Amended IN Senate March 16, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1247Introduced by Senator HuesoFebruary 17, 2022 An act to add Chapter 4 (commencing with Section 17820) to Part 3 of Division 7 of the Business and Professions Code, relating to franchises. business.LEGISLATIVE COUNSEL'S DIGESTSB 1247, as amended, Hueso. The Franchise Investment Law: franchise agreements. Product sales: incentives.Existing law regulates various businesses to, among other things, preserve and regulate competition, prohibit unfair trade practices, and regulate advertising. Existing law establishes the Franchise Tax Board in the Government Operations Agency to, among other things, administer state personal income taxes and corporation franchise and income taxes. This bill would require any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state to report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board. This bill would also require any agreement requiring a person to assign their rights to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state to include the potential or current value of that rebate, promotion, allowance, or other monetary incentive.The Franchise Investment Law requires a franchisor to register with the Department of Financial Protection and Innovation before the offer or sale of a franchise in this state, unless that the franchisor meets prescribed requirements, including that the franchisor discloses specified terms and conditions of the franchise agreement to a prospective franchisee and provides a copy of the typical franchise agreement in this state. Existing law prohibits specified fraudulent or unfair practices and provides the commissioner of the department with the authority to adopt regulations to carry out these provisions.This bill would declare the intent of the Legislature to enact legislation that would make changes to the terms and conditions that may lawfully be included in a franchise agreement.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 4 (commencing with Section 17820) is added to Part 3 of Division 7 of the Business and Professions Code, to read: CHAPTER 4. Rebates promotions and incentives17820. Any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state shall report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board.17821. (a) Any agreement that requires the assignment of a persons right to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state shall include the potential or current value of the rebate, promotion, allowance, or other incentive.(b) For purposes of this section, person shall have the meaning set forth in subdivision (b) of Section 17700.SECTION 1.It is the intent of the Legislature to enact legislation that would make changes to the terms and conditions that may lawfully be included in a franchise agreement.
Amended IN Senate March 16, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1247Introduced by Senator HuesoFebruary 17, 2022 An act to add Chapter 4 (commencing with Section 17820) to Part 3 of Division 7 of the Business and Professions Code, relating to franchises. business.LEGISLATIVE COUNSEL'S DIGESTSB 1247, as amended, Hueso. The Franchise Investment Law: franchise agreements. Product sales: incentives.Existing law regulates various businesses to, among other things, preserve and regulate competition, prohibit unfair trade practices, and regulate advertising. Existing law establishes the Franchise Tax Board in the Government Operations Agency to, among other things, administer state personal income taxes and corporation franchise and income taxes. This bill would require any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state to report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board. This bill would also require any agreement requiring a person to assign their rights to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state to include the potential or current value of that rebate, promotion, allowance, or other monetary incentive.The Franchise Investment Law requires a franchisor to register with the Department of Financial Protection and Innovation before the offer or sale of a franchise in this state, unless that the franchisor meets prescribed requirements, including that the franchisor discloses specified terms and conditions of the franchise agreement to a prospective franchisee and provides a copy of the typical franchise agreement in this state. Existing law prohibits specified fraudulent or unfair practices and provides the commissioner of the department with the authority to adopt regulations to carry out these provisions.This bill would declare the intent of the Legislature to enact legislation that would make changes to the terms and conditions that may lawfully be included in a franchise agreement.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Senate March 16, 2022
Amended IN Senate March 16, 2022
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Senate Bill
No. 1247
Introduced by Senator HuesoFebruary 17, 2022
Introduced by Senator Hueso
February 17, 2022
An act to add Chapter 4 (commencing with Section 17820) to Part 3 of Division 7 of the Business and Professions Code, relating to franchises. business.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1247, as amended, Hueso. The Franchise Investment Law: franchise agreements. Product sales: incentives.
Existing law regulates various businesses to, among other things, preserve and regulate competition, prohibit unfair trade practices, and regulate advertising. Existing law establishes the Franchise Tax Board in the Government Operations Agency to, among other things, administer state personal income taxes and corporation franchise and income taxes. This bill would require any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state to report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board. This bill would also require any agreement requiring a person to assign their rights to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state to include the potential or current value of that rebate, promotion, allowance, or other monetary incentive.The Franchise Investment Law requires a franchisor to register with the Department of Financial Protection and Innovation before the offer or sale of a franchise in this state, unless that the franchisor meets prescribed requirements, including that the franchisor discloses specified terms and conditions of the franchise agreement to a prospective franchisee and provides a copy of the typical franchise agreement in this state. Existing law prohibits specified fraudulent or unfair practices and provides the commissioner of the department with the authority to adopt regulations to carry out these provisions.This bill would declare the intent of the Legislature to enact legislation that would make changes to the terms and conditions that may lawfully be included in a franchise agreement.
Existing law regulates various businesses to, among other things, preserve and regulate competition, prohibit unfair trade practices, and regulate advertising.
Existing law establishes the Franchise Tax Board in the Government Operations Agency to, among other things, administer state personal income taxes and corporation franchise and income taxes.
This bill would require any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state to report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board. This bill would also require any agreement requiring a person to assign their rights to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state to include the potential or current value of that rebate, promotion, allowance, or other monetary incentive.
The Franchise Investment Law requires a franchisor to register with the Department of Financial Protection and Innovation before the offer or sale of a franchise in this state, unless that the franchisor meets prescribed requirements, including that the franchisor discloses specified terms and conditions of the franchise agreement to a prospective franchisee and provides a copy of the typical franchise agreement in this state. Existing law prohibits specified fraudulent or unfair practices and provides the commissioner of the department with the authority to adopt regulations to carry out these provisions.
This bill would declare the intent of the Legislature to enact legislation that would make changes to the terms and conditions that may lawfully be included in a franchise agreement.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Chapter 4 (commencing with Section 17820) is added to Part 3 of Division 7 of the Business and Professions Code, to read: CHAPTER 4. Rebates promotions and incentives17820. Any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state shall report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board.17821. (a) Any agreement that requires the assignment of a persons right to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state shall include the potential or current value of the rebate, promotion, allowance, or other incentive.(b) For purposes of this section, person shall have the meaning set forth in subdivision (b) of Section 17700.SECTION 1.It is the intent of the Legislature to enact legislation that would make changes to the terms and conditions that may lawfully be included in a franchise agreement.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Chapter 4 (commencing with Section 17820) is added to Part 3 of Division 7 of the Business and Professions Code, to read: CHAPTER 4. Rebates promotions and incentives17820. Any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state shall report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board.17821. (a) Any agreement that requires the assignment of a persons right to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state shall include the potential or current value of the rebate, promotion, allowance, or other incentive.(b) For purposes of this section, person shall have the meaning set forth in subdivision (b) of Section 17700.
SECTION 1. Chapter 4 (commencing with Section 17820) is added to Part 3 of Division 7 of the Business and Professions Code, to read:
### SECTION 1.
CHAPTER 4. Rebates promotions and incentives17820. Any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state shall report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board.17821. (a) Any agreement that requires the assignment of a persons right to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state shall include the potential or current value of the rebate, promotion, allowance, or other incentive.(b) For purposes of this section, person shall have the meaning set forth in subdivision (b) of Section 17700.
CHAPTER 4. Rebates promotions and incentives17820. Any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state shall report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board.17821. (a) Any agreement that requires the assignment of a persons right to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state shall include the potential or current value of the rebate, promotion, allowance, or other incentive.(b) For purposes of this section, person shall have the meaning set forth in subdivision (b) of Section 17700.
CHAPTER 4. Rebates promotions and incentives
CHAPTER 4. Rebates promotions and incentives
17820. Any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state shall report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board.
17820. Any manufacturer, wholesaler, or other entity that does business in the state and that offers a rebate, promotion, allowance, or any other monetary incentive for the sale of that entitys product to a retail business that does business in the state shall report the amount of the rebate, promotion, allowance, or other monetary incentive to the Franchise Tax Board.
17821. (a) Any agreement that requires the assignment of a persons right to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state shall include the potential or current value of the rebate, promotion, allowance, or other incentive.(b) For purposes of this section, person shall have the meaning set forth in subdivision (b) of Section 17700.
17821. (a) Any agreement that requires the assignment of a persons right to a rebate, promotion, allowance, or other monetary incentive for the sale of a product within the state shall include the potential or current value of the rebate, promotion, allowance, or other incentive.
(b) For purposes of this section, person shall have the meaning set forth in subdivision (b) of Section 17700.
It is the intent of the Legislature to enact legislation that would make changes to the terms and conditions that may lawfully be included in a franchise agreement.