reglab/statecodes huggingface dataset:
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 2 - Unlawful Commodity Transactions › Section 29520.

29520. Except as otherwise provided in Section 29530, 29531, or 29532, no person shall sell or purchase or offer to sell or purchase any commodity under any commodity contract or under any commodity option, or offer to enter into, or enter into, as seller or purchaser any commodity contract or any commodity option.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 3 - Exemptions › Section 29530.

29530. (a) The prohibitions in Section 29520 shall not apply to any transaction offered by and in which any of the following persons (or any employee, officer, or director thereof acting solely in that capacity) is the purchaser or seller:
(1) A person registered with the Commodity Futures Trading Commission as a futures commission merchant or as a leverage transaction merchant whose activities require registration.
(2) A person affiliated with, and whose obligations and liabilities under the transaction are guaranteed by, a person referred to in subdivision (a).
(3) A person who is a member of a contract market designated by the Commodity Futures Trading Commission (or any clearinghouse thereof) when the transaction at issue requires membership in and is subject to the regulatory jurisdiction of that contract market.
(4) A financial institution.
(5) A broker-dealer licensed under Section 25211, or exempt from licensure under Section 25200, when engaging in activities subject to the exclusive regulatory jurisdiction of the Commodity Futures Trading Commission.
(6) A person licensed pursuant to Chapter 14 (commencing with Section 1800) of Division 1 of the Financial Code to receive money for transmittal to foreign countries if (A) the license has not expired or been surrendered, suspended, or revoked, (B) the licensed person has a tangible net worth of at least 3 million dollars ($3,000,000) according to its audited financial statements prepared by an independent certified public accountant for each of the immediately preceding three fiscal years, and (C) pursuant to the provisions of subdivision (b) of Section 29531, the licensed person issues and a purchaser receives a certificate, document of title, confirmation, or other instrument evidencing that the purchased quantity of precious metals or foreign currencies has been delivered to a depository which is a financial institution located in a state of the United States.
(b) The exemption provided by subdivision (a) shall not apply to any transaction or activity which is prohibited by the Commodity Exchange Act or CFTC Rule.
(Amended by Stats. 2000, Ch. 705, Sec. 7. Effective January 1, 2001.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 3 - Exemptions › Section 29532.

29532. The commissioner may by rule or order prescribe the terms and conditions of all transactions and contracts covered by this law and exempt any person or transaction from this law conditionally or unconditionally.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 4 - Unlawful Activities and Fraudulent Conduct › Section 29535.

29535. (a) No person shall engage in a trade or business or otherwise act as a commodity merchant unless the person (1) is registered or temporarily licensed with the Commodity Futures Trading Commission for each activity constituting that person as a commodity merchant and the registration or temporary license shall not have expired, been suspended, or revoked; or (2) is exempt from the registration by virtue of the Commodity Exchange Act (7 U.S.C. Sec. 1 et seq.) or of a CFTC rule.
(b) No board of trade shall trade, or provide a place for the trading of, any commodity contract required to be traded on or subject to the rules of a contract market designated by the Commodity Futures Trading Commission, unless the board of trade has been so designated for the commodity contract and that designation shall not have been vacated, suspended, or revoked.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 4 - Unlawful Activities and Fraudulent Conduct › Section 29536.

29536. It is unlawful for any person, directly or indirectly, in connection with the purchase or sale of, the offer to sell, the offer to purchase, the offer to enter into, or the entry into, a commodity, commodity contract, or commodity option to do any of the following:
(a) To willfully employ any device, scheme, or artifice to defraud.
(b) To willfully make any false report, enter any false record, make any untrue statement of a material fact, or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
(c) To willfully engage in any transaction, act, practice, or course of business which operates or would operate as a fraud or deceit upon any persons.
(d) To willfully misappropriate or convert the funds, security, or property of any other person.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 4 - Unlawful Activities and Fraudulent Conduct › Section 29537.

29537. (a) Sections 29520, 29535, and 29536 apply to persons who sell or offer to sell when either of the following occur:
(1) An offer to sell is made in this state.
(2) An offer to buy is made and accepted in this state.
(b) Sections 29520, 29535, and 29536 apply to persons who buy or offer to buy when either of the following occur:
(1) An offer to buy is made in this state.
(2) An offer to sell is made and accepted in this state.
(c) For the purpose of this section, an offer to sell or to buy is made in this state, whether or not either party is then present in this state, when the offer:
(1) Originates from this state.
(2) Is directed by the offeror to this state and received at the place to which it is directed (or at any post office in this state in the case of a mailed offer).
(d) For the purpose of this section, an offer to buy or to sell is accepted in this state when acceptance:
(1) Is communicated to the offeror in this state.
(2) Has not previously been communicated to the offeror, orally or in writing, outside this state. Acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state, reasonably believing the offeror to be in this state and it is received at the place to which it is directed (or at any post office in this state in the case of a mailed acceptance).
(e) An offer to sell or to buy is not made in this state when either of the following occur:
(1) The publisher circulates or there is circulated on his or her behalf in this state any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in this state, or which is published in this state but has had more than two-thirds of its circulation outside this state during the past 12 months.
(2) A radio or television program originating outside this state is received in this state.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 4 - Unlawful Activities and Fraudulent Conduct › Section 29538.

29538. (a) It is unlawful for any person to knowingly alter, destroy, mutilate, conceal, cover up, falsify, or make a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the administration or enforcement of this division.
(b) It is unlawful for any person to knowingly make an untrue statement to the commissioner during the course of licensing, investigation, or examination, with the intent to impede, obstruct, or influence the administration or enforcement of any provision of this division.
(Added by Stats. 2007, Ch. 101, Sec. 10. Effective January 1, 2008.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 5 - Powers of the Commissioner › Section 29540.

29540. (a) Whenever it appears to the commissioner that any person has engaged, or is about to engage, in any act or practice constituting a violation of any provision of this law or any rule or order under this law, the commissioner may in his or her discretion bring an action in the name of the people of the State of California in the superior court to enjoin the acts or practices or to enforce compliance with this law or any rule or order under this law. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and a monitor, receiver, conservator, or other designated fiduciary or officer of the court may be appointed for the defendant or the defendant’s assets, or other ancillary relief may be granted as appropriate.
A receiver, monitor, conservator, or other designated fiduciary or officer of the court appointed by the superior court pursuant to this section may, with the approval of the court, exercise all of the powers of the defendant’s officers, directors, partners, trustees, or persons who exercise similar powers and perform similar duties, including the filing of a petition for bankruptcy. No action at law or in equity may be maintained by any party against the commissioner, or a receiver, monitor, conservator, or other designated fiduciary or officer of the court by reason of their exercising these powers or performing these duties pursuant to the order of, or with the approval of, the superior court.
(b) If the commissioner determines it is in the public interest, the commissioner may include in any action authorized by subdivision (a) a claim for ancillary relief, including, but not limited to, a claim for restitution, disgorgement, or damages on behalf of the person injured by the act or practice constituting the subject matter of the action, and the court shall have jurisdiction to award additional relief.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 5 - Powers of the Commissioner › Section 29541.

29541. (a) The commissioner in his or her discretion (1) may make public or private investigations within or outside of this state that the commissioner deems necessary to determine whether any person has violated or is about to violate any provision of this law or any rule or order hereunder, or to aid the enforcement of this law or in the prescribing of rules and forms under this law, and (2) may publish information concerning any violation of this law or a rule or order hereunder.
(b) For the purpose of any investigation or proceeding under this law, the commissioner or any officer designated by the commissioner may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the commissioner deems relevant or material to the inquiry.
(c) In case of contumacy by, or refusal to obey a subpoena issued to, any person, the superior court, upon application by the commissioner, may issue to the person an order requiring him or her to appear before the commissioner or the officer designated by the commissioner, to produce documentary evidence, if so ordered, or to give evidence touching the matter under investigation or in question. Failure to obey the order of the court may be punished by the court as a contempt.
(d) No person is excused from attending and testifying or from producing any document or record before the commissioner, or in obedience to the subpoena of the commissioner or any officer designated by the commissioner or in any proceeding instituted by the commissioner, on the ground that the testimony or evidence (documentary or otherwise) required of him or her may tend to incriminate him or her or subject him or her to a penalty or forfeiture. However, no individual may be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she is compelled, after validly claiming his or her privilege against self-incrimination, to testify or produce evidence (documentary or otherwise), except that the individual testifying is not exempt from prosecution and punishment for perjury or contempt committed in testifying.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 5 - Powers of the Commissioner › Section 29542.

29542. (a) If, in the opinion of the commissioner, any person is engaging or has engaged in any activity in violation of any provision of this law, or rule or order under this law, the commissioner may order the person to desist and refrain from the activity unless and until the activity will not be in violation of any provision of this law or any rule or order under this law.
(b) If after an order has been made under subdivision (a), a request for hearing is filed in writing within 30 days of the date of service of the order by the person to whom the order was directed, a hearing shall be held in accordance with the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), and the commissioner shall have all of the powers granted under the Administrative Procedure Act. Unless the hearing is commenced within 15 business days after the request is filed (or the person affected consents to a later date), the order is rescinded.
If that person fails to file a written request for a hearing within 30 days from the date of service of the order, the order shall be deemed a final order of the commissioner and shall not be subject to review by any court or agency, notwithstanding Section 29563.
(Amended by Stats. 2022, Ch. 188, Sec. 4. (AB 2433) Effective January 1, 2023.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 5 - Powers of the Commissioner › Section 29543.

29543. The commissioner may refer the evidence that is available concerning any violation of this law, or of any rule or order under this law, to the Attorney General or the district attorney of the county in which the violation occurred, who may, with or without such a reference, institute appropriate criminal proceedings under this law. The commissioner and the commissioner’s counsel, deputies, or assistants may, upon request of the Attorney General or the district attorney, assist the prosecutor in presenting the law or facts at the trial.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 5 - Powers of the Commissioner › Section 29544.

29544. (a) Any person who willfully violates any provision of this law, or who willfully violates any rule or order under this law, shall be liable for a civil penalty not to exceed twenty-five thousand dollars ($25,000) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the commissioner in any court of competent jurisdiction.
The penalty collected shall be paid to the State Corporations Fund to be used for the support of this division.
(b) As applied to the penalties for acts in violation of this division, the remedies provided by this section and by other sections of this division are not exclusive, and may be sought and employed in any combination to enforce this division.
(c) No action shall be maintained to enforce any liability created under subdivision (a) unless brought before the expiration of four years after the act or transaction constituting the violation.
(Amended by Stats. 2003, Ch. 876, Sec. 3. Effective January 1, 2004.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 5 - Powers of the Commissioner › Section 29545.

29545. (a) The commissioner may take actions that are authorized by Section 13a-2 of Title 7 of the United States Code (Section 6d of the federal Commodity Exchange Act) as amended before or after the effective date of this section.
(b) Nothing in this section shall be construed as a limitation on the powers of the commissioner under this act or any other law administered by the commissioner.
(Amended by Stats. 2013, Ch. 335, Sec. 12. (SB 538) Effective January 1, 2014.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 6 - Crimes and Civil Liability › Section 29550.

29550. (a) Except as provided in subdivision (b), any person who willfully violates any provision of this law, or who willfully violates any rule or order under this law, shall upon conviction be fined not more than two hundred fifty thousand dollars ($250,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or in a county jail for not more than one year, or be punished by both a fine and imprisonment; but no person may be imprisoned for the violation of any rule or order if that person proves that he or she had no knowledge of the rule or order.
(b) Any person who willfully violates Section 29536 shall upon conviction be fined not more than two hundred fifty thousand dollars ($250,000), or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code for two, three, or four years, or be punished by both that fine and imprisonment.
(c) One-half of the fines collected under this section shall be paid to the State Corporations Fund to be used for the support of this division. The remainder of the fines collected under this section shall be paid to the state or local agency which brought the criminal prosecution.
(Amended by Stats. 2011, Ch. 15, Sec. 52. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 6 - Crimes and Civil Liability › Section 29551.

29551. Nothing in this law limits the power of the state to punish any person for any conduct which constitutes a crime under any other statute.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 6 - Crimes and Civil Liability › Section 29552.

29552. Any person who materially assists in any violation of this law, or any rule or order of the commissioner under this law, is jointly and severally liable with any other person liable under this law for the violation.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 6 - Crimes and Civil Liability › Section 29553.

29553. No action shall be maintained to enforce any liability under Section 29552 unless brought before the expiration of four years after the act or transaction constituting the violation or within one year after the discovery by the plaintiff of the facts constituting the violation, whichever occurs last.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 6 - Crimes and Civil Liability › Section 29555.

29555. Except as explicitly provided in this law, no civil liability in favor of any private party shall arise against any person by implication from, or as a result of, the violation of any provision of this law or any rule or order under this law. Nothing in this law shall limit any liability which may exist by virtue of any other statute or under common law if this law were not in effect.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 7 - Miscellaneous Provisions › Section 29560.

29560. No provision of this law imposing any liability applies to any act done or omitted in good faith in conformity with any rule, form, permit, order, or written interpretive opinion of the commissioner, or any written interpretive opinion of the Attorney General, notwithstanding that the rule, form, permit, order, or written interpretive opinion may later be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 7 - Miscellaneous Provisions › Section 29561.

29561. The commissioner may from time to time make, amend, and rescind the rules, forms, and orders that are necessary to carry out this law, and define any terms, whether or not used in this law, insofar as the definitions are not inconsistent with this law. For the purpose of rules, the commissioner may classify commodities, commodity contracts, commodity options, and persons within the commissioner’s jurisdiction and may prescribe different requirements for different classes. The commissioner may, in the commissioner’s discretion, waive any requirement of any rule or form in situations where in his or her opinion the requirement is not necessary in the public interest.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 7 - Miscellaneous Provisions › Section 29562.

29562. In any proceeding under this law, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 7 - Miscellaneous Provisions › Section 29563.

29563. Every final order, decision, certificate, registration, or other official act of the commissioner is subject to judicial review in accordance with law.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 7 - Miscellaneous Provisions › Section 29564.

29564. Nothing in this law, shall impair, derogate, or otherwise affect the authority or powers of the commissioner under the Corporate Securities Law of 1968 (Part 3 (commencing with Section 25000)) or the application of any provision thereof to any person or transaction subject thereto.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 7 - Miscellaneous Provisions › Section 29565.

29565. If any provision of this law or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this law which can be given effect without the invalid provision or application, and to this end this law is declared to be severable.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 7 - Miscellaneous Provisions › Section 29566.

29566. Neither the commissioner nor any employee of the commissioner shall use any information which is filed with or obtained by the commissioner which is not public information for personal gain or benefit, nor shall the commissioner nor any employee of the commissioner engage in any securities or commodity transaction based on that information, even though public, if there has not been a sufficient period of time for the securities or commodity markets to assimilate that information.
(Added by Stats. 1990, Ch. 969, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 4.5 - COMMODITIES › CHAPTER 7 - Miscellaneous Provisions › Section 29567.

29567. (a) The program established by this division shall be supported from funds appropriated by the Legislature from the State Corporations Fund.
(b) The funds appropriated from the State Corporations Fund and made available for expenditure under subdivision (a) of this section shall come from securities application filing fees collected under subdivisions (e), (f), (h), and (i) of Section 25608 of the Corporations Code.
(Added by Stats. 1996, Ch. 466, Sec. 3. Effective January 1, 1997.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31001.

31001. The Legislature hereby finds and declares that the widespread sale of franchises is a relatively new form of business which has created numerous problems both from an investment and a business point of view in the State of California. Prior to the enactment of this division, the sale of franchises was regulated only to the limited extent to which the Corporate Securities Law of 1968 applied to those transactions. California franchisees have suffered substantial losses where the franchisor or his or her representative has not provided full and complete information regarding the franchisor-franchisee relationship, the details of the contract between franchisor and franchisee, and the prior business experience of the franchisor.
It is the intent of this law to provide each prospective franchisee with the information necessary to make an intelligent decision regarding franchises being offered. Further, it is the intent of this law to prohibit the sale of franchises where the sale would lead to fraud or a likelihood that the franchisor’s promises would not be fulfilled, and to protect the franchisor and franchisee by providing a better understanding of the relationship between the franchisor and franchisee with regard to their business relationship.
(Amended by Stats. 2004, Ch. 458, Sec. 1. Effective September 10, 2004. Operative January 1, 2005, by Sec. 19 of Ch. 458.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31001.1.

31001.1. (a) To enhance the uniform and efficient administration, and the effective enforcement, of this division, it is the intent of the Legislature that the commissioner shall maintain a risk-based process of reviewing franchise applications as described in this section.
(b) Under the risk-based review process, the commissioner shall focus on reviewing application information posing the most risk to prospective franchisees in accordance with Section 31115, with emphasis on risks associated with the franchisor’s financial condition, the franchisor’s compliance record, and significant deficiencies with the franchisor’s application.
(c) When reviewing franchise filings under this section, the commissioner shall concentrate on helping to prevent misappropriation, mismanagement, and misrepresentation in connection with the offer or sale of any franchise subject to this division.
(d) The commissioner shall consider guidelines, or other information developed by the North American Securities Administrators Association that are in effect, to assist in the implementation of the risk-based review process. The risk-based review procedures implemented by the commissioner shall be considered internal management criteria and guidelines within the meaning of subdivisions (d) and (e) of Section 11340.9 of the Government Code.
(Added by Stats. 2004, Ch. 458, Sec. 2. Effective September 10, 2004. Operative January 1, 2005, by Sec. 19 of Ch. 458.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31003.

31003. “Advertisement” means any written or printed communication or any communication by means of recorded telephone messages or spoken on radio, television, or similar communications media, published in connection with an offer or sale of a franchise.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31003.5.

31003.5. “Business days” are all days other than every Saturday, every Sunday, and such other days as are specified or provided for as holidays in the Government Code.
(Added by Stats. 1973, Ch. 539.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31004.

31004. “Commissioner” means the Commissioner of Financial Protection and Innovation.
(Amended by Stats. 2022, Ch. 728, Sec. 5. (AB 676) Effective January 1, 2023.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31005.5.

31005.5. For the purposes of this division and in respect only to a franchise as defined in subdivision (b) of Section 31005, the following terms shall have the following meanings:
(a) “Franchisor” means a refiner or petroleum distributor who authorizes or permits, under a franchise, a petroleum retailer or petroleum distributor to use a trademark in connection with the sale, consignment, or distribution of fuel.
(b) “Franchisee” means a petroleum retailer or petroleum distributor who is authorized or permitted, under a franchise, to use a trademark in connection with the sale, consignment, or distribution of fuel.
(c) “Refiner” means any person engaged in the refining of crude oil to produce fuel, and includes any affiliate of such person.
(d) “Petroleum distributor” means any person, including any affiliate of such person, who either purchases fuel for sale, consignment, or distribution to another, or receives fuel on consignment for consignment or distribution to his or her own fuel accounts or to accounts of his or her supplier, but shall not include a person who is an employee of, or merely serves as a common carrier providing transportation service for, such supplier.
(e) “Petroleum retailer” means any person who purchases fuel for sale to the general public for ultimate consumption.
(f) “Marketing premises” means, in the case of any franchise, premises which, under such franchise, are to be employed by the franchisee in connection with the sale, consignment, or distribution of fuel.
(g) “Leased marketing premises” means marketing premises owned, leased, or in any way controlled by a franchisor and which the franchisee is authorized or permitted, under the franchise, to employ in connection with the sale, consignment, or distribution of fuel.
(h) “Contract” means any oral or written agreement. For supply purposes, delivery levels during the same month of the previous year shall be prima facie evidence of an agreement to deliver such levels.
(i) “Trademark” means any trademark, trade name, service mark, or other identifying symbol or name.
(j) “Fuel” means gasoline, diesel, gasohol, or aviation fuel.
(k) “Affiliate” means any person who, other than by means of a franchise, controls, is controlled by, or is under common control with, any other person.
(l) “Petroleum corporation” means any corporation or person owning, managing, or controlling the exploration, production, processing, transportation, or sale of crude or refined petroleum or any petroleum product.
(Added by Stats. 1981, Ch. 90, Sec. 11.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31008.

31008. “Area franchise” means any franchise between a franchisor and a franchisee whereby the franchisee is granted the right to operate more than one unit within a specified geographical area.
(Amended by Stats. 1988, Ch. 562, Sec. 1.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31008.5.

31008.5. “Subfranchise” means any contract or agreement between a franchisor and a subfranchisor whereby the subfranchisor is granted the right, for consideration given in whole or in part for that right, to sell or negotiate the sale of franchises in the name or on behalf of the franchisor. A contract or agreement which is a franchise does not become a subfranchise merely because under its terms a person is granted the right to receive compensation for referrals to a franchisor or subfranchisor or to receive compensation for acting as a sales representative on their behalf.
(Added by Stats. 1988, Ch. 562, Sec. 2.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31010.

31010. Where used in this law, unless specifically stated otherwise, “franchise” includes “area franchise” and “subfranchise.”
(Amended by Stats. 1988, Ch. 562, Sec. 4.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31011.

31011. “Franchise fee” means any fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including, but not limited to, any payment for goods and services.
However, the following shall not be considered the payment of a franchise fee:
(a) The purchase or agreement to purchase goods at a bona fide wholesale price if no obligation is imposed upon the purchaser to purchase or pay for a quantity of the goods in excess of that which a reasonable businessperson normally would purchase by way of a starting inventory or supply or to maintain a going inventory or supply.
(b) The payment of a reasonable service charge to the issuer of a credit card by an establishment accepting or honoring that credit card.
(c) Amounts paid to a trading stamp company under Chapter 3 (commencing with Section 17750) of Part 3 of Division 7 of the Business and Professions Code by a person issuing trading stamps in connection with the retail sale of merchandise or service.
(Amended by Stats. 2002, Ch. 664, Sec. 54. Effective January 1, 2003.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31013.

31013. (a) An offer or sale of a franchise is made in this state when an offer to sell is made in this state, or an offer to buy is accepted in this state, or if the franchise business is intended to or will be operated in this state.
(b) An offer to sell is made in this state when the offer either originates from this state or is directed by the offeror to this state and received at the place to which it is directed. An offer to sell is accepted in this state when acceptance is communicated to the offeror in this state, and acceptance is communicated to the offeror in this state when the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state and it is received at the place to which it is directed.
(c) An offer to sell is not made in this state merely because (1) the publisher circulates or there is circulated on their behalf in this state any bona fide newspaper or other publication of general, regular, and paid circulation that has had more than two-thirds of its circulation outside this state during the past 12 months, or (2) a radio or television program originating outside this state is received in this state.
(Amended by Stats. 2022, Ch. 728, Sec. 6. (AB 676) Effective January 1, 2023.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31015.

31015. “Person” means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust or an unincorporated organization.
(Amended by Stats. 1994, Ch. 1010, Sec. 95. Effective January 1, 1995.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 1 - DEFINITIONS › Section 31018.

31018. (a) “Sale” or “sell” includes every contract or agreement of sale of, a contract to sell, or disposition of, a franchise or interest in a franchise for value.
(b) “Offer” or “offer to sell” includes every attempt to dispose of, or solicitation of an offer to buy, a franchise or interest in a franchise for value.
(c) The terms defined in this section do not include the renewal or extension of an existing franchise where there is no interruption in the operation of the franchised business by the franchisee; provided, that a material modification of an existing franchise, whether upon renewal or otherwise, is a “sale” within the meaning of this section.
(Amended by Stats. 1977, Ch. 762.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 1 - Exemptions › Section 31100.

31100. There shall be exempted from any or all of the provisions of Chapter 2 (commencing with Section 31110) any other transaction which the commissioner by rule exempts as not being comprehended within the purposes of this law and the registration of which the commissioner finds is not necessary or appropriate in the public interest or for the protection of investors.
(Amended by Stats. 1989, Ch. 1026, Sec. 1.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 1 - Exemptions › Section 31102.

31102. The offer or sale of a franchise by a franchisee for his own account or the offer or sale of the entire area franchise owned by a subfranchisor for his own account, is exempted from the provisions of Section 31110 if the sale is not effected by or through a franchisor. A sale is not effected by or through a franchisor merely because a franchisor has a right to approve or disapprove a different franchisee.
(Added by Stats. 1970, Ch. 1400.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 1 - Exemptions › Section 31103.

31103. This division shall not be applicable to any transaction relating to a bank credit card plan. “Bank credit card plan” means a credit card plan in which the issuers of credit cards, as defined in subdivision (a) of Section 1747.02 of the Civil Code are only: banks regulated by or under the supervision of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Comptroller of the Currency of the United States, or the Commissioner of Financial Institutions of this state under Division 1 (commencing with Section 99) of the Financial Code; or, persons controlling these banks, provided that the assets of such a bank or banks represent a majority of the assets on a consolidated basis of any holding company system of which the card issuers may be a party; or, persons controlled by these banks.
(Amended by Stats. 1996, Ch. 1064, Sec. 20. Effective January 1, 1997. Operative July 1, 1997, by Sec. 814 of Ch. 1064.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 1 - Exemptions › Section 31104.

31104. There shall be exempted from the provisions of Chapter 2 (commencing with Section 31110) of this part the offer and sale of a franchise if the franchisor:
(a) Is a petroleum corporation or distributor who is a wholesale distributor or marketer of petroleum products; doing business continuously for the past five years and who does not require an advance of funds in the nature of a fee or lease for such franchise agreements; not engaged in the production or the refining of petroleum; and
(b) Complies with the provisions of subdivisions (c) and (d) of Section 31101.
(c) For the purposes of subdivision (a) of this section:
(1) A “wholesale distributor” or “marketer” means any entity which, for wholesale, purchases or receives through transfer, or otherwise obtains, by consignment or otherwise, refined petroleum products and resells or otherwise transfers such products, without substantially changing their form, to other purchasers.
(2) An “advance of funds” means (A) a fee or lease for a franchise agreement, and (B) does not mean rent for the possession or use, or both, of premises or property, the purchase of inventory for resale or supplies, utility deposits, and other consideration or expenditures for the formation or operation, or both, of a wholesale distributor or marketer entity.
(Amended by Stats. 1991, Ch. 379, Sec. 1.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 1 - Exemptions › Section 31105.

31105. Any offer, sale, or other transfer of a franchise, or any interest in a franchise, to a resident of another state or any territory or foreign country, shall be exempted from the provisions of Chapter 2 (commencing with Section 31110) of this part, if all locations from which sales, leases or other transactions between the franchised business and its customers are made, or goods or services are distributed, are physically located outside this state.
(Added by Stats. 1996, Ch. 477, Sec. 4. Effective January 1, 1997.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 1 - Exemptions › Section 31106.

31106. There shall be exempted from the provisions of Chapter 2 (commencing with Section 31110) of this part, any offer, sale, or other transfer of a franchise or any interest in a franchise, provided that the offer, sale or transfer meets the requirements in subdivisions (a) and (b):
(a) Any of the following conditions apply:
(1) One or more of the owners of the prospective franchisee owning at least a 50 percent interest in the prospective franchisee meet both of the following:
(A) The owner or owners have had, within the seven years before the date of the sale or other transaction, at least 24 months’ experience being responsible for the financial and operational aspects of a business offering products or services substantially similar to those offered by the franchised business.
(B) The owner or owners are not controlled by the franchisor.
(2) One or more of the owners of the prospective franchisee owning at least a 50 percent interest in the prospective franchisee meet both of the following:
(A) The owner or owners are, or have been within 60 days prior to the sale or other transaction, an officer, director, managing agent, or an owner of at least a 25 percent interest in the franchisor for at least 24 months.
(B) The owner or owners are not controlled by the franchisor.
(3) The offer, sale, or other transfer is of an additional franchise to an existing franchisee of the franchisor, or to an entity, one or more of the officers, directors, managing agents or owners of at least a 25 percent interest of which is an existing franchisee of the franchisor; provided that, in either case, for 24 months or more the franchisee, or the qualifying person, has been engaged in a business offering products or services substantially similar to those to be offered by the franchise being sold, or otherwise transferred.
(b) The franchisor files with the commissioner a notice of exemption and pays the fee prescribed in subdivision (f) of Section 31500 no later than 15 calendar days after the sale of a franchise in this state pursuant to this section.
(Added by Stats. 1996, Ch. 477, Sec. 5. Effective January 1, 1997.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 1 - Exemptions › Section 31107.

31107. There shall be exempted from the provisions of Chapter 2 (commencing with Section 31110) of this part, any offer (but not the sale) by a franchisor of a franchise while an application for renewal or amendment is pending if the prospective franchisee receives all of the following:
(a) The franchise disclosure document and its exhibits as filed with the commissioner with the application for renewal or amendment.
(b) A written statement from the franchisor that (1) the filing has been made but is not effective, (2) the information in the franchise disclosure document and exhibits has not been reviewed by the commissioner, and (3) the franchisor will deliver to the prospective franchisee an effective franchise disclosure document and exhibits at least 14 days prior to execution by the prospective franchisee of a binding agreement or payment of any consideration to the franchisor, or any person affiliated with the franchisor, whichever occurs first, showing all material changes from the franchise disclosure document and exhibits received by the prospective franchisee under subdivision (a) of this section.
(c) The franchise disclosure document and exhibits in accordance with paragraph (3) of subdivision (b) of this section.
(Amended by Stats. 2013, Ch. 334, Sec. 2. (SB 537) Effective January 1, 2014.)
2023 California Code › Corporations Code - CORP › TITLE 4 - SECURITIES › DIVISION 5 - FRANCHISE INVESTMENT LAW › PART 2 - REGULATION OF THE SALE OF FRANCHISES › CHAPTER 1 - Exemptions › Section 31108.

31108. There shall be exempted from the provisions of Chapter 2 (commencing with Section 31110), any offer or sale of a franchise if the franchise involves the adding of a new product or service line to the existing business of a prospective franchisee, provided all of the following requirements are met:
(a) For at least the last 24 months prior to the date of sale of the franchise, the prospective franchisee, or if the prospective franchisee is not a natural person, an existing officer, director, or managing agent of the prospective franchisee who has held that position with the prospective franchisee for at least the last 24 months, has been engaged in a business offering products or services substantially similar or related to those to be offered by the franchised business.
(b) The new product or service is substantially similar or related to the product or service being offered by the prospective franchisee’s existing business.
(c) The franchised business is to be operated from the same business location as the prospective franchisee’s existing business.
(d) The parties anticipated, in good faith, at the time the agreement establishing the franchise relationship was reached, that sales resulting from the franchised business will not represent more than 20 percent of the total sales in dollar volume of the franchisee on an annual basis.
(e) The prospective franchisee is not controlled by the franchisor.
(f) The franchisor files with the commissioner a notice of exemption and pays the fee prescribed in subdivision (f) of Section 31500 prior to an offer or sale of such a franchise in this state during any calendar year in which one or more of those franchises are sold.
(Added by Stats. 1999, Ch. 325, Sec. 1. Effective January 1, 2000.)