Electronic Device Producer Responsibility Program - Established
HB0992, titled the Franchise Reform Act, makes several changes to Maryland’s Franchise Registration and Disclosure Law. It extends from 3 years to 5 years the period during which the Securities Commissioner may take enforcement action after a violation, and it lengthens the statute of limitations for civil actions involving franchise offers or sales. The bill also limits its franchise-liability provisions to Maryland residents and to franchised businesses operating or to be operated in the state.
The bill adds new protections for franchisees’ associational rights by prohibiting franchisors, directly or indirectly, from restricting franchisees from joining trade associations of same-brand franchisees or from freely associating for lawful purposes. It also creates a private right of action for violations of that associational-rights provision, allowing injunctive relief, damages, costs, and attorney’s fees, with a shortened limitations period for those claims. In addition, the bill requires the Commissioner to adjust certain franchise registration exemption net-equity thresholds for inflation or deflation using the Consumer Price Index.
HB0992 also directs the Commissioner to establish a temporary pilot program to expedite review and waive certain franchise registration renewal fees for registrants that file specified renewal materials within a set time window. The pilot program is time-limited, runs for six years, and requires a report to the General Assembly by September 30, 2030 on fee waivers, administrative time, and effects on registrants who do not qualify.
The bill’s impact on state law is to broaden and modernize enforcement and disclosure rules under the Maryland Franchise Registration and Disclosure Law, while adding franchisee protections and a fee-waiver pilot for renewals. It affects franchisors, subfranchisors, franchisees, and the Securities Commissioner in the Office of the Attorney General, and it amends multiple provisions in the Business Regulation Article.
No committee transcript or vote record was provided, so the available context does not show debate or recorded opposition. Based on the bill text alone, the measure appears to be framed as a franchisee-protection and regulatory-efficiency bill, with the main potential points of contention likely being the expanded liability exposure for franchisors, the new associational-rights restrictions, and the administrative burden of the pilot program and inflation indexing.
HB0992 amends the Maryland Franchise Registration and Disclosure Law in the Business Regulation Article by extending enforcement and civil liability time limits, adding franchisee associational-rights protections, requiring inflation indexing of certain exemption thresholds, and creating a temporary fee-waiver/expedited-review pilot for franchise registration renewals. It affects the Securities Commissioner, franchisors, subfranchisors, franchisees, and franchised businesses operating in Maryland, and it creates new statutory causes of action and reporting obligations.
No committee discussion or vote data was provided, so there is no recorded sentiment from hearings or floor action to summarize. From the bill text, the measure appears generally pro-franchisee and pro-administration, with a reform-oriented purpose focused on enforcement, disclosure, and franchisee rights.
The most likely points of contention are the bill’s expansion of the time period for commissioner enforcement and private lawsuits, the new prohibition on franchisors limiting franchisee association and trade-group participation, and the potential increase in compliance and litigation exposure for franchisors and related parties. The temporary renewal-fee waiver pilot and CPI-based indexing could also draw scrutiny from regulators or industry stakeholders concerned about administrative workload, fee revenue, or changing exemption thresholds.