Bill Text: CA SB6 | 2013-2014 | 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) 2013-07-03 - Chaptered by Secretary of State. Chapter 54, Statutes of 2013. [SB6 Detail]

Download: California-2013-SB6-Amended.html

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BILL NUMBER: SB 6	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 15, 2013

INTRODUCED BY   Senator Lieu

                        DECEMBER 3, 2012

   An act to amend  and repeal   , 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, as amended, Lieu. Business. 
   Until January 1, 2013, existing 
    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 general
intangible created by the licensor, as specified.  
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  indefinitely extend the operation of that
provision and further provide that a person does not become a
licensee of intellectual property in the ordinary course if the
transaction involves meaningful negotiation of material terms of the
license   , 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.
   Vote: 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.  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, and also to
enhance, 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, 
2013   2015  . 
  SEC. 2.    Section 9321 of the Commercial Code, as
amended by Section 1 of Chapter 315 of the Statutes of 2009, is
amended to read:
   9321.  
   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.
 A person does not become a licensee of intellectual property
in the ordinary course if the transaction involves meaningful
negotiation of material terms of the license. 
   (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. 3.    Section 9321 of the Commercial Code, as
amended by Section 2 of Chapter 315 of the Statutes of 2009, is
repealed. 
  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, and to enhance, existing law
relating to a licensee in ordinary course of business  that
  to  ensure economic stability and continuity for
purposes of contract interpretation, it is necessary that this act
take effect immediately.