reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.16 - Motions-Generally

Current through Register Vol. 51, No. 14, July 12, 2024
A. Form and Content. Unless otherwise permitted by these regulations or by the Commissioner, motions shall:
(1) Be made in writing, unless otherwise permitted by the Commissioner during the course of a hearing; and
(2) State concisely the question to be determined and be accompanied by any necessary supporting documentation.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.17 - Motions for Summary Decision

Current through Register Vol. 51, No. 14, July 12, 2024
A. Time for Filing. A party may move at any time for summary decision as to any substantive issue in the case.
B. Standard. The Commissioner may issue a summary decision if the Commissioner finds that there is no genuine issue as to any material fact, and that the moving party is entitled to prevail as a matter of law.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.18 - Conduct of Hearings

Current through Register Vol. 51, No. 14, July 12, 2024
A. Presiding Officer. The Commissioner shall preside at all hearings unless the Commissioner has delegated authority to conduct a hearing to the Office of Administrative Hearings or other hearing officer designated in accordance with State Government Article, §
									10-205(a), Annotated Code of Maryland.
B. Order of Proceedings.
(1) The Commissioner shall call the hearing to order.
(2) The Commissioner shall explain briefly the purpose and nature of the hearing.
(3) The Commissioner may allow the parties to present preliminary matters.
(4) The parties may make opening statements.
(5) The Commissioner shall state the order of presentation of evidence.
(6) Witnesses shall be sworn or put under affirmation to tell the truth.
(7) The parties may present closing summations and argument.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.19 - Submission of Case on Documentary Record

Current through Register Vol. 51, No. 14, July 12, 2024
The Commissioner may elect not to hold a hearing if all parties agree to submit the case on the documentary record and waive their right to appear.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.20 - Evidence

Current through Register Vol. 51, No. 14, July 12, 2024
A. Standards of Admissibility. Evidence shall be admitted in accordance with State Government Article, §
									10-213, Annotated Code of Maryland.
B. Relevance. The Commissioner may admit evidence that reasonable and prudent individuals commonly accept in the conduct of their affairs, and give probative effect to that evidence.
C. Exclusion of Evidence. The Commissioner may exclude evidence that is incompetent, irrelevant, immaterial, or unduly repetitious.
D. Hearsay. Evidence may not be excluded solely on the ground that it is hearsay.
E. Stipulations. Parties may, by stipulation, agree on any facts relevant to the proceedings. The facts stipulated shall be considered proven for purposes of the proceedings.
F. Official Notice.
(1) The Commissioner may take official notice of a fact that is judicially noticeable or that is within the specialized knowledge of the Division.
(2) Before taking official notice of a fact, the Commissioner shall:
(a) Notify each party before or during the hearing; and
(b) Give each party an opportunity to contest the fact.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.21 - Examination of Witnesses

Current through Register Vol. 51, No. 14, July 12, 2024
A. Oath. Witnesses shall testify under oath or affirmation.
B. Rules of Evidence. A party may conduct direct examination or cross-examination without strict adherence to formal rules of evidence in order to obtain a full and fair disclosure of facts relevant to matters in issue.
C. Hostile Witnesses. If the Commissioner determines that a witness is hostile or unresponsive, the Commissioner may authorize the party calling the witness to proceed as if the witness were under cross-examination.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.22 - Sequestration of Witnesses

Current through Register Vol. 51, No. 14, July 12, 2024
A. Request for Sequestration. Upon request by any party, the Commissioner may exclude witnesses other than parties from the hearing room when those witnesses are not testifying.
B. Representative of Party. A party that is not a natural person may designate an individual as its representative to remain in the hearing room, even though the individual may also be a witness.
C. Experts. An expert witness who is to render an opinion based upon the testimony given at the hearing may remain in the hearing room during the testimony.
D. Prohibition of Disclosure. The Commissioner may order the witnesses, parties, their counsel, and any person under their direction not to disclose to any sequestered witness the substance of the testimony, exhibits, or other evidence introduced during the witness' absence.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.23 - Ex Parte Communications

Current through Register Vol. 51, No. 14, July 12, 2024
A. General Prohibition. Except as provided in §B of this regulation, while a contested case is pending, the Commissioner may not communicate ex parte regarding the merits of any issue in the case with:
(1) A respondent;
(2) A representative or attorney for a respondent;
(3) Division staff or counsel involved in the investigation or presentation of the case; or
(4) An administrative law judge or other hearing officer who presided at an earlier stage of the case.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.24 - Proposed Decisions and Final Decisions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Cases Heard by the Commissioner. The Commissioner shall prepare written findings of fact and conclusions of law, and shall promptly issue a final decision after the conclusion of any hearing held before the Commissioner. The final decision shall include rulings on any proposed findings of fact and conclusions of law submitted by the parties.
B. Cases Heard by an Administrative Law Judge.
(1) When the Commissioner has delegated authority to hear a case to the Office of Administrative Hearings but has reserved final decision-making authority, the administrative law judge shall send a proposed decision, including proposed findings of fact and conclusions of law, to the parties and the Commissioner.
(2) Within 15 days of receipt of the proposed decision, each party shall file with the Commissioner any exceptions to the proposed decision, any supporting memorandum, and any request to present argument to the Commissioner.
(3) Within 10 days of receipt of exceptions filed by an adverse party, a party may file a memorandum in opposition to those exceptions.
(4) The Commissioner shall review the hearing record, the proposed decision of the administrative law judge, and any exceptions and memoranda filed by the parties, and shall permit the parties to present arguments, if they request an opportunity to do so. Before issuing a final decision, the Commissioner may require the submission of additional information or documentation.
(5) The Commissioner shall issue a final decision that may adopt, modify, or reject the proposed findings of fact, proposed conclusions of law, or the proposed decision of the administrative law judge. The final decision shall include rulings on any exceptions filed by the parties.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.25 - Record of Proceedings

Current through Register Vol. 51, No. 14, July 12, 2024
A. Recording of Oral Proceedings. The Division shall cause all oral proceedings, including testimony, to be recorded by a stenographer or by tape recorder or other device. The recording of the proceedings, which need not be transcribed, shall be maintained in the custody of the Division. In the event of an appeal from a decision of the Commissioner, the appellant shall pay the cost of transcription of the record. Other verbatim reports or recordings may not be made by any other person without the consent of the Commissioner.
B. The record of a contested case shall include:
(1) All pleadings, motions, orders, and related papers filed with the Commissioner or the Office of Administrative Hearings;
(2) All documentary and tangible evidence;
(3) A statement of matters officially noticed;
(4) Recordings and any transcripts of oral proceedings;
(5) The findings of fact and conclusions of law proposed by each party;
(6) Any exceptions filed by the parties and the Commissioner's rulings on those exceptions;
(7) The findings of fact, conclusions of law, and decision of the Commissioner;
(8) If a case has been delegated to the Office of Administrative Hearings for a proposed decision:
(a) The notice of delegation;
(b) Any notice of revocation;
(c) The proposed decision, including proposed findings of fact and proposed conclusions of law, of the administrative law judge;
(d) Any exceptions filed by the parties;
(e) The Commissioner's rulings on any exceptions and proposed findings of fact or conclusions of law; and
(f) Any additional information or documentation submitted to the Commissioner by the parties;
(9) The final order, if any, of the Commissioner; and
(10) Other documents or material placed in the record as required by law or at the discretion of the Commissioner.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.26 - Stay of Enforcement

Current through Register Vol. 51, No. 14, July 12, 2024
A. Motion for Stay. After the Commissioner has issued a final decision that results in the entry of a final order against a party, the party may move for a stay of the Commissioner's order if the party has filed an appeal of the final decision.
B. Form of Motion. A request for a stay shall be in writing and shall include a copy of the order for appeal filed in the circuit court.
C. Criteria for Stay. The Commissioner may grant a stay of a final order for such period of time as the Commissioner considers appropriate, after considering:
(1) The potential hardship caused by the order to the party requesting the stay;
(2) The likelihood that the party will prevail on appeal;
(3) Other reasons for a stay proffered by that party;
(4) The interest of investor protection; and
(5) The public interest.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.27 - Disposition by Agreement

Current through Register Vol. 51, No. 14, July 12, 2024
At any time after initiation of a contested case, with the approval of the Commissioner, the parties may resolve a contested case without a final decision by stipulation, settlement, or consent order.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.07 - Investigations › Section 02.02.07.01 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. This chapter applies to investigations instituted by the Securities Commissioner under the:
(1) Maryland Securities Act, Corporations and Associations Article, Title 11, Annotated Code of Maryland (the Maryland Securities Act);
(2) Maryland Business Opportunities Sales Act, Business Regulation Article, Title 14, Subtitle 1, Annotated Code of Maryland (the Business Opportunities Act); or
(3) Maryland Franchise Registration and Disclosure Law, Business Regulation Article, Title 14, Subtitle 2, Annotated Code of Maryland (the Maryland Franchise Law).
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.07 - Investigations › Section 02.02.07.02 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Document" means the original of a paper or other tangible item or material on which information is written or recorded and includes, by example, correspondence, memoranda, reports, circulars, announcements, financial statements or projections, books, ledgers, records, tabulations, maps, charts, photographs, mechanical transcriptions, electronic and computer media, and any other tangible recording.
(2) "Person" means an individual, partnership, corporation, limited liability company, limited liability partnership, business trust, estate, trust, fiduciary, representative of any kind, association, unincorporated organization, government, political subdivision, and any other legal or commercial entity, and includes all individuals and entities set forth in Business Regulation Article, §
										1-101(g), and Corporations and Associations Article, 1-101(p) and 11-101(n), Annotated Code of Maryland.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.07 - Investigations › Section 02.02.07.03 - Subpoenas

Current through Register Vol. 51, No. 14, July 12, 2024
A. Type of Subpoena. As part of an investigation, the Commissioner may issue a subpoena to any person to:
(1) Testify under oath;
(2) Answer written interrogatories under oath;
(3) Produce documents and tangible things; and
(4) Permit inspection and copying of documents.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.07 - Investigations › Section 02.02.07.04 - Testimony Under Oath

Current through Register Vol. 51, No. 14, July 12, 2024
A. Presiding Officer. Testimony under oath shall be taken before the Commissioner or an officer designated by the Commissioner.
B. Attendance at Testimony. A witness who testifies under oath in compliance with a subpoena may be accompanied and represented by counsel. Members of the Division involved in the investigation may be present during the taking of testimony. Other persons may not attend unless permitted in the discretion of the Commissioner.
C. Examination of Witness. The following individuals may ask questions of the witness:
(1) Attorneys representing the Division;
(2) The Commissioner; and
(3) Counsel representing the witness.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.07 - Investigations › Section 02.02.07.05 - Production of Things and Documents

Current through Register Vol. 51, No. 14, July 12, 2024
A. Assertion of Privilege. If a person responding to a subpoena for production of things or documents withholds a record or document on the basis of a privilege, the person shall state, with respect to each document:
(1) The name and title of the author of the document;
(2) The names and titles of all persons to whom the document was addressed;
(3) The names and titles of all persons to whom copies of the document were sent;
(4) The date on which the document was written or otherwise produced and the date on which it was mailed, sent, or delivered to its addressee;
(5) The number of pages in the document;
(6) A brief description of the nature or subject matter of the document;
(7) The basis on which the document is being withheld; and
(8) The paragraph number of the subpoena to which the document is responsive.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.07 - Investigations › Section 02.02.07.06 - Use and Confidential Treatment of Subpoenaed Materials

Current through Register Vol. 51, No. 14, July 12, 2024
A. Use of Subpoenaed Materials. The Division may use information, documents, and things obtained by subpoena in furtherance of an investigation conducted by the Division and of joint investigations conducted by the Division in cooperation with other state and federal agencies.
B. Confidential Treatment. Information, documents, and things obtained by subpoena may be held confidential and are not subject to disclosure to the extent provided by the Public Information Act, State Government Article, 10-611-----10-628, Annotated Code of Maryland.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.02 - Franchise

Current through Register Vol. 51, No. 14, July 12, 2024
A. Scope. The Commissioner shall consider the factors set forth in this regulation in any determination as to whether a business relationship is a franchise as defined in the Maryland Franchise Law, Business Regulation Article, §
									14-201(e), Annotated Code of Maryland.
B. Marketing Plan. For purposes of the Maryland Franchise Law, Business Regulation Article, §
									14-201(e)(1), Annotated Code of Maryland, "marketing plan" means a plan or system concerning a material aspect of conducting business. Indicia of a marketing plan include:
(1) Price specification, special pricing systems, or discount plans;
(2) Sales or display equipment or merchandising devices;
(3) Sales techniques;
(4) Promotional or advertising materials or cooperative advertising;
(5) Training regarding the promotion, operation, or management of the business; and
(6) Operational, managerial, technical, or financial guidelines or assistance.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.03 - Franchise Fee

Current through Register Vol. 51, No. 14, July 12, 2024
A. Scope. The Commissioner shall consider the factors set forth in this regulation in any determination as to whether a franchisee is required to pay a franchise fee, as defined in the Maryland Franchise Law, Business Regulation Article, §
									14-201(g), Annotated Code of Maryland.
B. Form and Timing of Payment. A franchise fee includes, but is not limited to, a payment that is made before, upon, or after execution of an agreement to purchase, process, resell, or otherwise distribute a manufacturer's or franchisor's goods, services, equipment, inventory, or real estate, and that is made in the form of a lump sum, installments, periodic royalties, profits, or cash flow, or is or may be reflected in the price of goods, services, equipment, inventory, or real estate sold by the franchisor to the franchisee.
C. Purchases at Wholesale Price. For purposes of the Maryland Franchise Law, Business Regulation Article, §
									14-201(g)(3)(i), Annotated Code of Maryland, whether a transaction involves "the purchase of or agreement to purchase goods at a wholesale price" depends upon consideration of a number of factors, including but not limited to whether in connection with an agreement to process, resell, or otherwise distribute a manufacturer's or franchisor's product or service:
(1) Consideration paid by the buyer in purchase transactions is solely for the payment of goods, services, equipment, inventory, or real estate, and does not reflect the buyer's payment for the right to continue the purchase transactions or the business;
(2) The buyer's purchase of goods, services, equipment, inventory, or real estate is required by or in connection with the agreement; and
(3) The cost to the seller of goods, services, equipment, inventory, or real estate is reasonably related to the price paid by the buyer.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.04 - Application for Registration

Current through Register Vol. 51, No. 14, July 12, 2024
A. Form of Application. An application to register a franchise shall be prepared in accordance with the Uniform Franchise Offering Circular Guidelines adopted by the North American Securities Administrators Association, Inc., on April 25, 1993 (UFOC), which is incorporated by reference, with the modifications set forth in §B of this regulation. A copy of the UFOC may be obtained from the Division for a nominal fee and may also be found in Business Franchise Guide (CCH) § 5200 -----5200.17.
B. Modifications to UFOC.
(1) An application shall include two copies of the proposed offering circular which complies with the instructions for the UFOC with the additions and modifications set forth in §B(2)-----(4) of this regulation.
(2) Item 11-----Franchisor Obligations. In addition to the information required by the UFOC, the offering circular shall disclose in Item 11 how fees related to advertising are to be raised and spent, and how a franchisee may obtain an accounting of advertising expenditures.
(3) Item 17-----Renewal, Termination, Transfer, and Dispute Resolution. If the agreement provides for termination of the franchise upon bankruptcy of the franchisee, the offering circular shall disclose in Item 17, in addition to the information required by the UFOC, that this provision may not be enforceable under federal bankruptcy law.
(4) Item 21-----Financial Statements. In addition to the information required by the UFOC, the offering circular shall contain financial statements required under Regulation .13 of this chapter.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.05 - Initial Registration

Current through Register Vol. 51, No. 14, July 12, 2024
A. Registration File Number.
(1) Upon receipt of an application for initial registration, the Division shall assign a file number to the application.
(2) Correspondents shall refer to the assigned file number in all subsequent related filings and correspondence with the Division.
(3) An application for registration may include a stamped self-addressed envelope and a duplicate cover letter which the Division may stamp and return to the applicant as confirmation of receipt of the filing and notification of the registration file number.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.06 - Amendment of Registration

Current through Register Vol. 51, No. 14, July 12, 2024
A. When to File.
(1) An application for amendment of a registration statement shall be promptly filed if there is a material change in the information that a registrant previously filed with the Commissioner.
(2) An amendment is not required if a particular franchise agreement is changed as a result of negotiations between the franchisee and the franchisor and the franchisor agrees to the change or a similar change only on an individual or isolated basis.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.07 - Renewal of Registration

Current through Register Vol. 51, No. 14, July 12, 2024
A. Time for Submitting Renewal Application.
(1) An application to renew a registration shall be submitted to the Division not less than 15 business days before the end of 1 year from the effective date of the registration.
(2) If a registrant submits an application to renew a registration less than 15 days before the expiration of the prior year's registration, but before the expiration of the prior year's registration, the Commissioner may consider the application as an application for renewal registration.
(3) If a registrant submits an application to renew a registration after the expiration of the prior year's registration, the Commissioner shall treat the application as an application for initial registration.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.08 - Escrow Condition

Current through Register Vol. 51, No. 14, July 12, 2024
A. Imposition of Escrow Condition. At any time after the submission of a registration statement and upon a finding that it is necessary and appropriate for the protection of prospective franchisees or subfranchisors, the Commissioner may require a franchisor to escrow franchise fees and other funds paid by a franchisee or subfranchisor until the franchisor's obligations under the offering have been satisfied.
B. Depositary. Funds subject to an escrow condition shall be placed in a separate trust account with a national bank located in Maryland or a Maryland bank or trust company.
C. Compliance with Escrow Condition. After the Commissioner imposes an escrow condition, the franchisor shall file with the Commissioner the following:
(1) An original fully executed copy of the escrow agreement;
(2) A written consent from the depositary agreeing to operate the escrow account under this regulation;
(3) The name and address of the depositary and the account number of the escrow account;
(4) The name, address, and telephone number of an individual or individuals at the depositary who may be contacted by the Commissioner regarding the escrow account; and
(5) An amended franchise registration application reflecting, in both the franchise agreement and Item 5 of the offering circular, that the Commissioner has imposed the escrow conditions and the material terms of that escrow condition, including the name of the depositary.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.09 - Advertising

Current through Register Vol. 51, No. 14, July 12, 2024
A. Standards For Advertising.
(1) An advertisement for a franchise offering may not refer to:
(a) The purchase or sale of a franchise as a safe investment, as free from risk of loss or default, or as a guarantee or assurance of earnings or profits;
(b) An earnings claim, unless otherwise permitted by the Commissioner; or
(c) An opinion of counsel without stating the name and address of the counsel.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.10 - Exemptions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Basis of Exemption. Under the Maryland Franchise Law, Business Regulation Article, §
									14-214(b)(3), Annotated Code of Maryland, the Commissioner has determined that the offers or sales described in B-----G of this regulation are exempt from the registration provisions of the Maryland Franchise Law because the transactions are not within the purpose of the Maryland Franchise Law and registration of the transactions is not necessary or appropriate for the protection of investors.
B. Out-of-State Sales.
(1) The registration provisions of the Maryland Franchise Law do not apply to an offer or sale of a franchise to a resident of a foreign state, territory, or country who is not a resident of Maryland to the knowledge of the seller.
(2) The exemption set forth in §B(1) of this regulation may be claimed only if:
(a) The franchised business is not to be operated wholly or partially in Maryland;
(b) The sale of the franchise does not violate any law of the foreign state, territory, or country of which the offeree or buyer is a resident; and
(c) The sale of the franchise does not violate the antifraud provisions of the Maryland Franchise Law.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.12 - Denial, Suspension, or Revocation of Registration or Exemption

Current through Register Vol. 51, No. 14, July 12, 2024
The Commissioner, with or without prior notice or hearing, may issue a cease and desist order and may deny, suspend, or revoke any registration, amendment, or claim of exemption set forth in Regulation .10 of this chapter, if the Commissioner finds that:
A. The franchisor, or any of its officers, directors, agents, employees, or any other person related to the franchisor has violated or failed to comply with any provision of the Maryland Franchise Law, or any regulation or order of the Commissioner;
B. The franchisor, or any of its officers, directors, agents, or employees, or any other person related to the franchisor, is engaging or is about to engage in false, fraudulent, or deceptive practices in connection with the offer and sale of a franchise;
C. A person identified in an application for registration, a claim of exemption, or any MFOC or other franchise offering circular has been convicted of an offense described in the Maryland Franchise Law, Business Regulation Article, §
									14-216(c)(8), Annotated Code of Maryland, or is subject to an order or civil judgment as described in the Maryland Franchise Law, Business Regulation Article, §
									14-216(c)(9), Annotated Code of Maryland, and the involvement of the person in the business of the applicant or franchisor creates a substantial risk to franchisees or prospective franchisees.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.13 - Financial Statements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Scope. The following financial statements shall be prepared in accordance with this regulation:
(1) A financial statement required by the Maryland Franchise Law;
(2) A financial statement required by any regulation adopted under the Maryland Franchise Law, including the MFOC; and
(3) A financial statement used by or on behalf of a franchisor in connection with an offer, sale, or purchase of a franchise in Maryland.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.14 - Reports by Registrants

Current through Register Vol. 51, No. 14, July 12, 2024
A. Time for Filing.
(1) A franchisor registered under the Maryland Franchise Law shall file a quarterly report with the Commissioner.
(2) The first report filed under this section shall be filed not later than 90 days after the effective date of the franchisor's registration statement.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.15 - Franchisor Records

Current through Register Vol. 51, No. 14, July 12, 2024
A. Records to Be Maintained. A franchisor offering or selling a franchise in the State shall maintain complete and accurate records of offers and sales of franchises, including but not limited to:
(1) Offering circulars;
(2) Advertising;
(3) Correspondence with franchisees and prospective franchisees;
(4) Past and present operations manuals;
(5) Training records;
(6) Training manuals; and
(7) Copies of executed agreements.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.17 - Interpretive Opinions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Filing of Request. A request for an interpretive opinion or a no action position under the Maryland Franchise Law, Business Regulation Article, §
									14-209, Annotated Code of Maryland, shall be filed with the Commissioner.
B. Form of Request. A request for an interpretive opinion or a no action position shall include:
(1) An original and one copy of the letter requesting the interpretive opinion or no action position; and
(2) Two copies of any supporting documentation or materials.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.08 - Franchise Registration and Disclosure › Section 02.02.08.18 - Internet Offers

Current through Register Vol. 51, No. 14, July 12, 2024
A. Any communication made through the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system, of an offer to sell a franchise (Internet Offer) is exempt from the registration provisions of the Maryland Franchise Law if:
(1) The Internet Offer indicates, directly or indirectly, that the franchise is not being offered to residents of Maryland;
(2) The Internet Offer is not otherwise directed to any person in Maryland by or on behalf of the franchisor or anyone acting with the franchisor's knowledge; and
(3) No franchises are sold in Maryland by or on behalf of the franchisor until the offering has been registered and declared effective and the MFOC has been delivered to the offeree before the sale and in compliance with the Maryland Franchise Law.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Federal covered security" has the meaning stated in Corporations and Associations Article, §
										11-101(f), Annotated Code of Maryland.
(2) "Investment company" has the meaning stated in § 3 of the Investment Company Act of 1940, 15 U.S.C. §
											80a-3.
(3) "Registration statement" has the meaning stated in § 2(a)(8) of the Securities Act of 1933, 15 U.S.C. §
											77b(a)(8).
(4) "Unit investment trust" has the meaning stated in § 4(2) of the Investment Company Act of 1940, 15 U.S.C. § 80a - 4(2).
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.02 - Incorporation by Reference

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following documents are incorporated by reference.
B. Documents Incorporated.
(1)
										15 U.S.C. §
											80a-3.
(2) 15 U.S.C. § 80a - 4(2).
(3)
										15 U.S.C. §
											77b(a)(8).
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.03 - Use of Uniform Forms

Current through Register Vol. 51, No. 14, July 12, 2024
A. Required Uniform Forms. To comply with the notice filing requirements of this chapter and Corporations and Associations Article, §
									11-503.1, Annotated Code of Maryland, an issuer may use the following forms:
(1) Form NF (Uniform Investment Company Notice Filing);
(2) Form U-2 (Uniform Consent to Service of Process);
(3) SEC Form D (Notice of Sale of Securities Pursuant to Regulation D, Section 4(6), and/or Uniform Limited Offering Exemption).
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.04 - Notice Filing-Investment Companies

Current through Register Vol. 51, No. 14, July 12, 2024
A. Notice Filing. An issuer registered with the SEC under the Investment Company Act of 1940 that intends to offer or sell securities that are federal covered securities under § 18(b)(2) of the Securities Act of 1933 shall, before an offer or sale in Maryland, submit a notice filing for those securities.
B. Separate Classes or Series of Securities. An issuer that offers multiple classes or series of securities shall file a separate notice filing with the Commissioner and pay a separate fee for each class or series of securities.
C. Initial Notice Filing. An initial notice filing shall consist of:
(1) Form NF (Uniform Investment Company Notice Filing) or a copy of the investment company's registration statement filed with the SEC;
(2) Form U-2 (Uniform Consent to Service of Process) or, if this document has been previously filed with the Commissioner, a cross-reference to the Maryland file number of an effective notice filing with which the Form U-2 was filed;
(3) The name and CRD number, if any, of at least one broker-dealer or issuer agent that will effect transactions in the securities in Maryland;
(4) The fee required by Corporations and Associations Article, §
										11-510.1, Annotated Code of Maryland; and
(5) Any documents filed with the SEC that the Commissioner may request.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.05 - Notice Filing Fee-Investment Companies

Current through Register Vol. 51, No. 14, July 12, 2024
A. Notice Filing Fee.
(1) An issuer submitting a notice filing under Regulation .04 or .06 of this chapter shall pay an initial part of its fee at the time of the notice filing and the remaining part of its fee by the due date under §B of this regulation, or upon termination under Regulation .07 of this chapter.
(2) Initial Part of Fee. As part of its notice filing, an issuer shall pay $500 as required by Corporations and Associations Article, §
										11-510.1, Annotated Code of Maryland.
(3) Remaining Part of Fee. An issuer may pay the remaining part of its fee by either:
(a) Paying a flat fee of $1,300; or
(b) Filing with the Commissioner a year-end sales report on Form NF and paying a calculated fee computed as follows:
(i) If gross sales in Maryland are $500,000 or less, no additional fee is due;
(ii) If gross sales in Maryland are equal to or greater than $1,500,000, the remaining part of the fee is $1,000; or
(iii) If gross sales in Maryland are greater than $500,000 but less than $1,500,000, the remaining part of the fee is equal to 0.1 percent of gross sales in Maryland, minus $500.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.06 - Renewal Notice Filing-Investment Companies

Current through Register Vol. 51, No. 14, July 12, 2024
A. Renewal Notice Filing. An issuer shall renew its notice filing for a successive 1-year period by paying $500 as the initial part of its renewal fee and submitting to the Commissioner, within the due date under §B of this regulation, the remaining part of its fee required by Regulation .05 of this chapter.
B. Due Date for Renewal Notice Filing.
(1) Investment Companies Other Than Unit Investment Trusts.
(a) An issuer shall submit its renewal notice filing within 60 days after its fiscal year-end date.
(b) If an issuer changes its fiscal year-end date, its existing notice filing may not remain effective for more than 24 months.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.07 - Termination of Offering-Investment Companies

Current through Register Vol. 51, No. 14, July 12, 2024
If an issuer terminates an offering in Maryland, it shall:
A. Notify the Commissioner of the termination of the offering; and
B. Pay the fee and file any year-end sales report required by Regulation .05 of this chapter.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.08 - Combinations and Reorganizations-Investment Companies

Current through Register Vol. 51, No. 14, July 12, 2024
A. Surviving Issuer. Within 15 days after the combination or reorganization of two or more issuers:
(1) A surviving issuer with an effective notice filing in Maryland shall amend its notice filing in accordance with Regulation .04F of this chapter;
(2) A surviving issuer without an effective notice filing in Maryland shall submit a notice filing in accordance with Regulation .04 of this chapter.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.09 - Notice Filing and Fee - SEC Rule 506 Offerings

Current through Register Vol. 51, No. 14, July 12, 2024
A. General. An issuer that intends to offer or sell federal covered securities under § 18(b)(4)(D) of the Securities Act of 1933 shall, not later than 15 days after the first sale of securities in Maryland, submit a notice filing unless the securities or transactions would qualify for a self-executing exemption under Corporations and Associations Article, §
									11-601 or  11-602, Annotated Code of Maryland.
B. Notice Filing. A notice filing shall consist of:
(1) A completed copy of SEC Form D (Notice of Sale of Securities Pursuant to Regulation D, Section 4(6), and/or Uniform Limited Offering Exemption), as filed with the SEC, including Part E, manually signed, and the Maryland portion of the appendix to the form;
(2) Form U-2 (Uniform Consent to Service of Process);
(3) The date of the first sale of the securities in Maryland under this offering;
(4) The name and CRD number, if any, of at least one broker-dealer or issuer agent that will effect transactions in the securities in Maryland; and
(5) The fee required by Corporations and Associations Article, §
										11-506, Annotated Code of Maryland.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.10 - Notice Filing and Fee - Federal Covered Securities under Section18(b)(3) and (b)(4)(A)-(C) of the Securities Act of 1933

Current through Register Vol. 51, No. 14, July 12, 2024
A.  General.
(1) An issuer that intends to offer or sell federal covered securities under § 18(b)(3) or (b)(4)(A)-(C) of the Securities Act of 1933 shall submit a notice filing unless the securities or transactions would qualify for a self-executing exemption under Corporations and Associations Article, §
										11-601 or  11-602, Annotated Code of Maryland.
(2) A notice filing shall be filed with the Commissioner:
(a) At the same time an issuer submits its filing for securities with the SEC; or
(b) If no SEC filing is required, not later than 15 days after the first sale in Maryland.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.09 - Federal Covered Securities › Section 02.02.09.11 - Registration of Agents

Current through Register Vol. 51, No. 14, July 12, 2024
A person engaged in sales activity relating to the offer or sale of federal covered securities under this chapter shall:
A. Register as a broker-dealer agent under Corporations and Associations Article, §
									11-401, Annotated Code of Maryland, and COMAR 02.02.02.04G;
B. Register as an issuer agent under Corporations and Associations Article, §
									11-401, Annotated Code of Maryland, and COMAR 02.02.03.11G; or
C. Qualify for an exclusion under Corporations and Associations Article, §
									11-101, Annotated Code of Maryland, or an exemption under another provision.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 03 - CIVIL DIVISION › Chapter 02.03.01 - Procedure for Hearings Conducted to Determine Whether Country Clubs Receiving Preferential Tax Treatment Practice Discrimination › Section 02.03.01.01 - Notice

Current through Register Vol. 51, No. 14, July 12, 2024
A. Any country club to be afforded a hearing on charges of discrimination prohibited by Tax-Property Article, §8-214, Annotated Code of Maryland, shall be given written notice of the date, time, and place of the hearing not less than 30 days before the hearing. Notice will be given by ordinary mail to the address of the club as indicated on the records of the office of the Supervisor of Assessments of the county in which the club is located.
B. The notice shall state the specifications of the charge or charges of discrimination and shall describe any records and other documentary evidence required to be produced by the club at the hearing.
C. The purpose, date, time, and place of the hearing shall be published in the Maryland Register. Any interested person may appear and be heard.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 03 - CIVIL DIVISION › Chapter 02.03.01 - Procedure for Hearings Conducted to Determine Whether Country Clubs Receiving Preferential Tax Treatment Practice Discrimination › Section 02.03.01.02 - Answer

Current through Register Vol. 51, No. 14, July 12, 2024
A. Upon receipt of charges and notice of hearing, a country club shall, within 15 days of the date of the notice, respond in writing to the charge or charges of discrimination. The answer shall indicate additionally whether or not the country club desires a hearing.
B. The answer of any country club to charges of discrimination shall be signed by the president or other authorized representative of the club and returned to the Department of Law, State of Maryland.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 03 - CIVIL DIVISION › Chapter 02.03.01 - Procedure for Hearings Conducted to Determine Whether Country Clubs Receiving Preferential Tax Treatment Practice Discrimination › Section 02.03.01.03 - Postponements

Current through Register Vol. 51, No. 14, July 12, 2024
A. If, for good cause shown, a country club requests in writing a postponement of the hearing date within the time provided for its response under Regulation .02, of this chapter, postponement may be granted. The postponement may not be for more than 30 days unless specified otherwise by the Attorney General.
B. The hearing date may be postponed, in the sole discretion of the Attorney General, notwithstanding noncompliance with this regulation.