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HomeCorporations CodeCh. 2§ 31407 Commissioner Violation Discontinuance Orders

§ 31407 Commissioner Violation Discontinuance Orders

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 31407 Commissioner Violation Discontinuance Orders

Key Takeaways

  • •If someone breaks the rules in business, the boss (commissioner) can tell them to stop right away.
  • •The boss must tell the person why they’re in trouble and give them a chance to explain before making the stop order final.
  • •If the person doesn’t ask for a meeting within 60 days, the stop order becomes final, and they must stop what they’re doing.
  • •If there’s a meeting, the boss listens and then decides if the stop order stays or goes.

Example

A store sells toys that are unsafe for kids, even though there’s a rule saying they can’t.

The boss (commissioner) can tell the store to stop selling those toys right away. The store gets a letter saying why it’s in trouble and can ask for a meeting to explain. If the store doesn’t ask for a meeting in 60 days, it has to stop selling the toys for good. If there’s a meeting, the boss listens and then decides if the store really has to stop.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 31407 Commissioner Violation Discontinuance Orders

(a) If, after examination or investigation, the commissioner has reasonable grounds to believe that any person is conducting or has conducted business in violation of any provision of this division or related rule or order binding upon it, the commissioner may, by written order addressed to the person, direct the discontinuance of the violation. The order shall be effective immediately, but shall not become final except in accordance with subdivision (b). (b) An order issued pursuant to this section shall not become final except after notice to the affected person of the commissioner’s intention to make the order final and of the reasons for the finding. The commissioner shall also notify the person that upon receiving a request the matter shall be set for hearing to commence within 15 business days after receipt of the request. The person may consent to have the hearing commence at a later date. If no hearing is requested within 60 days after the mailing or service of the required notice, and none is ordered by the commissioner, the order may become final without a hearing and that person shall immediately discontinue the practices named in the order. If a hearing is requested or ordered it shall be held in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all of the powers granted under that chapter. If, upon the conclusion of the hearing, it appears to the commissioner that the person is violating or has violated any provision of this division or any related rule or order binding upon it, the commissioner shall make the order of discontinuance final and the person shall immediately discontinue the practices named in the order. (Amended by Stats. 2022, Ch. 188, Sec. 6. (AB 2433) Effective January 1, 2023.)

Last verified: January 23, 2026

Key Terms

commissionerwritten orderdiscontinuance of the violationhearingfinal order

Related Statutes

  • § 25215 Hearing Rights For Orders
  • § 31117 Stop Order Hearing Procedure
  • § 31211 Commissioner Cease-And-Desist Orders
  • § 31402 Franchise Registration Enforcement Orders
  • § 25114 Qualification Validity Period

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 31407.
View Official Source