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Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

11

                                                        NO:
0

MR. SPEAKER:
    Your Committee on       Insurance, Corporations and Small Business     , to which was referred       Senate Bill 405     , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:

SOURCE: Page 1, line 1; (01)AM040503.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 23-2-2.5-7; (01)AM040503.1. -->     "SECTION 1. IC 23-2-2.5-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 7. (a) Upon the entry of a stop order under section 6 of this chapter, the commissioner shall notify the applicant franchisor:
        (1)
of that the entry and of the stop order;
        (2) of the
reasons therefor for the stop order; and
         (3) that, upon receipt of a written request, the matter will be set down for hearing to commence within fifteen (15) days after receipt of such request, unless the applicant franchisor consents to a later date.
     (b) If no hearing is requested or none is ordered by the commissioner, the stop order is effective until it is modified or vacated

by the commissioner.
     (c) If a hearing is requested or ordered, the commissioner, after notice and hearing, may modify or vacate the stop order.".

SOURCE: Page 2, line 14; (01)AM040503.2. -->     Page 2, between lines 14 and 15, begin a new paragraph and insert:
SOURCE: IC 23-2-2.5-11; (01)AM040503.3. -->     "SECTION 3. IC 23-2-2.5-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 11. Applications for Registration notification forms, registration renewal statements, forms, and amendments thereto, shall be signed and verified by the franchisor.
SOURCE: IC 23-2-2.5-12; (01)AM040503.4. -->     SECTION 4. IC 23-2-2.5-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 12. If the commissioner finds that:
         (1) the applicant franchisor 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; and
        (2) the escrow or impoundment of franchise fees is necessary and appropriate to protect prospective franchisees;

the commissioner may by rule or order require the escrow or impoundment of franchise fees and other funds paid by the franchisee until no later than the time of opening of the business of the franchisee. if he finds that such requirement is necessary and appropriate to protect prospective franchisees.".
SOURCE: Page 2, line 17; (01)AM040503.2. -->     Page 2, line 17, delete "by".
    Page 2, line 17, after "notification" insert " form filed".
    Page 3, line 1, strike "that".
    Page 3, line 1, strike "applicant".
    Page 3, line 1, after "applicant" insert " franchisor".
    Page 3, line 2, delete ";" and insert " of this chapter;".
    Page 3, line 3, strike "that".
    Page 3, line 9, delete "its" and insert " the franchisor's".
    Page 3, line 15, delete "application or".
    Page 3, line 15, delete "by notification".
    Page 3, line 29, delete "application or".
    Page 3, line 29, delete "by notification".
    Page 3, line 35, delete "application or".
    Page 3, line 35, delete "by notification".
    Page 4, between lines 7 and 8, begin a new paragraph and insert:
SOURCE: IC 23-2-2.5-15; (01)AM040503.7. -->     "SECTION 7. IC 23-2-2.5-15 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 15. (a) Upon the entry of a stop order under section 14 of this chapter, the commissioner shall notify the applicant franchisor:
        (1)
of that the entry and of the stop order;
        (2) of the
reasons therefor for the stop order; and
         (3) that, upon receipt of a written request, the matter will be set down for hearing to commence within fifteen (15) days after receipt of such request, unless the applicant franchisor consents to a later date.
     (b) If no hearing is requested or none is ordered by the commissioner, the stop order is effective until it is modified or vacated by the commissioner.
     (c) If a hearing is requested or ordered, the commissioner, after notice and hearing, may modify or vacate the stop order.".

SOURCE: Page 4, line 10; (01)AM040503.4. -->     Page 4, line 10, after "14" insert " of this chapter".
    Page 4, line 14, delete "notification." and insert " notification form.".
    Page 4, line 18, strike "an" and insert " a".
    Page 4, line 19, strike "application for" and insert " registration".
    Page 4, line 19, strike "of the registration" and insert " form".
    Page 4, line 22, after "14" insert " of this chapter".
    Page 4, line 27, strike "The".
    Page 4, line 28, strike "renewal of a" and insert " A".
    Page 4, line 28, after "registration" insert " renewal form".
    Page 4, line 28, after "and" insert " contain the".
    Page 4, line 31, strike "application" and insert " form".
    Page 4, between lines 32 and 33, begin a new paragraph and insert:
SOURCE: IC 23-2-2.5-22; (01)AM040503.11. -->     "SECTION 11. IC 23-2-2.5-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 22. The commissioner may accept and act upon the opinions, appraisals, or reports of any experts which may be presented by an applicant a franchisor or any interested party, on any question of fact concerning the franchises proposed to be offered or sold. The commissioner may also have any or all matters concerning those franchises investigated, appraised, passed upon or certified to him the commissioner by any experts

selected by him, the commissioner, at the expense of the applicant. franchisor.".

SOURCE: Page 4, line 35; (01)AM040503.4. -->     Page 4, line 35, strike "an application for" and insert " a".
    Page 4, line 35, after "chapter" insert " renewal form".
    Page 4, line 36, after "or" insert " a".
    Page 4, line 36, delete "by".
    Page 4, line 36, after "notification" insert " form".
    Page 5, line 8, strike "Every applicant for".
    Page 5, line 9, strike "registration of an" and insert " Before a person may".
    Page 5, line 9, after "chapter" insert ", the person".
    Page 5, line 12, strike "applicant's" and insert " person's".
    Page 5, line 14, strike "applicant" and insert " person".
    Page 5, line 14, strike "applicant's" and insert " person's".
    Page 5, line 33, after "a" insert " form for".
    Page 5, line 36, strike "renewal of".
    Page 5, line 36, delete "by" and insert " renewal form".
    Page 5, line 37, delete "notification".
    Page 5, line 39, delete "proposed registration by notification" and insert " registration notification form or registration renewal form".
    Page 6, between lines 1 and 2, begin a new paragraph and insert:
SOURCE: IC 23-2-2.5-48; (01)AM040503.15. -->     "SECTION 15. IC 23-2-2.5-48 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 48. (a) All applications, registration notification forms, registration renewal forms, applications to amend registrations, reports, and other papers and documents filed with the commissioner under this chapter shall be open to public inspection. The commissioner may in his discretion, publish any information filed with him or obtained by him. the commissioner. No provision of this chapter authorizes the commissioner or any of his the commissioner's assistants, clerks, or deputies to disclose any information withheld from public inspection except among themselves or when necessary or appropriate in a proceeding or investigation under this chapter or to other federal or state regulatory agencies. No provision of this chapter either creates or derogates from any privilege which exists at common law or otherwise when documentary or other evidence is sought under a subpoena directed to the commissioner or any of his the commissioner's assistants, clerks, or deputies.
    (a) (b) It is unlawful for the commissioner or any of his the commissioner's assistants, clerks, or deputies to use for personal benefit any information which is filed with or obtained by the commissioner and which is not then generally available to the public.
    (b) (c) Upon request, and at such reasonable charges as he the commissioner prescribes by rule, the commissioner shall furnish to any person photostatic or other copies (certified by him the commissioner if certification is requested) of any document which is retained as a matter of public record, except that he the commissioner shall not charge or collect any fee for photostatic or other copies of any document furnished to public officers for use in their official capacity.
    (c) (d) The commissioner may destroy any registration applications, notification forms, together with the files and folders, as useless or obsolete, four (4) years after the date of registration; provided that a permanent record shall be maintained of any disciplinary action taken by the commissioner and of all orders issued under this chapter.
    (d) (e) Copies on microfilm or in other form which may be retained by the commissioner in his discretion of any records destroyed under this section shall be accepted for all purposes as equivalent to the original when certified by the commissioner.".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 405 as printed February 9, 2001.)

and when so amended that said bill do pass.

__________________________________

Representative Crooks


AM040503/DI 97    2001