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News Briefs

By ALM Staff | Law Journal Newsletters |
September 02, 2013

Franchise Relationship Law Tabled in CA Assembly

On Aug. 13, a committee of the California State Assembly withdrew consideration of a bill that would have significantly changed the regulation of franchises. SB 610 had passed the Senate in May ( see, “Is California's 'Good Faith' Franchise Legislation Necessary or Meaningful?,” in the July 2013 issue of FBLA), and it was scheduled for a hearing and a vote in the Assembly's Committee on Business, Professions, and Consumer Protection on Aug. 14. But one day prior to the hearing, Committee Chair Susan A. Bonilla withdrew the bill and cancelled the hearing after receiving indications from her fellow legislators that they would not support it. The bill will not be reconsidered during the current session.

“This is the result of two months of executing a grassroots campaign and lobbying legislators,” said Matt Haller, vice president of public affairs for the International Franchise Association. IFA opposed the bill, arguing that it would radically change the franchisor-franchisee contract.

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