Section 2604.06 - When Negotiating Permits Are AppropriateNegotiating permits are appropriate under the following circumstances:
A.Applicant desires to approach the governing body of another entity concerning a proposal which, if duly adopted by the parties, will require the commissioner's (definitive) permit in order lawfully to effectuate the same.B.Applicant has in another state reached an agreement or tentative agreement with the governing body of another entity as to the terms of such a proposal and desires to present the same to California stockholders by mail, or otherwise, for their votes thereon.C.Applicant for any legitimate reason needs to negotiate concerning the terms and conditions of a proposal the consummation of which, if agreed upon, will require a definitive permit; or needs to submit a definitive proposal to a vote of stockholders or members preliminary to the action for which a definitive permit will be needed.Cal. Code Regs. Tit. 10, § 2604.06