is amended to read:
AB150,2220,1611 553.51 (4) No action may be maintained to enforce any liability under this
12section unless brought before the expiration of 3 years after the act or transaction
13constituting the violation upon which the liability is based or 90 days after delivery
14to the franchisee of a written notice disclosing any violation of s. 553.21 or 553.41,
15which notice shall be approved as to form by the commissioner department,
16whichever first expires.
AB150, s. 6846 17Section 6846. 553.53 (1) of the statutes is amended to read:
AB150,2220,2418 553.53 (1) No person may publish, distribute or use in this state any
19advertisement offering to sell or to purchase a franchise unless 2 true copies of the
20advertisement have been filed in the office of the commissioner with the department
21at least 5 days prior to the first publication, distribution or use thereof or such shorter
22period as the commissioner department by rule or order may allow, or unless the
23advertisement has been exempted from this section by rule of the commissioner
24department.
AB150, s. 6847 25Section 6847. 553.53 (2) of the statutes is amended to read:
AB150,2221,2
1553.53 (2) The commissioner department may by rule or order prohibit the use
2of advertising deemed false, fraudulent, misleading or deceptive.
AB150, s. 6848 3Section 6848. 553.54 (1) of the statutes is amended to read:
AB150,2221,114 553.54 (1) The department of justice or any district attorney, upon informing
5the department of justice, may commence an action in circuit court in the name of
6the state to restrain by temporary or permanent injunction any act or practice
7constituting a violation of this chapter or any rule or order hereunder. The
8commissioner department of financial institutions may refer such evidence as is
9available concerning any violation to the district attorney of the county in which the
10violation occurred or to the attorney general who may institute proceedings under
11this section.
AB150, s. 6849 12Section 6849. 553.54 (3) of the statutes is amended to read:
AB150,2221,2013 553.54 (3) The department of justice may subpoena persons, administer oaths,
14take testimony, require the production of books and other documents and may
15request the commissioner department of financial institutions to exercise the
16commissioner's department's authority under s. 553.55 to aid in the investigation of
17alleged violations of this chapter. If a person fails to obey any subpoena issued by
18the department of justice, that person may be coerced under s. 885.12, except that
19no person shall be required to furnish any testimony or evidence under this
20subsection which might tend to incriminate that person.
AB150, s. 6850 21Section 6850. 553.54 (4) of the statutes is amended to read:
AB150,2222,622 553.54 (4) In lieu of instituting or continuing an action pursuant to this section,
23the commissioner department of financial institutions or the department of justice
24may accept a written assurance of discontinuance of any act or practice alleged to be
25a violation of this chapter from the person who has engaged in such act or practice.

1The acceptance of such assurance by either the commissioner department of
2financial institutions
or the department of justice shall be deemed acceptance by
3other state officials if the terms of the assurance so provide. An assurance entered
4into pursuant to this subsection shall not be considered evidence of a violation of this
5chapter, however, a violation of such an assurance constitutes a violation of this
6chapter and shall be subject to all penalties and remedies provided therefor.
AB150, s. 6851 7Section 6851. 553.55 (1) of the statutes is amended to read:
AB150,2222,138 553.55 (1) The commissioner department may make such public or private
9investigations within or outside of this state as the commissioner department deems
10necessary to determine whether any person has violated or is about to violate this
11chapter or any rule or order hereunder or to aid in the enforcement of this chapter
12or in the prescribing of rules and forms hereunder, and publish information
13concerning the violation of this chapter or any rule or order hereunder.
AB150, s. 6852 14Section 6852. 553.55 (2) of the statutes is amended to read:
AB150,2222,2115 553.55 (2) For the purpose of any investigation or proceeding under this
16chapter, the commissioner department or any officer designated by the commissioner
17department may administer oaths and affirmations, subpoena witnesses, compel
18their attendance, take evidence and require the production of any books, papers,
19correspondence, memoranda, agreements or other documents or records which the
20commissioner department deems relevant or material to the inquiry. Failure to obey
21a subpoena or give evidence may be dealt with under s. 885.12.
AB150, s. 6853 22Section 6853. 553.55 (3) (a) of the statutes is amended to read:
AB150,2223,823 553.55 (3) (a) No person is excused from attending and testifying or from
24producing any document or record before the commissioner department, or in
25obedience to the subpoena of the commissioner department or any officer designated

1by the commissioner department, or in any proceeding instituted by the
2commissioner department, on the ground that the testimony or evidence required of
3the person may tend to incriminate the person or subject the person to a penalty or
4forfeiture. No individual may be prosecuted or subjected to any penalty or forfeiture
5for or on account of his or her testimony or evidence, after claiming his or her
6privilege against self-incrimination, except that the individual testifying is not
7exempt from prosecution and punishment for perjury or contempt committed in
8testifying.
AB150, s. 6854 9Section 6854. 553.56 (1) of the statutes is amended to read:
AB150,2223,1310 553.56 (1) Except as provided by sub. (2), no order may be entered by the
11commissioner department under s. 553.24, 553.28 or 553.53 (2) without appropriate
12prior notice to all interested parties, opportunity for hearing and written findings of
13fact and conclusions of law.
AB150, s. 6855 14Section 6855. 553.56 (2) of the statutes is amended to read:
AB150,2223,2315 553.56 (2) Within 30 days after the commissioner department has issued an
16order summarily, an interested party may apply to the commissioner department for
17a hearing in respect to any matters determined by the order. Within 10 days after
18an interested party files a written request with the commissioner department for a
19hearing the matter shall be noticed for a hearing, and a hearing shall be held within
2060 days after notice unless extended by the commissioner department for good cause.
21During the pendency of any hearing requested under this subsection, the order
22issued summarily shall remain in effect unless vacated or modified by the
23commissioner department.
AB150, s. 6856 24Section 6856. 553.56 (3) of the statutes is amended to read:
AB150,2224,6
1553.56 (3) After a hearing, the commissioner department may issue a final
2order as appropriate. The final order may affirm, vacate or modify an order issued
3summarily in effect during the pendency of the hearing as appropriate, or may
4include such other sanctions as are provided for under s. 553.24 or 553.28. An order
5issued summarily against a party becomes a final order if the party fails to request
6a hearing under sub. (2) or if the party defaults after requesting a hearing.
AB150, s. 6857 7Section 6857. 553.56 (5) of the statutes is amended to read:
AB150,2224,118 553.56 (5) Orders and other official acts of the commissioner department are
9subject to judicial review under ch. 227 but orders originally entered without a
10hearing under s. 553.24, 553.28 or 553.60 may be reviewed only if the party seeking
11review has requested a hearing within the time provided by sub. (2).
AB150, s. 6858 12Section 6858. 553.57 of the statutes is amended to read:
AB150,2224,17 13553.57 Enforcement of criminal penalties. The commissioner department
14may refer such evidence as is available concerning any violation of this chapter or
15of any rule or order hereunder to the district attorney of the county in which the
16violation occurred, or to the attorney general, who may, with or without any
17reference, institute the appropriate criminal proceedings under this chapter.
AB150, s. 6859 18Section 6859. 553.58 (1) of the statutes is amended to read:
AB150,2225,619 553.58 (1) The commissioner department may make, amend and rescind any
20rules, forms and orders that are necessary to carry out this chapter, including rules
21and forms governing registration statements, applications and reports, defining any
22terms, whether or not used in this chapter, insofar as the definitions are not
23inconsistent with this chapter. The commissioner department may define by rule
24false, fraudulent or deceptive practices in the offer and sale of franchises. The
25commissioner department may also adopt rules with regard to advertising utilized

1in connection with exempt sales under s. 553.22, 553.23 or 553.235 and which need
2not be filed under s. 553.53. For the purpose of rules and forms, the commissioner
3department may classify franchises, persons and matters within the commissioner's
4department's jurisdiction, and prescribe different requirements for different classes.
5Rules shall be made and published and all administrative procedures, including
6hearings under s. 553.56 and issuance of orders, shall be in accordance with ch. 227.
AB150, s. 6860 7Section 6860. 553.58 (2) of the statutes is amended to read:
AB150,2225,118 553.58 (2) No rule, form or order may be made, amended or rescinded unless
9the commissioner department finds that the action is necessary or appropriate in the
10public interest or for the protection of investors. In adopting rules and forms the
11commissioner department may cooperate with official administrators of other states.
AB150, s. 6861 12Section 6861. 553.58 (3) of the statutes is amended to read:
AB150,2225,1913 553.58 (3) The commissioner department may by rule or order prescribe the
14form and content of financial statements required under this chapter, the
15circumstances under which consolidated financial statements shall be filed, and
16whether any required financial statements shall be certified by independent or
17certified public accountants. All financial statements shall be prepared in
18accordance with generally accepted accounting practices unless otherwise permitted
19by rule or order.
AB150, s. 6862 20Section 6862. 553.58 (4) of the statutes is amended to read:
AB150,2225,2421 553.58 (4) No provision of this chapter imposing any liability applies to any act
22done or omitted in good faith in conformity with any rule, form or order of the
23commissioner department, notwithstanding that the rule, form or order may later
24be amended or rescinded or be determined to be invalid for any reason.
AB150, s. 6863 25Section 6863. 553.58 (5) of the statutes is amended to read:
AB150,2226,6
1553.58 (5) All orders shall take effect when made and filed or at such later time
2as the commissioner department prescribes, and the commissioner department
3shall, upon making and filing such order, forthwith deliver personally or by mail a
4copy thereof to every person to whom such order relates at the person's last-known
5address as it appears on the records of the office of the commissioner department and
6that delivery shall constitute notice thereof.
AB150, s. 6864 7Section 6864. 553.60 of the statutes is amended to read:
AB150,2226,12 8553.60 (title) Miscellaneous powers of the commissioner. The
9commissioner department may by order summarily prohibit offers or sales of a
10franchise subject to s. 553.21 (1) which are being or have been made in this state,
11unless the offer or sale of the franchise is registered or exempted from registration
12under this chapter.
AB150, s. 6865 13Section 6865. 553.605 (1) (a) (intro.) of the statutes is amended to read:
AB150,2226,1814 553.605 (1) (a) (intro.) The commissioner department or any officer designated
15by the commissioner department may impose an administrative assessment in the
16amount provided in par. (b) on any person who is subject to an order that is issued
17under s. 553.24, 553.28, 553.53, 553.58 (1) and (2) or 553.60 in any of the following
18circumstances:
AB150, s. 6866 19Section 6866. 553.605 (1) (a) 1. of the statutes is amended to read:
AB150,2226,2220 553.605 (1) (a) 1. Following a hearing under s. 553.56 if the notice delivered to
21all interested parties includes notice of the commissioner's department's authority
22to impose an administrative assessment under this subsection.
AB150, s. 6867 23Section 6867. 553.605 (1) (c) of the statutes is amended to read:
AB150,2227,3
1553.605 (1) (c) The commissioner department shall include any administrative
2assessment imposed under this subsection in the order issued under any of the
3sections referred to in par. (a) in the manner described in par. (a) 1. or 2.
AB150, s. 6868 4Section 6868. 553.605 (1) (d) of the statutes is amended to read:
AB150,2227,85 553.605 (1) (d) Upon the request of the commissioner department of financial
6institutions
, the department of justice may bring a civil action in the circuit court for
7Dane county to compel payment of any unpaid administrative assessment, unless
8payment of the administrative assessment is stayed under s. 227.54.
AB150, s. 6869 9Section 6869. 553.605 (2) of the statutes is amended to read:
AB150,2227,1810 553.605 (2) Investor education. All moneys collected from the administrative
11assessment under sub. (1) shall be credited to the appropriation under s. 20.185 (1)
12(h)
20.144 (1) (i). Subject to s. 20.185 (1) (h) 20.144 (1) (i), the commissioner
13department shall use moneys credited to that appropriation to provide information
14to residents of this state about franchise investments to help investors and potential
15investors evaluate their investment decisions, protect themselves from false,
16fraudulent or deceptive practices in connection with the offer, sale or purchase of a
17franchise, be alert for false or misleading advertising or other harmful practices, and
18know their rights as investors.
AB150, s. 6870 19Section 6870. 553.71 (1) of the statutes is amended to read:
AB150,2227,2220 553.71 (1) This chapter shall be administered by the commissioner of securities
21department of financial institutions and by the department of justice when
22exercising its authority under s. 553.54.
AB150, s. 6871 23Section 6871. 553.71 (2) of the statutes is amended to read:
AB150,2228,1024 553.71 (2) It is unlawful for the commissioner department or any of the
25commissioner's department's officers or employes to use for personal benefit any

1information which is filed with or obtained by the commissioner department and
2which is not generally available to the public. Nothing in this chapter authorizes the
3commissioner department or any of the commissioner's department's officers or
4employes to disclose any confidential information except among themselves or to
5other securities administrators or regulatory authorities or when necessary or
6appropriate in a proceeding or investigation under this chapter. No provision of this
7chapter either creates or derogates from any privilege which exists at common law
8or otherwise when documentary or other evidence is sought under a subpoena
9directed to the commissioner department or any of the commissioner's department's
10officers or employes.
AB150, s. 6872 11Section 6872. 553.72 (intro.) of the statutes is amended to read:
AB150,2228,13 12553.72 Fees and expenses. (intro.) The commissioner department shall
13charge and collect the fees fixed by this section.
AB150, s. 6873 14Section 6873. 553.72 (2) of the statutes is amended to read:
AB150,2228,1815 553.72 (2) The commissioner department may by rule require the payment of
16prescribed fees for delinquent or materially deficient filings of information or
17documents required to be filed with the commissioner department under this
18chapter.
AB150, s. 6874 19Section 6874. 553.72 (3) of the statutes is amended to read:
AB150,2228,2320 553.72 (3) The expenses reasonably attributable to the examination of any
21matter arising under this chapter shall be charged to the applicant or registrant
22involved, but the expenses so charged shall not exceed such maximum amounts as
23the commissioner department by rule prescribes.
AB150, s. 6875 24Section 6875. 553.73 of the statutes is amended to read:
AB150,2229,19
1553.73 Service of process. When any person, including any nonresident of
2this state, engages in conduct prohibited or made actionable by this chapter or any
3rule or order under this chapter, whether or not the person has filed a consent to
4service of process under s. 553.27 (10), and personal jurisdiction over the person
5cannot otherwise be obtained in this state, that conduct shall be considered
6equivalent to the person's appointment of the commissioner or the commissioner's
7successor in office
department to be the person's attorney to receive service of any
8lawful process in any noncriminal suit, action or proceeding against the person or the
9person's successor, executor or administrator which grows out of that conduct and
10which is brought under this law or any rule or order under this chapter, with the
11same force and validity as if served on the person personally. Service may be made
12by leaving a copy of the process in at the office of the commissioner department, but
13it is not effective unless the plaintiff, who may be the commissioner department in
14a suit, action or proceeding instituted by the commissioner department, forthwith
15sends notice of the service and a copy of the process by registered or certified mail to
16the defendant or respondent at his or her last-known address or takes other steps
17which are reasonably calculated to give actual notice, and the plaintiff's affidavit of
18compliance with this section is filed in the case on or before the return day of the
19process, if any, or within such further time as the court allows.
AB150, s. 6876 20Section 6876. 553.74 (1) of the statutes is amended to read:
AB150,2230,921 553.74 (1) All applications, reports and other papers and documents filed with
22the commissioner department under this chapter shall be open to public inspection
23in accordance with rules adopted by the commissioner department. The
24commissioner department may publish any information filed with or obtained by the
25commissioner department, if, in the judgment of the commissioner department, such

1action is in the public interest. No provision of this chapter authorizes the
2commissioner department or any of the commissioner's assistants, clerks or deputies
3department's employes to disclose any information withheld from public inspection
4except among themselves or when necessary or appropriate in a proceeding or
5investigation under this chapter or to other federal or state regulatory agencies. No
6provision of this chapter either creates or derogates from any privilege which exists
7at common law or otherwise when documentary or other evidence is sought under
8a subpoena directed to the commissioner department or any of the commissioner's
9assistants, clerks or deputies
department's employes.
AB150, s. 6877 10Section 6877. 553.74 (2) of the statutes is amended to read:
AB150,2230,1411 553.74 (2) It is unlawful for the commissioner department or any of the
12commissioner's assistants, clerks or deputies or department's employes to use for
13personal benefit any information which is filed with or obtained by the commissioner
14department and which is not then generally available to the public.
AB150, s. 6878 15Section 6878. 553.75 (1) of the statutes is amended to read:
AB150,2230,1716 553.75 (1) A document is filed when it is received by the commissioner
17department.
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