California 2015-2016 Regular Session Status: To Executive

AB 2637 — Franchise investments: offer and sale of registered franchises: registration exemption.

Last action — Vetoed by Governor.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2015-2016 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

The Franchise Investment Law generally regulates the offer and sale of franchises and provides for oversight of these transactions by the Commissioner of Business Oversight. The law prohibits, among other things, the offer or sale of a franchise that is not registered with the commissioner, unless exempted from this registration requirement. The law exempts from this registration requirement the offer and sale of a franchise on terms that are different from the terms of a registered offer, if certain conditions are met. Those conditions include, among others, that a prospective franchisee receives information regarding terms the franchisor negotiated during the previous 12 months, as specified, and that the negotiated terms, on the whole, confer additional benefits on the franchisee. This bill would modify the conditions for an exemption to the registration requirement by removing these 2 conditions and instead imposing the condition that the cover page, a state cover page, or a state addendum of a disclosure document include a specific statement regarding the ability to agree to the franchise agreement and to negotiate changes to the franchise agreement and other agreements. The bill would also make technical and conforming changes to this modification, including, among others, the removal of authority for the commissioner to prescribe by rule or order the format and content for a franchisor to provide information regarding terms the franchisor negotiated during the previous 12 months.

Bill Text

Action History

  1. Vetoed by Governor.

  2. Enrolled and presented to the Governor at 11:30 a.m.

  3. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 1. Page 6536.).

  4. In Assembly. Concurrence in Senate amendments pending.

  5. Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5346.).

  6. Read second time. Ordered to third reading.

  7. From committee: Do pass. (Ayes 7. Noes 0.) (August 11).

  8. In committee: Referred to APPR. suspense file.

  9. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 28). Re-referred to Com. on APPR.

  10. Read second time and amended. Re-referred to Com. on JUD.

  11. From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (June 15).

  12. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.

  13. Referred to Coms. on B. & F.I. and JUD.

  14. In Senate. Read first time. To Com. on RLS. for assignment.

  15. Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 4464.)

  16. Read second time. Ordered to Consent Calendar.

  17. From committee: Do pass. To Consent Calendar. (Ayes 20. Noes 0.) (April 13).

  18. From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 4). Re-referred to Com. on APPR.

  19. Re-referred to Com. on B. & F.

  20. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  21. Referred to Com. on B. & F.

  22. Read first time.

  23. From printer. May be heard in committee March 22.

  24. Introduced. To print.

Sponsors

  • Wilk · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 1 voted No

Sponsors (1)

  • Wilk

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 2637 WILK Concurrence in Senate Amendments

Passed 78 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 68101
Democratic 5000
Republican 5000
Total 78101
% of votes cast 98%1%0%1%
How each member voted (80)
Member Party Vote
Achadjian — Yea
Alejo — Yea
Baker — Yea
Bloom — Yea
Brough — Yea
Brown — Yea
Holden — Yea
Mathis — Yea
O'Donnell — Yea
Obernolte — Yea
Santiago — Yea
Wagner — Yea
Weber — Yea
Wood — Yea
Eggman — Yea
Chávez — Yea
Daly — Yea
Gomez — Yea
Harper — Yea
Chau — Yea
Salas — Yea
Linder — Yea
Low — Yea
Chu — Yea
Cooper — Yea
Mayes — Yea
McCarty — Yea
Nazarian — Yea
Olsen — Yea
Rendon — Yea
Rodriguez — Yea
Wilk — Yea
Williams — Yea
Gatto — Yea
Burke — Yea
Gordon — Yea
Atkins — Yea
Campos — Yea
Bonilla — Yea
Jones-Sawyer — Yea
Lopez — Yea
Kim — Yea
Gray — Not Voting
Chang — Yea
Bigelow — Yea
Chiu — Yea
Cooley — Yea
Dababneh — Yea
Dodd — Yea
Levine — Yea
Maienschein — Yea
Medina — Yea
Melendez — Yea
Mullin — Yea
Quirk — Yea
Ridley-Thomas — Yea
Steinorth — Yea
Thurmond — Yea
Ting — Yea
Waldron — Yea
Frazier — Yea
Hadley — Yea
Beth Gaines — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Nay
Roger Hernández — Yea
Travis Allen — Yea
Arambula, Joaquin Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Yea
Gallagher, James Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Lackey, Tom Republican Yea

Official roll call →

3rd Reading AB2637 Wilk By Jackson

Passed 39 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 36000
Democratic 3000
Total 39000
% of votes cast 100%0%0%0%
How each member voted (39)
Member Party Vote
Hertzberg — Yea
Lara — Yea
Morrell — Yea
Pavley — Yea
Allen — Yea
Cannella — Yea
Mitchell — Yea
De León — Yea
Galgiani — Yea
Anderson — Yea
Bates — Yea
Glazer — Yea
Hernandez — Yea
Hill — Yea
Leno — Yea
Liu — Yea
Mendoza — Yea
Moorlach — Yea
Nielsen — Yea
Pan — Yea
Wieckowski — Yea
Wolk — Yea
Block — Yea
Hueso — Yea
Huff — Yea
Leyva — Yea
Monning — Yea
Roth — Yea
Vidak — Yea
Beall — Yea
Fuller — Yea
Hall — Yea
Hancock — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea

Official roll call →

Do pass

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bates — Yea
Beall — Yea
Hill — Yea
Mendoza — Yea
Lara — Yea
Nielsen — Yea
McGuire, Mike Democratic Yea

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bates — Yea
Hill — Yea
Lara — Yea
Beall — Yea
Mendoza — Yea
Nielsen — Yea
McGuire, Mike Democratic Yea

Official roll call →

AB 2637 WILK Consent Calendar Second Day

Passed 79 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 69001
Democratic 5000
Republican 5000
Total 79001
% of votes cast 99%0%0%1%
How each member voted (80)
Member Party Vote
Achadjian — Yea
Baker — Yea
Bloom — Yea
Brough — Yea
Brown — Yea
Kim — Yea
Mathis — Yea
Mayes — Yea
Mullin — Yea
Rodriguez — Yea
Santiago — Yea
Thurmond — Yea
Wagner — Yea
Weber — Yea
Eggman — Yea
Cooper — Yea
Frazier — Yea
Salas — Yea
Gatto — Yea
Gordon — Yea
Burke — Yea
Harper — Yea
Jones-Sawyer — Yea
Chang — Yea
Levine — Yea
Linder — Yea
Low — Yea
Gray — Yea
McCarty — Yea
Melendez — Yea
Atkins — Yea
Chau — Yea
Alejo — Yea
Bigelow — Yea
Chiu — Yea
Chu — Yea
Chávez — Yea
Cooley — Yea
Dababneh — Yea
Daly — Yea
Dodd — Yea
Nazarian — Yea
O'Donnell — Yea
Obernolte — Yea
Olsen — Yea
Rendon — Yea
Steinorth — Yea
Waldron — Yea
Wilk — Yea
Williams — Yea
Bonilla — Yea
Lopez — Yea
Hadley — Yea
Holden — Yea
Campos — Yea
Maienschein — Yea
Medina — Yea
Quirk — Yea
Ridley-Thomas — Not Voting
Ting — Yea
Wood — Yea
Gomez — Yea
Beth Gaines — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Yea
Arambula, Joaquin Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Yea
Gallagher, James Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass. To Consent Calendar.

Passed 20 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 16000
Democratic 2000
Republican 2000
Total 20000
% of votes cast 100%0%0%0%
How each member voted (20)
Member Party Vote
Bloom — Yea
Holden — Yea
Wagner — Yea
Eggman — Yea
Bonilla — Yea
Chang — Yea
Daly — Yea
Bigelow — Yea
Obernolte — Yea
Quirk — Yea
Santiago — Yea
Weber — Yea
Wood — Yea
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Roger Hernández — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gallagher, James Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Subjects

finance
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Frequently asked questions

What does AB 2637 do?
The Franchise Investment Law generally regulates the offer and sale of franchises and provides for oversight of these transactions by the Commissioner of Business Oversight. The law prohibits, among other things, the offer or sale of a franchise that is not registered with the commissioner, unless exempted from this registration requirement. The law exempts from this registration requirement the offer and sale of a franchise on terms that are different from the terms of a registered offer, if certain conditions are met. Those conditions include, among others, that a prospective franchisee receives information regarding terms the franchisor negotiated during the previous 12 months, as specified, and that the negotiated terms, on the whole, confer additional benefits on the franchisee. This bill would modify the conditions for an exemption to the registration requirement by removing these 2 conditions and instead imposing the condition that the cover page, a state cover page, or a state addendum of a disclosure document include a specific statement regarding the ability to agree to the franchise agreement and to negotiate changes to the franchise agreement and other agreements. The bill would also make technical and conforming changes to this modification, including, among others, the removal of authority for the commissioner to prescribe by rule or order the format and content for a franchisor to provide information regarding terms the franchisor negotiated during the previous 12 months.
Who sponsors AB 2637?
AB 2637 is sponsored by Wilk.
What is the current status of AB 2637?
This bill died with 2015-2016 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 2637?
Track AB 2637 free on One Click Politics — get push/email alerts when it moves.

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