Financial regulation.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill makes several changes to California’s financial regulations, primarily concerning the franchising industry and state investments. It removes a specific reference to Item 2 in franchise disclosure documents, establishes stricter requirements for franchise brokers to be registered, and modifies rules for investing state surplus funds in bonds and commercial paper. Additionally, it streamlines the process for providing notices to licensees by allowing electronic communication and repeals a 1989 act related to a state enterprise loan fund. Finally, it adjusts fees associated with the Department of Financial Protection and Innovation’s operations.
Key provisions
- Removes the requirement for franchise brokers to reference Item 2 in franchise disclosure documents.
- Requires franchise brokers to be registered to effect franchise sales.
- Repeals the State Assistance Fund for Enterprise Act of 1989.
- Changes the rating requirements for state and local government bonds and corporate bonds eligible for investment.
- Modifies the requirements for commercial paper eligible for investment, increasing maturity limits and requiring higher ratings.
- Allows the Department of Financial Protection and Innovation to send notices electronically.
- Provides that no reimbursement is required for a specified reason.
- Adjusts fees charged by the Department of Financial Protection and Innovation.
Who is affected
- Franchisees
- Franchise Brokers
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Committee on Banking and Finance
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