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Assembly Bill 3101 (Fenton 1974)

Chapter 498, Statutes of 1974 - AB 3101

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As enacted in 1974, Assembly Bill 3101 added Chapter 7.8 (commencing with Section 21140) to the Business and Professions Code relating to franchise agreements.  (See Exhibit A, #1j)  Assembly member Jack R. Fenton, as lead author, introduced the bill on February 11, 1974 at the request of the California Service Station Council.  (See Exhibit A, #1a; #8, page 1; and #12, document PE-5) 

Assembly Bill 3101 was assigned to the Assembly Committee on Transportation the Senate Committee on Public Utilities and Corporation and the Senate Committee on Business and Professions where policy issues raised by the bill were considered.  (See Exhibit A, #3, #6 and #8)  Eight amendments were made to Assembly Bill 3101 as the bill was considered by both Houses.  (See Exhibit A, #1b through #1i and #2)  Subsequent to legislative approval, Governor Ronald Reagan signed the bill on July 11, 1974, and it was recorded by the Secretary of State as Chapter 498 of the Statutes of 1974.  (See Exhibit A, #1k and #2)

Assembly Bill 3101 contained an urgency clause which caused the bill to go into immediate effect.  The reason for this urgency can be found in section 3 of Chapter 498 wherein it states:

            In order to furnish the maximum quantity of gasoline available to the public and to prevent increased closings of gasoline dealers because of lack of supplies at the earliest time, it is necessary that this act take immediate effect.

(See Exhibit A #1k, page 1141)