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SB-610 Franchises.(2013-2014)

Bill Status
Jackson (S)
An act to amend Sections 20010, 20020, and 20035 of, and to add Article 2.5 (commencing with Section 20016) to Chapter 5.5 of Division 8 of, the Business and Professions Code, relating to franchises.

Type of Measure
Active Bill - In Floor Process
Majority Vote Required
Non-Fiscal Committee
Non-State-Mandated Local Program
Non-Tax levy
Last 5 History Actions
Date Action
11/30/14 Consideration of Governors veto died on file.
09/29/14 In Senate. Consideration of Governor's veto pending.
09/29/14 Vetoed by the Governor.
08/28/14 Enrolled and presented to the Governor at 10 a.m.
08/21/14 Assembly amendments concurred in. (Ayes 23. Noes 9. Page 4732.) Ordered to engrossing and enrolling.
Governor's Veto Message
To the members of the California State Senate:

I am returning Senate Bill 610 without my signature.

This bill alters the relationship between franchisors and franchisees by, among other things, changing the standard required to terminate a franchise agreement from "good cause" to a "substantial and material breach." While the "good cause" standard is common and well understood, the standard provided in this bill is new and untested.

The bill's changes would significantly impact California's vast franchise industry that relies on the certainty of well-settled laws. I am open to reforming the California Franchise Relations Act to give more protections to franchisees if there are indeed unacceptable or predatory practices by franchisors. I need, however, a better explanation of the scope of the problem so I am certain that the solution crafted will fix those problems and not create new ones.

Additionally, the parties supporting and opposing this bill have diametrically different views. Given the polarized positions, it is in the best interest of all that a concerted effort be made to reach a more collaborative solution.


Edmund G. Brown Jr.