California Department Of Corporations Reorganizes, Changes Name
The California Department of Corporations, which is charged with administering and enforcing California's franchise laws (including the California Franchise Investment Law and California Franchise Relations Act), announced that its restructuring plan has become effective as of today. The restructuring follows the Governor's Reorganization Plan, first announced in 2012, which resulted in the Department of Corporations combining with the Department of Financial Instutitions.
The newly-organized, combined agency is named the Department of Business Oversight ("DBO"). According to the DBO's new website:
The core functions of the departments will remain the same, and consumers, industry and stakeholders will continue to receive the same level of excellence. The enforcement, examination, legal, licensing and other programs are now organized as the Division of Corporations and Division of Financial Institutions under the new Department of Business Oversight.
Officially, the DBO regulates a variety of financial services, products and professionals. These include franchise companies, banks, securities brokers and dealers, investment advisers, and off-exchange commodoties. While there has been some reshuffling of personnel due to the change, I am told that most of the individuals who were responsible for franchise filings and enforcement will continue to have the same duties post-reorganization.