Bill Text: CA AB224 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Business.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 315, Statutes of 2009. [AB224 Detail]

Download: California-2009-AB224-Amended.html

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BILL NUMBER: AB 224	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 25, 2009
	AMENDED IN SENATE  AUGUST 17, 2009
	AMENDED IN SENATE  JUNE 2, 2009
	AMENDED IN ASSEMBLY  APRIL 14, 2009
	AMENDED IN ASSEMBLY  MARCH 25, 2009

INTRODUCED BY   Assembly Member Portantino

                        FEBRUARY 4, 2009

   An act to amend Section 9321 of the Commercial Code, relating to
business  , and declaring the urgency thereof, to take effect
immediately  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 224, as amended, Portantino. Business.
   Until January 1, 2010, existing law provides that a licensee in
ordinary course of business, as defined, takes its rights under a
nonexclusive license free of a security interest in the intangible
created by the licensor and takes its leasehold interest free of a
security interest in the goods created by the lessor, as specified.
   This bill would extend the operation of that provision to January
1,  2013   2011  . 
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: no. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 9321 of the Commercial Code, as amended by
Section 15 of Chapter 567 of the Statutes of 2006, is amended to
read:
   9321.  (a) In this section, "licensee in ordinary course of
business" means a person that becomes a licensee of a general
intangible in good faith, without knowledge that the license violates
the rights of another person in the general intangible, and in the
ordinary course from a person in the business of licensing general
intangibles of that kind. A person becomes a licensee in the ordinary
course if the license to the person comports with the usual or
customary practices in the kind of business in which the licensor is
engaged or with the licensor's own usual or customary practices.
   (b) A licensee in ordinary course of business takes its rights
under a nonexclusive license free of a security interest in the
general intangible created by the licensor, even if the security
interest is perfected and the licensee knows of its existence.
   (c) A lessee in ordinary course of business takes its leasehold
interest free of a security interest in the goods created by the
lessor, even if the security interest is perfected and the lessee
knows of its existence.
   (d) This section shall remain in effect only until January 1,
 2013   2011  , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1,  2013   2011  , deletes or
extends that date.
  SEC. 2.  Section 9321 of the Commercial Code, as amended by Section
16 of Chapter 567 of the Statutes of 2006, is amended to read:
   9321.  (a) A lessee in ordinary course of business takes its
leasehold interest free of a security interest in the goods created
by the lessor, even if the security interest is perfected and the
lessee knows of its existence.
   (b) This section shall become operative on January 1, 
2013.   2011. 
   SEC. 3.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to avoid the repeal of existing law that is necessary to
ensure economic stability and continuity for purposes of contract
interpretation, it is necessary that this act take effect
immediately.