AMENDED IN ASSEMBLY MARCH 23, 2026
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
98
Introduced by Assembly Member Hoover
February 20, 2026
An act to add Section 20045 to the Business and Professions Code, relating to franchises. An act to add Article 4 (commencing with Section 33060) to Chapter 1 of Part 20 of Division 2 of Title 2 of the Education Code, relating to education and workforce development.
Vote: majority Appropriation: no Fiscal committee: yes Local program: no
LEGISLATIVE COUNSEL’S DIGEST
Existing law establishes a system of elementary and secondary education in this state, under which school districts, county offices of education, charter schools, and state special schools provide instruction to pupils in kindergarten and grades 1 to 12, inclusive, at schoolsites throughout the state.
Existing law establishes the University of California, under the administration of the Regents of the University of California, the California State University, under the administration of the Trustees of the California State University, and the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as the public segments of postsecondary education in the state.
This bill, on or before July 1, 2028, would require the State Board of Education, in partnership with the State Department of Education, to establish a formal framework, to be known as the Vision for California Education, to serve as the primary guiding framework for education policy across the state’s elementary, secondary, and public postsecondary educational systems. The bill would require the vision to achieve specified goals, including, among other goals, establishing clear pathways that connect the state’s elementary, secondary, and public postsecondary educational systems and the workforce, as provided. The bill further would require the state board, on or before January 1, 2030, and every 2 years thereafter, to report to the Legislature on the progress made toward achieving the vision’s goals.
This bill would prohibit a franchisor from using any fee collected from a franchisee for a stated purpose, as specified, for anything other than the stated purpose and would require that such fees collected be segregated from the franchisor’s funds at all times. The bill would prohibit the amount allocated to administrative expenses or overhead from exceeding 10% of the amount collected for a fee for a stated purpose unless the franchisor discloses the exact amount or percentage to be allocated to administration or overhead, as prescribed. The bill would also require a franchisor to provide franchisees with an annual detailed accounting as to the amounts collected and their use and application for any fees for a stated purpose.
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature finds and declares all of the following:
(1) Since 2013, California has revolutionized school finance through the local control funding formula, prioritizing equity and local flexibility.
(2) Despite significant investments in universal transitional kindergarten, community schools, and expanded learning opportunities, the state’s educational initiatives often operate in functional silos, creating administrative burdens for local educational agencies and fragmented experiences for pupils.
(b) It is the intent of the Legislature to move toward a coherent, unified, and future-focused statewide vision that integrates the “whole child” approach from early childhood through early adulthood.
SEC. 2.
Article 4 (commencing with Section 33060) is added to Chapter 1 of Part 20 of Division 2 of Title 2 of the Education Code, to read:
Article 4. The Vision For California Education Act
The article shall be known, and may be cited, as the Vision for California Education Act.
For purposes of this article, the following definitions apply:
(a) “Campus” means a campus of the University of California, the California State University, or the California Community Colleges.
(b) “Local control and accountability plan” means a local control and accountability plan adopted or updated by the governing board or body of a local educational agency pursuant to Section 47606.5, 52060, or 52066.
(c) “Local educational agency” means a school district, county office of education, or charter school.
(d) “Public postsecondary educational system” means the University of California, the California State University, and the California Community College systems.
(e) “Pupil” means a youth enrolled at a school in any of grades 1 to 12, inclusive.
(f) “School” means a school maintained by a local educational agency.
(g) “Student” means a student enrolled at a campus.
(h) “Vision for California Education” or “vision” means the Vision for California Education established pursuant to Section 33062.
(a) On or before July 1, 2028, the state board, in partnership with the department, shall establish a formal framework, to be known as the Vision for California Education, to serve as the primary guiding framework for education policy across the state’s elementary, secondary, and public postsecondary educational systems.
(b) In developing the vision, the state board and the department shall consult with a broad coalition of entities, including, but not limited to, all of the following:
(1) Senior management from all three public postsecondary educational systems.
(2) Representatives from the California Workforce Development Board, local workforce development boards, and state employers.
(3) Certificated and classified school and campus employees.
(4) Parents, pupils, students, and community-based organizations.
(5) Experts in early childhood education and pupil and student mental health.
(c) The vision shall be established to achieve all of the following statewide goals:
(1) Establishing clear pathways that connect the state’s elementary, secondary, and public postsecondary educational systems and the workforce, ensuring pupils and students experience a seamless transition between these systems and the workforce.
(2) Identifying and recommending eliminating regulatory barriers that impede local innovation and experimentation.
(3) Recognizing and building on a pupil’s and student’s individual skills and qualities to cultivate their strengths and elevate their potentials.
(4) Aligning the requirements of local control and accountability plans with more recent initiatives, including the California Community Schools Framework and the Expanded Learning Opportunities Program, to ensure fiscal and programmatic coherence.
(5) Incorporating strategies to support the long-term well-being, recruitment, and retention of a teacher and educator workforce that reflects the state’s diversity.
(d) Upon establishing the vision, the state board shall review all existing state-level accountability metrics, including the California School Dashboard, to ensure these metrics align with the vision’s goals described in subdivision (c).
(e) The department shall provide technical assistance to local educational agencies to help align their local goals with the vision’s goals described in subdivision (c).
(f) (1) On or before January 1, 2030, and every two years thereafter, the state board shall submit a report to the Legislature on the progress made toward achieving the vision’s goals described in subdivision (c).
(2) A report submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
Section 20045 is added to the Business and Professions Code, to read:
20045.
(a) A franchisor is prohibited from using any fee collected from a franchisee for a stated purpose for anything other than the stated purpose. All such fees collected shall, at all times, be segregated from the franchisor’s other funds.
(b) If any part of a stated purpose for a fee is for administrative expenses or overhead of the franchisor, including related to the stated purpose, the franchisor shall disclose the exact amount or percentage to be allocated to administration or overhead. If no exact amount or percentage is disclosed, the amount allocated to administrative expenses or overhead shall not exceed 10 percent of the amount collected for the fee.
(c) The franchisor shall provide franchisees with an annual detailed accounting as to the amounts collected and their use and application for any fees for a stated purpose. Franchisees shall have the right to audit franchisor’s collection, use, and application of such fees not more than once every fiscal year.
(d) For purposes of this section, a “fee for a stated purpose” includes, but is not limited to, advertising funds, loyalty collections, and technology fees.