Gov. Schwarzenegger Signs California A.B. 2921 on September 10, 2004 |
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On September 10th California Governor Arnold Schwarzenegger signed California A.B. 2921, which made several important changes to the California Franchise Investment Law. This legislation, sponsored by Assemblyman Dave Cox (R-Sacramento), was supported by the IFA, the California Bar Association's Franchise Law Subcommittee, and the California Department of Corporations (DOC).
The centerpiece of this important bill was a provision that exempts franchise loans from the California Finance Lenders Law, which required franchised businesses that provide financing for franchise enterprises in California to become a licensed lender. Thanks to a special urgency clause IFA supported in this legislation, the Lenders Law exemption was effective when the Governor signed the bill while the other provisions of A.B. 2921 will take effect on January 1, 2005 .
Other sections of this legislation include that offers and sales of a franchise and material modifications of franchise agreements are exempt from the registration process under certain circumstances. It also adds intent language supporting the DOC's risk-based review process.
You may access this legislation at the link below:
http://www.assembly.ca.gov/acs/acsframeset2text.htm
