Bill Text: CA SB12 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Vehicles: aerodynamic devices.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-28 - Chaptered by Secretary of State. Chapter 727, Statutes of 2012. [SB12 Detail]

Download: California-2011-SB12-Amended.html

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BILL NUMBER: SB 12	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 4, 2012

INTRODUCED BY   Senator Corbett
    (   Principal coauthor: 
 Senator   Alquist   )

    (   Coauthors:  
Senators   DeSaulnier,   
 Evans,     Hancock,
    Kehoe,  
  Liu,     Negrete
McLeod,     Pavley, 
   and Wolk   ) 

                        DECEMBER 6, 2010

    An act relating to education finance, and making an
appropriation therefor, to take effect immediately as an
appropriation for the usual current expenses of the state. 
 An act to amend Sections 22901, 22903, 22903.2, 22905, 22906,
22924, 24044.5, and 24045.5 of the Business and Professions Code, to
amend Section 485.010 of the Code of Civil Procedure, to amend
Section 2403 of, and to repeal Division 6 (commencing with Section
6101) of, the Commercial Cod   e, and to amend Section
2953.1 of the Revenue and Taxation Code, relating to bulk sales.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 12, as amended, Corbett.  Education finance: CalWORKs
stage 3 child care.   Bulk sales.  
   (1) Existing law, the Uniform Commercial Code--Bulk Sales, is a
comprehensive body of law regulating bulk sales, which are defined to
include a sale not in the ordinary course of the seller's business
of more than 1/2 the seller's inventory and equipment, as specified.
Existing law exempts from the bulk sales law, among other
transactions, a sale of assets with a value of less than $10,000, as
specified, or a value of more than $5,000,000 on the date of the bulk
sale agreement. Existing law imposes certain notice requirements on
a buyer of assets in a bulk sale, and provides that a buyer who fails
to comply with those notice requirements with respect to a claimant
is liable to the claimant for specified damages. Existing law
contains detailed provisions with respect to bulk sales involving
transfers through escrow and those involving consideration of less
than $2,000,000 where the consideration is substantially all cash or
an obligation of the transferee to pay cash in the future, or a
combination thereof.  
   This bill would repeal those provisions and make conforming
changes, including deleting references that would become obsolete
upon that repeal.  
   (2) Existing law, the Alcoholic Beverage Control Act, administered
by the Department of Alcoholic Beverage Control, regulates the
issuance of licenses for the manufacture, distribution, and sale of
alcoholic beverages. That act provides that it shall not be a
violation or grounds for disciplinary action for a licensee selling
alcoholic beverages to extend credit to a holder of an interim
operating permit issued to an applicant for a retail license, or a
transferee of any license who is a holder of a temporary permit
issued by the department, or to receive payment from those holders in
a manner not expressly authorized, unless the seller has knowledge
that the purchaser was operating under an interim operating license
or temporary permit, as may be established by specified evidence.
That evidence may include that the holder has recorded and published
notice pursuant to existing law governing bulk sales.  
   This bill would delete that notice from the types of evidence that
may establish knowledge regarding an interim operating permit or
temporary permit as described above.  
   (3) Existing law provides that no right to attach order or writ of
attachment may be issued pursuant to a specified ex parte procedure
unless it appears from facts shown by affidavit that great or
irreparable injury would result to the plaintiff if issuance were
delayed, as specified, including, but not limited to, showing that a
bulk sales notice has been recorded and published in accordance with
the existing law governing bulk sales.  
   This bill would delete reference to a bulk sales notice as a
satisfactory showing that great or irreparable injury would result
under that provision.  
   (4) Existing law provides that property that is assessed on the
unsecured roll may be seized by the tax collector prior to
delinquency without filing a declaration with the clerk of the county
board of supervisors under specified circumstances, including, but
not limited to, when the property has been advertised for sale
pursuant to existing law governing bulk sales.  
   This bill would delete that circumstance from the circumstances
authorizing seizure by the tax collector as described above. 

   Existing law requires that child care be provided in 3 stages to
recipients of benefits under the California Work Opportunity and
Responsibility to Kids (CalWORKs) program. The first stage of child
care begins upon the entry of a person into the CalWORKs program. The
2nd stage of child care begins when a county determines that the
work or approved work activity of the recipient is stable or when a
recipient is making the transition off of aid and child care is
available through a local stage 2 program. The 3rd stage of child
care, which is administered by programs contracting with the State
Department of Education, begins when a funded child care space
becomes available for the child or children of the eligible CalWORKs
recipient.  
   This bill would appropriate $250,000,000 from the General Fund,
for transfer by the Controller to Section A of the State School Fund,
for restoration of funding for CalWORKs stage 3 child care.
 
    The bill would declare that it makes an appropriation for the
usual current expenses of the state, thereby taking immediate effect.

   Vote: majority. Appropriation:  yes   no
 . Fiscal committee:  yes   no .
State-mandated local program: no.


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

   SECTION 1.    Section 22901 of the  
Business and Professions Code  is amended to read: 
   22901.  The following definitions apply for purposes of this
chapter:
   (a) "Act" means the Fair Practices of Equipment Manufacturers,
Distributors, Wholesalers, and Dealers Act. 
   (b) "Bulk sales law" means the Uniform Commercial Code-Bulk Sales
as contained in Division 6 (commencing with Section 6101) of the
Commercial Code.  
   (c) 
    (b)  "Claim" means a dealer's claim for reimbursement
from a supplier for labor and materials expended by the dealer to
meet the requirements of the supplier's warranty agreement with a
consumer of the supplier's products if the dealer has complied with
the supplier's then-existing written policies and procedures for
warranties and warranty claims. 
   (d) 
    (c)  "Current parts price" means, with respect to
current parts, the price for repair parts listed in the supplier's
price list or catalog in effect at the time the dealer contract is
canceled or discontinued or, for purposes of Section 22905, the price
list or catalog in effect at the time the repair parts were ordered.
"Current parts price" also means, with respect to superseded repair
parts, the price listed in the supplier's price list or catalog in
effect at the time the dealer contract is canceled or discontinued
for the part that performs the same function and purpose as the
superseded part, but is simply listed under a different part number.

   (e)
    (d)  "Current net parts cost" means the current parts
price less any trade or cash discounts typically given to the dealer
with respect to that dealer's normal, ordinary course of orders of
repair parts. "Current net parts cost" also means, with respect to a
warranty, the current parts price of the supplier for the equipment
repaired less any trade or cash discounts typically given to the
dealer with respect to that dealer's normal, ordinary course of
orders of repair parts. 
   (f) 
    (e)  "Dealer" means any person primarily engaged in the
retail sale of equipment as defined in subdivision (j). For the
purposes of this act, "dealer" does not include a "franchisee" as
defined in Section 331.1 of the Vehicle Code or a "new motor vehicle
dealer" as defined in Section 426 of the Vehicle Code. 
   (g) 
    (f)  "Dealer contract" means either an oral or written
contract, agreement, or arrangement for a definite or indefinite
period between a dealer and a supplier that provides for the rights
and obligations of the parties with respect to the purchase or sale
of equipment or repair parts. 
   (h) 
    (g)  "Dealership" means the retail sale business engaged
in by a dealer under a dealer contract. 
   (i) 
    (h)  "Demonstrator" means equipment in a dealer's
inventory that has not been sold, but has had its usage demonstrated
to potential customers, either without charge or pursuant to a
short-term rental agreement, with the intent of encouraging the
potential customer to purchase the equipment. 
   (j) 
    (i)  (1) "Equipment" means all-terrain vehicles and
other machinery, equipment, implements, or attachments used for, or
in connection with, any of the following purposes:
   (A) Lawn, garden, golf course, landscaping, or grounds
maintenance.
   (B) Planting, cultivating, irrigating, harvesting, and producing
agricultural or forestry products.
   (C) Raising, feeding, or tending to, or harvesting products from,
livestock and any other activity in connection with those activities.

   (D) Industrial, construction, maintenance, mining, or utility
activities or applications, including, but not limited to, material
handling equipment.
   (2) Self-propelled vehicles designed primarily for the
transportation of persons or property on a street or highway are
specifically excluded from the definition of equipment. 
   (k) 
    (j)  "Family member" means a spouse, parent, sibling,
child, son-in-law, daughter-in-law, and lineal descendant, including
those by adoption. 
   (  l  )
    (k)  "Good cause" means failure by a dealer to comply
with the requirements imposed on the dealer by the dealer contract,
if those requirements are not different from those requirements
imposed on other similarly situated dealers in this state. 
   (m) 
    (l)  "Index" means the United States Department of
Labor, Bureau of Labor Statistics purchase price index for
construction machinery series identification number pcu333120333120,
or any successor index measuring substantially similar information.

   (n) 
    (m)  "Inventory" means equipment, repair parts,
data-processing hardware or software, and specialized service or
repair parts. 
   (o) 
    (n)  "Major shareholder" means a shareholder with
51-percent or greater interest in a dealership. 
   (p) 
    (o)  "Manufacturer created incentive program" means a
program in which the dealer's inventory has not been sold but has
been used for specialized purposes, including, but not limited to,
harvest rental programs, dealer purchase rentals, and short-term
rentals. The warranty that is transferred to the consumer upon sale,
which shall be disclosed prior to sale, is the manufacturer-provided
base warranty, less hours and time used while in a manufacturer
created incentive program. 
   (q) 
    (p)  "Net equipment cost" means the price the dealer
actually paid to the supplier for equipment, plus (1) freight, at
truckload rates in effect as of the effective date of the termination
of a dealer contract, if freight was paid by the dealer from the
supplier's location to the dealer's location and (2) reimbursement
for labor incurred in preparing the equipment for retail sale or
rental, which labor will be reimbursed at the dealer's standard labor
rate charged by the dealer to its customers for nonwarranty repair
work; provided, however, if a supplier has established a reasonable
setup time, that labor will be reimbursed at an amount equal to the
reasonable setup time in effect as of the date of delivery multiplied
by the dealer's standard labor rate. 
   (r) 
    (q)  "Person" means an individual, corporation,
partnership, limited liability company, trust, or any and all other
forms of business entities, including any other entity in which a
person has a majority interest or of which a person has control, as
well as the individual officers, directors, and other persons in
active control of the activities of each entity. 
   (s) 
    (r)  "Repair parts" means all parts and products related
to the service or repair of equipment, including superseded parts.

   (t) 
    (s)  "Single-line dealer" means a dealer that has (1)
purchased construction, industrial, forestry, and mining equipment
from a single supplier constituting 75 percent of the dealer's new
equipment, calculated on the basis of net cost; and (2) a total
annual average sales volume in excess of forty million dollars
($40,000,000) for the three calendar years immediately preceding the
applicable determination date; provided, however, the sales threshold
shall be increased each year by an amount equal to the current sales
threshold multiplied by the percentage increase in the index from
January 1 of the immediately preceding year to January 1 of the
current year. 
   (u) 
    (t)  "Single-line supplier" means the supplier that is
selling the single-line dealer construction, industrial, forestry,
and mining equipment constituting 75 percent of the dealer's new
equipment. 
   (v) 
    (u)  "Supplier" means any person engaged in the business
of manufacturing, assembly, or wholesale distribution of equipment
or repair parts. "Supplier" also includes any successor in interest
to a supplier, including a purchaser of assets or stock, or a
surviving corporation resulting from a merger, liquidation, or
reorganization of a supplier. 
   (w) 
    (v)  "Terminate" means to terminate, cancel, fail to
renew, or materially change the competitive circumstances of a dealer
contract.
   SEC. 2.    Section 22903 of the   Business
and Professions Code   is amended to read: 
   22903.  (a) This section shall only apply to a dealer contract
between a dealer who is not a single-line dealer and a supplier who
is not a single-line supplier.
   (b) Except where there are grounds for termination of a dealer
contract pursuant to paragraph (1), (2), (3), (4), (5), (6), (7), or
(8) of subdivision (c), a supplier shall give a dealer 180 days
written notice of the supplier's intent to terminate a dealer
contract. The notice shall include all reasons constituting good
cause for the termination and shall provide the dealer with 60 days
to cure any claimed deficiency. If the deficiency is cured within 60
days to the satisfaction of the supplier, which shall be determined
in good faith, the notice of termination shall be void. Except as
provided in subdivision (d), a supplier may not terminate a dealer
contract based on paragraph (12) of subdivision (c) unless the
supplier gives the dealer notice of that action at least one year
before the effective date of that action. If the dealer achieves the
supplier's requirements for reasonable standards or performance
objectives before the expiration of the one-year notice period, the
notice shall be void and the dealer contract shall continue in full
force and effect.
   (c) No supplier, directly or through an officer, agent, or
employee, may terminate, cancel, fail to renew, or materially change
the competitive circumstances of a dealer contract without good
cause. In addition to the definition in subdivision  (l)
  (k)  of Section 22901, good cause exists whenever
the dealer has taken any of the following actions:
   (1) Transferred a controlling ownership interest in the dealership
without the consent of the supplier, who shall not withhold consent
unreasonably.
   (2) Made a material misrepresentation or falsification of any
record.
   (3) Filed a voluntary petition in bankruptcy or has had an
involuntary petition in bankruptcy filed against the dealer that has
not been dismissed within 60 days after the filing or is insolvent or
in receivership.
   (4) Pleaded guilty to or has been convicted of a felony involving
an act of moral turpitude.
   (5) Failed to operate in the normal course of business for seven
consecutive business days, without the consent of the supplier, or
has terminated the business.
   (6) Relocated or established a new or additional dealer's place of
business without the supplier's consent.
   (7) Materially defaulted under any chattel mortgage or other
security agreement between the dealer and the supplier, or there has
been a revocation of any guarantee of the dealer's present or future
obligations to the supplier. However, good cause does not exist if a
person revokes any guarantee in connection with or following the
transfer of that person's entire ownership interest in the dealer
unless the supplier requires that person to execute a new guarantee
of the dealer's present or future obligations in connection with that
transfer of ownership interest.
   (8) Failed to satisfy any payment obligation as it became due and
payable to the supplier, failed to promptly account to the supplier
for any proceeds from the sale of equipment, or failed to hold those
proceeds in trust for the benefit of the supplier.
   (9) Engaged in conduct that is injurious or detrimental to any of
the following:
   (A) The dealer's customers. This includes, but is not limited to,
the following conduct: excessive pricing, misleading advertising,
failure to provide service and replacement parts, and failure to
perform warranty obligations.
   (B) The public welfare.
   (C) The representation or reputation of the supplier's product.
   (10) Consistently failed to meet building and housekeeping
requirements, or failed to provide adequate sales, service, or parts
personnel commensurate with the dealer contract.
   (11) Consistently failed to comply with the applicable licensing
laws pertaining to the products and services being represented for
and on the supplier's behalf.
   (12) Consistently failed to meet and maintain the supplier's
requirements for reasonable standards and performance objectives, if
the supplier has given the dealer reasonable standards and
performance objectives that are based on the manufacturer's
experience in other comparable market areas.
   (d) Notwithstanding subdivision (c), if the sales, service,
rental, and repair of a supplier's product represents the lesser of
10 percent or three hundred fifty thousand dollars ($350,000) of the
dealer's total gross annual revenue that includes, but is not limited
to, the sales, service, rental, or repair, for each dealer location,
the supplier may terminate a dealer contract based on paragraph (12)
of subdivision (c) upon providing the dealer with notice of that
action at least 180 days before the effective date of that action. If
the dealer achieves the supplier's requirements for reasonable
standards or performance objectives within 60 days of receipt of the
termination notice, the notice shall be void and the dealer contract
shall continue in full force and effect.
   (e) Notwithstanding a dealer contract that provides for
exclusivity during the term of the contract, a supplier may begin
contract negotiations with a potential replacement dealer 60 days
prior to the expiration of the notice period that has been provided
pursuant to subdivisions (b) or (d) if the dealer failed to achieve
the supplier's requirements for reasonable standards or performance
objectives within 60 days of receipt of the termination notice.
Nothing in this subdivision shall authorize a replacement dealer to
conduct operations with a supplier during the term of a dealer
contract.
   SEC. 3.    Section 22903.2 of the   Business
and Professions Code  is amended to read: 
   22903.2.  (a) This section shall only apply to dealer contracts
between a single-line dealer and its single-line supplier.
   (b) No supplier may terminate a dealer contract without good
cause. In addition to the definition in subdivision  (l)
  (k)  of Section 22901, good cause exists whenever
any one of the following is applicable:
   (1) There has been a closeout or sale of 65 percent or more of the
dealer's assets related to the equipment business or there has been
a commencement of a dissolution or liquidation of the dealer.
   (2) The dealer has changed its principal place of business or
added additional locations without prior approval of the supplier,
which shall not be unreasonably withheld.
   (3) The dealer has materially defaulted under a chattel mortgage
or other security agreement between the dealer and the supplier, or
there has been a revocation or discontinuance of a guarantee of a
present or future obligation of the dealer to the supplier.
   (4) The dealer has failed to operate in the normal course of
business for seven consecutive days, without the consent of the
supplier, or has otherwise abandoned the business.
   (5) The dealer has pleaded guilty to or has been convicted of a
felony involving an act of moral turpitude.
   (6) The dealer has transferred an interest in the dealership, or a
person with a substantial interest in the ownership or control of
the dealership, including an individual, proprietor, partner or major
shareholder, has withdrawn from the dealership or died, or a
substantial reduction has occurred in the interest of a partner or
major shareholder in the dealership. However, good cause does not
exist if the supplier has consented to an action described in this
paragraph.
   (c) Except as otherwise provided in this subdivision, a supplier
shall provide a dealer with at least 90 days written notice of
termination. The notice shall state all reasons constituting good
cause for termination and shall state that the dealer has 60 days in
which to cure any claimed deficiency. If the deficiency is cured
within 60 days, the notice shall be void. Notwithstanding the
foregoing, if the good cause for termination is due to the dealer's
failure to meet or maintain the supplier's requirements for market
penetration, a reasonable period of time shall have existed where the
supplier has worked with the dealer to gain the desired market
share. The notice and right to cure provisions under this subdivision
shall not apply if the reason for termination is for any reason set
forth in subdivision (b).
   (d) If a dealer dies, a supplier shall have 90 days in which to
consider and make a determination on a request by a family member to
enter into a new dealer contract to operate the dealership. If the
supplier determines that the requesting family member is not
acceptable, the supplier shall provide the family member with a
written notice of its determination with the stated reasons for
rejection. This section does not entitle an heir, personal
representative, or family member to operate a dealership without
specific written consent of the supplier.
   (e) Notwithstanding subdivision (d), if a supplier and dealer have
previously executed an agreement concerning succession rights prior
to the dealer's death, and if that agreement is still in effect, the
agreement shall be observed even if it designated someone other than
the surviving spouse or heirs of the decedent as the successor.
   (f) For purposes of this section, dealer assets shall not include
land or buildings.
   SEC. 4.    Section 22905 of the   Business
and Professions Code   is amended to read: 
   22905.  Except as provided in subdivision (p), whenever a dealer
contract is terminated by cancellation or nonrenewal, the supplier
shall repurchase the inventory as provided in this section.
   (a) The supplier shall repurchase at its fair market value or
assume the lease responsibilities of any specific data-processing
hardware that the supplier required the dealer to purchase to satisfy
the minimum requirements of the dealer contract, including computer
systems equipment required and approved by the supplier to
communicate with the supplier. The fair market value of property
subject to repurchase shall be deemed to be equal to the acquisition
cost, including any shipping, handling and set-up fees, less straight
line depreciation of that acquisition cost over three years. If the
dealer purchased data-processing hardware or software that exceeded
the supplier's minimum requirements, the acquisition cost of that
data-processing hardware or software shall be deemed to be the
acquisition cost of hardware or software of similar quality that did
not exceed the minimum requirements of the supplier.
   (b) The supplier shall pay a sum equal to 100 percent of the net
equipment cost of all new, unsold, undamaged, and complete equipment.

   (c) The supplier shall pay a sum equal to 100 percent of the net
equipment cost of all unsold, undamaged demonstrators, less
depreciation due to usage of those demonstrators. The depreciation
adjustment shall be based on published industry rental rates to the
extent those rates are available. For purposes of this subdivision,
demonstrators, with hour meters that have less than 50 hours of use
shall be considered new, unsold equipment subject to repurchase under
this section.
   (d) The supplier shall pay a sum equal to 100 percent of the net
equipment cost of all unsold and undamaged equipment used in a
manufacturer created incentive program, as defined in subdivision
 (p)   (o)  of Section 22901, less
depreciation due to usage and bonus or volume incentive received by
the dealer for the equipment. The depreciation adjustment shall be
based on published industry rental rates to the extent these rates
are available. For purposes of this subdivision, equipment with hour
meters used in a manufacturer created incentive program with less
than 50 hours of use will be considered new, unsold equipment subject
to repurchase under this section.
   (e) The supplier shall pay a sum equal to 95 percent of the
current net parts costs on new, unsold, undamaged repair parts that
had previously been purchased from the supplier and held by the
dealer on the date that the dealer contract terminates or expires.
   (f) The supplier shall also pay the dealer 5 percent of the
current net parts cost on all new, unused, and undamaged repair parts
returned, to cover the cost of handling, packing, and loading of
those parts for return to the supplier. The dealer may allow the
supplier to perform the handling, packing, and loading of parts
instead of receiving the 5 percent payment for these services. When
the supplier is chosen to perform these services, the dealer shall
make available to the supplier, at the dealer's address or at the
places at which it is located, all equipment previously purchased by
the dealer.
   (g) The supplier shall pay a sum equal to 75 percent of the net
equipment cost, including shipping, handling and set-up fees, of all
specialized equipment or repair tools previously purchased pursuant
to requirements of the supplier prior to the date of the applicable
notification of termination or nonrenewal of the dealer contract. The
specialized equipment or repair tools must be unique to the supplier'
s product line and must be complete and in operating condition.
   (h) Upon the payment or allowance of credit to the dealer's
account of the sums required by this section, the title to all
inventory purchased shall pass to the supplier making payment, and
the supplier shall be entitled to the possession of the inventory.
All payments or allowances of credit due to dealers shall be paid or
credited within 90 days after receipt by the supplier of property
required to be repurchased. Any payments or allowances of credit due
to dealers that are not paid within the 90-day period will accrue
interest at the statutory rate. The supplier may withhold payments
due under this section during the period of time in which the dealer
fails to comply with its contractual obligations to remove any
signage indicating that the dealer is an authorized dealer of the
supplier.
   (i) The supplier and dealer shall each pay 50 percent of the costs
of freight to ship equipment to the nearest retail outlet or to ship
repair parts to the nearest supplier distribution center.
   (j) The provisions of this section shall not require the
repurchase from the dealer of any of the following:
   (1) Any repair part that is in a broken or damaged package.
However, the supplier shall be required to repurchase a repair part
in a broken or damaged package, for a repurchase price that is equal
to 85 percent of the current net parts cost for the repair part, if
the aggregate current price for the entire package of repair parts is
seventy-five dollars ($75) or higher.
   (2) Any repair part that, because of its condition, is not
resalable as a new part without reconditioning.
   (3) Any inventory for which the dealer is unable to furnish
evidence, satisfactory to the supplier, of clear title, free and
clear of all claims, liens and encumbrances.
   (4) Any inventory that the dealer desires to keep if the dealer
has a contractual right to do so.
   (5) Any equipment or repair parts that are not in new, unsold,
undamaged, complete condition; subject to the provisions of this act
relating to demonstrators.
   (6) Any equipment or repair parts acquired by the dealer from any
source other than the supplier unless that equipment or those repair
parts were ordered from, or invoiced to, the dealer by the supplier.
   (7) Any equipment or repair parts that are not returned to the
supplier within 90 days after the latter of (A) the effective date of
termination of a dealer contract or (B) the date the dealer receives
from the supplier all information, documents or supporting materials
required by the supplier to comply with the supplier's return
policy. However, this paragraph shall not be applicable to a dealer
if the supplier did not give the dealer notice of the 90-day deadline
at the time the applicable notice of termination was sent to the
dealer.
   (k) If any supplier fails or refuses to repurchase any inventory
covered under this section within 90 days after termination of a
dealer contract, the supplier shall be liable for the total amount of
110 percent of the current net equipment cost of the inventory, plus
any freight charges paid by the dealer, interest accrued at the
statutory rate from the date of shipment to the supplier until the
date of payment, 5 percent for handling, packing, and loading, and
actual costs for any court or arbitration proceedings, including
costs for attorney's fees and arbitrators.
   (l) Notwithstanding any provision to the contrary in the
Commercial Code, the dealer shall retain a first and prior lien
against all inventory returned by the dealer to the supplier under
this act until the dealer has paid all amounts owed by the supplier
for the repurchase of inventory required under this act.
   (m) This section shall not be construed to affect any security
interest that the supplier may have in the inventory of the dealer,
and any repurchase shall not be subject  to the provisions of
the bulk sales law or  to the claims of any secured or
unsecured creditors of the supplier or any assignee of the supplier
until such time as the dealer has received full payment or credit.
   (n) The dealer may not cancel a dealer contract to avoid a payment
obligation to the supplier for equipment or parts.
   (o) If a dealer has more than one business location covered by the
same dealer contract, the repurchase requirements of this section
shall apply only to the repurchase of a dealer's inventory obtained
from the supplier or the supplier's distributor by the particular
business location or locations involved in the dealer contract
termination and shall not apply to any other business locations
covered by the same contract.
   (p) If a supplier's product represents the lesser of 10 percent or
three hundred fifty thousand dollars ($350,000) of the dealer's
total gross annual revenue that includes, but is not limited to, the
sales, service, rental, or repair for each dealer location, then the
supplier shall repurchase the inventory only if a dealer contract is
canceled or not renewed by the dealer for any of the following
reasons:
   (1) The supplier consistently failed to provide adequate product
support for the type and use of the product, which includes, but is
not limited to, technical assistance, operators and repair manuals,
and parts lists and diagrams.
   (2) The supplier consistently failed to provide adequate training,
required by the supplier, for maintenance, repair, or usage of the
supplier's product.
   (3) The supplier consistently failed to provide marketing and
marketing support for the supplier's product if marketing is a
requirement of the dealer contract.
                                              (4) The supplier's
product is defective and breaches the implied warranty of
merchantability as defined in Section 1791.1 of the Civil Code.
   (5) The supplier consistently failed to meet its warranty
obligations to the dealer.
   (6) The supplier abandons the market thereby failing to provide
parts and services necessary for a dealer to perform warranty
obligations.
   (7) The supplier engaged in conduct that is injurious or
detrimental to the dealer's customers, the public welfare, or the
reputation of the dealer.
   (8) The supplier made a material misrepresentation or
falsification of any record.
   (9) The supplier violated any provision of this chapter.
   (q) Notwithstanding subdivision (p), nothing in this section shall
be construed to limit the supplier's responsibility to repurchase a
dealer's inventory as provided in this section when the supplier
cancels or fails to renew a dealer contract.
   SEC. 5.    Section 22906 of the   Business
and Professions Code   is amended to read: 
   22906.  (a)  A dealer, as defined in subdivision  (f)
  (e)  of Section 22901, is not entitled to
establish a lien pursuant to this act, unless that person has first
sent to the lien debtor a written notice, by certified mail, which
states all of the following:
   (1) The payment of the reasonable or agreed charges is more than
90 days overdue. This requirement does not apply to equipment subject
to repurchase that was returned to the supplier subsequent to return
of other equipment also subject to repurchase for which payment is
overdue.
   (2) The amount of reasonable or agreed charges that are overdue.
   (3) The lien debtor has the following three alternatives:
   (A) Allow the lien to be filed.
   (B) Enter into a consensual security interest in the proceeds,
pursuant to the Commercial Code.
   (C) Pay the reasonable or agreed charges that are overdue.
   (4) The lien debtor has 10 days from receipt of the notice to
select an alternative, notify the lien claimant of the alternative
selected, and satisfy all of the requirements of the selected
alternative. This part of the notice to the lien debtor shall be in
10-point type or bolder.
   (5) The lien claimant may file the notice of claim of lien
pursuant to this chapter at any time thereafter if the lien debtor
does not comply with the requirements of this section.
   (b)  A dealer who has complied with subdivision (a), has a lien
for payment of the repurchase amount payable pursuant to subdivisions
(b), (c), (d), (e), and (f) of Section 22905 and for the costs of
enforcing the lien.
   (c) The lien established pursuant to this chapter attaches to the
proceeds of any sale of the equipment returned for repurchase.
   (d) The amount of charges secured by the lien shall not exceed an
amount equal to the reasonable or agreed charges for the equipment
specified in Section 22905.
   SEC. 6.    Section 22924 of the   Business
and Professions Code   is amended to read: 
   22924.  (a) In the event of the death or incapacity of the dealer,
which in this context shall mean an owner, equal or majority
partner, or the majority stockholder of a corporation, operating as a
dealer, the supplier shall, at the option of the heirs at law, if
the dealer died intestate, or the executor under the terms of the
deceased dealer's last will and testament, if the dealer died
testate, repurchase the inventory from the estate as if the supplier
had terminated the dealer contract and the inventory repurchase
provisions of Section 22905 are applicable. The heirs or executor
shall have 180 days from the date of the death of the dealer or
majority stockholder to exercise the option under this section.
However, nothing in this section shall require the repurchase of
inventory, if the heirs or executor and the supplier enter into a new
dealer agreement, or if a successor to the dealer is established
pursuant to subdivision (b) of Section 22903.1. This section shall be
subject to that portion of the dealer contract pertaining to death
of the dealer or succession, to the extent the contract is not
inconsistent. Nothing in this section shall entitle an heir or
personal representative of a deceased dealer or majority stockholder
to operate the dealership beyond the 180 days provided for in this
subdivision without the consent of the supplier.
   (b) The provisions of this section shall be supplemental to any
agreement between the dealer and the supplier covering the return of
equipment, attachments, and repair parts. Notwithstanding anything
contained in this section, the rights of a supplier to charge back to
the dealer's account amounts previously paid or credited as a
discount incident to the dealer's purchase of inventory shall not be
affected.  Further, any repurchase shall not be subject to
the provisions of the bulk sales law. 
   SEC. 7.    Section 24044.5 of the   Business
and Professions Code   is amended to read: 
   24044.5.  (a) The department, in its discretion, may issue an
interim operating permit to an applicant for any license to operate
the premises during the period an application for a license at the
premises is pending and when all of the following conditions exist:
   (1) The application has been protested pursuant to Article 3
(commencing with Section 24011).
   (2) The department has made a determination based upon its
investigation that the license should be issued.
   (3) The applicant for the interim operating permit has filed with
the department an application for issuance of a license at the
premises to himself or herself.
   (4) The application for the interim operating permit is
accompanied by a fee of one hundred dollars ($100).
   (b) An interim operating permit issued by the department pursuant
to this section shall be for a period not to exceed 120 days. An
interim operating permit may be extended at the discretion of the
department for additional 120-day periods as necessary upon payment
of an additional fee of one hundred dollars ($100) and upon
compliance with all conditions required by this section. Any interim
operating permit issued by the department shall be automatically
canceled when a final determination made by the department regarding
the protests becomes effective or when the application for the
license is withdrawn, whichever occurs first. An interim operating
permit is a conditional permit and authorizes the holder to whom
issued to exercise the rights and privileges of the license for which
the application has been filed with the department. Any conditions
for which the applicant has petitioned pursuant to Article 1.5
(commencing with Section 23800) of Chapter 5 shall apply to any
interim operating permit issued by the department.
   (c) Purchase of beer and wine by the holder of an interim
operating permit issued to an applicant for a retail license shall be
made only upon payment before or at the time of delivery in currency
or by check. Purchase of distilled spirits by the holder of an
interim operating permit issued to an applicant for a retail license
shall be made only upon payment before or at the time of delivery in
currency or by certified check. However, the holder of an interim
operating permit issued to an applicant for a retail license, who
also holds one or more retail licenses and is operating under the
retail license or licenses in addition to the interim operating
permit, and who is not delinquent under the provisions of Section
25509 as to any retail license under which he or she operates, may
purchase alcoholic beverages on credit under the interim operating
permit.
   (d) All checks received by a seller for beer or wine purchased by
the holder of an interim operating permit issued to an applicant for
a retail license shall be deposited not later than the second
business day following the date the beer or wine is delivered.
   A check dishonored on presentation shall not be deemed payment.
The receipt by the seller or his or her agent in good faith from a
holder of an interim operating permit of a check dishonored on
presentation shall not be cause for disciplinary action against the
seller.
   (e) Issuance of the license for which the holder of an interim
operating permit issued to an applicant for a retail license has
filed an application shall not be approved by the department until
the holder of the interim operating permit has filed with the
department a statement executed under penalty of perjury that all
current obligations have been discharged, and that all outstanding
checks issued by him or her in payment for alcoholic beverages will
be honored on presentation.
   (f) It shall not be a violation of this section or grounds for
disciplinary action for any licensee to extend credit to the holder
of an interim operating permit issued to an applicant for a retail
license or to receive payment from the holder of an interim operating
permit in a manner other than authorized herein unless the seller
has knowledge of the fact that the purchaser was operating under an
interim operating permit. Knowledge of the fact may be established by
evidence, including, but not limited to, evidence that, at the time
of receipt of payment or the extension of credit, the premises
operated under an interim operating permit were posted with the
notice required by Section 23985, or the holder of the interim
operating permit has recorded notice as required by Section 24073, or
the holder of the interim operating permit has published notice as
required by Section 23986  , or the holder of the interim
operating permit has recorded and published notice pursuant to
Division 6 (commencing with Section 6101) of the Commercial Code
 .
   (g) Refusal by the department to issue or extend an interim
operating permit shall not entitle the applicant to petition for the
permit pursuant to Section 24011, or to a hearing pursuant to Section
24012. Articles 2 (commencing with Section 23985) and 3 (commencing
with Section 24011) shall not apply to interim operating permits.
   (h) Notwithstanding any other provision of law, the department
may, in its discretion, cancel or suspend summarily at any time an
interim operating permit if the department determines that good cause
for the cancellation or suspension exists. Chapter 8 (commencing
with Section 24300) shall not apply to interim operating permits.
   (i) Application for an interim operating permit shall be on any
form the department shall prescribe. If an application for an interim
operating permit is withdrawn before issuance or is refused by the
department, the fee that accompanied the application shall be
refunded in full, and Section 23959 shall not apply. Fees received by
the department for issuance of interim operating permits shall be
deposited in the Alcohol Beverage Control Fund as provided in Section
25761.
   SEC. 8.    Section 24045.5 of the   Business
and Professions Code   is amended to read: 
   24045.5.  The department in its discretion may issue a temporary
permit to the transferee of any license to continue the operation of
the premises during the period a transfer application for the license
from person to person at the same premises is pending and when all
the following conditions exist:
   (a) The premises shall have been operated under a license within
30 days of the date of filing the application for a temporary permit.

   (b) The license for the premises shall have been surrendered
pursuant to rules of the department.
   (c) The applicant for the temporary permit shall have filed with
the department an application for transfer of the license at the
premises to himself or herself.
   (d) The application for the temporary permit shall be accompanied
by a temporary permit fee of one hundred dollars ($100).
   A temporary permit issued by the department pursuant to this
section shall be for a period not to exceed four calendar months. A
temporary permit may be extended at the discretion of the department
for an additional four calendar months upon payment of an additional
fee of one hundred dollars ($100) and upon compliance with all
conditions required herein. A temporary permit is a conditional
permit and authorizes the holder thereof to sell the alcoholic
beverages as would be permitted to be sold under the privileges of
the license for which the transfer application has been filed with
the department.
   Purchase of beer, wine, and distilled spirits by the holder of a
temporary permit shall be made only upon payment before or at the
time of delivery in currency or by check. However, the holder of a
temporary retail permit who also holds one or more retail licenses
and is operating under the retail license or licenses in addition to
the temporary permit, and who is not delinquent under the provisions
of Section 25509 as to any retail license under which he or she
operates, may purchase alcoholic beverages on credit under the
temporary permit.
   All checks received by a seller for alcoholic beverages purchased
by the holder of a temporary retail permit shall be deposited not
later than the second business day following the date the alcoholic
beverages are delivered.
   A check dishonored on presentation shall not be deemed payment.
The receipt by the seller or his or her agent in good faith from a
holder of a temporary permit of a check dishonored on presentation
shall not be cause for disciplinary action against the seller.
   Transfer of the license for which the holder of a temporary permit
has filed an application shall not be approved by the department
until the holder of the temporary permit has filed with the
department a statement executed under penalty of perjury that all
current obligations have been discharged, and that all outstanding
checks issued by him or her in payment for alcoholic beverages will
be honored on presentation.
   It shall not be a violation of this section or otherwise grounds
for disciplinary action for any licensee to extend credit to the
holder of a temporary permit or to receive payment from the permittee
in a manner other than authorized herein unless the seller had
knowledge of the fact that the purchaser was operating under a
temporary permit. Knowledge of the fact may be established by
evidence, including, but not limited to, evidence that, at the time
of receipt of payment or the extension of credit, the premises
operated under a temporary permit were posted with the notice
required by Section 23985, or the holder of the temporary permit had
recorded notice as required by Section 24073, or the holder of the
temporary permit had published notice as required by Section 23986
 , or the holder of the temporary permit had recorded and
published notice pursuant to Division 6 (commencing with Section
6101) of the Commercial Code  .
   Refusal by the department to issue or extend a temporary permit
shall not entitle the applicant to petition for the permit pursuant
to Section 24011, or to a hearing pursuant to Section 24012. Articles
2 (commencing with Section 23985) and 3 (commencing with Section
24011) shall not apply to temporary permits.
   Notwithstanding any other provision of law, a temporary permit may
be canceled or suspended summarily at anytime if the department
determines that good cause for the cancellation or suspension exists.
Chapter 8 (commencing with Section 24300) shall not apply to
temporary permits.
   Application for a temporary permit shall be on any form the
department shall prescribe. If an application for a temporary permit
is withdrawn before issuance or is refused by the department, the fee
which accompanied the application shall be refunded in full, and
Section 23959 shall not apply. Fees received by the department for
issuance of temporary permits shall be deposited in the Alcohol
Beverage Control Fund as provided in Section 25761.
   SEC. 9.    Section 485.010 of the   Code of
Civil Procedure   is amended to read: 
   485.010.  (a) Except as otherwise provided by statute, no right to
attach order or writ of attachment may be issued pursuant to this
chapter unless it appears from facts shown by affidavit that great or
irreparable injury would result to the plaintiff if issuance of the
order were delayed until the matter could be heard on notice.
   (b) The requirement of subdivision (a) is satisfied if any of the
following are shown:
   (1) Under the circumstances of the case, it may be inferred that
there is a danger that the property sought to be attached would be
concealed, substantially impaired in value, or otherwise made
unavailable to levy if issuance of the order were delayed until the
matter could be heard on notice.
   (2) Under the circumstances of the case, it may be inferred that
the defendant has failed to pay the debt underlying the requested
attachment and the defendant is insolvent in the sense that the
defendant is generally not paying his or her debts as those debts
become due, unless the debts are subject to a bona fide dispute.
Plaintiff's affidavit filed in support of the ex parte attachment
shall state, in addition to the requirements of Section 485.530, the
known undisputed debts of the defendant, that the debts are not
subject to bona fide dispute, and the basis for plaintiff's
determination that the defendant's debts are undisputed. 
   (3) A bulk sales notice has been recorded and published pursuant
to Division 6 (commencing with Section 6101) of the Commercial Code
with respect to a bulk transfer by the defendant.  
   (4) 
    (3)  An escrow has been opened pursuant to the
provisions of Section 24074 of the Business and Professions Code with
respect to the sale by the defendant of a liquor license. 
   (5) 
    (4)  Any other circumstance showing that great or
irreparable injury would result to the plaintiff if issuance of the
order were delayed until the matter could be heard on notice.
   (c) Upon a writ being issued solely on a showing under paragraph
(2) of subdivision (b), if the defendant requests the court to review
the issuance of the writ, the court shall conduct a hearing within
five court days after the plaintiff is served with notice of the
defendant's request.  A writ issued solely on a showing under
paragraph (3) of subdivision (b) shall be limited to the property
covered by the bulk sales notice or the proceeds of the sale of such
property. In addition to any other service required by this title,
such writ shall be served by the levying officer on the transferee or
auctioneer identified by the bulk sales notice not more than five
days after the levy of such writ.  A writ issued solely on a
showing under paragraph  (4)   (3)  of
subdivision (b) shall be limited to the plaintiff's pro rata share of
the proceeds of the sale in escrow.
   SEC. 10.    Section 2403 of the   Commercial
Code   is amended to read: 
   2403.  (1) A purchaser of goods acquires all title which his
transferor had or had power to transfer except that a purchaser of a
limited interest acquires rights only to the extent of the interest
purchased. A person with voidable title has power to transfer a good
title to a good faith purchaser for value. When goods have been
delivered under a transaction of purchase the purchaser has such
power even though
   (a) The transferor was deceived as to the identity of the
purchaser, or
   (b) The delivery was in exchange for a check which is later
dishonored, or
   (c) It was agreed that the transaction was to be a "cash sale," or

   (d) The delivery was procured through fraud punishable as
larcenous under the criminal law.
   (2) Any entrusting of possession of goods to a merchant who deals
in goods of that kind gives him power to transfer all rights of the
entruster to a buyer in ordinary course of business.
   (3) "Entrusting" includes any delivery and any acquiescence in
retention of possession for the purpose of sale, obtaining offers to
purchase, locating a buyer, or the like; regardless of any condition
expressed between the parties to the delivery or acquiescence and
regardless of whether the procurement of the entrusting or the
possessor's disposition of the goods have been such as to be
larcenous under the criminal law.
   (4) The rights of other purchasers of goods and of lien creditors
are governed by the divisions on secured transactions (Division 9)
 , bulk transfers (Division 6)  and documents of
title (Division 7).
   SEC. 11.    Division 6 (commencing with Section 6101)
of the   Commercial Code   is repealed. 
   SEC. 12.    Section 2953.1 of the   Revenue
and Taxation Code   is amended to read: 
   2953.1.  Notwithstanding the provisions of Section 2953, any
property  which  that  is assessed on the
unsecured roll and  is advertised for sale pursuant to
Sections 6101 to 6111, inclusive, of the Uniform Commercial Code, or
which  is advertised to be sold at public auction, or
 which   that  has been seized for prior
year's delinquent taxes  ,  may be seized by the tax
collector prior to delinquency without filing a declaration with the
clerk of the board of supervisors. 
  SECTION 1.    The sum of two hundred fifty million
dollars ($250,000,000) is appropriated on a one-time basis from the
General Fund, for transfer by the Controller to Section A of the
State School Fund, for restoration of funding of Item 6110-196-0001
of Section 2.00 of the Budget Act of 2010 (Ch. 712, Stats. 2010), as
follows:
   (1.5) 30.10.020---Child Care Services
   (f) 30.10.020.012---Special Program, Child Development,
Alternative Payment Program---Stage 3 Setaside  
  SEC. 2.    This act makes an appropriation for the
usual current expenses of the state within the meaning of Article IV
of the Constitution and shall go into immediate effect.