HARRY HUGHES, Governor

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(A)  ANY PERSON WHO WILLFULLY SELLS A FRANCHISE IN THIS
STATE WITHOUT COMPLYING KNOWINGLY FAILING TO COMPLY WITH THE
PROVISIONS OF SECTION 347 OF THIS SUBTITLE, OR WHO IN A
PROSPECTUS OR AN AMENDMENT THERETO, WILLFULLY MAKES ANY
FALSE OR MISLEADING STATEMENT OF A MATERIAL FACT OR
WILLFULLY OMITS TO STATE ANY MATERIAL FACT REQUIRED TO BE
STATED THEREIN OR NECESSARY TO MAKE THE STATEMENTS THEREIN
NOT MISLEADING, COMMITS A FELONY, AND UPON CONVICTION, SHALL
BE SUBJECT TO IMPRISONMENT NOT TO EXCEED 5 YEARS OR A FINE
UP TO $10,000 PER VIOLATION, OR BOTH THE FINE AND THE
IMPRISONMENT.

(B)  THE COMMISSIONER MAY REFER AVAILABLE EVIDENCE
CONCERNING VIOLATIONS OF THIS SUBTITLE OR ANY RULE OR ORDER
UNDER THIS SUBTITLE TO THE STATE'S ATTORNEY WHO, WITH OR
WITHOUT THE REFERENCE, MAY INSTITUTE THE APPROPRIATE
CRIMINAL PROCEEDINGS UNDER THIS SUBTITLE.

(C)  A CRIMINAL PROCEEDING CONTEMPLATED BY THIS SECTION
MAY NOT BE INSTITUTED MORE THAN 3 YEARS AFTER THE ALLEGED
VIOLATION.

365B.

THE POWERS, REMEDIES, PROCEDURES, AND PENALTIES
PROVIDED IN THIS SUBTITLE SHALL BE IN ADDITION TO, AND NOT
IN LIMITATION OF, ANY OTHER POWERS, REMEDIES, PROCEDURES,
AND PENALTIES OTHERWISE PROVIDED BY LAW.

365C.

ANY CONDITION, STIPULATION, OR PROVISION PURPORTING TO
BIND ANY PERSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE
WITH ANY PROVISION OF THIS SUBTITLE OR ANY RULE OR ORDER
THEREUNDER IS VOID. AS A CONDITION TO THE SALE OF A
FRANCHISE TO A PROSPECTIVE FRANCHISEE, A FRANCHISOR MAY NOT
REQUIRE THE PROSPECTIVE FRANCHISEE TO ASSENT TO A RELEASE,
ASSIGNMENT, NOVATION, WAIVER, OR ESTOPPEL WHICH WOULD
RELIEVE ANY PERSON FROM LIABILITY UNDER THIS SUBTITLE.

365D.

THE INFORMATION CONTAINED IN OR FILED WITH ANY
REGISTRATION STATEMENT, AMENDMENT, APPLICATION, OR REPORT
MAY BE AVAILABLE TO THE PUBLIC UNDER THE RULES WHICH THE
COMMISSIONER PRESCRIBES.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1980.

Approved May 20, 1980.

CHAPTER 636