Art. XX, § 4
Franchise leasing cannot avoid liabilities
Limit
Taxes, Money & Commerce
Art. XX · Miscellaneous Subjects
Official text rightpowerlimitif conditionlegal term
The Legislature shall not pass any laws permitting the leasing or alienation of any franchise, so as to relieve the franchise or property held thereunder from the liabilities of the lessor or grantor, lessee, or grantee, contracted or incurred in the operation, use, or enjoyment of such franchise, or any of its privileges.
History: Sec. 4 renumbered from Sec. 7 on June 8, 1976, by Prop. 14. Res.Ch. 5, 1976.
Simplified explanation
The Legislature may not pass laws permitting the leasing or alienation of a franchise so as to relieve the franchise or property held under it from liabilities incurred in operating, using, or enjoying the franchise or its privileges.