Administration of the Franchise Investment Law

Corporations Code Title 4, Division 5, Part 5 deals with securities administration under the Franchise Investment Law in California.

Section 31500 requires the commissioner to charge and collect the fees fixed by this section. All fees and charges collected under this section must be transmitted to the Treasurer at least weekly, accompanied by a detailed statement and be credited to the Financial Protection Fund. Seven filing fees are specified.

Section 31501 explains that every final order, decision, license, or other official act of the commissioner is subject to judicial review in accordance with law.

Section 31502 allows the commissioner from time to time make, amend and rescind such rules, forms, and orders as are necessary to carry out the provisions of this law, including rules and forms governing applications and reports, and defining any terms, whether or not used in this law, insofar as the definitions are not inconsistent with the provisions of this law.

Section 31503 provides that all rules of the commissioner, other than those relating solely to the internal administration of the Department of Financial Protection and Innovation, are to be made, amended, or rescinded in accordance with the provisions of the APA.

Section 31504 requires all applications, reports and other papers and documents filed with the commissioner under this law to be open to public inspection, except that the commissioner may withhold from public inspection any information the disclosure of which is, in the judgment of the commissioner, not necessary in the public interest or for the protection of investors.

The commissioner may publish any information filed with him or obtained by him, if, in the judgment of the commissioner, that action is in the public interest. No provision of this law authorizes the commissioner to disclose any information withheld from public inspection except among themselves or when necessary or appropriate in a proceeding or investigation under this law or to other federal or state regulatory agencies.

It is unlawful for the commissioner or any of his assistants, clerks, or deputies to use for personal benefit any information which is filed with or obtained by the commissioner and which is not then generally available to the public.

Section 31505 states that, upon request and at reasonable charges as he prescribes by rule, the commissioner is required to furnish to any person copies (certified under his seal of office if requested) of any document which is retained as a matter of public record.

Section 31506 authorizes the commissioner to destroy any applications or orders, together with the files and folders, as useless or obsolete, four years after the date of filing or issuance, with the approval of the Department of General Services; provided that a permanent record must be maintained of any disciplinary action taken by the commissioner.