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Thank you for your question. Please permit me to assist you with your concerns.The state agencies have the right to supervise any and all commercial activity that takes place within the state. In California, the Business and Professions Code set forth the guidelines under which most manner of commercial activity can take place. And if any violations do take place, the Attorney General's Office can potentially pursue fines or even charges against the offending entity, even if it is not incorporated. For example if a sole proprietorship attempts to sell items in the state that are banned or controlled, the state can pursue fines or charges against that business for such a violation.Good luck.