Bill Text: CA SB6 | 2013-2014 | Regular Session | Chaptered

---

Bill Title: Business.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-07-03 - Chaptered by Secretary of State. Chapter 54, Statutes of 2013. [SB6 Detail]

Download: California-2013-SB6-Chaptered.html

---

BILL NUMBER: SB 6	CHAPTERED
	BILL TEXT

	CHAPTER  54
	FILED WITH SECRETARY OF STATE  JULY 3, 2013
	APPROVED BY GOVERNOR  JULY 3, 2013
	PASSED THE SENATE  APRIL 11, 2013
	PASSED THE ASSEMBLY  JUNE 24, 2013
	AMENDED IN SENATE  APRIL 8, 2013
	AMENDED IN SENATE  JANUARY 15, 2013

INTRODUCED BY   Senator Lieu

                        DECEMBER 3, 2012

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



	LEGISLATIVE COUNSEL'S DIGEST


   SB 6, Lieu. Business.
   Existing law provides that 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.
   This bill would, until January 1, 2015, also provide that 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. This bill would,
notwithstanding any other law, make its provisions operative on
January 1, 2013, and state the Legislature's intent in this regard.
   This bill would declare that it is to take effect immediately as
an urgency statute.


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

  SECTION 1.  To ensure economic stability and continuity for
purposes of contract interpretation, it is the intent of the
Legislature to negate the repeal on January 1, 2013, of existing
provisions within Section 9321 of the Commercial Code relating to a
licensee in ordinary course of business.
  SEC. 2.  Section 9321 of the Commercial Code 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, 2015.
  SEC. 3.  Section 9321 is added to the Commercial Code, 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,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
  SEC. 4.  Notwithstanding the operative date set forth in Section 2
of Chapter 315 of the Statutes of 2009, Section 9609 of the
Government Code, or any other provision of law, Sections 2 and 3 of
this bill are operative commencing on January 1, 2013.
  SEC. 5.  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 negate the repeal of existing law relating to a
licensee in ordinary course of business to ensure economic stability
and continuity for purposes of contract interpretation, it is
necessary that this act take effect immediately.