reglab/housing_qa huggingface dataset:
SD Codified L § 37-5B-23 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-23 - Advertisement.

37-5B-23. Advertisement.No person may publish or cause to be published in this state any advertisement concerning any franchise after the director has found that the advertisement contains any statement that is false or misleading or omits to make any statement necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, and has so notified the person by written order. The director may issue an order without prior notice or hearing.After the issuance of an order, the person desiring to use the advertisement may, in writing, request a hearing on the order. Upon the receipt of the written request, the director shall set a hearing to commence within fifteen days after the receipt of the request unless the person making the request consents to a later date. After the hearing, which shall be conducted in accordance with chapter 1-26, the director shall, by written order, either affirm, modify, or vacate the order.Unless the director requests the filing of an advertisement, there is no requirement to file advertising with the division. Source: SL 2008, ch 203, §23.
SD Codified L § 37-5B-24 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-24 - Fraud--Class 4 felony.

37-5B-24. Fraud--Class 4 felony.No person may, directly or indirectly, employ a device, scheme, or artifice to defraud in connection with the offer or sale of a franchise. A violation of this section is a fraudulent practice and a Class 4 felony. Source: SL 2008, ch 203, §24.
SD Codified L § 37-5B-25 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-25 - Fraud--Class 6 felony.

37-5B-25. Fraud--Class 6 felony.No person may, directly or indirectly, in connection with the offer or sale of a franchise willfully:(1)Make an untrue statement of material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading;(2)Engage in an act, practice, or course of business which operates or would operate as a fraud or deceit on a person;(3)Represent to a prospective franchisee that the notice filing of a franchise application constitutes a finding by the director that a disclosure document filed under this chapter is true, complete, and not misleading or that the director has passed upon the merits of the disclosure document and the franchise;(4)Violate an order of the director after the person receives notice that the order was issued;(5)Misrepresent that a franchise is notice filed or exempted from notice filing under this chapter; and(6)Omit to state a material fact or make or cause to be made an untrue statement of a material fact in any application, notice, or report filed with the director under this chapter.A violation of this section is a Class 6 felony. Source: SL 2008, ch 203, §25.
SD Codified L § 37-5B-26 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-26 - Prohibited practices.

37-5B-26. Prohibited practices.No person may, directly or indirectly, in connection with the offer or sale of a franchise:(1)Make any claim or representation, orally, visually, or in writing, that contradicts the information required to be in the disclosure document;(2)Misrepresent that any person:(a)Purchased a franchise from the franchisor or operated a franchise of the type offered by the franchisor; or(b)Can provide an independent and reliable report about the franchise or the experiences of any current or former franchisees;(3)Disseminate any financial performance representations to prospective franchisees unless the franchisor has a reasonable basis and written substantiation for the representation at the time the representation is made, and the representation is included in the franchisor's disclosure document and the franchise seller:(a)Discloses the dates when the reported level of financial performance was achieved and of those outlets whose data were used in arriving at the representation, and the number and percent that actually attained or surpassed the stated results if the representation relates to the past performance of the franchisor's outlets; and(b)Includes a clear and conspicuous admonition that a new franchisee's individual financial results may differ from the result stated in the financial performance representation;(4)Fail to make available to prospective franchisees, and to the director upon reasonable request, written substantiation for any financial performance representations made in the disclosure document;(5)Fail to furnish a copy of the franchisor's disclosure document to a prospective franchisee earlier in the sales process than required by §37-5B-17, upon reasonable request;(6)Fail to furnish a copy of the franchisor's most recent disclosure document and any quarterly updates to a prospective franchisee, upon reasonable request, before the prospective franchisee signs a franchise agreement;(7)Present for signing a franchise agreement in which the terms and conditions differ materially from those presented as an attachment to the disclosure document, unless the franchise seller informed the prospective franchisee of the differences at least seven days before execution of the franchise agreement;(8)Disclaim or require a prospective franchisee to waive reliance on any representation made in the disclosure document or in its exhibits or amendments. However, this provision is not intended to prevent a prospective franchisee from voluntarily waiving specific contractual terms and conditions set forth in his or her disclosure document during the course of franchise sale negotiations; and(9)Fail to return any funds or deposits in accordance with any conditions disclosed in the franchisor's disclosure document, franchise agreement, or any related document. Source: SL 2008, ch 203, §26.
SD Codified L § 37-5B-27 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-27 - Director approval not permitted.

37-5B-27. Director approval not permitted.The director may not approve or express any opinion on the legality of any matter a franchisor may be required to disclose under this chapter. Source: SL 2008, ch 203, §27.
SD Codified L § 37-5B-28 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-28 - Administration.

37-5B-28. Administration.The director shall administer this chapter. Source: SL 2008, ch 203, §28.
SD Codified L § 37-5B-29 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-29 - Promulgation of rules.

37-5B-29. Promulgation of rules.The director may promulgate rules pursuant to chapter 1-26 to carry out the provisions of this chapter including forms governing disclosure documents, applications, financial statements, and defining any terms, whether or not used in this chapter, if the definitions are not inconsistent with this chapter. For the purpose of rules the director may classify franchises, persons and matters within the director's jurisdiction, and prescribe different requirements for different classes. Source: SL 2008, ch 203, §29.
SD Codified L § 37-5B-30 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-30 - Opinions.

37-5B-30. Opinions.The director may, upon request and upon payment of a fee of fifty dollars, respond to requests for interpretive opinions relating to this chapter. Source: SL 2008, ch 203, §30.
SD Codified L § 37-5B-31 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-31 - Filed documents.

37-5B-31. Filed documents.A document is filed when it is received by the director. Source: SL 2008, ch 203, §31.
SD Codified L § 37-5B-32 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-32 - Records of filings and orders.

37-5B-32. Records of filings and orders.The director shall maintain a record which shows the notice filed franchise and for whom filed, and shall specify the conditions, limitations, and restrictions upon the filing, if any, or shall make proper reference to a formal order of the director on file showing the conditions, limitations, and restrictions. Source: SL 2008, ch 203, §32.
SD Codified L § 37-5B-33 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-33 - Public and nonpublic records.

37-5B-33. Public and nonpublic records.Each application, notice and report filed with the director under this chapter is open to public inspection in accordance with rules prescribed by the director. The director may publish information filed with the director or obtained by the director, if, in the judgment of the director, such action is in the public interest.No record obtained by the director pursuant to §37-5B-35 is open to public inspection. Source: SL 2008, ch 203, §33.
SD Codified L § 37-5B-34 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-34 - Copies of notice filings and orders.

37-5B-34. Copies of notice filings and orders.The director shall upon request furnish copies to any person, at a reasonable charge, certified under the director's seal of office if certification is requested, of any notice filing, application and order on file in the director's office. Any copy so certified is admissible in evidence under chapter 19-4. Source: SL 2008, ch 203, §34.
SD Codified L § 37-5B-35 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-35 - Investigations.

37-5B-35. Investigations.The director may make such public or private investigations within or outside of this state as the director deems necessary to determine if any person has violated or is about to violate any rule, order, or provision under this chapter or to aid in the enforcement of this chapter and in the prescribing of rules and forms under this chapter. The director may publish information concerning the violation of any rule, order, or provision under this chapter. Source: SL 2008, ch 203, §35.
SD Codified L § 37-5B-36 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-36 - Request for information.

37-5B-36. Request for information.The director may make a written request to any person for information concerning any investigation being conducted by the director. Failure to respond fully and completely to such a request within fifteen days after receipt thereof constitutes cause for the issuance of a cease and desist order. Source: SL 2008, ch 203, §36.
SD Codified L § 37-5B-37 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-37 - Subpoena powers.

37-5B-37. Subpoena powers.For the purpose of any investigation or proceeding under this chapter, the director or any person designated by the director may administer oaths and affirmations, subpoena witnesses and compel their attendance, take evidence and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the director deems relevant or material to the inquiry.Any order of the director shall be served by mailing a copy thereof by certified mail to the most recent address of the recipient of the order as it appears in the files of the director. Any subpoena shall be served in the same manner as provided in civil actions in circuit court.No provision of this chapter either creates any privilege or derogates from any privilege which exists at common law or otherwise, if documentary or other evidence is sought under a subpoena directed to the director or any of the director's officers or employees.If any person refuses to obey a subpoena, the circuit court, upon application by the director, may issue an order directing the person to appear before the director, or the officer designated by the director, to produce documentary evidence if so ordered, or to give evidence on the matter under investigation or in question. Failure to obey the order of the court is punishable by the court as a contempt of court. Source: SL 2008, ch 203, §37.
SD Codified L § 37-5B-38 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-38 - Immunity.

37-5B-38. Immunity.No person is excused from attending and testifying or from producing any document or record before the director, in obedience to a subpoena of the director or any person designated by the director in any proceeding instituted by the director, on the grounds that the testimony or evidence required of the director may tend to incriminate the person or subject the person to a penalty or forfeiture. No person may be prosecuted or subjected to any penalty or forfeiture on account of any transaction, matter, or thing concerning which the person is compelled, after claiming the privilege against self-incrimination, to testify or produce evidence. However, the person testifying is not exempt from prosecution and punishment for perjury or contempt committed in testifying. Source: SL 2008, ch 203, §38.
SD Codified L § 37-5B-39 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-39 - Unauthorized use of information--Misdemeanor.

37-5B-39. Unauthorized use of information--Misdemeanor.It is a Class 2 misdemeanor for the director or any of the director's officers or employees to use for personal benefit any information which is filed with or obtained by the director and which is not generally available to the public. Nothing in this chapter authorizes the director or any of the director's officers or employees to disclose any confidential information except among themselves or to other administrators or regulatory authorities or if necessary or appropriate in a proceeding or investigation under this chapter. Source: SL 2008, ch 203, §39.
SD Codified L § 37-5B-40 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-40 - Cooperation with other agencies.

37-5B-40. Cooperation with other agencies.To encourage uniformity in franchise matters among the federal government, self-regulatory organizations, states and foreign governments, the director may cooperate with federal, state or foreign agencies or administrators and law enforcement agencies, including:(1)Conducting joint examinations and investigations;(2)Holding joint administrative hearings;(3)Filing and prosecuting joint civil or administrative proceedings;(4)Sharing and exchanging information and documents;(5)Sharing and exchanging personnel;(6)Formulating statutes, rules, regulations, statements of policy, guidelines, proposed statutory changes and interpretive opinions and releases; and(7)Issuing and enforcing subpoenas at the request of the Federal Trade Commission or an agency administering franchise statutes in another jurisdiction if the information sought would also be subject to lawful subpoena for conduct occurring in this state. Source: SL 2008, ch 203, §40.
SD Codified L § 37-5B-41 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-41 - Cease and desist orders.

37-5B-41. Cease and desist orders.The director, with or without prior notice or hearing, may issue a cease and desist order and may issue an order denying, suspending, or revoking any notice filing, amendment, or exemption if the director finds:(1)That the applicant, or franchisor or any officer, director, agent, or employee thereof or any other person has violated or failed to comply with any provision of this chapter or any rule or order of the director;(2)That the offer, sale, or purchase of the franchise would constitute misrepresentation to, or deceit or fraud upon, purchasers thereof, or has worked or tended to work a fraud upon purchasers or would so operate;(3)That the applicant, or franchisor or any officer, director, agent, or employee thereof or any other person is engaging or is about to engage in false, fraudulent, or deceptive practices in connection with the offer and sale of a franchise;(4)That any person identified in the disclosure document has been convicted of or had a civil judgment entered against him or her for fraud, theft, fraudulent conversion, restraint of trade, unfair or deceptive practices or misappropriation of property, or is subject to an order issued, after notice and opportunity for hearing, by a state or federal regulatory agency and the involvement of the person in the business of the applicant or franchisor creates a substantial risk to prospective franchisees;(5)That the financial condition of the franchisor adversely affects or would adversely affect the ability of the franchisor to fulfill its obligations under the franchise agreement; or(6)That the franchisor's enterprise or method of business includes or would include activities which are illegal where performed. Source: SL 2008, ch 203, §41.
SD Codified L § 37-5B-42 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-42 - Order to show cause.

37-5B-42. Order to show cause.As an alternative to the procedure prescribed in §37-5B-41, the director may issue an order to show cause setting a hearing and requiring an applicant, notice filer, franchisor, or other person to appear and show cause why a cease and desist order should not be issued, or why an order denying, suspending, or revoking a notice filing, amendment, or exemption should not be issued. The order shall give reasonable notice of the time and place for hearing, and shall state the reasons for the entry of the order. The hearing shall be conducted in accordance with chapter 1-26. After the hearing, the director shall enter an order making such disposition of the matter as the facts require. Source: SL 2008, ch 203, §42.
SD Codified L § 37-5B-43 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-43 - Civil penalty.

37-5B-43. Civil penalty.The director may impose a civil penalty against a person named in an order issued pursuant to subdivisions (1) to (3), inclusive, and subdivision 37-5B-41(6). The amount of the civil penalty may not exceed five thousand dollars for each act or omission that constitutes the basis for issuing the order. The civil penalty may only be imposed:(1)Following an opportunity for a hearing pursuant to §37-5B-44 if the notice delivered to all named persons includes notice of the director's authority to impose a civil penalty under this section; or(2)As part of an order issued pursuant to subdivisions (1) to (3), inclusive and subdivision 37-5B-41(6), if the order is stipulated to by each person subject to the civil penalty.Any civil penalty collected pursuant to this section shall be deposited into the state general fund. Source: SL 2008, ch 203, §43.
SD Codified L § 37-5B-44 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-44 - Order or request for hearing.

37-5B-44. Order or request for hearing.Upon the entry of an order pursuant to §37-5B-41 without a hearing, the director of the Division of Insurance shall promptly serve a copy of the order upon the subject applicant, franchisor, or other person. The order shall state the reasons for its issuance and shall either order a hearing, which shall be set for no later than twenty days from the date of the order, or specify that upon the written request of the applicant, franchisor, or other person, the matter will be set for hearing within fifteen days after receipt of the request. With the consent of the applicant, franchisor, or other person a hearing may be held subsequent to the expiration of either period specified in this section. On all orders of the director which do not fix the date for hearing, the interested person may within thirty days demand a hearing on the order. Source: SL 2008, ch 203, §44; SL 2017, ch 231 (Ex. Ord. 17-2), §19, eff. Apr. 13, 2017.
SD Codified L § 37-5B-45 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-45 - Effect of order without hearing.

37-5B-45. Effect of order without hearing.If no hearing is requested and none is ordered by the director, an order entered pursuant to §37-5B-41 without a hearing shall remain in effect until it is modified or vacated by the director. Source: SL 2008, ch 203, §45.
SD Codified L § 37-5B-46 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-46 - Affirmance, modification, or vacation of order.

37-5B-46. Affirmance, modification, or vacation of order.If a hearing is requested or ordered, the director, after notice and hearing held in accordance with chapter 1-26 shall affirm, modify, or vacate the order. Source: SL 2008, ch 203, §46.
SD Codified L § 37-5B-47 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-47 - Civil action by attorney general.

37-5B-47. Civil action by attorney general.If the director has reasonable cause to believe that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this chapter or any rule or order thereunder, the director may, in addition to all other remedies, through the attorney general, with such assistance as the attorney general may request of the state's attorneys in the several counties, institute a civil action pursuant to §37-5B-49. Source: SL 2008, ch 203, §47.
SD Codified L § 37-5B-48 (2021)
2021 South Dakota Codified Laws|Title 37 - Trade Regulation|Chapter 05B - Franchise Investment|Section 37-5B-48 - Injunctive relief.

37-5B-48. Injunctive relief.In addition to all other penalties and remedies provided by this chapter, whether administrative or judicial in nature, the courts of this state have jurisdiction to grant such temporary or permanent injunctive relief as is necessary to prevent and restrain violations of this chapter, and may upon a proper showing appoint a receiver for the property, assets, business, and affairs of a franchisor. Source: SL 2008, ch 203, §48.